CBM acquires SKS Bank to develop investment banking


CREDIT BANK OF MOSCOW has acquired Savings and Loans Services Bank, LLC to expand its business in financial markets and develop a new line of business — investment banking. The asset was bought from a group of investors including banker Igor Kim.

"This subsidiary credit institution is acquired as a separate vehicle to more actively promote our investment banking business, craft a marketable product range and open new opportunities for our customers. We are a major securities market participant and enjoy a wide base of private and corporate customers, so we decided to set up a new line of business specialised in investment banking services. We plan to offer such products as brokerage services, individual investment accounts, and underwriting", — commented Vladimir Chubar, Chairman of the Management Board of CREDIT BANK OF MOSCOW.

Kirill Nifontov, Member of the Board of Directors of Expobank LLC, supervising M&A transactions, noted that this asset was held in the investors' portfolio and is now sold to a qualified market participant.

All approvals from the Bank of Russia were obtained, and the transaction was executed within the agreed timeframe and in compliance with requirements of Russian laws.

Until November 2012, WestLB Vostok Bank, CJSC was a subsidiary of a large German bank, Westdeutsche Landesbank Girozentrale (WestLB). In February 2013, in the course of reorganisation and as part of its obligations to its parent group, WestLB Vostok Bank, CJSC changed its name to Expo Capital Bank, LLC, and then was renamed into SKS Bank, LLC. SKS Bank strategy was aimed to provide comprehensive services to its corporate customers based on a complete range of banking products, including trade finance and documentary operations.