Sberbank and Troika Dialog have announced their merger, set to create the largest universal banking institution in Russia.
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 R8bn came from securities sales and trading operations, and R6bn - from conversion operations and precious metal operations.
In 2011 investment banking services generated preliminary income of R3.4bn. The Bank plans to significantly increase income generated by these segments after the teams are unified.
Herman Gref, chief executive 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 chief executive 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."