The National Depository Center (NDC), Russia's only settlement depository servicing the full range of Russian securities, announced today that the general meeting of its members, held 24 Dec., reviewed a Report on Income and Expenditure Budget Fulfillment for the first nine months of 2007 and were informed of the company's preliminary financial results for 2007. The meeting approved the Income and Expenditure Budget for 2008 and Capital Expenditures and Investments Budget for 2008.
Vladimir Milovidov, Head of Russia's Federal Service for Financial Markets (FSFM), took part in a discussion of the issue of NDC's interaction with DCC CJSC. He stated that he was satisfied with the course of negotiations being conducted between Russia's two biggest settlement depositories. NDC members authorized Nikolai Egorov, Director, NDC, to prepare materials needed for a decision by NDC's AGM on a procedure for and level of NDC participation in DCC's planned additional share issue. NDC's position on key agenda items for DCC's extraordinary meeting of shareholders will be outlined on 24 Jan., 2008 at a general meeting of NDC members.
It has also been decided to vote at the forthcoming extraordinary general meeting of RDC CJSC for an increase in RDC's authorized capital and to propose Nikolai Egorov, Director, NDC, and Eddie Astanin, Deputy Director, NDC, as candidates to RDC's Board of Directors.
NDC members reviewed information on the course of NDC's reorganization from not-for-profit partnership to joint stock company.
NDC is successfully implementing a strategy aimed at increasing the company's total equity in line with an earlier decision by the company's management. NDC's total equity rose 32% for the first nine months of 2007 to RUR1.285 billion, based on Russian Accounting Standards (RAS). NDC revenues reached RUR834.4 million for January-September 2007. This is 34% more than for the same period of 2006 (RUR621.2 million). Net profit was RUR312.8 million, an increase of 28% year-on-year (RUR245.3 million). Predicted profit for 2007 will amount to RUR491.11 million, and net profit is expected to reach RUR362.24 million or 9% more than in 2006 (RUR331.42 million).
NDC members reelected Nikolay Egorov as Director until 2011.
In an address to the meeting, Nikolay Egorov said: "In 2007, NDC has won the position of leading settlement depository in the Russian market. NDC's securities turnover (market value of securities on deposit), which is one of the most important indicators for settlement depository operations, reached an absolute record RUR7.109 trillion or US$287.8 billion in October 2007 (based on the ruble/dollar rate as of 31 Oct., 2007). Some 43% of NDC's securities turnover was represented by joint stock company shares (RUR3.07 trillion or US$124.3 billion). The value of joint stock company shares on deposit exceeded by 13% the predicted value for the first nine months of 2007. This became possible because of the inflow of shares for NDC's nominee holding."
Nikolay Egorov also stated: "It is expected that NDC's financial state in 2008 will be stable. We think that the share of income from shares on deposit with NDC will rise from one third to 40%. We are gradually implementing a strategy of increased competitiveness and growth of NDC's share in the Russian market for settlement and depository services in the segment of share servicing. Increased market share is possible owing to expansion of the list of services such as delivery versus payment, the system of accelerated settlement with custodians, implementation of simple clearing and REPO schemes with the Bank of Russia. Speaking of NDC reliability, we can say that in 2008 we intend to achieve the RUR1.5 billion total equity level planned by the company's management earlier."
About Nikolay Egorov
Nikolay Egorov was appointed NDC Director on 14 Dec., 2004. He is a graduate of the Moscow Engineering and Physical Institute. In 1992-1996, he worked at MICEX as Head of the IT Department, Technical Director and Deputy General Director, and was responsible for the unified electronic trading depository system. Until June 1999, Mr. Egorov was Deputy Chairman of the Central Bank of Russia. He was responsible for IT, telecommunications departments, and controlled activities of the Main and Inter-Regional IT Centers, Technical Center, Center of Satellite Telecommunications. In addition, he was responsible for the Bank’s IT system development, development of data bank collection and processing of the information. In June 1999-April 2003 he was Deputy General Director for IT Issues, Aeroflot. On 29 April, 2003, he was appointed First Deputy General Director, MICEX. On 14 Oct., 2005, he was appointed Senior Vice President, Member of the Board, MICEX.
Not-for-Profit Partnership “The National Depository Center” is the largest settlement depository in Russia, servicing the full range of equity securities of Russian issuers. It services 100% of transactions conducted in the federal bond and the Bank of Russia bond markets, 95% conducted in the corporate and regional bond markets, and 90% of stock exchange share transactions. NDC provides storage of global certificates and depository accounting for 99% of corporate bond issues, and 95% of sub-federal and municipal bond issues. The international rating agency Thomas Murray has assigned NDC an A+ rating as a central depository. For the first nine months of 2007 the value of assets in storage was more than RUR4 trillion, securities turnover was more than RUR40 trillion. NDC is the largest paying agent on behalf of corporate bond issuers. It is Russia's national numerating agency, the substituting numerating agency for the CIS, authorized to assign the international ISIN and CFI indexes. It is also a member of the international accounting infrastructure, providing settlements on the global financial markets using direct accounts at Clearstream Banking S.A. and Euroclear Bank. It also holds accounts at the Central Depository of the Republic of Kazakhstan and the NDC of the Republic of Azerbaijan. Among NDC’s founders are MICEX and Bank of Russia (the founders’ shares in the property are 46.7% and 39.3% respectively, and in the votes 50.2% and 42.3% respectively). Members include GPB OJSC, Evrofinans Mosnarbank, Rosbank, VTB Bank (Vneshtorgbank), Bank of Moscow, Rossiysky Credit Bank, Vneshekonombank, ING Bank Eurasia, JP Morgan Bank International LLC, International Moscow Bank, Deutsche Bank, and Sberbank of Russia. The Partnership also has a stake in Depositary Clearing Company CJSC (36.96 %) and in Settlement Depository Company CJSC (29%).
For further information about NDC: www.ndc.ru, or NDC Public Affaires Department: +7 495 232 0910, .