Russia’s only pure online bank T-Bank (former Tinkoff, controlled by TCS Holding) will fully integrate its peer Rosbank after the acquisition of the latter, Kommersant daily and RBC business portal report citing TCS announcement.
Rosbank will cease to be an independent bank and will be transformed into a branch of T-Bank, which will allow it to cut costs and free up RUB50bn of capital within the group.
As followed by bne IntelliNews, both TCS Group and Rosbank are controlled by Interros of Potanin. He bought TCS from the exiled founder Oleg Tinkov, as yet unsanctioned Potanin was picking up existing Western assets and rebuilding his banking empire.
Rosbank is the former Russian branch of Societe Generale, which was one of the first foreign banking players to exit Russia amid the full-scale military invasion of Ukraine.
The analysts surveyed by Kommersant warn that integration of large banks with different business models may be delayed, including due to regulatory approvals, satisfying the demands of Rosbank's minority shareholders and creditors of both banks, as well as merging IT systems and integrating corporate cultures.
Currently the full integration is scheduled to be completed in the first quarter of 2025.
Related Articles
Russia’s central bank cuts key rate by 100bp to 17% in cautious move, defies calls for deeper easing
The board of the Central Bank of Russia (CBR) at the policy meeting of September 12 resolved to cut the key interest rate by 100 basis points from 18% to 17%, according to the regulator’s press ... more
Ukraine’s non-performing loan share falls to decade low as banks post steady profits
The share of non-performing loans (NPLs) in Ukraine’s banking sector has fallen to its lowest level in a decade, even as the country’s lenders continue to deliver strong profits despite the ... more
Azerbaijan tightens banking operations on foreign financial sources
Azerbaijan has implemented new restrictions on banking operations involving foreign financial sources, with amendments signed by President Ilham Aliyev targeting unregistered foreign financial ... more