1. In 2009, Belarusian banks had to face quite a number of hardships: devaluation, reduction of rates for foreign currency deposits, currency crediting ban, increase of the required regulatory capital amount for transactions with individual persons, etc. What was the year like for your bank in particular?
On November 13, 2008 the National Bank of the Republic of Belarus registered “Zepter Bank" Joint Stock Company, which had a 100% foreign capital. The Bank set out with its operations just at the beginning of the last year. Today, “Zepter Bank" JSC is a large-scale financial institution offering a wide range of bank services for legal and individual persons, sole proprietors and correspondent banks. Notwithstanding the fact that the year 2009 was quite a challenge for the entire Belarus’ bank system, “Zepter Bank" JSC managed to come out with decent results and laid a foundation to base its further development on. This is what our performance results for the first year of operation testify to.
Among 32 Belarusian banks, “Zepter Bank" JSC takes the following positions: it ranks 16th by profit amounts (with account of their use) and 24th by the regulatory capital absolute value.
As of 01.01.2010, the Bank’s balance-sheet assets made up 174.6 bln. roubles, and its established credit portfolio for legal and individual persons amounted to 27.2 bln. roubles. The regulatory capital was 45.2 bln. roubles. For 2009, the Bank’s total profits amounted to 8.3 bln. roubles.
2. Who are your clients: is it big, small or medium business? Is your approach feasible with a view to the current situation in Belarus?
The Bank’s special area of attention is expansion of its client base. “Zepter Bank" JSC is intended for servicing of small and medium businesses. The Bank’s impeccable business standing with emphasis on European bank standards and its flexible respond to Clients’ needs made it possible for “Zepter Bank" JSC to attract new Clients, mostly legal persons (making up 60% of the total). Our Clients are engaged in various kinds of activities, such as trade, production, pharmaceutics, legal services, insurance, leasing, tourism, etc. And the results of the Bank’s activities for the first year of operation proved this approach to be the right choice.
3. Does the Bank have any plans for future expansion of its service ranges for individual persons?
The Bank’s founders intend to increase its regulatory capital to the amount equal to, at least, 25.0 mln. Euro. This will enable the Bank to expand its licensed powers granted by the National Bank of the Republic of Belarus to open accounts and attract retail deposits by individual persons and provide for broader client crediting opportunities. Besides, the Bank’s plans include further expansion of service ranges offered to individual persons.
4. What new offers (as compared to other banks) does “Zepter Bank” JSC have for Belarusian customers?
InterExpress express money transfer system services offered by “Zepter Bank” JSC to individual persons are really new for Belarus. With the said system, it is possible to make money transfers in Russian roubles, US dollars and Euro to different near- and far-abroad countries. And the greatest advantage of the system is the minimum commission fee – from 1.8%.
For individuals, “Zepter Bank” JSC also opened a new “Bargain Purchasing with Zepter” credit program, which enables such customers to buy high-quality goods from “Zepter International” LLC. Major crediting terms, which are quite attractive, are as follows: the credit period can be as long as 4 years, amounts – as high as 10.0 mln. roubles, the rate is 16%, and the commission fee is 1.45% a month.
For legal persons and sole proprietors, the Bank offers a wide range of services. What distinguishes our Bank is high-quality servicing, an individual approach to every Client and minimal tariff rates. Some services provided by the Bank are free-of-charge (such as opening and managing legal persons’ accounts, validating authenticity of seal impressions and signatures on specimen signature forms, transfers in Belarusian roubles through the “Client-Bank” settlement system (within a bank day, except for express payments), receiving, conversion and crediting cash in Belarusian roubles into Clients’ accounts, fees for SWIFT system messages, and etc.). Amounts that we charge for our other services are a pleasant surprise for our Clients. To support those of the Bank’s Clients who engage in foreign economic activities we offer a number of foreign currency purchase and sale options at favourable exchange rates.
5. Did the unstable economic situation of the year 2009 cause the Bank to refuse from any of its projects? If yes, then what are they?
Taking into consideration that it was only at the beginning of the last year that the Bank started its operations, we did not have to adjust our plans. They are now being implemented as they were specified by the shareholders.
6. Which of your products and services are currently the most popular ones among your clients? How do you think this could be explained?
At present, the Bank offers individuals assistance in their payments for works, goods and services (real estate and car purchase-sale, educational fee and tourist voucher payments, and etc.). These transactions do not require an account to be opened with the Bank, which provides for a considerable time and expenses saving. The Bank’s fee for the services is 0.2% of the payment amount.
For legal persons and individual entrepreneurs, the Bank renders various crediting services. Based on nature of their activities, crediting can be made in Belarusian roubles and/or foreign currency. To promote development of our Clients’ businesses, the Bank has substantially reduced its interest rates for newly granted credits:
· In Belarusian roubles – 23-25% annual rate;
· In US dollars, Euro – 13-16% annual rate.
And I think that our cooperation with Clients engaged in foreign economic activities deserves a special mention. The Bank offers various foreign exchange purchase option, one of which is purchasing at Stock Exchanges (including immediate crediting of foreign currency to a Client’s account on the same day as the Exchange auctions took place) with Bank’s fee making up 0.3% of the transaction amount. Alternatively, foreign currency can be purchased from the Bank. And the Bank offers favorable exchange rates for the purchases, actually one of the best in Minsk.
The above products are in greatest demand because the Bank provided for effective tariff and exchange rate policies and renders professional consulting and other services within the shortest time possible.
7. What innovative projects and products does the Bank plan to introduce for the benefit of its current and prospective clients with a view to changes in the economic environment (in 2010)?
This year, the Bank intends to focus on corporate business and, first of all, promote services, such as crediting, foreign exchange transactions, including over-the-counter market transactions. Also, the Bank will continue expanding its client base by attracting new clients.
8. What are the general results of the Bank’s activities in 2009? Were they up to your expectations? What are the Bank’s plans for 2010? Are there any plans to attract considerable credit amounts, increase the share capital and etc.?
In general, the shareholders and the Bank’s management are satisfied with the first year of our operations, though it was not a favorable environment that we had to start with. “Zepter Bank” JSC managed to smoothly integrate into the country's bank system and take a decent stance.
For 2010, the Bank’s major lines of activities are as established by the Bank Development Strategy. These are: to increase its regulatory capital to, at least, 25.0 mln. Euro; to build up the Clients’ credit portfolio; to expand its client base and extend its licensed powers with regard to individual persons' servicing; to continue development of its territorial network.