Russia's Promsvyazbank Acquires Its Competitor SMP Bank

Promsvyazbank (PSB), a state-owned, formerly private Russian bank from Moscow, said on Friday that it had bought its competitor SMP Bank, without disclosing the price of the deal.

PSB is one of Russia's 13 "systemically important credit institutions", which offers a wide range of services but has focused on state employees and the defence sector since it was bailed out by the central bank in 2017.

The bank was targeted with Western sanctions this year over Russia's actions in Ukraine.

PSB already has experience acquiring other banks, as it bought Sviaz Bank from VEB in December 2019 and 100% of bailed-out Roscosmosbank from state corporation Roscosmos in December 2020. Moscow Industrial Bank is expected to be merged into PSB by May 2023.  

Also, the Central National Bank of the DPR and the State Bank of the LPR operating in the Donetsk and Lugansk people's republics will become limited liability companies, and then the republics' administrations will ensure the sale to PSB of 100% of the shares in these banks "at a market value of 1 ruble."