Life's funeral: why Probusinessbank had its license revoked

The Central Bank found tens of billions of rubles of doubtful assets on the bank's balance sheet.
Origin source
Probusinessbank President and Group "Life" Sergey Leontiev in non-public corporate blog for employees wrote that he was leaving Russia and is going to continue to do business abroad. "Russia is not ready for such a financial group, as" Life ", so intended to do" Life "in other parts of the world," - said in a letter to Leontiev.

His frustration is understandable. Earlier this week, financial empire Leontiev, which he built from the beginning of the 1990s, was destroyed: the central bank on August 12 revoked the license of Probusinessbank (Leontyev was about 40%) - the largest bank group "Life". Other banks group - the "Express-Volga", university-Bank, "Come on!" And Gazenergobank Bank "Solidarity" - will be sanitized by the State Bank "Russian capital".

The process of withdrawal of the license Probusinessbank looked uncharacteristically: on Friday last week, the Central Bank has disabled the bank from the system banking electronic payments and prohibited use of correspondent accounts in the Bank of Russia, and on Monday (August 10) connected it again, and, according to sources from ProbizneBank charges have been unknown legal entities. Despite this, the day the license was revoked. The Central Bank and the Deposit Insurance Agency declined to comment.

"The situation with the revocation of the license Probusinessbank unprecedented in many respects - the Central Bank did not make posts on the introduction of an interim administration for the first time withdraw a license from the sanatorium, because in April 2014 began Probusinessbank sanitized" Solidarity "bank, - says the director of analytical department of" RusRating "Elena Nikolaenko.

Among the reasons for revocation of the license the Bank of Russia has called the bank capital loss, placing funds in low-quality assets and management Probusinessbank unwillingness to take steps to normalize the activity.

Fitch described the bank Leontiev problems last fall, when Probusinessbank rating was placed on review with negative implications. In December 2014 Fitch withdrew the bank's credit rating. Anxiety agency called the bank's securities portfolio to 47 billion rubles at the end of two quarters of 2015. "Probusinessbank, unlike most other banks, used onlya small portion of its securities in repo transactions with the regulator - about 3 billion rubles.

The economic feasibility of such a hold on the balance of a large portfolio of securities and pledge was not obvious ", - says Fitch director of financial institutions, Alexander Danilov.

These papers were depositories in Cyprus and the UK, which are subsidiaries of two private Russian brokers. Two sources in the brokerage market talk that Probusinessbank worked with a group of BCS and the "Discovery" (at first there is a Cyprus company, while the second broker in the UK). The BCS group confirmed that worked with Probusinessbank, but from the detailed comments refused. The "discovery" does not comment on the situation.

As explained by a source close to one of the brokers, the cost of services to create a fictitious portfolio demanded by banks and usually depends on the amount of significant customers pay hundreds of thousands of dollars.

Deputy Chairman of the Central Bank of Mikhail Sukhov told portal that securities in foreign depositories Probusinessbank had signs of fictitiousivnosti. According to Sukhov, doubtful assets and financial requirements, unsecured letters of credit and fictitious futures transactions resulted in the fact that the negative difference between assets and liabilities Probusinessbank, according to preliminary estimates, more than 67 billion rubles. Predpravleniya "Life" Alexander Zhelezniak (he has about 11% of shares) previously told "Vedomosti" that this high-quality paper with a yield of 7-8% and a cushion of liquidity in turbulent times, so they do not lay down.

Probusinessbank until 2010 bought stakes in companies with large capitalization on the stock exchange and empty balances, such as "Vertical", "Proftehresurs M", "Prominvest". Dozens of banks, insurance companies and professional participants, to buy them earlier, later lost their licenses. Among them were the Mast-Bank, United Bank of Industrial Investments, Bank project financing and bank "Eurotrust".

Withdrawal of license Probusinessbank led not only to the fact that affected about 200 thousand legal entities, but also to the loss of investment from foreign investors - 20% of the bank was at the East Capital funds, at Bluecrest - 8%, still 6.5% was at Argo Capital Fund. A source at one of these companies said that the withdrawal of the license Probusinessbank was a surprise.

Lost funds bondholders and bank creditors: on the stock exchange suspended trading volume of ruble bonds Probusinessbank 3 billion, and it has a subordinated Eurobond issue worth $ 61.5 million In addition, according to the latest quarterly report from Probusinessbank was a loan from the German "daughter". Unicredit Bank - HypoVereinsbank Bank of 1 billion rubles (issued in euros maturing in 2015-2016).

Yesterday, RBC said that Leontiev did not show up in the office of the bank. Do the beneficiaries "Life" group will invest in venture Life.Sreda fund, which is not formally linked to Probusinessbank. Employees Life.Sreda coincidentally, like Leontiev, we have decided to do business outside of Russia this spring. They are now settled in Singapore. Before that Life.Sreda launched two funds with a total size of the investment of $ 140 million. Managing partner of venture fund Life.Sreda and former vice-president of the group "Life" Vladislav Solodkiy confirmed that the beneficiaries of the Fund were pssiyskie shareholders group "Life", but the connection of their investment assets Probusinessbank did not comment.

First, without a license

Another group of "Life" Bank - of was deprived of the license 16 September 2014. As the Central Bank informed of throughout 2013 and 2014, the first half of the year was involved in questionable conduct a significant volume of transactions with cash and non-cash means.