It is always difficult for banks to go through an economic recession period, but some banks consider a recession as a ‘window of opportunities’ and believe that challenges only make them stronger. These include RosinterBank. NBJ asked Yulia PONOMARENKO, Head of the Corporate Services Department, about the business lines the bank counts on and how it builds relations with corporate customers.

NBJ: Yulia, what areas of the bank’s work with corporate customers in 2015 would you distinguish as essential?

Yu. PONOMARENKO: The key focus area of the RosinterBank activities is rendering banking services to the corporate customers: lending, factoring, guaranteeing, support of international commercial transactions, payroll programmes, and cash management and payment services.

The bank moderately increases the number of clients, focusing on establishing long-terms partnership relations and maintaining an acceptable risk level.

The bank’s loan growth by factor of 1.8 and increase of the bank’s guarantee portfolio by factor of 2.8 along with the past-due indebtedness share increase from 2% to 3.4% were the key milestones in the bank’s work with corporate clients in 2015. We preserved the yield of lending transactions at the level at least equal to that of 2014.

NBJ: Are those packaged products for corporate customers or customized offers?

Yu. PONOMARENKO: I guess it is almost impossible to develop a universal product for the corporate customers segment. We have a basic product line that can be easily modified depending on the needs of a particular client. Because the terms of cooperation are driven by the client’s business peculiarities: contractual arrangements, seasonal fluctuations, technical process, etc. We can be flexible. Our target segment is as follows: a sustainable medium-sized business with annual receipts of 1 to 5 bln rubles and production facilities, professional staff, and clear earning sources. We are focused on them and developed together with them.

NBJ: Is stability above excess profits?

Yu. PONOMARENKO: Yes, and no. On the one hand, the bank grants loans within the framework of project financing, on the other hand, the bank’s loan policy specifies restrictions with regard to diversification for an industry/region/loan product, as well as the requirements to the borrower’s security and creditworthiness. For example, construction of residential and non-residential buildings is financed only in the regions with a high investment potential and acceptable living standards. Among them are Moscow, Moscow Region, Krasnodar, and Kazan. We also finance the production industry, provided that the main off-takers are government enterprises and the sales are guaranteed by concluded contracts: development of new production facilities under the state programmes of import substitution and other special programmes for various budget levels. Such projects involve economically favourable terms and conditions in the form of grants and tax privileges from the government. In the existing market environment, we choose cautiousness between returns and cautiousness, when granting loans to corporate customers.

NBJ: What is your idea of the banks’ corporate business development in 2016?

Yu. PONOMARENKO: We are aiming at being included to the exhaustive list of guaranteeing banks of Russian Railways, JSC. We hope to extend our active cooperation with Federal Corporation for Development of Small and medium Enterprises in order to continue our work on financing and guaranteeing of state contracts. Such a business strategy will let us meet the requirements of our customers as much as possible and make the best use of our own capital.