OREANDA-NEWS. November 10, 2011. According to the agency, the rating increase is due to steady favourable development trends and increased profitability coupled with the falling impact of variable revenue flows.

The rating itself is based on a wide regional service network and growing business, stable financial indicators, effective management, and the support of the Bank’s owners.

Constraining factors include the limited diversification of the funding base by instrument type.

Sovcombank is a mid-sized (by assets) private-sector bank and the largest credit organisation in Kostroma region. The Bank is controlled in an equal partnership by the Netherlands-based holding company TBIF BV, which represents the financial arm of the multi-profile Kardan Group, and by resident companies that represent Sovcombank management and a Russian businessman. Services for retail and corporate clients, particularly smaller and mid-sized enterprises, are its priority lines of business. Sovcombank has a reasonably wide service network that includes a presence in central Russia. As demand for personal loans contracted in response to the recent crisis it expanded its activity in the securities market, but this has since fallen back in response to renewed demand for credit products. Growth strategy remains centred on retail and small business services, including loans.