Sberbank and Troika merger creates Russian mega-bank

Sberbank and Troika Dialog have announced their merger, set to create the largest universal banking institution in Russia.

A statement from the two firms said the integration of Troika Dialog will enable Sberbank to improve client service through financial consultation and offer investment strategies – from 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,” the statement said.

Sberbank is Russia’s largest bank, accounting for about 27% of the aggregate Russian banking assets and employing about 240,000 people. Sberbank’s founder and major shareholder is the Central Bank of the Russian Federation, which holds over 60% of voting shares.

The bank’s other shareholders comprise more than 245,000 legal entities and individuals. It has 17 regional head offices and more than 19,000 branches, as well as subsidiary banks in Kazakhstan, Ukraine and Belarus, a branch in India, and representative offices in Germany and China.

Troika Dialog, founded in 1991, is a leading investment company in the CIS. Its business includes securities sales and trading, investment banking, private wealth and asset management, direct and venture investments, retail distribution and alternative investment. Operations are located in 21 cities across Russia plus offices in London, New York, Kyiv, Almaty and Nicosia.

As part of the integration, a Corporate Investment Bank (CIB) is being created to service 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, and Ruben Vardanian, chief executive of Troika Dialog have been appointed co-heads of CIB.

The second area of business created as a result of the integration is Wealth Management. This will sell 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 aims to establish the largest private bank in Russia, leveraging western experience of developing product lines and client service technology.

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