Rosbank will swallow a related Deltacredit

Assets of the united bank may exceed 1 trillion rubles.
 On Wednesday, Rosbank announced that by the middle of 2019 the subsidiary "Deltacredit" will join (both are part of the French group Societe Generale, in Russia it is also represented by Rusfinance Bank). "Deltacredit" will be included in the retail business unit of Rosbank and its team will be retained, the message says.

Joining Deltacredit will allow the merged bank to increase its mortgage portfolio, as well as increase cross-selling, says a representative of Rosbank. At the same time, he did not say what goals the united bank intends to achieve.

The association of banks has been brewing for a long time, says Olga Ignatieva, senior director in the Fitch Financial Institutions Group: Rosbank and Deltacredit have a highly integrated management of business processes, risk management, and banks using joint sales channels.

If you combine the balance sheets of Rosbank and Deltacredit as of August 1 with the deduction of intra-group transactions and claims, then the assets of the merged bank would have amounted to just over 1 trillion rubles, says junior director for bank ratings Expert RA Ivan Uklein. In this case, the merged bank would take 11th place in terms of assets among Russian banks, he points out. As of August 1, Rosbank had about 917 billion rubles. assets and it occupied the 14th place, conceding to other foreign "daughters" - Unicredit Bank and Raiffeisenbank.

After the accession of Deltacredit, Rosbank's assets may grow by 15%, Irina Nosova, deputy director of the group of bank ratings of ACRA, estimates: "In fact, Rosbank will only add a loan portfolio of its" daughter ", which is about 140-150 billion rubles."

Uklein believes that the merger of the two banks is more technical in nature: changes in the credit policy and priorities of the financial group on the Russian market will not happen.

The combination of the two banks looks logical and expedient, Nosova says. "Perhaps the decision to join Deltacredit right now is caused by the desire to both increase cross sales within the group and optimize costs. It is not excluded that this decision was influenced by the Paris office, "- she argues.

It is unlikely that the group will significantly cut costs with the pooling of banks, says Uklein, but thanks to the merger, it will be able to optimize the product line and in the future to increase revenue through cross-selling.

To join the third group bank in the Russian market - Rusfinance Bank - is not planned, a representative of Rosbank told Vedomosti. The business model of Rusfinance Bank differs from other Russian banks of the Societe Generale group, says Ignatieva: he is engaged in consumer lending with the involvement of intermediaries. "According to our observations, within the framework of large banking groups such as the Societe Generale group, the consumer segment is often managed separately, so the Russian division of Societe Generale is likely to duplicate this model for the time being," she continues.

A representative of the Central Bank last night did not answer the question of Vedomosti about whether the regulator had already agreed on the merger of the two banks. The representative of Societe Generale did not respond to Vedomosti's request.