Investment Business Development Plans

The MKB’s Investment Block sets ambitious goals for the coming years and plans to consolidate its hold in the investment banking market as one of the leaders both in the quality of its services and in financial results:

  • Active expansion in the local capital market and a 1.5 fold gain of the MKB’s share.
  • Base bank for key corporate customers for the whole range of investment banking operations (One-stop-shop approach):
    • focus on cross-sells with CBDCorporate business Directorate;
    • growth of fee income share;
    • growth of customer business share;
    • product diversification.
  • Expansion of geographical presence on international capital market.
  • Strengthening of market leadership, broken down into product ranges:
    • REPO: strengthening of the position in the top 3 market operators by volume of transactions. Expansion of REPO book.
    • DCM: maintaining the position in the top 5 banks by volume of transactions.

Development of product range:

  • structured finance (Margin loan, REPO, total return swap and other derivatives);
  • risk hedging instruments: IRS (interest rate swap), swap, forward (forward contract), NDF (non-delivered forward);
  • corporate treasury, liquidity management, dual currency deposits;
  • derivative financial instruments tied to the commodity markets;
  • PESS (Private equity and special situations) capabilities (mergers and acquisitions, pre-IPO investing and funding, Private Equity).

Further development of new investment products will help achieve a synergistic effect, serve as a driver for better operational efficiency, increase brand awareness and, as a result, augment MKB’s shareholder value.

DEVELOPMENT STRATEGY

General strategic initiatives...


Focus on cross-selling

Higher share of fee icome
Higher share of customer-driven business

Product diversification
...related to IB product range development


REPO:
  • Prompt access to rouble and FX liquidity
  • Customised approach to risk levels
  • Flexible terms of financing
FX transactions:
  • Customised terms & conditions
  • Broad pool of quoted currencies and instruments
  • Electronic platform
Fixed Income:
  • Hedging customers’ currency, commodity and interest-rate risks
Brokerage:
  • On-exchange and OTC markets
  • Leveraged deals
ECM, M&A:
  • Consulting based on wide sectoral expertise
  • Comprehensive solutions for shareholders
DCM:
  • Arranging financing for customers by issuing public debt instruments (bonds, Eurobonds)