Resolution

Our village is growing: the population is increasing, new houses are being built, new streets and neighborhoods are appearing.

In December 2018, Resolution No. 289 of the Administration of the municipal formation “Medvedevskoe urban settlement” was issued on naming a new street in the village of Medvedevo named after Dmitry Sredin.

We would like to tell you about the man whose name the street will now bear, so that generations of people will remember not only the glorious names of their fellow countrymen, but also their deeds, their work.

Sredin Dmitry Vasilyevich was born on February 11, 1907 in the family of a middle peasant in the village of Surty, Medvedevsky district, Mari Autonomous Soviet Socialist Republic.

He began working at the age of eleven, received excellent training at work and did not disdain any kind of work; as a teenager he helped float timber along the river. Kundysh. Traded in a local consumer society. Then he headed the city workers' cooperative and store.

In 1929-1931 he served in the Red Army in Kronstadt. After demobilization, he worked as an instructor in the workers' cooperative of the city of Yoshkar-Ola, chairman of the Yoshkar-Ola city council of OSOAVIAKHIM (Society for Assistance to Defense, Aviation and Chemical Construction - a Soviet socio-political defense organization that existed in 1927-1948, the predecessor of DOSAAF).

In March 1933, among 50 communists, the regional committee of the All-Union Communist Party of Bolsheviks sent him to Zvenigovo, where Sredin became chairman of the Zvenigovo district council of OSOAVIAKHIM, and from 1938 - head of the Zvenigovo district department of land. Eight years have passed here - a difficult time in becoming a leader. Repressions raged in the country in 1937-39, they also affected our republic, but, fortunately, Dmitry Vasilyevich passed.

In 1939, Dmitry Vasilyevich was promoted to party work, first as the head of the propaganda and agitation department of the Zvenigovsky district party committee, and then as the personnel secretary and second secretary of the Kilemar district committee of the CPSU (b).

Since 1943, he worked as the head of the department of the Mari regional committee of the CPSU, and in 1944 he was elected first secretary of the Ronginsky district party committee. In 1948, Sredin D.V. sent to study at the Gorky Higher Party School, after which he worked as head of the agriculture department of the regional committee of the All-Union Communist Party of Bolsheviks.

September 1951 was a turning point in the life of D.V. Middle. He was elected first secretary of the Medvedev district party committee. He led the district from 1951 to 1970, working until his retirement for 19 years. He was not spared awards for his worthy contribution to the overall success. Sredin is a holder of the Orders of Lenin, the October Revolution, the Red Star, and the Red Banner of Labor.

Delegates of the 23rd Congress of the CPSU from the Mari regional party organization and comrade. Suslov M. A. 1st row: Uraev P. V. (First Secretary of the Mari Regional Party Committee), unknown. (seller from Yoshkar-Ola), Suslov M. A. (Secretary of the CPSU Central Committee), Gorinov T. I. (Chairman of the Council of Ministers of the MASSR), unknown. (Volzhsk, MBK). 2nd row: G. N. Bagaev (director of the Voskhod state farm, Mari-Turek district), A. V. Yarovikov (chairman of the “40 Years of October” collective farm, Novotoryalsky district), P. A. Almakaev (Second Secretary of the Mari Regional Party Committee ), Udovichenko A.A. (position unknown), Sredin D.V., Utrosin A.A. (commander of the 14th missile division). 3rd row: unknown, Evstafiy Fedorovich Sakanov (Secretariat of the Supreme Council of the MASSR). Moscow, St. George's Hall of the Kremlin, 1966.

He was elected as a deputy of the Supreme Soviet of the MASSR (five times) and the RSFSR, a member of the Mari regional party committee and a delegate to the XXIII Congress of the CPSU. He was elected as a deputy of the Medvedevsky District Council of eight convocations.

The personal file contains characteristics signed by the regional committee secretaries Pavlov, Kushnarev, Uraev, Nikonov, who evaluate his activities only from the positive side. He respected people, and they paid him the same.

On April 28, 1970, Dmitry Vasilyevich was solemnly escorted to his well-deserved rest. It should be noted that D.V. For more than a year, Sredin, already retired, worked in the apparatus of the Mari Regional Committee of the CPSU. Dmitry Vasilyevich Sredin died on April 19, 1985 after a serious illness at the age of 79.

On February 11, 1997, a memorial evening took place in the hall of the regional museum; on this day Dmitry Vasilyevich would have turned 90 years old. Former party colleagues, heads of organizations and enterprises arrived.

Sergei Stepanovich Zhilin, former director of the Semenovsky state farm, Hero of Socialist Labor, recalls Sredina as a born leader and a charming interlocutor. Dmitry Vasilyevich did not abuse power, he was guided by the slogan “personnel decide everything.” People responded with selfless work to care and attention, and business in the area went uphill. With his direct participation, highly productive black-and-white cattle appeared in the area, livestock complexes and social and cultural institutions began to be built - comfortable residential buildings, kindergartens.

The chief livestock specialist of the production department, Nadezhda Andreevna Perminova, noted that it was interesting, although difficult, to work with D.V. Sredin as the head of the district. He was a demanding, principled person, easy to handle and accessible to everyone. A simple collective farmer or leader could come to him and find understanding, ask for help and receive it.

During the years of leadership of the Srediny district, new trends entered life more and more confidently. We adopted the best management experience from our neighbors, in other regions, even abroad. The work on soil fertility improved, they began to introduce organic matter, and as a result of this, the yield gradually increased and the food supply became stronger.

Former director of Suburban Forestry B.V. Baikov remembered how Dmitry Vasilyevich skillfully worked with people and took care of personnel. Listening to his comments, for more than thirty years as a director at a forestry enterprise, he did not fire a single worker for any misconduct, and always tried to influence feelings and conscience. At any team meeting there were representatives from the district party committee. It was impossible to work poorly in such an atmosphere of attention.

Egoshina L.I., who worked as the head of the district seed inspection, noticed that Dmitry Vasilyevich could find a common language with any person, he spoke to a child as if he were a small child, and to an old man - respectfully and respectfully. An amazingly humane person. He lived simply, modestly, without excesses.

Dmitry Vasilyevich Sredin worked for the benefit of people, his activities were aimed at the prosperity of the region, which is why he managed to leave behind many memories imbued with respect for himself and his active work.

article in the Vesti newspaper, March 1, 2019
st. D. Sredina, photo by E.E. Vaseneva
st. D. Sredina, photo by E.E. Vaseneva

Used sources:

1. Born in forty-third [Text]: for the 55th anniversary of the Medvedevsky district of the Republic of Mari El: [collection] / ch. ed. Z. N. Odintsova. - Yoshkar-Ola: Mari El Periodicals, 1998. - 350 p.
2. Chronicle of the district in the affairs of deputies [Text]: collection of documents and materials / Administration of the municipal formation “Medvedevsky Municipal District”; under general ed. D. G. Shagiakhmetov. - Medvedevo, 2006. - 255 p. : ill.
3. Dmitry Vasilyevich Sredin [Text]: [obituary] // Mariskaya Pravda. - 1985. - April 20.

The Russian subsidiary of the largest Austrian bank is betting on increasing business profitability

In 2018, financial directors of large companies stopped focusing only on state-owned banks, fearing that they might fall under new sanctions. According to the head of the department for work with large companies of Raiffeisenbank, Dmitry Sredin, this partly determined the increase in the placement of deposits in the accounts of the Russian “subsidiary” of the largest Austrian bank. In an interview with BUSINESS Online, he explained how Raiffeisenbank manages to be one of the leaders in the efficiency of bank capital.

Dmitry Sredin - head of department for work with large companies of Raiffeisenbank

“PRIVATE BANKS ARE LESS LIKELY TO BE UNDER POSSIBLE SANCTIONS”

— Dmitry, you came to Raiffeisenbank a year and a half ago from Sberbank and head the department for work with large companies. Around the same time, the bank announced its plans to increase its share of risk-free business not related to lending. It should exceed 50 percent of Raiffeisenbank's total revenues. What is this jar for?

— In my understanding, this task should be important for any financial institution that wants to grow and develop while maintaining its financial stability, so this is one of our priorities. Not even in any specific perspective, but in principle.

— But is it possible to achieve growth in business without risking anything?

— Risk-free products are everything that is not related to loans: attracting deposits, placing funds, asset management, tools such as salary projects for employees of corporate clients. These are basic examples where the bank does not bear credit risks. Another area of ​​interest for the bank is financial consulting on mergers and acquisitions and restructuring. By the way, we were recently selected as UTair consultants on the restructuring of the debt portfolio, which will help ensure stable and uninterrupted operation of the airline.

— What banking services are now most in demand by corporate business? And why is Raiffeisenbank interesting to large companies?

— We are a universal bank, we have all the banking instruments that exist in the world today. For example, more than two years ago we launched factoring operations, for which we see multiple growth from year to year. Moreover, there is demand for this product not only from large companies - it is also of interest to small and medium-sized businesses in all sectors of the economy. To be honest, we didn’t even expect such explosive dynamics. The business of leasing operations is growing rapidly, especially in 2018, despite the fact that we adhere to a selective approach - we do not work with the entire range of equipment and types of assets.

— As the geopolitical situation around Russia worsened, many enterprises, fearing sanctions, began to focus on the largest Russian state banks. Doesn't this hinder the development of the Russian subsidiary of a private Austrian bank?

- More like the opposite. Yes, three or four years ago the largest Russian companies turned to state banks. The logic is simple. Where to go if you need to borrow 30 billion rubles for a long time? Of course, to the state bank. In addition, clients showed no interest in diversifying their funding sources.

In 2017–2018, this paradigm changed. Risks of a sanctions nature have emerged from Europe and the United States, as well as sectoral sanctions against state-owned banks - this has led to fundamental changes in the Russian banking market. New realities have affected how corporate CFOs make decisions when choosing a financial partner. If previously the presence of one or three state-owned banks in the loan portfolio was considered sufficient, now they prefer to have at least one private bank among their financial partners.

- How do they explain this change?

— It’s simple: private banks are less likely to fall under possible sanctions that impose certain restrictions on payments and withdrawal of funds. It is very difficult to predict the consequences of a possible introduction of sanctions; it is much easier and more reliable to diversify risks by cooperating with several banks. A foreign bank is potentially less risky than just a Russian private bank. This partly influenced the significant influx of deposits that we observed in 2018.

The demand for large loans also quickly reoriented - now they prefer club deals, in which several smaller lending banks participate. By the way, this year we closed several syndicated lending transactions in which exclusively Western banks participated. Moreover, we are talking about companies such as, for example, the Ural Mining and Metallurgical Company (UMMC), which in general can work with any bank in the world. And we see that this trend is intensifying.

“IF SOMETHING CONFUSES US, WE WILL NEVER CLOSE OUR EYES TO IT”

— What is your difference from other banks?

— If we talk about the product line, we are in no way inferior to our competitors, but at the same time we can afford to be more flexible. Raiffeisenbank has a flat hierarchical structure, so we can make decisions that take a long time for our competitors to make very quickly. For example, we make a decision on a loan for a new and fairly large borrower within a few days.

Raiffeisenbank has always been distinguished by the high quality of its loan portfolio. We have a minimum percentage of non-performing loans, significantly lower than the market average.

— Due to more stringent requirements for the borrower?

— Firstly, we practice a conservative approach to risk assessment. Secondly, we do not chase market share or “volume” indicators; our main goal is to maximize the return on every invested ruble, dollar or euro.

- So you are not chasing the shaft?

— Our only goal is business efficiency. We have the opportunity to choose, and if something bothers us, we will never close our eyes to it. It is easier for us to explain to the client why we are not currently ready to provide him with financing, and to express our readiness to return to the discussion when the situation that raises questions for us is resolved.

— Does the status of a “subsidiary” of a foreign bank give you an advantage in terms of cheaper funding?

— Of course, we have the opportunity to raise funds through the parent structure, but we fund ourselves on the Russian market. Our main funding base is our clients. We have enough of our own funds and sources to offer rates that are more than competitive on the Russian market. Otherwise we would not have the opportunity to earn money.

“HAVE CARDINALLY INCREASED OUR PRESENCE IN THE REPUBLIC, STRONGER THE LOCAL TEAM WITH NEW EMPLOYEES”

— Do you have any restrictions on working with Tatarstan companies? Has anyone been sanctioned?

— There are no restrictions on working with Tatarstan companies. True, several companies were included in the so-called Kremlin list published by the US State Department. But this is essentially the Forbes 100 when it comes to the beneficiaries of these firms.

Tatarstan is a very promising region for Raiffeisenbank. We have become more active here since the end of 2017 - we have radically increased our presence in the republic and strengthened the local team with new employees. Our headquarters for the Volga Federal District is located in Nizhny Novgorod, but the heads of the regional center of Raiffeisenbank are often present in Kazan.

We have developed very good relations with the largest Tatarstan companies, we are developing them, increasing credit limits, and we are talking about very significant amounts. We are also developing relationships with medium-sized companies with revenues from 5 to 50 billion rubles per year. There are quite a lot of such companies in the region - and we are seeing great demand for our services in this segment.

— Is it possible to describe the scale of your business in Tatarstan in numbers? What kind of loan portfolio?

— Does the bank participate in any republican investment programs?

— We are interacting with the leadership of the republic, but there are no investment projects yet.

“FOREIGN INVESTORS DO NOT LOOK AT THE RISK OF A PARTICULAR ISSUER, BUT AT SOME “RUSSIAN RISK”

— Many Russian banks, including those from Tatarstan, now prefer to use available funds not to increase their loan portfolio, but to purchase OFZs. In their opinion, this is more profitable and less risky. What do you think about this business model?

— Any business model has the right to exist if it generates income and is legal. We, of course, also work with OFZs, but our business model is different from what you described. In the financial statements of any bank there is such an indicator as return on invested capital (ROE). Our ROE is about 30 percent, which is a very high level in the market.

— How would you assess the interest of Russian borrowers in entering theIPO?

— All plans are postponed until better times. Now foreign investors are not looking at the risk of a specific issuer, but at a certain “Russian risk”, which, in their opinion, accompanies any domestic company. Everyone is painted the same color, and companies that enter international markets have a hard time. All questions of potential investors come down to politics. As a result, they are ready to buy shares of top Russian issuers at a discount of 70 percent from their fair value.

Naturally, this is an attempt to profit from the situation, but we are not now in the 90s, when our financiers were not sufficiently experienced and educated in these matters. I believe that Russian financial managers are now among the best in the world; they make decisions very carefully. There are no people willing to be accommodated for the sake of accommodation. Moreover, there is a reverse trend, when Russian companies that were previously listed on foreign exchanges are actively leaving the market, buying back their shares very cheaply, taking advantage of the fact that they are trading at a large discount.

— What mechanisms then do Russian companies have for attracting money to business, if not loans?

— An alternative source is the ruble bond market, which has recently opened up a little. But only a few Russian issuers are able to place their bonds on the market at a fair price. As a rule, these are the largest Russian corporations. In most cases, second-tier bonds are purchased by banks that organize the placement. In fact, these are all the same club lending transactions, executed through a bond.

I think that the domestic market will open after there is more clarity on the new round of sanctions. The foreign market is waiting for the same clarity with sanctions, as well as developments in the trade war between the United States and China.

“EVERYONE HAS ADAPTED FOR A LONG TIME. NO ONE SIT IN THE HOUSE AND WAIT FOR GOOD WEATHER"

— Raiffeisenbank is one of the market leaders in the implementation of new digital technologies. Thus, at the end of 2017, the bank organized the placement of MegaFon bonds based on blockchain technology. Why are they interesting compared to traditional bond placement technologies? How would you assess their prospects, how much demand they will have in the next two to three years?

— A year ago, this was a single operation to test how blockchain technology works. We, together with MegaFon, the Moscow Exchange and the depository, invested a lot of time and effort so that this transaction could take place. Based on its results, we understood what improvements needed to be made, including at the level of the exchange itself and the depository, in order for this format to become the mainstream placement. Blockchain technology can significantly simplify document flow and make the process of placing bonds more transparent, including online when the owner of a bond changes on the secondary market. This significantly increases security and reduces the cost of operations for banks, which has a positive impact on the client.

I think that within two to three years more and more transactions in the banking market will be carried out using distributed ledger technology. But financial technologies are developing so rapidly that it is already difficult to make forecasts even three years in advance; everything can change.

— The interview is being published on the eve of the New Year. What do you associate with 2018?

— The year was eventful: many large transactions, record levels of profit and efficiency. We exceeded our growth plan in the corporate segment for 2018. There have been qualitative changes in the bank's team; young, aggressive guys in a good sense are coming to the regional centers. We have even more ambitious plans for 2019.

— You communicate with the heads of many Russian companies. What are their moods? Have they adapted to the current situation?

“I see that everyone has adapted a long time ago.” No one sits in a house and waits for good weather; everyone is improving the efficiency of their business in order to protect themselves from possible external shocks.

Education

Graduated from Canada's Carleton University and received a master's degree from the State University Higher School of Economics.

Labor activity

Dmitry Sredin has been working in the Russian and international capital markets since 1997. He began his career as a Eurobond trader in the treasury department of Rossiysky Credit Bank.

Since 2001, for five years, he was a member of the credit committee of Citigroup - head of the department for work with companies in the consumer, automotive and transport industries, regional vice president of the Russian office of Citibank.

In 2006, he moved to Troika Dialog as director of the department for initial placements of debt securities.

During 2009-2012. worked as managing director of the investment banking department of Renaissance Capital Investment Company. In 2011-2012 served as Chairman of the Board of Renaissance Advisors.

In 2012, he began working at Sberbank PJSC as a senior managing director, head of department, and member of the credit committee.

Since the summer of 2017, he has been the head of the department for work with large companies at Raiffeisenbank.

Hobbies

Motorcycles, hockey.

Family status

Married, six children.

Dmitry Sredin, head of the department for work with large companies at Raiffeisenbank, told RBC Rostov about the bank’s development plans in the Don region, the positive impact of the crisis and export prospects

— How do you assess the results of Raiffeisenbank’s work in 2018, incl. in the Rostov region?

— If we take last year’s results for Russia as a whole, we have grown significantly. Our corporate business grew more than 30% across a range of metrics, including assets and earnings, with some metrics growing even faster.

In the Rostov region, we had even more significant growth: we increased our liabilities and documentary business by approximately three times, our assets grew more than three times, the loan portfolio amounted to more than 3.5 billion rubles at the end of last year.

In the Don region, approximately 60% of our client base are export-oriented companies. Therefore, the bank’s work in the region places an emphasis on products related to export-import transactions, including foreign exchange. Documentary solutions were in demand - guarantees and letters of credit.

We work consistently with most of the key companies in the Rostov region. Among our clients are JTI, Aston, Dorspetsstroy. We started working with some last year, and expanded our cooperation with others. For example, with the support of the Russian Export Center, we concluded a fairly significant deal with the Aston company.

— What types of lending were most in demand in the Rostov region?

— There were no significant changes in this segment. In the Rostov region, we have approximately 95% of our portfolio in working lending, i.e. These are short-term loans. Investment, “long” loans account for about 5-7%.

— What are the most popular banking products among your bank’s clients? Are there any differences in the Rostov region from the indicators for the regions as a whole?

— In addition to standard lending and attracting deposits, these include documentary and foreign exchange transactions.

As I already noted, the specificity of the region is that there are more companies focused on exports than the national average. In addition, there are many large companies from the agro-industrial sector. They are interested in a program to support agricultural producers, when the interest rate for the borrower is minimized, and the difference is compensated to the bank by the Ministry of Agriculture.

— What other government support programs are currently relevant for large businesses? And how in demand they are, incl. in the Rostov region?

— We see that the state is increasingly introducing various support programs in various industries. Some are used more often, some less frequently, some are still in test mode. In particular, we know about Dom.RF’s plans to support lending for housing construction - they are now working on the program and plan to become an insurer of part of the credit risk assumed by a commercial bank.

I have already mentioned the export support program, which partially compensates for key expenses of exporters, for example, on transport logistics. She is in demand on the Don. There is also a leasing support program for the purchase of vehicles.

— How, in general, do things stand with such an area as leasing?

— Our leasing business is growing faster than most banking products - the figures in 2017-2018 increased significantly. This product has good prospects in the Rostov region. On the one hand, this tool is convenient for representatives of the agro-industrial complex. On the other hand, its use will be stimulated by further investments in the region’s transport infrastructure. Therefore, we plan to further develop this product area.

— Raiffeisenbank’s total factoring portfolio at the end of 2018 grew by 12% to 17.72 billion rubles. What caused the growth?

— Factoring is growing due to the fact that we have a fairly large focus on it, as well as on leasing. We see great potential in this product and have invested a lot in it over the past years, as customer demand began to grow rapidly, especially in the regions. And the Rostov region is no exception.

This scheme guarantees suppliers enough working capital to cover all levels of value creation for any product. Factoring is very cost effective. We, as a provider, have developed this product well in terms of document flow and speed of decision-making.

— You said that in the Rostov region 60% of your clients are related to exports. How has business activity in foreign trade changed?

— Export activity in the Rostov region is growing. According to Federal Customs Service estimates, $9 billion worth of products were exported from the region last year, which is a significant amount.

Don exporters use our entire product line. In addition, Raiffeisenbank is part of an international banking group and can offer our clients many interesting solutions not only in the Russian Federation, but also abroad. The guarantees and letters of credit issued by us are eagerly accepted abroad, and this is especially important in the context of sanctions.

— How is your work going against the backdrop of constant tightening of sanctions? How have your relationships with clients changed?

— From the point of view of relations with clients, nothing has changed, the credit policy also remains the same. Raiffeisenbank has a very balanced portfolio, the concentration of risk is at a very comfortable level. Therefore, it does not become a disaster for us if this or that company is included in the sanctions list. Although this is a very sad event, because we love our clients and try to help them develop their business.

We, of course, carefully analyzed the force majeure scenario and the consequences of including certain companies on sanctions lists. The result did not scare us - in terms of financial stability, nothing negative will happen for the bank.

Some consider our prudent lending policy to be conservative. It allows the bank to maintain high stability; we have one of the most effective business models in the financial sector. Our ROE (return on equity) at the end of 2018 was 25.7% - this is a record in the history of our bank. We will strive to show similar results in 2019 and 2020. Probably only Sberbank, which has a completely different scale of business, has comparable figures.

— Not long ago, Raiffeisenbank took part in pilot transactions for issuing bank guarantees on blockchain platforms. How do you evaluate the results of this experiment? Is there a demand for such services in the region?

— The parties to the transaction were the Mozyr Oil Refinery, the Gazprom Neft company and the Belarusian Priorbank. This was not an experiment, this was the bank’s purposeful work on the use of modern technologies. About a year and a half ago, Raiffeisenbank issued the first bonds using blockchain, and now it has done so with letters of credit and guarantees.

We spend a lot of time and resources to ensure that the bank does not stand still, but moves with the times, using all modern technologies for the benefit of clients.

If we talk about the last transaction, it significantly reduces document flow and increases the transparency of operations, and also reduces certain costs (both economic and time), and reduces the need for human resources. While such a mechanism is not used in all our transactions, it is necessary that all parties are ready for changes. The pilot deal was very successful. There is interest from companies from the region, we are discussing this with many clients. While, of course, companies are studying, understanding and trying to understand what potential risks may arise - people are conservative by nature. But we expect that in 2019 there will be more and more transactions using modern technologies, incl. blockchain.

— What forecasts can you make for 2019? What areas are you planning to focus on?

— We are a universal commercial bank. Therefore, we plan to further develop all areas. Our goal is to ensure that customers enjoy using the entire product line.

We do not place special emphasis on one or two products, but offer comprehensive solutions that cover all customer needs.

We also plan to expand our presence in the region, strengthen ourselves and pay a lot of attention to the Rostov region - therefore we expect significant growth in the Don region.

If we talk about the general economic situation, then, in my opinion, there are currently no prerequisites for stagnation. But there are opportunities for a positive shift both in the Russian economy and in the Rostov region.

Of course, there are always nuances. But difficult times lead to the cleansing of the system from ineffective companies and the adjustment of individual industries. This also has its advantages, because a situation of less predictability in the economy will require better management, a better approach and strategic thinking at the shareholder level.

The growth of corporate lending has intensified competition between leading banks. The most important factor for success is the ability of banks to develop corporate products in partnership with key clients, believes Dmitry Sredin, head of the department for work with large companies at Raiffeisenbank. He cites the intensive development of remote servicing and the emergence of factoring among bank products as clear examples of how joint work gives rise to new points of growth for the banking business.

What are the dynamics of corporate lending at Raiffeisenbank since the beginning of this year in Russia in general and in the southern regions in particular?

We are demonstrating very serious growth: following the results of nine months, the loan portfolio of large corporate businesses grew by 12.5% ​​and amounted to 329.1 billion rubles, medium-sized businesses grew by 52.3%, to 54.7 billion rubles. In 2019, we expect to maintain the growth rate of our loan portfolio and business profitability.

In the south of Russia we are also showing positive dynamics in the corporate lending segment. Compared to last year, our loan portfolio grew by 24% in nine months. This macro-region is very important for us: it is in the top 3 in terms of the volume of loans issued by Raiffeisenbank.

The Russian economy is showing low dynamics this year; real incomes of the population have again begun to decline. What are the reasons for the growth of corporate lending in this environment?

Of course, GDP is not growing at a rapid pace, but this does not mean that stagnation has begun. Now there is no such sharp increase in demand for investment loans as, for example, five years ago. Businesses are approaching investments more selectively - many companies, including exporters, have put their projects on hold. At the same time, many good companies are still investing in business development.

A major growth factor is the increase in refinancing volumes. CFOs are constantly looking for opportunities to reduce the cost of borrowing, which creates demand for loan portfolio refinancing.

- Do the bank’s corporate clients in the South have certain specifics?

Here, as in Russia as a whole, we work with companies from a wide variety of industries, with the possible exception of the defense and nuclear industries. The list of the bank’s key clients includes almost all well-known regional companies; Three areas stand out in particular: retail trade, agriculture and transport infrastructure.

In the Southern Federal District and North Caucasian Federal District, long-term productive relationships have developed, in particular, between the bank and the Krasnodar retailer Magnit. We also cooperate with the manufacturer of aerosol cosmetics and household chemicals “Arnest” from the city of Nevinnomyssk. The growth of corporate lending is due to a wide range of players. We strive to have the most diversified customer base.

- How do you evaluate potential borrowers?

If a company has received a loan request, we assess its financial condition. If we see that this is a business that is managed correctly and efficiently, and we can be useful to it, then we start working. We understand well how to correctly assess business risks and structure transactions. Raiffeisenbank is a lender with a full line of business products, and I have heard many times from our clients that we are head and shoulders above many other banks in terms of the quality of our product line.

The focus is on companies with revenues of RUB 5 billion or more. up to 50 billion rubles in year. We work with almost all southern Russian enterprises with revenues above 5 billion rubles.

As for medium-sized businesses - with revenues of over 500 million rubles, in 2018 we doubled lending to this sector. We are planning aggressive growth in this segment and are investing large resources in the team that works with this group of clients.

What is the logic behind decision-making by large companies regarding cooperation with a private and/or foreign bank?

Today, any large company prefers to have loans from several banks in its portfolio: competition allows you to choose the most favorable financing conditions. Large businesses strive to have one or two state banks and one or two foreign or Russian private banks in their loan portfolio. Companies with revenue over 50 billion rubles. work with an even larger number of banks, including to attract syndicated loans. Also, a similar approach is relevant when implementing projects that involve the presence of different partner banks.

Do you feel increased competition from state-owned banks? What are your main competitive advantages?

Competition is strong, especially when it comes to large loans. Let’s say an enterprise needs about 1 billion rubles. In this case, it contacts all partner banks. In such a situation, we are usually forced to compete with Sberbank, VTB, Rosselkhozbank and Gazprombank. In addition, in a number of transactions we now see a group that has come under state control, including B&N Bank, MDM Bank and Otkritie. They are increasing their turnover under a single umbrella, and everyone expects that these banks will soon turn into one strong player in our market.

When the financial director of a company works simultaneously with several banks, he compares lending conditions: rate size, quality of service, speed of loan issuance, etc. If the company needs a large loan for working capital - in conditions when rates change quickly, and currencies are quite volatile, it matters whether it receives it in six months or in a few days. The timing of a bank's decision can become a serious competitive advantage.

In addition, we are very proud that leading rating agencies regularly assign Raiffeisenbank the highest level of AAA (excluding parent support). The bank is consistently among the top 15 largest in terms of assets in Russia; we do not plan to go anywhere or sell.

I would also note that in terms of return on invested capital, we are the leader in the country; Only one of the state banks shows a comparable level.

Are leasing and factoring today growth points when a bank works with large companies? Are you satisfied with the demand for these products in the South?

At the beginning of the year, the factoring portfolio was small, but during the period from January to September we grew quite noticeably. Factoring currently accounts for 10% of our income in the South. I must say, we did not expect such an impressive result. We believe that growth will continue in 2019.

Essentially, we launched factoring from scratch. This was preceded by long communications with key clients, which gave us an understanding of exactly what product they needed. As a result, it turned out to be the most attractive for clients: the main advantages of our product are its manufacturability - it is convenient for clients to use a personal account with a user-friendly interface, fast processing of requests, and the presence of an electronic digital signature. In addition, we have assembled the best team in the market and always use their expertise in preparing each proposal.

If we talk about leasing, this is a more niche product, but it is also becoming much more in demand. We work with small and medium-sized businesses, from which there is a very high demand for equipment. The most noticeable growth in this segment comes from agriculture, followed by the infrastructure and transport sector.

According to the Business Mobile Banking Rank, based on the results of its work in 2017, Raiffeisenbank entered the top ten most effective mobile banks for company executives in Russia. What made this possible?

We are extremely focused on the development of banking mobility and are investing very large resources in this area. In 2019, these investments will increase again.

The ideology is simple: wherever a bank can interact with a client digitally, this should be done. The main thing is that our work on digitalization is not abstract, it is based on constant communication with clients and studying their needs.

- How does digitalization help withstand competition from state banks?

The development of remote banking services allows us to work remotely with those regions where we are not physically present, which most of the bank’s competitors cannot boast of. Almost all interaction takes place online: many steps are agreed upon, approved and accepted using remote banking technologies. And this direction will continue to develop.

Curriculum Vitae

Dmitry Vasilyevich Sredin was born on September 21, 1976 in Moscow. In 1996 he graduated from the Canadian Carleton University, in 1998 from the Higher School of Economics.

From 1997 to 1999, he worked as a trader in international capital markets in the treasury department of Russian Credit Bank. In 1999–2001, he was a manager at the Media-Most media group. In 2001–2006 - member of the credit committee of Citigroup, head of the department for work with companies in the consumer, automotive and transport industries, regional vice president of Citibank. Since 2006 - Director of the Department of Initial Public Offerings of Debt Securities at the Troika Dialog investment company. From 2009 to 2011 - Managing Director of the investment banking department of Renaissance Capital Investment Company. In 2011–2012 - Chairman of the Board of Renaissance Advisors. Since 2012 - senior managing director, head of department, member of the credit committee of Sberbank PJSC. Since August 28, 2017 - Managing Director, Head of the Department for Work with Large Companies of the Directorate for Corporate Client Services and Investment Banking Operations of Raiffeisenbank.

He is interested in motorcycles and hockey. Married, has six children.