Corporate Banking

Personal Accounts
and Plastic Cards
In 2006, ROSBANK also focused on retail
business line represented by personal accounts
and plastic cards. The total number of retail
customers who had chosen ROSBANK as their
bank exceeded 5 million individuals, which
represents 70% growth year on year. The Bank has
opened accounts to 1.1 million clients, with
almost 50% of them using ROSBANK plastic cards.
The majority of personal accounts are opened
under payroll payment options offered to employers.
These projects reflect a high level of confidence
in the Bank and offer the opportunity for
selling the full range of banking services to new
customers.
In 2006, retail customers increased consumption
of remote account management services
through Internet-Bank and SMS-Bank products.
ROSBANK is gradually expanding its range of
remote services available through these two
systems. At present, remote account management
includes access to account statements, payment
of bills, and transfers between accounts, as well as
information support and a variety of related
services.
Money Transfers
ROSBANK also offers traditional banking
services, such as money transfers. Remittances can
be made from an account in ROSBANK or in cash
(without opening an account). Strategic partners
of the Bank include MoneyGram and ALLURE
money transfer systems.
Retail Loans
The retail loan portfolio grew 47.5% year on
year to RUR 76.6 billion as of December 31, 2006
(2005 – RUR 52.0 billion). In 2006, the Bank issued
in total over 1.5 million loans.
The retail loan portfolio is dominated by car
loans (RUR 37.1 billion, 48.4% of total loans) and
consumer loans (RUR 15.3 billion, 20% of total
loans). The proportion of general purpose loans
increased to 20.5%, or RUR 15.7 billion. The
amount of mortgage loans exceeded RUR 5
billion, growing 8.3 times year on year. The ratio of
mortgage loans to total retail loans issued by the
Bank increased from 1.2% in 2005 to 7% at the end
of 2006.
In 2006, the Bank focused on secured lending,
mainly car and mortgage loans.
Car Loans
ROSBANK maintains its leadership in the car
loan market: in 2006, its car loan portfolio increased
by 54% to RUR 37 billion. In 2006, ROS-
BANK extended 92,800 car loans worth RUR 28.3
billion. At December 31, 2006, the total number of
outstanding loans exceeded 167,800, or up 36%
year on year.
In 2006, ROSBANK focused on further development
of its car loan products. Major developments
include the launch of products with zero
downpayment, discontinued the practice of
mandatory life insurance for borrowers, the option
to select the amount and dates of monthly
payments offered to borrowers, and the extension
of the maximum age limit for used cars purchsed
with Bank loans. During the year, the Bank participated
in joint campaigns with its car dealer
partners (Avtomir, Elex-Polus, Incom-Auto) to offer
the most attractive loan terms in various car
market segments.
Mortgage Loans
The Bank is actively expanding its mortgage
loan business and had a major breakthrough in
this market in 2006. After the launch of regional
mortgage programs, the mortgage loan portfolio
of the Bank increased more than 8-fold to RUR 5.4
billion. In 2006, loans to buy new homes being
under construction contributed 53% of the total
portfolio, while regular mortgages accounted for
the remaining 47%. The currency structure of the
loan book provides for 37% of loans in Rubles and
63% in US Dollars.
As of December 31, 2006, mortgage programs
were offered in 66 major Russian cities. In 2006,
regional branches contributed 40% of the total
mortgage loans issued.
In 2006, ROSBANK reduced interest rates for
ruble-denominated loans issued under the
mortgage lending program. Currently, the minimum
interest rate offered by ROSBANK for
traditional mortgage loans is 13% p.a. (down from
15%). The amount of downpayment for such loans
was cut down to 10% of the deal price.
In 2006, the Bank launched several new
programs, including the Home Loan (“Ipotechniy
Lombard”) with downpayment financing provided
by the Bank and secured by existing real estate
property of a borrower, and an interregional
program whereby a borrower can obtain a loan for
the purchase of housing in a different city.
In 2006, ROSBANK invested considerable effort
to develop its mortgage loan business, extend the
range of banking and related services and access
new client groups. This work included a number
of partnership agreements with major developers,
insurance companies, and realtors.
Retail Loans in 2006, RUR mln
Car Loans in 2006, RUR mln
Mortgage Loans in 2006, RUR mln
51 967
57 866
65 405
71 627 76 633
24 091 27 490 32 258 35 385
37 084
647
1 045
2 141
3 736
5 361
01.01.06 01.04.06 01.07.06 01.10.06 01.01.07
01.01.06 01.04.06 01.07.06 01.10.06 01.01.07
01.01.06 01.04.06 01.07.06 01.10.06 01.01.07
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