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Alfa-Bank acquires Belrosbank

MINSK, 26 November (BelTA) - Alfa Banking Group and OAO Rosbank reached an agreement to sell Belrosbank, BelTA learnt from ZAO Alfa-Bank.

The package of relevant documents will be sent for approval to the National Bank of Belarus in the next few days. The transaction is expected to be completed before the end of 2012.

The deal and the subsequent merging of the two banks – Alfa-Bank (Belarus) and Belrosbank will allow Alpha-Bank to significantly strengthen its position on the Belarusian market in both the retail and corporate segments, increase the merged banks’ assets almost by half, increase the authorized capital and expand the network of regional offices and sales outlets. One of the largest private banks will be set up in Belarus as a result of the deal,” says the press release.

“We believe in the high potential of Belarus’ economy and prospects for dynamic development of its market. Acquisition of Belrosbank is a confirmation of the plans of a long-term presence on the Belarusian market and is another step toward the expansion of Alfa Banking Group in the financial markets of the CIS countries,” the Chairman of the Board of Directors of Alfa Banking Group Mr Piotr Aven commented on the deal. Chief Executive Officer of Alfa Banking Group Rushan Khvesyuk said: "We expect the deal to yield the synergy effect in both the corporate and retail customer segments.”

ZAO Belrosbank was founded in 2003. The Bank provides a full range of banking services to individual clients, legal entities and individual entrepreneurs. Belrosbank clientele is around 100,000. The regional network of the Bank includes 46 offices and points of sale throughout the country. Regulatory capital of the Bank makes up Br384.36 billion, the Bank's assets were at Br2.3 trillion as of 1 November 2012.

Alfa Banking Group operates banks in Russia, Belarus, Ukraine, the Netherlands, and Kazakhstan. The Group has a presence in Cyprus, the United States and the United Kingdom. In H1 2012, according to international financial reporting standards (IFRS), the aggregate assets of OAO Alfa-Bank (Russia) amounted to $33.9 billion, total loan portfolio made up $24.1 billion, and the aggregate capital totaled $3.9 billion. Net profit for the six months of 2012 amounted to $544 million.

ZAO Alfa-Bank (Belarus) was founded in 1999. Currently, Alfa Group owns a 97.9% stake in the Bank. As of 1 November 2012 the assets of ZAO Alfa-Bank (Belarus) made up Br3.6 trillion, regulatory capital exceeded Br305.8 billion. Alfa-Bank (Belarus) offers its services through its head office in Minsk and 14 regional offices.

OAO Rosbank is the largest subsidiary of the international finance group Societe Generale outside France.