The Bank of Non-Core Assets Trust (BNA Trust), which manages the non-core and distressed assets of major banks that were financially rehabilitated by the Russian Central Bank between 2017 and 2018, is on track to meet its asset recovery target two years earlier than planned.
By the end of 2021, BNA Trust had already executed 99.4% of its strategic plan to recover RUB 482 billion, which includes RUB 308 billion recovered between 2019 and 2021 and the bank’s fair asset value at RUB 171 billion. The Bank’s strategic recovery plan is outlined through 2023.
In 2021 alone, BNA Trust’s asset recovery totalled RUB 110 billion, which represented 126% of its target for that year. The majority of this amount was raised through pre-trial settlements and asset sales.
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BNA Trust manages companies and assets in construction, oil extraction, engineering, agriculture, real estate and other sectors. It demonstrates some of the best results among its peers, according to calculations by PwC and BNA Trust, with a recovery to market value ratio of 132%. The largest company under BNA Trust’s management is the Russian property developer Inteco, whose revenues totalled RUB 58.6 billion in 2021.
“During the span of three years, we have proven our credibility by showing strong results that exceeded those of similar institutions abroad. Almost 90% of all returns came from settlement and asset management, and only 10% from judicial recovery. This clearly demonstrates the professionalism of our entire team and the effectiveness of our chosen business strategy,” commented Alexander Sokolov, Chairman of BNA Trust’s Management Board.
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About BNA Trust:
The Bank of Non-Core Assets Trust (BNA Trust) is a Russian financial institution established by the Bank of Russia as part of the rehabilitation of the country’s banking system. It was set up in 2018 on the basis of Trust Bank, through the consolidation of non-core and distressed assets of restructured financial institutions. BNA Trust’s activities focus on the effective management of assets in order to rehabilitate them, increase their value and sell them on the market for the highest possible price to offset the state’s bailout costs.
BNA Trust’s strategy is to recover and pay RUB 482 billion to the Bank of Russia by the end of 2023. BNA Trust’s largest assets include Inteco Group, one of Russia’s leading real estate developers, GEOTECH Seismic Services, Trust – Poultry-Farming Assets, and the United Wagon Company. BNA Trust’s subsidiaries are located in 15 regions of Russia and employ around 30,000 people. As at the end of 2021, BNA Trust’s assets were valued at RUB 171 billion.
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