Sberbank of Russia and Troika Dialog announce the closure of their deal to create the largest universal banking institution in Russia.

Sberbank of Russia and Troika Dialog announce the closure of the deal to merge the two companies. This landmark event signals the creation of the largest universal banking institution in Russia, cbonds.info reported.

The integration of Troika Dialog will enable Sberbank to reach a new level of client service through high-quality financial consultation and a broad choice of investment strategies, underpinned by a full range of modern financial instruments – from the Bank’s traditional credit products to complex investment banking and global markets products. An undisputed regional market leader will emerge as a result of the merger of these two complementary businesses.

As part of the process of integrating Troika Dialog into the Sberbank structure, a new division is being created: the Corporate Investment Bank (CIB) which will provide services to the largest Russian and foreign corporations and financial institutes. CIB will become part of the business unit entitled “Corporate Business” managed by Andrey Donskih, Deputy Chairman of the Management Board of Sberbank of Russia. Alexander Bazarov, Member of the Management Board, Vice President of Sberbank of Russia and Director of the Corporate Clients Department, and Ruben Vardanian, CEO of Troika Dialog have been appointed Co-heads of CIB.

The second area of business being created as a result of integration is Wealth Management. Wealth Management will include the business areas which focus on selling investment products to private clients, including Asset Management and Private Banking. Ruben Vardanian, Troika Dialog CEO, will head Wealth Management; Bella Zlatkis, Deputy Chairman of the Management Board of Sberbank of Russia, will oversee this business unit. The unit’s development plans include the creation of the largest private bank in Russia, leveraging western experience of developing product lines and client service technology.

According to preliminary data for 2011, the divisions of Sberbank and Troika Dialog together generated 22 billion roubles of income from operations made on the financial markets, out of which 8 billion roubles came from securities sales and trading operations, and 6 billion – from conversion operations and precious metal operations. In 2011 investment banking services generated preliminary income of 3.4 billion roubles. The Bank plans to significantly increase income generated by these segments after the teams are unified, which will happen in the immediate future.

Herman Gref, CEO and Chairman of the Management Board of Sberbank of Russia, commented: “We are taking the scope of our business to the next level. The merger will enable us to modernise the Russian financial industry and increase the quality of services we offer to our corporate and private clients. We plan to consolidate and expand our leading positions in investment banking in both Russia and the CIS in the next two to three years and intend to become one of the top 15 global players in terms of debt securities, currency, and commodities operations in the next five years. We have ambitious goals: in 2014 we expect to double income from investment banking activity. At the moment we are already working on over 70 investment banking deals.”

Ruben Vardanian, Chairman of the Board of Directors and CEO of Troika Dialog, remarked: “We have been granted all the necessary regulatory approvals. Our company is now becoming a part of Sberbank and it is a pleasure for me to open this new chapter in the history of Troika Dialog. We are turning into a unique partner for investors from Russia and the CIS who require access to the global financial markets, and also for international clients who can take advantage of the opportunities that are opening up for them in the region. In the immediate future we will continue to strengthen our team and have made plans to develop existing products and launch new ones. At the moment we view global market operations, structured products and investment banking services as promising areas of business.”