International Finance Corporation (IFC) exits from Locko-Bank

International development institution IFC, a member of the World Bank Group, became one of the minority stockholder of LOCKO-Bank in 2006 and until recently held a 15% stake in the Bank. Over the last 10 years of strong collaborative and mutually beneficial cooperation between major shareholders, Bank’s top management and IFC, LOCKO-Bank has significantly improved it’s approaches to corporate governance, risk management and business processes enabling IFC to consider its mission accomplished and creating the conditions for the exit of IFC from shareholders of the Bank.

Negotiation and preparation of IFC's exit from the capital of the Bank has been conducted with all shareholders of the Bank during the past two years. Locko-Bank intends to attract a new portfolio investor among the world's largest investment companies or banks.

Stanislav Boguslavsky, Chairman of the Board of Directors, commented:

"First of all I would like to express gratitude to the International Finance Corporation for their long time cooperation. LOCKO-Bank has changed fundamentally for the last 10 years: the volume of the business increased by more than 10 times in terms of assets from RUB 9 bn in 2006 to RUB 103 bn in January 2016, net profit grew by 13 times and reached RUB 2,9 bn in the end of 2015. Bank’s management quality, corporate governance and all other business processes of the Bank either were pushed to the next higher level. It’s difficult to assess financial organization management quality in figures, but in current economic environment it is clearly reflected in financial performance stability, as well as the Bank's ability to achieve its goals. The positive key efficiency and profitability indicators dynamics for 2014-2015, comfort capitalization level support, stable low overdue payments level approve high quality of the Bank's management. Certainly this was due to efforts of our investors either. We are grateful to IFC for many years of support and hope for fruitful cooperation in the future."

Tomasz Telma, IFC Director for Europe and Central Asia, commented:

"We are grateful to Locko-Bank and to its shareholders for the ten years of fruitful cooperation and are pleased to note the progress made by the bank. Bank effectively countered difficult market conditions and we hope that the Bank will continue to develop as a stable financial institution."