MTS Bank Performance and Growth

MTS Bank has experienced significant growth in recent years, with a total asset value of 1.3 trillion rubles as of 2022. This growth is a testament to the bank's strong financial foundation.

The bank's net profit has consistently increased, reaching a record high of 12.5 billion rubles in 2020. This financial stability has enabled MTS Bank to expand its services and reach a wider customer base.

MTS Bank's loan portfolio has also seen significant growth, with a total value of 734 billion rubles as of 2022. This growth in lending has helped to fuel the bank's expansion and increase its market share.

MTS Bank was founded in 1993 as PJSC Joint-Stock Commercial Bank Moscow Bank for Reconstruction and Development.

The bank underwent a name change in 2012, becoming MTS Bank.

In 2016, MTS Bank opened access to Samsung Pay and Apple Pay for its clients.

The bank was selected as the main operator of payment services for the official website of the Mayor of Moscow and the mobile application “Gosuslugi Moskvy” in 2017.

MTS Bank was placed on the US sanctions list on February 24, 2023, for "engaging in benefiting from the Russian government".

The bank was also placed on the UK sanctions list for similar reasons around the same time.

MTS Bank's assets with a total book value of RUB 9.6 billion were frozen as a result of the sanctions.

The bank was placed under Australian sanctions on May 19, 2023.

The Central Bank of the UAE revoked the previously issued license of MTS Bank on March 31, 2023, due to sanctions imposed by the United States.

MTS Bank was forced to refuse settlements in US dollars, Turkish lira, Uzbek soums, Omani rials, and Azerbaijani manats.

In early September 2023, information about a data leak of almost 1 million MTS Bank clients appeared on the Internet.

The Russian government authority, Roskamnadzor, confirmed the leak and initiated a violation of personal data protocol on October 19, 2023.

Readers also liked: List of Banks in Russia

MTS Bank's financial performance is a key aspect of its overall success.

The bank's financial indicators are discussed in more detail in the "Financial indicators of MTS Bank" article.

In 2017, MTS Bank introduced the Banking-as-a-Service (BaaS) cloud banking model, which revolutionized the way banking procedures and products are delivered.

This model enabled customers to access various banking services through convenient interfaces, such as mobile applications and websites. The bank's IT team turned banking operations into interfaces of internal and external services, making it easier for customers to manage their finances.

MTS Bank's BaaS model offered a range of services, including payment applications, account information, and personal finance management. The bank's goal was to provide a seamless experience for customers, allowing them to bank conveniently, safely, and remotely.

The bank's services included:

MTS Bank uses three types of cloud services: SaaS, PaaS, and IaaS, which are essential for the development of financial services and development environments.

If this caught your attention, see: Banks and Banking Services

In 2022, a top manager of MTS-Bank was convicted of selling customer information to fraudsters.

The head of Moscow's MTS-Bank additional office, Andrey Vamich, was sentenced to three years and six months in a strict regime colony.

A fine of over 5 million rubles was also imposed on Vamich for his role in selling customer data.

This case highlights the importance of protecting customer data and the severe consequences of mishandling it.

The court's decision serves as a warning to others who might consider engaging in similar activities.

In 2013, MTS acquired 25.1% of MTS Bank shares for 5 billion rubles. This was a significant investment for the company.

MTS made this acquisition for 5.09 billion rubles, a substantial amount of money.

In the same year, MTS also invested 3.64 billion rubles in the bank, further solidifying its presence in the financial sector.

MTS's partners in the bank include not only enterprises within AFK Sistema's structure but also large companies from various industries.

MTS Bank has announced plans to issue an IPO on the Moscow Stock Exchange. This move confirms the bank's entry into a new stage of development.

The IPO will offer newly issued shares, with the proceeds used to implement the bank's growth strategy and scale its high-margin retail business. The bank aims to double its loan portfolio and client base, anticipating a gradual increase in return on equity to 30%.

MTS Bank's majority shareholder, Mobile TeleSystems (MTS), does not plan to sell any of its shares in the IPO and will retain a majority stake in the bank after the offering. This means MTS will continue to have significant influence over the bank's operations.

The bank's net profit rose 32% to ₽3.7 billion in the first quarter of 2024, while its retail loan portfolio totalled ₽359 billion rubles. This growth is a testament to the bank's successful strategy.

Here's a breakdown of the key details:

MTS Bank has a long history of innovation, having launched its mobile banking service in 2008. This move allowed customers to easily manage their accounts and conduct transactions using their mobile devices.

The bank's commitment to digital banking continued with the introduction of its online banking platform in 2010. This platform provided customers with a convenient way to access their accounts and perform various banking tasks from the comfort of their own homes.

MTS Bank's focus on digital banking has paid off, with the bank now having over 1 million mobile banking users.

Curious to learn more? Check out: Examples of Digital Banking

In February 2012, JSC JSCB "MBRD" announced the change of its name to OJSC "MTS-Bank", taking the MTS brand as a basis for further development.

The bank aimed to transform from a captive bank into a retail player, leveraging the MTS brand to expand its services.

On February 16, 2012, the Bank received registered amendments to its charter, a general license, and a certificate of entry into the Unified State Register of Legal Entities with its new name.

The name change was the first stage in the bank's rebranding process, marking a significant shift in its development strategy.

By 2016, the bank planned to increase the share of retail in its balance sheet to 60%, up from 20% at the time.

MTS-Bank aimed to expand its loan portfolio and offer a wider range of banking products for private customers through the retail network of the mobile operator MTS.

The bank also planned to increase the share of mortgages in its retail portfolio to 60% by 2016, after suspending mortgage lending during the crisis.

In 2018, MTS-Bank mainly specialized in retail lending. This focus on retail lending likely allowed the bank to build strong relationships with its customers and grow its market share.

MTS-Bank's retail lending expertise helped it serve the needs of individuals and families in the region.