Promsvyazbank is a privately owned bank serving the Russian federation. The company’s headquarters are based in Moscow. It was first established in 1995 and remains majority controlled by Russian oligarchs. Other financial institutions such as the European Bank for Reconstruction and Development and Commerzbank have taken significant minority stakes in the business. In the last year for which figures are available (2016), it is one of the top ten Russian banks, serving over 2 million private customers.
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Recent years have seen a large amount of turbulence in the bank’s capitalisation and corporate relationships. In September 2017, it bought back just under $500 million of its own Eurobonds in order to reduce its debt servicing costs. This move coincided with B & N Bank, one of Promsvyazbank’s rivals, applying for a central buyout. Promsvyazbank denied that the moves were linked, and stated that it did not see B & N’s situation as having any impact on its own services.
In a further move, in October 2017, the proposed merger between Promsvyazbank and Bank Vozrozhdenie was postponed. Efforts to integrate the IT and administrative systems between the banks are however, planned to continue.
