31.12.2015, 16:01
Sberbank CIB Announces Results of Its Trade Finance Business
OREANDA-NEWS. In 2015, Sberbank Group completed more than USD 29 bln worth of trade finance and documentary business deals, including over USD 18 bln worth of deals carried out by PJSC Sberbank (hereinafter - Sberbank). The Group's net operating income from trade finance, documentary business and settlement business operations for financial institutions grew by 20%.
The most growth was achieved in the number of operations using rouble-denominated Russian letters of credit. In 2015, RUB 280 bln worth of these deals were completed, a 1.6 fold increase compared to 2014. Sberbank continued to enhance its product suite and launched a new product in 2015 to support Russian business - Russian "unsecured" letters of credit with advance payment.
In 2015, Sberbank's long-term financing secured by export credit agencies (ECAs) continued to be an attractive instrument for lending to the Bank's clients who import high-tech products from various countries. The Bank actively offered financing with the participation of ECAs based in Western and Eastern Europe, China and Japan. More than USD 600 mln worth of new loans with ECA insurance coverage have been provided over the past two years (2014-2015).
As of the end of 2015, the volume of deals that Sberbank had carried out with insurance coverage from the Russian Agency for Export Credit and Investment Insurance (EXIAR) exceeded RUB 24 bln. Since the founding of EXIAR, the Bank has played an active role in forming and using modern financial instruments to facilitate Russian exports. Sberbank is one of the Agency's largest partners in terms of business volume.
In 2015, as an important part of Sberbank Group, Sberbank CIB continued developing cooperation with partners from Western and Eastern Europe and banks from the Asia-Pacific region (APR). Chinese banks alone opened trade financing limits worth a total of 12 bln yuan. The Bank has issued more than 150 letters of credit in yuan for clients from many Russian regions.
Sberbank actively developed commodity trade finance in 2015 using its Swiss subsidiary bank. This product is mainly intended for trading companies that trade this group of products on the international market.
Despite the challenging market situation, the volume of Sberbank's settlement business with Russian and foreign financial institutions, including those from the Asia-Pacific region, grew significantly. Every month around 8.5 mln payments are made in roubles and foreign currencies via loro correspondent accounts opened at Sberbank, an increase of 1.4 mln compared to 2014. The average monthly volume of transactions in 2015 was around RUB 13 tln.
Sberbank sees the following as primary growth drivers in 2016: increasing the number of operations using national currencies, including with BRICS and APR countries, servicing Russian commodity trade flows using letters of credit, adding more ECA products to the product suite, increasing the number deals with EXIAR support, commodity trade finance, and bringing principally new products and services to the market that are adapted to fit the changing macroeconomic and geopolitical situation.
Sberbank is regularly recognised for its trade finance, documentary and settlement business activities in Russia and globally. Sberbank leads the domestic letters of credit market according to research "Market of Russian Letters of Credit of Legal Entities" carried out by the rating agency Expert RA (for 2013-2014). In 2015, Sberbank was named Best Trade Bank in Russia and the CIS by leading international finance publications Global Finance and Trade & Forfaiting Review.
The most growth was achieved in the number of operations using rouble-denominated Russian letters of credit. In 2015, RUB 280 bln worth of these deals were completed, a 1.6 fold increase compared to 2014. Sberbank continued to enhance its product suite and launched a new product in 2015 to support Russian business - Russian "unsecured" letters of credit with advance payment.
In 2015, Sberbank's long-term financing secured by export credit agencies (ECAs) continued to be an attractive instrument for lending to the Bank's clients who import high-tech products from various countries. The Bank actively offered financing with the participation of ECAs based in Western and Eastern Europe, China and Japan. More than USD 600 mln worth of new loans with ECA insurance coverage have been provided over the past two years (2014-2015).
As of the end of 2015, the volume of deals that Sberbank had carried out with insurance coverage from the Russian Agency for Export Credit and Investment Insurance (EXIAR) exceeded RUB 24 bln. Since the founding of EXIAR, the Bank has played an active role in forming and using modern financial instruments to facilitate Russian exports. Sberbank is one of the Agency's largest partners in terms of business volume.
In 2015, as an important part of Sberbank Group, Sberbank CIB continued developing cooperation with partners from Western and Eastern Europe and banks from the Asia-Pacific region (APR). Chinese banks alone opened trade financing limits worth a total of 12 bln yuan. The Bank has issued more than 150 letters of credit in yuan for clients from many Russian regions.
Sberbank actively developed commodity trade finance in 2015 using its Swiss subsidiary bank. This product is mainly intended for trading companies that trade this group of products on the international market.
Despite the challenging market situation, the volume of Sberbank's settlement business with Russian and foreign financial institutions, including those from the Asia-Pacific region, grew significantly. Every month around 8.5 mln payments are made in roubles and foreign currencies via loro correspondent accounts opened at Sberbank, an increase of 1.4 mln compared to 2014. The average monthly volume of transactions in 2015 was around RUB 13 tln.
Sberbank sees the following as primary growth drivers in 2016: increasing the number of operations using national currencies, including with BRICS and APR countries, servicing Russian commodity trade flows using letters of credit, adding more ECA products to the product suite, increasing the number deals with EXIAR support, commodity trade finance, and bringing principally new products and services to the market that are adapted to fit the changing macroeconomic and geopolitical situation.
Sberbank is regularly recognised for its trade finance, documentary and settlement business activities in Russia and globally. Sberbank leads the domestic letters of credit market according to research "Market of Russian Letters of Credit of Legal Entities" carried out by the rating agency Expert RA (for 2013-2014). In 2015, Sberbank was named Best Trade Bank in Russia and the CIS by leading international finance publications Global Finance and Trade & Forfaiting Review.
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