President of Russia Vladimir Putin: Mr Fradkov, good afternoon.

Promsvyazbank is one of Russia's largest banks. It works across all regions of the Russian Federation, including in the new territories. Today, I would like to hear a performance report for this major financial institution, especially considering that this bank probably plays a leading role in terms of fulfilling and supporting state defence order. It has been very active within the defence sector. This is why we established it in the first place, by the way. Go ahead, please.

Promsvyazbank CEO Pyotr Fradkov Fradkov PyotrPromsvyazbank CEO: Mr President, thank you very much.

Indeed, the bank has been building up its capabilities over the past years. Today, it is one of the country's largest financial institutions. It holds 7.5 trillion rubles in assets and has increased this figure almost by a factor of six since its restructuring as a full-service state-owned bank, which is quite an unprecedented result. As you can see, it has a lot of potential.

However, we prioritise a balanced growth model both in the defence sector - and you were totally spot on when you mentioned it - as well as in the civilian segment. We never forget about this, and our portfolio of non-military corporate customers exceeds one trillion rubles, and there are also SMEs with a portfolio of over 600 billion rubles. We have been quite effective in terms of managing our profits.

So, I can say that over the past five or six years the bank established itself as a stable and resilient institution. I believe that we can deliver on all the tasks it receives.

Regarding the military-industrial complex, you are absolutely correct that this is a key focus for us. We are addressing two main aspects. First, we are concentrating on supporting the state defence order. Currently, nearly 85 percent of all transactions related to the state defence order are processed through Promsvyazbank, involving significant volumes: up to 80,000 transactions daily. Given the critical nature of these operations for ensuring continuity and uninterrupted settlements, we place a high priority on this. We have established the necessary infrastructure across the country and are confident that there should be no disruptions.

Certainly, advanced lending plays a crucial role, with over 2.5 trillion rubles in loans issued specifically to the defence industry in general. Of this total, 70 percent represents the preferential portfolio, which is a vital factor for defence industry enterprises given the current macroeconomic conditions. This preferential lending allows companies to better plan their financial and economic activities, manage state defence orders more effectively, and modernise their production facilities.

We have also initiated a third focus area. As a bank, we have begun to engage in the development and investment in dual-use technologies, which are currently in high demand. We already have experience with various types of equipment used, among other applications, in the special military operation.

Additionally, I must highlight our work with individual clients, which is a significant aspect for us. Our retail client portfolio…

Vladimir Putin: Military pensioners?

Pyotr Fradkov: Yes, exactly. I wanted to mention that too. On the whole, our total portfolio exceeds 600 billion rubles. However, the key focus for us is military personnel. We are developing a dedicated network specifically for them and are the leading provider of military mortgages in the country.

To be continued.

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