Alfa-Bank closes deal to buy Belrosbank

– Alfa Banking Group closed the deal to purchase Belrosbank on 18 December. As a result, the shares of Belrosbank passed into the ownership of the Alfa Banking Group consortium represented by the subholding company ABH Belarus Limited, BelTA learnt from ZAO Alfa-Bank. Alfa Banking Group also owns ZAO Alfa-Bank (Belarus) via ABH Belarus Limited.

Thus, Belrosbank became part of Alfa Banking Group. The rebranding of Belrosbank and its offices will be held soon. The united bank will operate under the single brand of Alfa-Bank.

“The deal is part of the international strategy of Alfa Banking Group and aims to strengthen positions of Alfa-Bank on the Belarusian market both in the retail and corporate segments. As a result of the deal, Alfa-Bank (Belarus) will grow into one of the biggest private banks of Belarus. The assets of Alfa-Bank will almost double, the customer base will increase more than twofold; the network of sales outlets will expand threefold. This will allow Alfa-Bank to advance to a new development stage and more efficiently compete with other major banks in Belarus,” Alfa-Bank informed.

“Acquisition of Belrosbank is confirmation of the plans to establish long-term presence on the Belarusian market and is another step toward the expansion of Alfa Banking Group in the financial markets of the CIS countries,” the Chairman of the Board of Directors of Alfa Banking Group Piotr Aven had said earlier.

On 26 November, Alfa Banking Group and OAO Rosbank reached an agreement to sell Belrosbank. The National Bank of Belarus approved the deal. The cost of the deal was not announced.

In H1 2012, according to international financial reporting standards (IFRS), the aggregate assets of OAO Alfa-Bank (Russia) amounted to $33.9 billion, total loan portfolio made up $24.1 billion, and the aggregate capital totaled $3.9 billion. Net profit for the six months of 2012 amounted to $544 million. Alfa Banking Group operates banks in Russia, Belarus, Ukraine, the Netherlands, and Kazakhstan. The Group has a presence in Cyprus, the United States and the United Kingdom.

ZAO Alfa-Bank (Belarus) was founded in 1999. Prior to November 2008 it was known as ZAO International Trade and Investments Bank (ZAO Mezhtorgbank). In July 2008 the consortium Alfa Group completed the deal to buy over 88% of the Belarusian bank. At present the consortium owns a 98.29% stake in the Bank. As of 1 December 2012 the assets of ZAO Alfa-Bank (Belarus) made up Br4.3 trillion, regulatory capital exceeded Br347.1 billion. Alfa-Bank (Belarus) offers its services through its head office in Minsk and 14 regional offices.

ZAO Belrosbank was founded in 2003. The bank provides a full range of banking services to individual clients, legal entities and individual entrepreneurs. Belrosbank clientele is around 100,000. The regional network of the bank includes 46 offices and points of sale throughout the country. Regulatory capital of the bank makes up Br384.36 billion, the bank's assets were at Br2.3 trillion as of 1 November 2012.