PNB Banka

PNB Banka was a Latvian commercial bank established on 29 April 1992. It operated for most of its history under the name Norvik Banka and developed a domestic branch and sales-point network serving private individuals, business customers and international industrial enterprises. The institution offered a broad range of conventional banking services and was, for a period, among Latvia's larger banks by customer numbers and assets. The bank's ownership and expansion strategy changed significantly during the 2010s. In 2014, Grigory Guselnikov, a London-based investment fund executive and Russian businessman, became its majority shareholder through G2 Capital Partners. During the same year, shareholders contributed €69.638 million to the bank's equity capital. Norvik Banka also announced the acquisition of a 97.75% interest in Russia's Vyatka Bank, a regional universal bank focused particularly on retail customers in the Kirov region and operating representative offices in several Russian regions. This transaction was approved by Latvia's Financial and Capital Market Commission and the Central Bank of Russia. Norvik Banka reported substantial growth in the middle of the decade. At the end of 2014 it served more than 86,500 active customers and ranked fifth in Latvia by that measure. Its assets were reported at €996.4 million, an increase attributed to customer growth and additional shareholder capital. The Norvik Group employed 1,640 people at the end of 2014, including 606 at Norvik Banka. By June 2018, the bank's assets were reported at €618.7 million, indicating a smaller balance sheet than the figure recorded four years earlier. In early 2018, Guselnikov and his family acquired direct control of Vyatka Bank outside Norvik Banka. Later that year, on 9 November, Norvik Banka changed its name to PNB Banka. The rebranding was presented as part of the institution's next stage of development, while the bank continued to operate as a Latvian financial-services institution. The bank's final period was dominated by regulatory and solvency concerns. On 15 August 2019, the European Central Bank determined that PNB Banka was failing or likely to fail. Latvian authorities then took measures to stop transactions and prevent funds from leaving the institution. At that point, PNB Banka was described as Latvia's sixth-largest bank by assets. These actions ended its ordinary banking activity and marked the collapse of the PNB Banka operating brand. The available reference material does not establish a later active banking business under the same brand.

PNB Banka was founded in Latvia on 29 April 1992 and became one of the country's older commercial banks. It built a network of branches and sales points and offered banking services to both private customers and enterprises, including international industrial companies. Its business model was that of a universal commercial bank rather than a narrowly specialized financial institution. For much of its existence the bank traded as Norvik Banka. A major ownership change occurred in 2014, when Grigory Guselnikov, described as a Russian businessman and a leading partner of the London-based investment fund G2 Capital Partners, became its majority shareholder. The bank's shareholders invested €69.638 million in its equity capital during October 2014. Norvik Banka also expanded beyond Latvia by announcing the purchase of a 97.75% stake in Vyatka Bank, a regional Russian commercial bank focused largely on individuals and active in the Kirov region. The transaction received approval from both Latvia's Financial and Capital Market Commission and Russia's central bank. The 2014 reporting period showed the scale of Norvik Banka's domestic operation. It had more than 86,500 active customers and ranked fifth among Latvian banks by that measure. Its assets reached €996.4 million, while its reported capital adequacy and liquidity ratios were 15.19% and 58.75%, respectively. The wider Norvik Group employed 1,640 people at the end of 2014, including 606 employees at the bank. These figures followed reported customer and asset growth during the year. By June 2018, however, the bank's assets were reported at €618.7 million. In early 2018, Guselnikov and his family took direct control of Vyatka Bank rather than holding it through Norvik Banka. On 9 November 2018, Norvik Banka was renamed PNB Banka. The new name represented a further stage in the bank's corporate development, but it did not produce a lasting expansion of the operating brand. PNB Banka's final chapter was regulatory. On 15 August 2019, the European Central Bank classified it as failing or likely to fail. Latvian authorities responded by stopping all transactions, with the stated purpose of preventing money from flowing outside the bank. The institution was then described as Latvia's sixth-largest bank by assets. The intervention brought normal banking operations under the PNB Banka name to an end. The supplied reference material does not provide a detailed account of the subsequent liquidation process, final ownership arrangements or any successor brand, so those matters remain outside this dossier.

• 2019

  Bank placed under regulatory intervention

  [1]PNB Bankaen.wikipedia.org

  The ECB classified PNB Banka as failing or likely to fail on 15 August, after which Latvian authorities stopped transactions.

• 2018

  Norvik Banka renamed PNB Banka

  [1]PNB Bankaen.wikipedia.org

  The bank adopted the PNB Banka name on 9 November 2018.

• 2014

  Guselnikov becomes majority shareholder

  [1]PNB Bankaen.wikipedia.org

  Grigory Guselnikov became the majority shareholder of Norvik Banka through his investment interests.

• 2014

  Capital investment and Vyatka Bank acquisition

  [1]PNB Bankaen.wikipedia.org

  Shareholders invested €69.638 million in equity, and Norvik Banka announced the acquisition of a 97.75% stake in Russia's Vyatka Bank.

• 1992

  Bank established in Latvia

  [1]PNB Bankaen.wikipedia.org

  The institution was established on 29 April 1992 and became one of Latvia's older commercial banks.

A Latvian universal commercial bank serving retail customers, businesses and international industrial enterprises through a domestic branch and sales-point network.

• Retail banking

  Retail banking

  PNB Banka served natural persons through its Latvian branch and sales-point network. Its retail activities formed part of a broader universal-banking offering rather than a separately documented specialist brand. The available reference material identifies the bank as serving private customers and describes Vyatka Bank, its Russian investment, as particularly focused on individuals.

• Commercial banking

  Business and corporate banking

  The bank provided services to businesses and international industrial enterprises alongside its retail customer base. The supplied sources do not specify individual corporate products, lending programs or sector-specific propositions, but characterize the institution as offering a broad range of commercial banking services.

• Banking services

  Deposits, payments and lending

  PNB Banka's universal-bank model included ordinary banking services such as deposit-taking, payment and transaction services, and lending. The reference material does not provide a product catalogue or distinguish individual named offerings. These services became unavailable through the normal operating bank after the 2019 regulatory intervention.

• 2019

  Regulatory suspension of transactionsOther

  Background

  The ECB determined on 15 August 2019 that PNB Banka was failing or likely to fail.

  Action taken

  Latvian authorities stopped all transactions in order to prevent funds from leaving the bank.

  Aftermath

  The intervention ended the bank's ordinary operating activity and led to the collapse of the PNB Banka banking brand.

  Source

• 2018

  Rebranding from Norvik Banka to PNB BankaStrategy

  Background

  The institution presented the change as the next stage of its development after its earlier ownership and expansion activity.

  Action taken

  Norvik Banka changed its name to PNB Banka on 9 November 2018.

  Aftermath

  The new brand operated for less than a year before the ECB's failing-or-likely-to-fail determination and the Latvian authorities' transaction halt.

  Source

• 2014

  Acquisition of Vyatka Bank stakeM&A

  Background

  Norvik Banka sought to expand its banking interests into Russia through the purchase of a controlling interest in Vyatka Bank.

  Action taken

  The bank announced the acquisition of 97.75% of Vyatka Bank. The transaction was approved by Latvia's Financial and Capital Market Commission and the Central Bank of Russia.

  Aftermath

  Vyatka Bank remained associated with the ownership group, while in early 2018 Guselnikov and his family acquired direct control of it outside Norvik Banka.

  Source

1. 1PNB Bankaen.wikipedia.org