Sberbank Europe Group

Last updated
Sberbank Europe Group
Company type Aktiengesellschaft
Industry Banking, financial services
Founded2012 (acquisition of Volksbank International AG)
DefunctMarch 2022 (insolvency proceedings in Austria; resolution in Croatia and Slovenia)
Headquarters Vienna, Austria
Area served
Central and Eastern Europe
Key people
Sonja Sarközi (CEO since 2018), Arndt Röchling (CFO), Alexander Witte (CRO), Aleksei Mikhailov (CTO)
Products Retail and corporate banking
Total assets €12.9 billion (YE 2020)
Owner Sberbank (100%)
Number of employees
Over 3,800 (YE 2020)
Subsidiaries Sberbank BH d.d. Sarajevo; Sberbank d.d.; Sberbank CZ, a.s.; branch Sberbank Direct (Germany); Sberbank Magyarország Zrt.; Sberbank Srbija a.d. Beograd; Sberbank banka d.d.
Website www.sberbank.at

Sberbank Europe Group (Sberbank Europe AG) was a banking group headquartered in Vienna, Austria, and owned by Sberbank, a Russian state-controlled company. Sberbank Europe provided financial services to over 780,000 customers in eight countries in Central and Eastern Europe. It was liquidated in early March 2022 following the Russian invasion of Ukraine.

Contents

History

Sberbank Europe AG was established in 2012 after Sberbank acquired Volksbank International AG (VBI) and rebranded it Sberbank Europe. The deal involved all VBI assets – banks in Bosnia and Herzegovina, Croatia, Czech Republic, Hungary, Serbia, Slovenia, Ukraine and Slovakia, apart from Volksbank Romania. Société Générale and J.P.Morgan acted as financial advisors to Sberbank. Troika Dialog also advised on the transaction. The deal price was €505 million, [1] which is 1.0x VBI book value (excluding Romania). Organizational transformation and group restructuring were exercised during that period. It was decided that the regional headquarters of Sberbank Europe Group would be in Vienna, Austria. In 2013, Sberbank Europe received a full banking license in Austria. Volksbank subsidiaries were fully rebranded as Sberbank by 2014.

Sberbank Europe obtained its first Fitch Ratings investment grade, BBB−, in 2013. [2] Fitch affirmed its rating as BB+ with positive outlook in 2017. In 2019, Fitch upgraded the Long-Term Issuer Default Rating (IDR) to BBB− and confirmed it with a Stable Outlook in 2020.

In 2014 Sberbank Europe received a syndicated loan of €350m and launched Sberbank Direct in Germany, an online direct bank with basic retail products. Sberbank Direct gained €1.7 bn in deposits by 2015. In 2018, Sberbank Direct launched an online instant loan offer in Germany.

In 2015 Sberbank Europe sold 99.5% stake of its Slovak subsidiary, Sberbank Slovensko, to Penta Investments [3] for a confidential price. Sberbank Europe AG completed the Comprehensive Assessment consisting of the Asset Quality Review (AQR) and the Stress Test conducted by the European Central Bank. In 2016, Sberbank finalized the sale of the Slovak subsidiary and converted €370m of subordinated loans (Tier II capital) into Common Equity Tier I capital, strengthening its capital structure. In December 2017, Sberbank Europe completed the sale of its stake of 99.9230% in PJSC «VS Bank» (Ukraine) to TAS Group.

2019 became Sberbank Europe's most successful financial year. The bank generated a profit after tax of EUR 40.6 million.

In 2018, Sberbank won in categories “Best Bank in CEE” by The Banker magazine, “Most Innovative Digital Bank in CEE” by Global Finance magazine [4] and "Strongest Banking Brand in the World" by Brand Finance magazine. In 2020, Sberbank won the World’s Best Digital Bank Awards by Global Finance magazine. In 2021, the bank confirmed its title of the Strongest Banking Brand in the World according to Brand Finance.

Insolvency

In late February 2022, during the 2022 Russian invasion of Ukraine, bank runs and sanctions against the bank caused CNN to state the bank "...was failing, or likely to fail, because of "significant deposit outflows" triggered by the Ukraine crisis." [5] The European Central Bank stated the outflows "led to a deterioration of its liquidity position. And there are no available measures with a realistic chance of restoring this position." [5] On 1 March 2022, the Austrian Financial Supervisory Authority (FMA) prohibited further operations. On 2 March 2022, it was announced that Sberbank Europe Group is insolvent. [6] On the same day the Slovenian subsidiary was sold to NLB Group, while the Croatian subsidiary was sold to Hrvatska poštanska banka. [7]

Ownership

Sberbank Europe Group is fully owned by Sberbank, a Russian company. The Ministry of Finance of Russia is the principal shareholder of Sberbank, owning 50% of the bank’s authorized capital plus one voting share, with the remaining 50% held by domestic and international investors.

Management Board

The Management Board of Sberbank Europe AG consists currently of the following management board members:

Sberbank Europe AG had also previously the following members of the Management Board:

Operations

The bank has 187 branches in Central and Eastern Europe with over 3,800 employees (as of YE 2020).

Sberbank Europe Group AG operations can be divided into three core businesses: Retail business, Large corporate & investment banking and Small and medium-sized enterprise business. Retail business involves the provision of mortgages and consumer loans, savings and pension products and digital banking programs. Large corporate & investment banking includes corporate, real estate and acquisition financing as well as trade finance and treasury products. Small and medium-sized enterprise business offers liquidity financing (Working Capital/Overdraft), investment financing (equipment/business facilities), Treasury finance products and transaction business support.

Subsidiaries in Europe

Sberbank Europe Group AG was present in 8 markets in Central and Eastern Europe:

BankCountryNumber of branches (as of YE 2020)Types of servicesSale/closure of subsidiary
Sberbank EuropeAustria1Corporate & investment banking, transactions and trade financeSold June 2023 to Austrian Stefan Zöchling [8]
Sberbank d.d.Croatia31Retail banking, Corporate banking, SME businessSold March 2022 to Hrvatska Poštanska Banka d.d. (Croatia's Postbank) [9]
Sberbank CZ, a.s.Czech Republic24Retail banking, Corporate banking, SME business30 April 2022 banking licence revoked and company put into liquidation 1 May 2022 [10]
Sberbank DirectGermanyPure online bankingRetail banking
Sberbank Magyarország ZrtHungary27Retail banking, Corporate banking, SME businessIn liquidation March 2022
Sberbank banka d.dSlovenia12Retail banking, Corporate banking, SME businessSold 1 March 2022 to Nova ljubljanska banka d.d. [11]
Sberbank Srbija a.d. BeogradSerbia33Retail banking, Corporate banking, SME businessSold February 2022 to AIK Banka
BIH SarajevoBosnia and Herzegovina32Retail banking, Corporate banking, SME businessSold 2 March 2022 to ASA Banka [12]
BIH Banja LukaBosnia and Herzegovina27Retail banking, Corporate banking, SME businessSold May 2022 to Nova Banka [13]

Related Research Articles

<span class="mw-page-title-main">SEB Group</span> Swedish financial group for corporate customers

Skandinaviska Enskilda Banken AB, abbreviated SEB, is a Swedish bank headquartered in Stockholm, Sweden. In Sweden and the Baltic countries, SEB has a full financial service offering. In Denmark, Finland, Norway, Germany, and the United Kingdom, the bank's operations are focused on corporate and investment banking services to corporate and institutional clients. The bank was founded in 1972 by the Swedish Wallenberg family, which is still SEB's largest shareholder through major investment company Investor AB. SEB is the largest Swedish bank by both market capitalisationand total assets.

<span class="mw-page-title-main">Sberbank</span> Russian bank

PJSC Sberbank is a Russian majority state-owned banking and financial services company headquartered in Moscow. It was called Sberbank of Russia until 2015. Sberbank has operations in several European nations, primarily post-Soviet countries.

<span class="mw-page-title-main">OTP Bank</span> Hungarian financial services provider

OTP Bank Group is the largest commercial bank of Hungary and one of the largest independent financial service providers in Central and Eastern Europe and with banking services for private individuals and corporate clients. The OTP Group comprises subsidiaries in the field of insurance, real estate, factoring, leasing and asset management, investment and pension funds. Besides Hungary, OTP Group operates in 10 countries of the region via its subsidiaries: in Albania, in Bulgaria, in Croatia, in Romania, in Serbia, in Slovenia, in Ukraine, in Moldova, in Montenegro and in Russia.

<span class="mw-page-title-main">UniCredit</span> International banking group

UniCredit S.p.A. is an international banking group headquartered in Milan. It is Italy's only systemically important bank and the world's 34th largest by assets. It was formed through the merger of Credito Italiano and Unicredito in 1998 but has a corporate identity stretching back to its first foundation in 1870 as Banca di Genova. UniCredit is listed on the Milan and Frankfurt stock exchanges and is a constituent stock of the Euro Stoxx 50 index of leading shares.

<span class="mw-page-title-main">Raiffeisen Zentralbank</span>

Raiffeisen Zentralbank Österreich A.G. (RZB) was a significant bank in Austria and the central institution of the Raiffeisen Banking Group (RBG) until its merger into its subsidiary Raiffeisen Bank International (RBI) in 2017.

The Addiko Bank is an Austrian banking group with numerous cross-border activities in the Alps-Adriatic region. The group is active in Slovenia, Croatia, Bosnia and Herzegovina, Serbia and Montenegro. However, the bank itself did not have a banking license in Austria, which now owned by Austrian Anadi Bank, another bank that was spun off Hypo Alpe-Adria-Bank International AG.

Naša AIK Banka was a Serbian bank based in Belgrade. The bank offered financial services to small and mid-sized businesses, entrepreneurs, and private individuals. It is now part of AIK Banka, following acquisition in 2022.

Sberbank CIB is a multinational investment banking and asset management firm headquartered in Moscow, Russia, and a subsidiary of Sberbank. It was founded in Moscow in 1991, and was formerly known as Troika Dialog.

<span class="mw-page-title-main">Privredna banka Zagreb</span>

Privredna banka Zagreb (PBZ) is a Croatian bank that provides services to individuals and legal entities, performs card business, investment banking, private banking, rental, real estate management, brokerage and consulting services, and real estate business. It operates throughout the territory of the Republic of Croatia, Slovenia and Bosnia and Herzegovina and employs over 4,000 employees. The total assets of the bank in 2022 amounted to 157.33 billion kunas.

The banking system in Austria plays a pivotal role in the country's economy, ensuring financial stability and providing essential services to both individuals and businesses. The Austrian banking system is characterized by a three-tier structure, consisting of joint-stock banks, savings banks (Sparkassen), and cooperative banks.

<span class="mw-page-title-main">Hrvatska poštanska banka</span>

Hrvatska poštanska banka d.d. or HPB is the largest Croatian-owned bank in the country and ranks 6th in Croatia in terms of total assets, worth around HRK 21.25 billion.

NLB Group is the largest banking and financial group in Slovenia, with the core of its activity being in Southeast Europe.

<span class="mw-page-title-main">Erste Group</span> Austrian multi-national bank

Erste Group Bank AG is an Austrian financial service provider in Central and Eastern Europe serving 15.7 million clients in over 2,700 branches in seven countries.

<span class="mw-page-title-main">Raiffeisen Bank International</span> Austrian banking group

Raiffeisen Bank International (RBI) is a key entity of the decentralized Raiffeisen Banking Group in Austria, acting both as the latter's domestic central financial entity and as the holding company for all the group's operations outside of Austria. The bank is listed on the Wiener Börse. Its major shareholders are the Raiffeisen Banking Group's eight regional banks (Raiffeisen-Landesbanken), which are bound by a shareholders' agreement and together hold a majority of RBI's equity.

The Single Resolution Board (SRB) is an EU agency that was established in Brussels in 2015 as part of the broader set of reforms known as the banking union. It acts as the resolution authority for a subset of banks in the euro area and as the institutional hub of the Single Resolution Mechanism. Resolution is the restructuring of a bank by a resolution authority through the use of resolution tools in order to safeguard public interests, including the continuity of the bank's critical functions and financial stability, at minimal costs to taxpayers.

Gorenjska Banka is a bank in Slovenia, headquartered in Kranj and established in 1996 as a self-standing credit institution.

References

  1. "Sberbank completes Volksbank acquisition". Budapest Business Journal. Archived from the original on 2017-08-03. Retrieved 2017-08-03.
  2. "RPT-Fitch Rates Sberbank Europe AG 'BBB-'; Outlook Stable". Reuters. 2 October 2013. Retrieved 2017-08-03.
  3. "Sberbank Europe AG signed contract about sale of Slovak subsidiary | Sberbank Europe AG". www.sberbank.at. Retrieved 2017-08-03.
  4. "Global Finance Magazine - Best Banks & Financial Rankings". Global Finance Magazine. Retrieved 2017-08-03.
  5. 1 2 Thompson, Mark; Chernova, Anna; Cotovio, Vasco (February 28, 2022). "Russia faces financial meltdown as sanctions slam its economy". CNN. Retrieved February 28, 2022. One early casualty was the European subsidiary of Sberbank, Russia's biggest lender that has been sanctioned by Western allies. The European Central Bank said Sberbank Europe, including its Austrian and Croatian branches, was failing, or likely to fail, because of "significant deposit outflows" triggered by the Ukraine crisis.
  6. Sberbank-Europe-Insolvenz kostet fast eine Mrd. Euro
  7. "Sberbank Europe AG: Croatian and Slovenian subsidiaries resume operations after being sold while no resolution action is required for Austrian parent company". March 2022.
  8. "Sberbank Sells Austrian Subsidiary, Completing Exit from European Market". 16 June 2023.
  9. "Sberbank Europe AG: Croatian and Slovenian subsidiaries resume operations after being sold while no resolution action is required for Austrian parent company". 1 March 2022.
  10. "Notice of insolvency proceedings of the debtor Sberbank CZ, a.s. V likvidaci". 28 July 2022.
  11. "NLB d.d. to acquire Sberbank banka d.d., improving its market position in Slovenia and supporting the Bank of Slovenia in maintaining financial stability of the Slovenian banking sector". 1 March 2022.
  12. "Bosnia's ASA Banka acquires Sberbank BH". 2 March 2022.
  13. "Bosnia's Nova Banka finalises acquisition of Sberbank Banja Luka". 11 March 2022.