Dmitry Leus: I see great potential in the revival of small and medium-sized businesses 3

As stated earlier, when a financial institution concentrates on a few core products, it is already taking an important risk. We have therefore taken the decision to enlarge our product line to include lending offerings for SMBs in the Russian regions, in addition to corporate lending.

- What motivated your decision to develop SMB lending?

- Dmitry Isaakovich Leus: First and foremost, we came to the conclusion that our financial positions would allow such an undertaking. Secondly, we already had in-depth knowledge of this market and had the feeling that we understood our future customers well. In addition, the platform was already in place – a professional team, our prior expertise, functioning IT solutions, in addition to regional presence.

- Which are the most popular products your bank offers for SMBs? Are there any joint programs?

- Dmitry Leus: Our lending solutions for SMBs do not exceed RUB 3m - with a minimal amount of RUB 30k and durations not exceeding 3 years. Interest rates are calculated on a case-by-case basis reflecting the client’s financial indicators, with a minimal interest rate of 15% p.a. For seasonal businesses, we may even provide for individual repayment schedules.

To qualify for a loan, a company must have been on the market for over a year, and state participation should not exceed 25%. Also, the company’s headcount should not be over 250 people. The company must have met all its tax and social obligations. On the other hand, we do not have any preference with regard to the nature of the business and are prepared to deal with companies operating in such various sectors as shops, restaurants, hotels, software firms, building companies, and car service stations. In short, everyone is welcome.

When making the credit decision, we analyze a company’s business plan, its financial situation, in addition to its credit history with other banks, etc. The company should have sound financials and be profitable.

We stimulate entrepreneurs to engage in joint ventures and are prepared to gain a deep understanding of their core activities. Bank  has an individual approach to every borrower. We are interested in long-term partnerships with our corporate clients. Hence we invite them to transfer their working capital to the bank. This allows the bank to easily analyze its clients’ financial condition and provides our clients with the opportunity to deepen collaboration through more favorable conditions and interest rates.

We practically do not take account-keeping commissions and, where we do, such commissions are in stark disproportion to the liquidity provided. Rather, having our clients’ account with us enables us to better understand their operating activities, thereby increasing transparency. Based on my experience, I can say that most clients remain faithful to us event long after the loan has been returned. It means that we have finally gained their trust. They know that they have earned their right for future preferential treatment. In addition, we know the management team of such companies, their market standing, and many other details.

- Over the last year, Bank  has significantly increased its presence in the Russian regions. What dictated such a move? Is it the smaller amount of initial capital investments, the lower level of competition with other financial market players, or a heightened focus on the revival of SMBs in the Russian regions?

- Dmitry Leus: This choice was determined by a whole range of factors. First of all, corporate borrowers in the regions are much more disciplined – their default rate is below 1 percent. Secondly, in opposition to the capital, the regional credit market is not overheated. There is a lack of financial institutions in small Russian towns, and clients are far more attentive to new opportunities. Our regional network counts over 70 branches, with a rising tendency. Our strategy in this regard is very simple: we open a branch, take it to its break-even point, and then we open a new one. Finally, with regard to organizational issues, it is easier to set up a new business in the Russian regions. Our managers have the opportunity to visit their customers, evaluate their businesses, and establish a personal relationship.

In the long run, I see great potential in the revival of small and medium-sized businesses in the Russian regions.

Dmitry Leus: I see great potential in the revival of small and medium-sized businesses

- This is open for debate. The crisis has also shown that repayment shortfalls have only slowly increased in the segment of consumer lending. At the same time, corporate creditors have had recourse to several tricks such as automatic roll-overs in order to hide away their repayment difficulties.

- Dmitry Leus: I agree with your observation. Every credit decision happens against the background of a bank’s financial risk management.

Bank  disposes of a strict system for financial risk modelling. Every day, we receive approximately 2500 new credit requests from private individuals. Among all these requests, only about 18% receive final credit approval. In addition, repayment shortfalls of up to 60 days are addressed by our debt collection services. The latter’s collection strategy is continuously being adapted to prevailing market conditions. For example, there existed a period when we completely stopped lending to individuals under the age of 25, as we observed a specific age-related difficulty when it came to repayment discipline.

Furthermore, our analysts are monitoring Bank ’s credit portfolio on an ongoing basis. We provide RUB 1bn of finance to the Russian population every month, which constitutes a relatively small amount. On the other hand, it is just enough to subject our credit portfolio to a thorough analysis and take ad-hoc decisions when needed. In light of Bank ’s 70 branches across Russia, I may add that working in the Russian regions has proven easier than in the capital, as loan repayment rates have historically been higher in the periphery. In total, our current private-loan default rate amounts to only 6 percent.

In contrast, in the realm of small and mid-size businesses we have so far practically not seen any arrears at all, which may be due to the fact that we have just entered this market. Thanks to our cautious approach to risk, I am convinced that our default rate in this segment will be even lower than during our private lending activities.

Let us not forget that consumer lending in general is a mass market that is dominated by standardized processes. SMB lending, on the other hand, allows for an individual approach which takes into consideration the multitude of layers of a credit request. Thus, prior to being forwarded to our centralized Credit Committee in Moscow, every corporate credit submission is carefully prepared in one of Bank ’s regional branches. For example, our regional credit specialists conduct site visits during which they value the respective company’s market standing, monitor contractual partners, and go through a potential client’s consolidated financial statements. Such an in-depth approach enables us to select the top tier out of 10 applications.

- Your bank has been in existence on the Russian market since 1993. This is an important period in the relatively young Russian banking sector. Bank  has lived through more than one crisis. Based on your experience, which should be the strategy of today’s commercial banks in Russia?

- Dmitry Leus: The survival strategy for niche commercial banks in contemporary Russia with its economic uncertainties consists in sound risk management.

From a business perspective, the secret of success for weathering any crisis consists in the strong will of the bank’s owners and stakeholders to preserve and develop their business. The first thing which is being taught in business administration courses is the theory of economic choice – that is, the choice one must make when faced with two or more alternative uses of a resource. Crisis economics simply dramatizes this basic economic choice.

The banking industry today presents higher risks than other economic sectors. To take these risks is the choice of every shareholder and manager. I arrive at work before 8 am and leave the bank after 8 pm. This is the only way to work in order to achieve good results. The banking industry consists of a multitude of little things hardly recognizable to outsiders. However, taken together they critically impact the bank’s financial results. Every aspect of the business must receive its due attention, starting with administrative tasks and ending with the closure of big transactions. There are a million of details which may escape the attention of the bank’s managing director. A permanently heightened state of alert should therefore become the responsible banker’s second nature. In my opinion, a bank controlled and managed by its owners is the best guarantee of success.

In addition, the right risk management does not consist in doing the maths and then ticking the box. Rather, it consists in picking up the faint signal of today that will become tomorrow’s big challenge – a practice the Austrian economist and management consultant Peter Drucker has called the anticipation of a future that has already happened. Risks are present in every form of business. However, some risks are balanced by reasonable rewards, others are not. The essence of entrepreneurship consists in getting this balance right.

Особенности деятельности коммерческих банков до начала I мировой войны. Дмитрий Исаакович Леус.

ЛеусДмитрий: банки – одно из центральных звеньев системы рыночных структур.Они являются кредитными организациями, имеющими исключительное право осуществлять в совокупности следующие банковские операции: привлечение во вклады денежных средств физических и юридических лиц, размещение указанных средств от своего имени и за свой счет на условиях возвратности, платности, срочности, открытии и ведении банковских счетов юридических и физических лиц.

ЛеусДмитрий Исаакович: основное назначение банка это посредничество в перемещении денежных средств от кредиторов к заемщиками и от продавцов к покупателям. Развитие их деятельности – необходимое условие реального создания рыночного механизма. Устойчивость банков существенным образом влияем на эффективность экономики страны.

Дмитрий Леус – Банковское дело возникло и развивалось на базе капитала, приносящего проценты. Еще при разложении первобытно общинного слоя использовался ростовщический капитал. Богатеющие представители верхушки власти давали средства в займы. Развитие ростовщического капитала и положило начало банковскому делу. 

Дмитрий Исаакович Леус: «Развитие» Часть 6

Часть 5

— ДмитрийИсаакович Вы увеличиваете капитал. За счет чего?

— За счет прибыли и допэмиссии акций.

— Допэмиссию выкупают нынешние акционеры?

— Да.

— Вы сейчас размещаете облигационный заем. Кто покупатели, какова доходность?

— В принципе, есть понимание, кто эти облигации купит, андеррайтер у нас довольно известный. Даже если вдруг по каким-то причинам рынок эти бумаги не возьмет, часть выпуска возьмет на себя наш андеррайтер, часть — наши партнеры. Привлеченные деньги пойдут на финансирование тех продуктов, которые мы сейчас рекламируем. Про доходность пока говорить преждевременно.

— В сентябре вы удивили наблюдателей аудитом от KPMG. Буквально недавно я по какому-то поводу решил посмотреть, кто был аудитором у Банка Москвы. Не буду называть компанию, но она не из «большой четверки». Мало того, что это крупнейший банк, так его акции еще и на бирже торгуются. То есть вопрос в том, зачем вам столь дорогой аудитор? Это связано с выпуском облигаций или с чем-то еще?

— Да, это очень дорогой аудит, особенно для банка нашего масштаба Но дело в том, что мы уже сейчас хотим иметь международный аудит. Любой аудитор по итогам проверки дает рекомендации: что изменить, что поправить и т. д. И мы очень серьезно к этим вещам прислушиваемся, потому что если мы хотим со временим выйти на IPO — а это апофеоз любого бизнеса — нам нужно быть уверенными, что у нас правильная структура активов. Если международный аудитор с именем это подтверждает — это 80% успеха. Мы были недавно на Лондонской фондовой бирже, где нам объяснили, что для прохождения процедуры листинга даже рейтинг не нужен — нужен именно международный аудитор. Да и инвесторы больше смотрят на аудит, а не на рейтинг. Поэтому мы считаем, что уже сейчас у нас должен быть хороший аудитор, который в случае необходимости подскажет и поможет избежать ошибок. Словом, аудит KPMG — это наши инвестиции в будущее.

— Но IPO, наверное, это в далекой перспективе? Дмитрий Исаакович Леус А каковы ближайшие планы? Планируете привлекать каких-то инвесторов?

— Да, но вопрос в том, с какой целью привлекается инвестор. Мы хотим стать абсолютно белой, прозрачной структурой. Точнее, мы и так белые и прозрачные, задача состоит в улучшении качества работы организации и доведения этого качества до международных стандартов. Именно в этом цель, а не в том, чтобы получить деньги от инвестора от продажи ему акций. Поэтому мы хотим привлечь, допустим, ЕБРР или другого аналогичного партнера, который понимает, что такое банковский бизнес. Если такой партнер скажет, что, мол, мы не зайдем к вам в капитал, пока вы то-то и то-то не поменяете, то мы, безусловно, это поменяем. Мы знаем, какой у них опыт. И этот опыт они накапливали десятилетиями, пройдя не один кризис, поэтому их замечания для нас очень важны. А мы можем что-то не понимать или что-то не видеть сами у себя, можем быть излишне уверенным в чем-то или, наоборот, слишком осторожными. Вот с какой целью мы хотим привлечь инвестора. И если такой инвестор у нас в капитале, то все будут понимать, что у нас работа выстроена неплохо.

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