Savings to ask the price of retail business

Savings Bank is in talks with the French group BNP Paribas to buy Russian retail business. Savings in 2009 attempted to enter the market of credit in retail outlets (POS-lending) through the purchase of a bank from among the leaders, but potential buyers are not satisfied with the offered price. With BNP Paribas Savings Bank may be able to agree, without raising the price: the Russian market of POS-lending group had not made significant progress, occupying only a 7 th place in terms of business. Wrote on Friday, May 13, the newspaper Kommersant. The fact that negotiations are under way, two sources told the publication in the banking market. According to one of these top managers BNP, engaged in retail in Russia, has already warned that the new year they should find a new job. The second source of Kommersant said that because the retail business under the brand Cetelem is not a separate legal entity, and is built into the investment bank BNP Paribas, the sale will be technology, brand and team. Source publication in the Savings Bank has confirmed that negotiations on this subject are conducted and they began shortly before the May holidays. In the Russian division of BNP Paribas information Kommersant neither confirmed nor denied, and declined comment. As the newspaper notes, Cetelem, being a structural unit of investment bank BNP Paribas, on the Russian market since 2007. Main products - consumer and auto loans in the sales (retail chains, the largest of which is "M. Video", and car dealerships) and credit cards. In March 2011 it became known that the Savings Bank shall make arrangements with BNP Paribas on a joint venture lending individuals in commercial networks. In contrast to the French group at the Savings Bank until there is no experience in this market. Segment of the credit in retail outlets provides the highest yield (interest rates on loans are 40-60% per annum), but also carries high risks (the share of non-performing loans to total portfolio reaches 20-30%). The newspaper recalled that the fundamental decision to enter the market express lending in commercial networks Sberbank received in November 2009. In April 2010, to develop the most appropriate course of action to work at Sberbank came ex-predpravleniya HCF-Bank (the market leader in POS-lending) Andrey Lykov. However, about a strategic decision rather Savings Bank - to start building work on the new market on their own or buying a player with experience - until recently, was unknown. In 2010, the Savings Bank was negotiating the purchase of a leader in this market - HCF-Bank, but they were unsuccessful. Sberbank to bid just above the capital, which can be considered as if the business HCF-Bank in Russia is worth nothing, but it is not so, "- says a source close to negotiations. According to him, the Savings Bank was looking for and buying "Russian Standard" and "Renaissance Credit". According to the volume of business Cetelem much inferior and HCF-Bank, and Russian Standard, occupying only a 7 th place in the market of POS-lending with a market share of 3.7% (volume of POS-loans to 1 March 2011, according to Frank Research Group, amounted to 5.7 billion rubles).. Proportion of HCF-Bank is 27,6%, followed by the OTP Bank and Alpha Bank with the shares of 17,7% and 17,5% respectively, the proportion of Rusfinance - 9,4%, Russian Standard - 8.1 %. However, at the beginning of 2010 the market share of Cetelem was only 1,8%, while loans amounted to 1.9 billion rubles. Way to build your own business in the segment of POS-lending can be quite lengthy and take two to three years, indicates predpravleniya HCF-Bank Ivan Svitek. "We need to build a sales process in retail outlets, to negotiate with their owners about the conditions of work, train staff, build a scoring model to make a decision as quickly as possible. And speed decision-making must be both in terms of customers, and in respect of trading networks, which periodically change their requirements for banks and working conditions with them, so the desire of the Savings Bank still buy the current player's logical and justified ", - he said. Price, which will be ready to pay the Savings Bank, is unlikely to be higher than one capital, discusses banking analyst at Renaissance Capital, Svetlana Kowalski. "With the prices of previous transactions of the Savings Bank, in particular the recently acquired Troika Dialog, it is obvious that he does not want to pay dearly. Thus, the cost of the retail division of BNP Paribas may be at one of capital, especially given the fact that the leaders of the Russian market potrebkreditovaniya French group did not come out "- she explains. The newspaper reminds that recently a number of foreign players have decided to minimizing business in Russia, mainly because of what went on the market shortly before the crisis and did not manage to reach here any noticeable results. On the sale of Russian subsidiaries have announced the Belgian KBC (owns Absolut Bank), Barclays (owned by the same name by the bank in Russia), HSBC. In the past year have already sold their subsidiaries »Morgan Stanley and Santander.