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OTKRITIE financial corporation (in brief). Otkritie was established in 1995. Now Otkritie is one of Russia’s big financial institutions, with main business areas including brokerage, asset management services, investment and commercial banking.
The Corporation’s primary business structure consists from Otkritie Bank, Otkritie Brokerage house, Otkritie Asset Management, Otkritie Debt Center, Otkritie insurance, and Otkritie Capital investment bank.
Otkritie Financial Corporation has a network that spreads out across the Russian Federation, consisting from outlets in numerous russian cities. Otkritie is also present on international markets, with offices in London, Frankfurt, Limassol and Kiev. Recently it has began expanding operations to new regions.
HISTORY
Over the past sixteen years, Otkritie Financial Corporation has evolved together with russian financial markets during good and bad times. From a brokerage and stock market player in 1990-s, Otkritie developed in more diversified company during 2000-s. Crisis of 2008
VEO Invest OJSC appeares on newly emerged russian stock market in year 2005. It was the first legal entity to later become part of Otkritie Financial Corporation. In 1997, V. Belyaev became head of VEO Invest, and since then, Mr. Belyaev has been director of Otkritie Corporation.
On the other hand, a group of Russian managers headed by Mikhail Sukhobok in 1996, established Otkritie Brokerage CJSC, which specialized in stock exchange transactions with financial derivatives. Otkritie Brokerage Company soon became one of the first Russian companies to offer its clients direct Internet-based access to the MICEX. In December of 2001, VEO Invest and Otkritie Brokerage Company signed a merger agreement. This merger resulted in the establishment of the consolidated company VEO-Otkritie. The new company offered its clients a wide range of services, including brokerage, dealership, custodian, depositary and asset management services. In 2002, VEO-Otkritie was renamed Otkritie Brokerage house.
From 2002 to 2004, Otkritie Brokerage House infallibly ranked among the top three, in terms of securities trading turnover, on the Russian stock market. During this period the company executed a major transaction in the corporate finance sector, acting as a financial consultant to prepare and oversee the sale of a stake in Russia’s leading publishing association Almaz-Press.
In 2005, Otkritie Investment Group acquired the asset management company National, which was later renamed Otkritie Asset Management and made its debut handling trust management services and pool-based investments (mutual funds). The NAUFOR Rating Agency assigned an AA+ rating to Otkritie Investment Group (very high reliability; first level).
Otkritie Investment Group Ltd. was renamed OTKRITIE Financial Corporation Ltd. in February 2007 during restructuring. In order to expand into overseas markets, OTKRITIE Financial Corporation purchased the UK-based brokerage ABC Clearing Limited, and renamed it Otkritie Securities Limited. Open.ru Brokerage House (Cyprus) Limited was incorporated the same year, and renamed Otkritie Finance (Cyprus) Limited.
Otkritie Financial Corporation began its aggressive regional expansion in 2008. In second half of 2008 world financial crisis began to influence russian banking and financial industry. Many private banks run into troubles with liquidity and bad debts. In response, Russian financial authorities with help of healthy commercial banks began to restructurize troubled banks and investment companies. Otkritie became one of first companies to take part in these measures aimed at turning around Russian banks. In November, the company, in partnership with the Deposit Insurance Agency, acquired RBR Commercial Bank. In June 2009, the bank was renamed OTKRITIE Commercial Bank CJSC. This acquisition marked the beginning of the aggressive development of the classic commercial banking division under Otkritie Financial Corporation. During subsequent 2010 and 2011 years Otkritie continued development of this strategy - for example, in July 2010, Otkritie Financial Corporation declared that it would help turn Gubernsky bank around with funding measures aimed at purchasing the bank’s distressed assets. Next in line (august 2010) was Petrovskiy bank, likewise with restructuring of troubled assets and further cleanup and streamlining of operations. In September 2010, Otkritie Brokerage House announced its entrance into the Ukrainian investment services market. On 31 March 2011, Otkritie Financial Corporation closed a deal aimed at selling a stake in Otkritie Bank to the International financial corporation (IFC). Under the terms of agreement, the IFC acquired a ~16% stake in the bank from Otkritie.
Otkritie Financial Corporation acquired a 100% stake in Otechestvo insurance company in september of 2011. This deal had big benefits for Otkritie - access to retail insurance market and possibility of additional services to clients. Besides that Otkritie gained more than 60 000 new clients.
FOUNDERS, OWNERS AND STRUCTURE OF CORPORATION
Otkritie, comparing to some other russian corporations, exhibits transparent corporative structrure. Holding company is OTKRITIE financial corporation JSC, which owns commercial bank, brokerage house, insurance company, asset management company, international trading and investment branches etc. Biggest owners are V.Belyaev, B.Mints, JSC VTB Bank, and A.Chubais. V.Belyaev and B.Mints managed the company and participated in all biggest business movements for long time, thus forming effective business partnership.
FUTURE AND PERSPECTIVES Current strategy includes development of "financial supermarket" for retail clients, for them to enjoy all synergies of well developed bank, brokerage, asset management and insurance businesses in one location - convenient and comprehensive approach for clients. Also corporation targeting on further development of international operations.