EXIMBANK OF RUSSIA is the specialized institute for the export support
with a stable outlook
About the Bank
EXIMBANK OF RUSSIA was established in 1994 with the aim of improving financing, crediting, guaranteeing and insuring all foreign transactions, as well as improving the structure of the foreign trade turnover of the Russian Federation. The main activities of EXIMBANK OF RUSSIA (hereinafter referred to as the Bank) are determined by the applicable banking legislation and resolutions of the Government of the Russian Federation No. 633 "On Establishment of the Russian Export-Import Bank" dated July 7, 1993 and No. 16 "On the Russian Export-Import Bank" dated January 11, 1994 and the Articles of Association of EXIMBANK OF RUSSIA approved by the decision of the extraordinary General Meeting of Shareholders (Minutes No. 3 dated September 25, 2017).
The Bank ensures the basis for the credit and guarantee support for the exporters.
The key objectives of such support are:
- Ensuring the availability of the financial resources for the Russian companies engaged in the export or export-oriented activities, importers of the Russian products and services and the foreign banks to promote the national industrial exports and enhance the competitiveness of the Russian supply in the foreign markets;
- Promotion of the growth of the Russian non-resource exports through an increase in the volume of transactions in accordance with the strategic guidelines of the Bank and the Russian Export Center, JSC.
To achieve the goals, EXIMBANK OF RUSSIA assists in the performance of the export agreements that the Russian companies conclude or plan to conclude with the foreign buyers for the production and (or) supply of different non-resource products (works, services), as well as stimulate the demand in the Russian markets for the Russian products by providing the financial terms for the export transaction, while considering the relevant competitive level.
EXIMBANK OF RUSSIA performs its activities through:
- Specialized credit and guarantee products, financial market products: the product range of EXIMBANK OF RUSSIA is formed considering the specifics of the export financing and complies with the standards of different export-import banks of other countries;
- Ensuring the competitive conditions for financing various Russian export projects.
The shareholders of EXIMBANK OF RUSSIA are: Russian Agency for Insurance Export credits and Investments, JSC (EXIAR, JSC), which owns 60.9656% of the Bank’s shares as of January 1, 2019, and the Russian Export Center, JSC (Russian Export Center, JSC), which owns 39.0343% of the Bank’s shares as of January 1, 2019.
This report is prepared in accordance with the legislation of the Russian Federation, including:
- Federal Law No. 208-FZ “On Joint-Stock Companies” dated December 26, 1995;
- Federal Law No 39-FZ “On the Securities Market” dated April 22, 1996;
- Regulations of the Bank of Russia No. 454-P “On the Disclosure of Information by Issuers of Equity Securities” dated December 30, 2014.
The reliability of the data included in the annual report is confirmed by the audit commission.
The Bank's annual accounting (financial) statements for 2018 are available on the Internet at the website of EXIMBANK OF RUSSIA: www.eximbank.ru.
Key Results of 2018
- 81.1 billion rubles is the amount of financing provided by the bank in the framework of export support
- 79.2 billion rubles is the loan portfolio of export support as of 01.01.2019 (an increase compared to 2017 is 37%)
- 11.6 billion rubles is the portfolio of corporate bonds of Russian exporters (increased at the end of the year by 5 billion rubles)
- 5.7 billion rubles is the off-balance sheet obligations under guarantees and confirmed letters of credit as of 01.01.2019
In 2018, the Bank continued to develop the support for all non-resource exports and demonstrated a positive trend regarding different indicators of the export support, as well as an increase in the financial indicators in a number of areas:
- Increase in the financing to support all exports compared to 2017 amounted to more than 20%;
- Net profit of RUB 2,061,000 was achieved against the planned figure of RUB 1,439,000;
- Volume of the Bank’s assets compared to the previous year increased by 37%;
- Product range of the post-export financing was expanded – a new product (Export Non-Recourse Factoring for the Insurance of EXIAR, JSC) was approved. Thanks to the participation of EXIAR, JSC, which provides the insurance coverage to the Bank, in the transaction, the factoring transaction was made without any recourse, which allowed the exporter to completely eliminate the risks associated with the non-payment of the foreign debtor;
- Margin of safety and liquidity level sufficient to ensure the export support were ensured considering an instability of the financial markets and sanctions restrictions.
Moreover, the quality indicators of the export support were ensured in terms of focusing on supporting the export of high-tech products, as well as minimizing all risks. The reservation rate of the credit portfolio for 2018 was 0.4%. The share of loans provided to support the export of high-tech products amounted to 75%.
The total volume of supported export, including the use of the comprehensive support mechanisms to provide the insurance coverage for EXIAR, JSC, amounted to USD 1.7 bln.
Strategy and Development Prospects
As a part of the current strategy, EXIMBANK OF RUSSIA assists in the implementation of the State Foreign Economic Policy and enhances the competitiveness of the Russian business in the world markets through the development of comprehensive export support instruments by providing the guarantee and credit export support in the cooperation with other companies of the REC Group.
The product range of the Bank is formed in accordance with the specifics and needs of the participants in the export activities and is focused on supporting all Russian exporters.
The Bank ensures the support for the export projects at all stages of their implementation using various financial instruments, including in addition to insurance products of EXIAR, JSC.
The main priority for EXIMBANK OF RUSSIA is to scale up its activities as a development institution focused on ensuring the availability of the financial resources for the Russian companies engaged in the export activities and their foreign buyers, and the relevant conditions for providing the financial resources for the competitiveness of the Russian products in the foreign markets, as well as promoting the growth of all Russian non-resource exports through an increase in the volume of bank transactions. As a part of its activities, EXIMBANK OF RUSSIA pays special attention to ensuring the support in the promotion of high-tech products, works and services.
At the same time, EXIMBANK OF RUSSIA establishes the addition of the existing loan guarantee products as its main goal and does not compete with the market players providing the financial services to the exporters.
Serious attention is paid to the development of the Bank's correspondent network, including for the purpose of providing the ability to make all settlements in the national currencies for the the export transactions of own customers.
EXIMBANK OF RUSSIA, which is a state export support institution, pays a great attention to the implementation of the balanced Assets and Liabilities Management Policy, while minimizing all banking risks by considering all factors influencing the performance results.
The main items having the greatest influence on the financial result of EXIMBANK OF RUSSIA are the income from any loans provided to the customers, income from the interbank credit, transactions with the securities and the placement of the funds through any swap transactions, as well as the amount of the reserves for any possible losses.
The Bank not only implements the measures to provide the financial support to the Russian non-resource exporters in performing their activities, but also monitors and controls the likelihood of any potential risks in order to minimize them, namely:
- Identification and analysis of the main internal and external threats to the development of the credit institution;
- Analysis of all key macro- and microeconomic indicators for the short, medium and long term and the development of various behavior scenarios in the implementation of any possible external and internal threats;
- Forecasting and planning of the key performance indicators and the analysis of the implementation of plans, as well as the identification of the reasons for any deviations from the planned indicators.
As a part of its regular activities to improve the quality of service, the Bank analyzes the demand for the products by the customers, as well as the availability of similar products from all foreign export-import banks.
In 2018, as part of the development of the federal project (Systemic Measures for the Development of the International Cooperation and Export), as well as the decomposition of its goals into several federal projects by the national project (International Cooperation and Export), a set of priorities was established for the financial unit of the REC Group. In particular, the priority objectives for EXIMBANK OF RUSSIA were established in the Development Strategy of the Russian Export Center, Joint Stock Company Until 2019 and 2024 (updated Strategy of the REC Group approved by the Board of Directors on December, 2018).
The key objective for 2019 is to shift the focus on supporting the SME exporting enterprises, creating and implementing various standardized solutions for SMEs in order to provide them with a comprehensive financial support, while considering their needs.
The performance of this objective requires increasing the level of automation and efficiency of the Bank's business processes.