Russia deal sees Norkom shares soar
SHARES in Norkom Technologies spiked yesterday after the financial software company signed a supply deal with a Russian bank.
The Dublin-based firm will provide anti-money laundering software to VTB Bank in a joint venture with IBM.
The announcement was welcomed by the markets with the share price jumping 11pc to 90c in early trading. The agreement was seen as welcome good news after the stock fell by 40pc last week following a profit warning.
As part of the deal, Norkom and IBM will supply 'Norkom Anti-Money Laundering' software to VTB.
The deal comes after Russian President Dimitry Medvedev signed a new law aimed at bringing Russian banking legislation into line with recommendations made by the Financial Action Task Force -- an inter-governmental body established to develop and promote national and international policies to combat money laundering and terrorist financing.
Filip Verbeke, Norkom's sales manager for central and eastern Europe and Germanics, said he was "thrilled" to have agreed the contract with VTB.
"With Norkom's risk-based approach to financial compliance, VTB Bank will be able to target investigative resources where it delivers greatest value and reduce the occurrence of time-costly false positives, enhancing the effectiveness of its financial crime management and protecting it from the financial and reputational risks associated with money laundering and criminal activities," he said.
Shanker Ramamurthy, IBM general manager of global banking and financial markets, was also very pleased with the deal.
"We hope to build on our anti-money laundering work with Norkom to help other leading banks in global growth markets gain more visibility and accuracy into their risk and compliance efforts."
VTB is the second largest financial group in Russia, with assets worth around €90bn and client deposits of about €42bn. The bank is owned by the Russian government, with the Federal Agency for State Property Management holding 85.5pc of the group.