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Bank PSB CEO Pyotr Fradkov: I would like to briefly report on our performance. The bank has continued its growth, increasing by 20 percent, even 25. The bank operates across all regions of our country, serving nearly five million individual customers and 350,000 corporate customers.

Of course, the primary focus of our operations is supporting the defence industry, and here we approach this from two perspectives. The first is facilitating state defence procurement by managing payments under the state defence order. Currently, under decisions adopted by the Government, we service 100 percent of the state defence order that falls under banking support in accordance with Federal Law No. 275. We work without disruption, and the volume of transactions is considerable.

Secondly, we focus on defence industry lending. It is important to note that 80 percent of the issued portfolio carries so-called preferential rates of 5 to 5.5 percent per annum, which greatly contributes to the stable operation of our enterprises. By this, I mean the tasks facing manufacturers in ensuring the timely production of goods, including those needed for the special military operation.

As a bank, we support enterprises not only through lending but also through the fund system in terms of investments in military innovations: these include unmanned systems, electronic warfare equipment, and much-needed programmes, such as the creation of virtual simulators to accelerate the training of specialists.

We certainly do not overlook our work with servicemen: half a million servicemen are our customers, and we have dedicated programmes for them as well. For example, we are currently the undisputed leaders in military mortgage. Our military mortgage portfolio alone exceeds 110 billion rubles. Thus, 90,000 families have improved their housing conditions over the recent period, and we continue to develop these programmes under preferential terms.

President of Russia Vladimir Putin: We will need to discuss military housing separately at a later stage.

Pyotr Fradkov: Yes, this is a significant area, and we are fully engaged in it. Certainly, Mr President.

Additionally, regarding the programmes of the Defence Ministry, the Defenders of the Fatherland Foundation, and the programme for combat veterans: 260,000 combat veterans, primarily participants in the special military operation, also receive corresponding preferences, benefits, and opportunities through the bank.

We also keep in mind the workforce of our defence companies, who are an extremely important category of our citizens in light of the hard work these enterprises are doing. We are working jointly with vertically integrated holdings and regional authorities to help them, for example, by creating a special housing programme for them.

It doesn’t require any federal funds but since this is a targeted programme created for the workforce of these enterprises, we build housing for the defence industry workforce that is 30 or 40 percent below market prices. This housing is allocated to young specialists or those who the enterprises in question would like to attract or retain.

Therefore, in 2024 alone, 650 such families have purchased housing significantly below market rates. We believe that another 3,500 families will receive such support in the next few years. We consider this to be more important than high pay. Of course, good pay is important too, but we have launched this programme to prevent an unjustified wage race and attract workforce with the promise of better living conditions.

Vladimir Putin: I agree.

Pyotr Fradkov: We are not neglecting our civilian sectors either. After all, we are a large bank, one of the largest in the country, and we are working in all spheres. Small and medium-sized enterprises accounts for 1.8 trillion rubles, retail trade for nearly two trillion, and civilian large business for 3.5 trillion rubles. We also have many programmes, including infrastructure and business support.

For example, leasing programmes: we are the main lessor in the country, our company PSB Leasing, which leases Sukhoi Superjet liners used by our major air carriers.

Or take another important programme such as the National Sanitary Aviation Service, under which we lease out Mi-8 and Ansat helicopters, which are being widely used in the regions.

Mr President, there is a major subject that I certainly cannot fail to mention, and it is the work we are doing in the new constituent entities of the Russian Federation. Importantly, this effort does not focus solely on large communities. The bank currently operates in 140 communities, including those located in close proximity to the line of contact.

We consistently develop our business there depending on the situation, above all exchange operations and other services that local people require. We have 2.5 million customers among the local population, and we can say with confidence that the level and range of the banking services we provide to them fully match the quality of service we offer our customers in other Russian regions. Furthermore, we now have almost 4,500 employees in the new regions, which makes Bank PSB a major local taxpayer and employer.

At the same time, understanding our responsibility to work with people, including steps to support SMEs in the regions, we offer them more than just banking support. We have a list of certain non-banking services that we have found to be very important and in demand. One of them is legal assistance. We have established a respective division, PSB Pravo (Legal), which advises individuals and companies mostly free of charge (80 percent of such services are provided free of charge) on the Russian legal system and enforcement practices because they need time to adapt to it. As many as 30,000 legal consultations were provided in 2024 alone; it is a very popular service.

We also offer insurance products. Here, too, more than 80,000 agreements were concluded in 2024 worth over 11 billion rubles. This is just the beginning. We began to develop insurance services a little later, after an adaptation period.

Furthermore – at the risk of sounding too mundane – we expanded into online marketplaces. It is a fixture of modern life, something everyone does. We established PSB Market – a dedicated shopping platform for the new regions. The ordered goods are delivered within an average of three days to pick-up points. We offer nearly three million items at average Russian prices. I do not see why people should not benefit from purchasing goods online.

What I mean is, we offer a list of very diverse services that contribute to a normal peaceful life.

I do not even have to mention special programmes such as sports, and collaborations with major museums and federal theatres to promote their services in the new regions. We feel confident enough.

Another important issue that I would like to discuss is our plan to change PSB’s legal and tax registration address – moving to the Yaroslavl Region. We took the decision with enthusiasm, to be honest; we welcomed the general idea. We have already signed the roadmaps and are making active progress.

Vladimir Putin: Have you found office space?

Pyotr Fradkov: A temporary office, yes. But we are taking a broader approach. We are not only formally changing our tax registration address. We also want to transfer another 5,000 of our employees to Yaroslavl, in addition to the 1,500 we have there, with families. That obviously requires additional infrastructure: social, cultural, and educational.

With that in mind, we are not just moving – we are creating a whole new reality. My colleagues and I have estimated that this could mean up to a two or three percent increase in GRP. In short, we are thinking beyond just moving; we are considering the project as an investor, and we want this to be a new entity, a new reality.

Vladimir Putin: Thank you.