Dmitry Patrushev, the son of Security Council Secretary Nikolai Patrushev, leaves the Agricultural Bank (RSHB) to head the Ministry of Agriculture.
Patrushev worked as chairman of the board of the state bank for 8 years: he was appointed to the RSHB in May 2010. At that time he was 34 years old. Prior to joining the RSHB, he worked in another state bank - VTB, where he was in charge of the senior vice president in charge of working with large state-owned companies.
Episode 1. Stripping
Patrushev came to the place of Yuri Trushin and quickly replaced the leaders of most branches of the bank. "Against 11 of those whom we replaced, criminal cases have been initiated," he told Vedomosti in 2014. A total of 1,500 criminal cases were initiated, 68 of which were against bank employees, and the rest were against clients. General damage from their actions Patrushev estimated at 23.5 billion rubles.
Problems of the bank were formed for a long time and inherited Patrushev, said the director of the group of bank ratings ACRA Alexander Proklov. Under him, the RSHB became more transparent, the principles of internal management and approaches to risk analysis changed, the bank consolidated and restructured the management principles of the branch network, he adds.
Patrushev closed the risk management, security and internal control at the head office, and also reduced the powers of regional branches. Previously, without agreement with the head office, they could issue up to several billion rubles, he complained in an interview with Vedomosti. "Our steps to centralize risks, security, internal control allowed us in 2013 to prevent a possible damage amounting to about 100 billion rubles." - He explained.
Episode 2. Clearing the Balance Sheet
Another problem that the Patrushev team faced had to create huge reserves for problem assets, Proklov said. Capital for these purposes, the state has allocated gradually over the past few years. In total, since 2010, the state has issued 278.6 billion rubles to the RSHB, and allocations to reserves amounted to 403.7 billion rubles., Follows from the bank's reporting under IFRS.
With the arrival of Patrushev, the RSHB focused on the problem of returning problem loans issued by the previous team and adding additional reserves, says Olga Ulyanova, an analyst at Moody's. And although until now this problem has not been fully solved, the achievements are noticeable, she says: the share of problem loans (including loans under supervision) fell to 18% of the loan portfolio at the beginning of 2018 from 27% at the beginning of 2013, and covering them reserves for this time improved to 58 from 31%.
"The bank could not quickly build up a new, healthier loan portfolio - this was hampered both by unfavorable macroeconomic conditions and the state of the bank itself," she explains.
Episode 3. With a clean slate
The RSHB with the Patrushev team became more stable from the point of view of the resource base: the bank replaced expensive foreign funding with customer deposits. "On the one hand, this was the purposeful strategy of the bank, on the other hand, the US sanctions also affected," Ulyanova said.
Patrushev wanted to make the RSHB more universal, so that it was associated not only with lending to the agro-industrial complex (Roskolhoz, as it was called on the market), whose share in the RSHB's loan portfolio in 2014 was 80%, and before that, all 90%. The bank's strategy was to reduce it to 70%. By the end of 2017, it was 48%.
The new RSHB team will have to continue to solve all the same problems: clearing the balance sheet, withdrawing the bank for stable profits and reducing the cost of funding - it has even become local, but still expensive compared to other state-owned banks, Ulyanov adds.
Now the bank is in the stage when it needs to demonstrate an increase in interest margins and go out to profit, notes Proklov. In part, this is a matter of the business model: on the one hand, the RSHB retains its political mandate as a lending bank for the agro-industrial complex; on the other hand, it must develop as a universal bank and in such a model should not be planned loss-making, he says.