119121, Plyushchikha St., 37
Bezbogov Sergey Aleksandrovich
Hamrakulov Dmitry Evgenyevich
Kartavtsev Timur Sergeyevich
Peregudov Andrey Nikolaevich
Potapov Vladimir Mikhaylovich
Senik Svetlana Valeryevna
Skvortsov Ivan Sergeyevich
Smirnov Oleg Evgenyevich
Summanee Karl Taystovich
Summanen Karl Taystovich
VTB bank and its subsidiary banks – international financial group (VTB Group) which on all key indicators in the Russian market takes the second place. VTB Bank is the second in value of assets with bank of the Russian Federation and the CIS. Foundation year - 1990. The president of bank, the chairman of the board, the member of the Supervisory board – Andrey Kostin.
Assets of VTB Bank are 11.4% of a banking system of the country, and the share in banking capital is at the level of 40% at all (on January 1, 2011).
Governing bodies of VTB Bank
- General shareholder meeting — the supreme body of management of VTB Bank. It is carried out on an obligatory basis every year in the day appointed by accountable body — the Supervisory board. Issues of making changes and additions in the Charter of bank, reorganization of activity, determination of quantitative structure of the Supervisory board, election and termination of powers of his members, etc. are discussed at general shareholder meeting.
- The supervisory board of bank consists of 11 people among whom there is one bank representative of Russia, 2 representatives of the Government of the Russian Federation, 2 representatives of VTB financial group, 2 rectors of state universities, 2 directors of third parties and 2 independent experts. The competence of the Supervisory board includes problem solving of the general management activity of bank which are not referred by the Russian legislation and the Charter of bank to competence of General shareholder meeting.
- The bank board consists of 11 members too. The president, the chairman of the board of bank, the member of the supervisory board heads bank board. Management of the current activity of VTB is performed by sole executive body on behalf of the president, the chairman of the board and collegiate executive body — board. Executive bodies are accountable to General shareholder meeting and the Supervisory board of bank. The board of VTB Bank acts on the basis of the Regulations on Board.
Growth of net profit by 12.9% to 201.2 billion rubles
In 2019 the net profit of VTB was 201.2 billion rubles, having increased by 12.9% of rather previous year. Expenses on reserves were cut down for a third, to 103.3 billion rubles, said in the reporting of credit institution.
Raising of net profit in VTB was connected with the high growth of commission income and by improvements of quality of assets. Net commission income for 2019 grew by 29.2% in comparison with 2018 to 108.5 billion rubles. High growth of net commission income is caused by transactions with securities and transactions in the capital markets, remuneration for distribution of insurance products and agency services and consolidation of the acquired banks, declared in VTB.
For 2019 the total loan portfolio of VTB grew by 0.3% to 11.46 billion rubles. The portfolio of the credits to individuals increased by 12.6%. In portfolio growth large deals selling mortgage loans within securitization are considered. Without securitization of mortgage loans growth of the portfolio of the credits to individuals was 19% in 2019, said in the reporting of group.
As of December 31, 2019 the credits to legal entities made 8.096 trillion rubles, the credits to individuals — 3.365 trillion rubles. As of December 31, 2019 the share of secured loans (a mortgage and car loans) in total portfolio of the credits to individuals made 52%, without having changed since the beginning of year.
Net interest income for last year grew by only 0.2%, up to 440.6 billion rubles. At the same time net percentage margin in 2019 was reduced to 3.4% in comparison with 3.7% the previous year. The cost of funding grew by 30 bps in comparison with last year and was 5.2% in 2019.
Staff expenses and administrative costs made 254.2 billion rubles in 2019, having increased by 12.6% in comparison with 2018.Report of VTB of 2019
VTB earned 12.5 billion rubles from sale of a share in Tele2
VTB earned 12.5 billion rubles from sale of a share in Tele2. Such amount turned out from the financial instrument transaction and because of asset revaluation between two dates of disclosure of the reporting, reported bank on a teleconference on the occasion of publication of the reporting under international standards on February 26, 2020.
In the reporting for the end of 2019 the packet of Tele2 is estimated at 66 billion rubles, in the reporting for the end of 2018 this packet was estimated at 53.5 billion rubles. From here and an indicator in 12.5 billion rubles.
|Payment under the transaction means acquisition of a share block of Rostelecom at first by VTB bank, and then its redistribution between bank and consortium — the board member of bank Dmitry Pyanov says — And this redistribution will lead to an effective share of ownership of capital stock of Rostelecom of VTB Group by both direct, and indirect methods in the amount of slightly more than 17%. From them there will be a small share of immediate possession by VTB bank and the mediated ownership of VTB bank through a complex of subsidiaries through consortium inside.|
Earlier in February, 2020 Rostelecom announced consolidation of 100% of stocks Tele2. To the transaction of the company 45% of stocks of mobile operator belonged, other packet the Tele2 Russia Holding AB company in which at VTB a share in 50%, Invintel B.V. of the businessman Alexey Mordashov — 40% and Bank Rossiya — 10% owned. Thus, VTB directly owned only 27.5% of stocks of the operator. This share was also estimated at 53.3 billion rubles in IFRS for 2018, Vedomosti notes.
According to Dmitry Pyanov, the structure of consortium and its equity interest of Rostelecom should be discussed at later stages on completion of calculations of the transaction.
According to data from financial statements of VTB, in 2019 the group earned in total 201.2 billion rubles of net profit according to IFRS. In comparison with 2018 the indicator grew by 12.9% (then the indicator was 178.2 billion rubles) against the background of the high growth of commission income and improvement of quality of assets.
Growth of volume of a portfolio of the raised funds of natural persons in 9 months prior to more than 5 trillion rubles
According to the results of nine months 2019 the volume of a portfolio of the raised funds of natural persons of VTB taking into account investment products grew by 11.5% and was more than 5 trillion rubles. The retail credit portfolio increased since the beginning of year by 14.4%, to 3.2 trillion rubles. It was said on November 6, 2019 by the deputy president-chairman of the board of VTB Anatoly Pechatnikov.
The volume of a portfolio of the raised funds of natural persons of VTB (without investment products) since the beginning of year grew by 7.5% and reached 4.1 trillion rubles. On this indicator VTB grew quicker than the market on 4.4 items therefore the share of bank increased by 0.6 items, to 14.1%. The portfolio of investment products of VTB since the beginning of year grew by 34%, to 920 billion rubles. Since the beginning of this year in bank more than 360 thousand new broker accounts are opened.
The sales volume of credit products of VTB grew in three quarters by 12.3% that on 3.3 items p above the market. In total to the population it was issued to more than 1.1 trillion rubles of the credits. Remain the most demanded a mortgage (issues increased by 11%, to 462 billion rubles) and cash loans (growth by 14%, to 582 billion). The mortgage portfolio of VTB since the beginning of year grew by 14%, having exceeded 1.6 trillion rubles. The portfolio of cash loans increased by 16%, to 1.38 trillion rubles.
VTB continues development of the digital channels of sales. So, according to the results of September of the current year of 64% of deposits and 17% of the credits were issued by clients remotely. At the end of 2020 the bank is going to bring these indicators to 70% and 25% respectively. Every second active client of VTB for November 6 uses VTB online, and the share of transfers which are made through Internet and mobile bank, already reaches 99%.
Opening of a credit line of 25 billion rubles for Evroplan
The VTB bank opened the Evroplan autoleasing company a credit line of 25 billion rubles with the term of tranches to 3 years. Funds will be allocated for financing of leasing transactions. On July 7, 2020 the Evroplan company reported about it. Read more here.
The gold stock of VTB is more, than at many countries
Acquired VTB bank according to the results of April, 2020 4.4 more tons of gold, having increased the total amount of a precious metal in property to 51 tons.
- For May 1 the second in assets bank on balance had twice more gold, than at all other banks combined (23.4 tons).
- The gold stock of VTB is already comparable with reserves of the Central Bank not of the smallest economies: for example, Finland in GCR - 49.1 ton of gold, at Qatar has 42.2 tons, Malaysia has 38.9 tons.
- At 54 of 100 countries of the world, statistics on which is kept by the IMF, gold holdings concede in GCR to the volume which managed to save up VTB.
The bank became the only thing from large banks who continued to fill up storages in March and April when the Central Bank of the Russian Federation stopped purchases of a precious metal in reserves, stimulating bankers to sell metal abroad to compensate the shortage of petrodollar income.
200 million rubles on repayment of a mortgage within electronic interaction with RPF
On May 28, 2020 VTB reported that it directed more than 430 applications for the order means of the maternity (family) capital within process of electronic interaction with the Pension Fund of the Russian Federation. In a month a format clients already got a job on technology of data exchange in XML the first confirmations of RPF on the positive solution and used means for improvement of living conditions. For the end of May, 2020 the total amount of such transfers on the statements which are in work exceeds 200 million rubles. Read more here.
Preferential crediting for 22 Yakitoriya restaurants for salary payment
On April 29, 2020 it became known that 40 Yakitoriya restaurants submitted the application for receiving a soft loan for salary payment to employees to VTB bank which was connected by one of the first to the program of support of business. 22 restaurants for the end of April, 2020 got approval from Bank. Read more here.
The ex-employee of VTB and its mother went to prison for fraud with bank cards for 57 million rubles
At the end of February, 2020 the Angarsk city court of the Irkutsk region sentenced to prison terms of the former employee of VTB and its mother for fraud with bank cards. Read more here.
Failure from plastic by production of bank cards
On February 13, 2020 VTB announced the solution to refuse use of plastic by production of bank cards for benefit of eco-friendly material, is easily processed and does not pollute the environment. It is expected that in a year will pass up to 1 million clients of VTB to it.
Cards it will be produced from a polylactide — a renewable biosource. On "life expectancy" it does not concede to analogs from standard plastic while the cost of release is comparable, declared in VTB.
Clients of VTB will be able to select normal plastic or the ecological card. The bank will develop special encouragement in the form of the raised cashback and bonuses for those who will select the second.
Together with such card the client will receive an electronic instruction. In it the relevant addresses of separate collecting of garbage and other councils for eco-friendly behavior will be specified.
Several banks from among respondents Izvestia carried out pilot production of "bioplastic", but are not obvious to many respondents of advantage of such material. However experts are sure that statistics speaks for itself: in total in the world 5.6 billion payment cards, and in Russia — 280.2 million are emitted. It is 28 thousand and 1.4 thousand tons of not decomposed plastic respectively.
|Promsvyazbank studied a possibility of card issue from ecoplastic, but the options offered in the Russian market can be considered only as conditionally decomposed material. Terms of its disintegration — about 25 years. In terms of ecology of advantage of such material are unevident and require studying — the director of the department of payment cards of bank Alexander Petrov reported the edition.|
Tinkoff the Bank as reported the edition there, issues the eco-friendly card since 2016 in cooperation by the World Wide Fund for Nature. It is also made of a polylactide. Other details of the joint project in bank were not provided.
Achievement of the arrangement on acquisition of a control share in Domilenda
Within development of a housing ecosystem of VTB reached the agreement on acquisition of a control share in Domilend company – one of systems for real estate administration in Russia. Announced this VTB on November 14, 2019 and specified that the transaction will be finally closed until the end of November. Read more here.
This several thousand investors of VTB got to sale
In November, 2019 it became known that these 5 thousand investors of VTB were available for sale at a specialized forum.
The database fragment, available Izvestia, contains personal information about investors (a full name, a home address, the index, the phone number and the deposit amount, in several lines also e-mail of the client).
According to the edition, 3000 records from the mentioned base are on sale on 10 rubles in a line, and 2000 more — on 6 rubles for one record.
The press service of VTB said that the bank made investigation about emergence of this information and found out that it is about single data which were relevant as of 2016.
Also in bank noted that in the company there is a system of differentiation of access rights to information and "on a regular basis strict control of actions of users during the work with confidential data is exercised".
|The bank contacted all clients whose personal information could be compromised, warned about the incident and apologized. Nothing threatens their information security — said in VTB.|
VTB will sell the share in Tele2 to Rostelecom for actions
On October 4, 2019 it became known that the president Russia Vladimir Putin signed the decree on Rostelecom PJSC which allows the company to increase the share in mobile operator Tele2 Tele2 (trademark) to 100%.
According to the decree, Rostelecom will carry out an additional issue of the shares which on the closed subscription will be placed for benefit of the co-owner of Tele2 - the State Bank of VTB. As earlier the head of VTB Andrey Kostin said, the State Bank will receive for the share in Tele2 17% of stocks of Rostelecom. Read more here.
Purchase of 100% of stocks of First OFD
The VTB Group announced on August 7, 2019 acquisition of 100% of stocks of the operator of fiscal data of Pervy OFD (JSC ESK) at the UST group. For August, 2019 First OFD services about 400 thousand cash desks and enters into the three of the largest fiscal data operators of the country from market shares of 16%. Read more here.
Prohibition on photography of screens of computers by employees
On June 24, 2019 it became known that large banks in Russia prohibited the employees to photograph screens of computers using personal mobile phones. According to RBC, restrictions are introduced in Sberbank, Unicredit, Otkrytiye bank and VTB. Read more here.
Interview of TAdviser with the Chief information officer Sergey Baranov
The VTB bank completes accomplishment of three years' IT strategy and sets new tasks. In May, 2019 the Chief information officer of VTB Sergey Baranov in an interview of TAdviser told about key conversions of the last years, methods of reduction of an indicator time-to-market and the new directions of development in the field of IT.
Entry into the list of founders of ANO
On April 16, 2019 the VTB bank announced entry into the list of founders of ANO Tsifrovaya ekonomika. The decision on it is made by governing bodies of bank and ANO. At the time of the publication of the message necessary documents are registered by the Ministry of Justice of the Russian Federation. Read more here.
Purchase of Medialogiya company
In January, 2019 it became known that VTB acquired 63% of shares of Medialogiya company which is a system developer of monitoring and the analysis of mass media at IBS Group Holding. In more detail about the transaction here.
Growth of the loan portfolio in a segment of SMB for 24%
On March 5, 2019 it became known that the loan portfolio of VTB in a segment of small and medium business in 2018 grew by 24% and exceeded 1.1 trillion rubles. More than a quarter of volume of a portfolio make the credits in the field of trade, 17% — in the food and agricultural industry, 14% — the real estate and building materials and 12% — housing and commercial construction.
At the same time the warranty portfolio of bank in a segment in a year grew by 30% and reached 238 billion rubles, and the portfolio of attraction of financial resources of legal entities reached 1.3 trillion rubles that is 4% higher than an indicator of 2017.
In a segment of preferential financing of business the loan portfolio of bank grew by 68% and exceeded 133 billion rubles.
|VTB significantly increased the volume of financing of small and medium business. We actively cooperate with the enterprises of this segment, including within the existing preferential state programs.|
Growth of the portfolio of means of VIP clients more than on a third to 1.8 trillion rub
Dmitry Breytenbikher, the senior vice president, the Head of Department of Private Banking of VTB, in February, 2019, held a meeting with VIP clients of bank within the Russian investment forum in Sochi where he summed up the work results in 2018.
In 2018 VTB of Private Banking increased a portfolio of means of clients for 38%, to 1.8 trillion rubles. At the advancing rates investments of VIP clients in investment products - more than 92% since the beginning of year grew. Total amount exceeded 430 billion rubles.
Most popular with clients became bonds, stocks of the companies which are regularly paying dividends, structural products with protection of the capital. Clients actively used the strategy of individual trust management and service of personal financial consultation (advisory).
In comparison with the beginning of 2018 in Private Banking of VTB the share of currency tools in a portfolio grew from 53% to 59%.
|"Consolidation of the retail and corporate block of VTB Group became one of key projects of 2018. The synergy allowed VTB to show growth rates in Private Banking business more than twice advancing not only the markets and planned targets, but also own result of 2017, - said during the action Dmitry Breytenbikher. - We simply satisfy needs of our clients, and profit and the advancing growth rates are some kind of by-product which development cannot be prevented".|
Creation of the joint venture with Russian Post
Russian Post and VTB Group signed on September 12, 2018 the agreement on creation of joint venture JSC Natsionalnye Logisticheskiye Tekhnologii for the purpose of project implementation for creation of 38 logistic centers for the whole country. As expected, the created infrastructure will allow to service requirements of both the Russian, and foreign participants of the market of remote trade. Read more here.
Turnover of acquiring business increased by 40%
Based on 2017 VTB increased turnover of the acquiring business for 40% — to 1.4 trillion rubles. According to forecasts, the share of bank in the market of acquiring in Russia will increase by 1 software — to 12%. At the same time VTB remains the leader in a segment internet-acquiring from shares of 25%.
Participation of bank in projects allowed to increase turnover on acquiring business. In 2017 retail chain stores of OBI, Metro C&C, Mediamarkt, services " Yandex.taxi ", OneTwoTrip became partners of VTB in this direction.
Also in 2017 VTB began acquiring service of a payment service of Alipay in the POS terminal network, having become the largest partner of Ant Financial Services Group in Russia. The project is expected tourists from the People's Republic of China. As of December 25, 2017, more than one thousand people used service already.
In 2017 VTB began acquiring service of American Express cards and China Union Pay. According to VTB, turnover on them makes about 100 million rubles. Also for a year the bank actively developed a mobile commerce. The monthly turnover through mPOS already exceeds 3 billion rubles (for comparison, in 2016 average monthly turnover made 0.8 billion).
|The POS terminal network VTB contains 180 thousand devices. Priority tasks of group for 2018 are development of acquiring in a segment small - medium business, translation services from the card on the card, connection of new payment systems and the innovation payment methods — the director of the department of acquiring of VTB bank Alexey Kirichek reported.|
VTB bank provided a new logo
The VTB bank provided in December, 2017 on the page on Facebook a new logo of financial organization. The form and color of an emblem of credit institution changed: now the logo is three horizontal bands of blue color. Dark blue "wing" was earlier corporate character of VTB Group.
It will be used after accession of VTB 24 to VTB. Accession of VTB 24 bank to VTB will take place on January 1, 2018. Clients of VTB and VTB24 can transfer free of charge funds between banks in all remote canals of service. In October the head of VTB Andrey Kostin said that accession of VTB 24 to VTB and reorganization of business in Europe will save to group up to 18 billion rubles a year.
Plan of reduction of business in France
In June, 2017 it became known that the VTB Bank is going to reduce operating activities in France (VTB France — the French bank with the Russian capital works in the country) and to transfer the European headquarters from Vienna to Frankfurt, having integrated two European subsidiary banks in one. The head of VTB Andrey Kostin reported about it in an interview to the The Financial Times newspaper.
Restructuring of the European business of VTB is aimed at cutting down expenses and to leave the list of 125 most significant players in the banking sector of the EU. Banks from this list face additional control measures from the ECB who including carries out stress tests of these credit institutions.
60 employees in France and more than 240 in Germany and Austria work for VTB.
"In Europe we definitely have plans for cost reduction because we have three banks, small banks in Germany, Vienna and France — Kostin reported. — There are three licenses. We agreed with the ECB that all banks will have one license which will help us to appear systemically important banks. We contract in Europe".
The restructuring plan of VTB is in Europe at a development stage, reported to the edition the source acquainted with a position of the ECB. It is expected that the plan of VTB will be approved by the end of 2017.
2016: Net profit of 51.6 billion rub
In 2016 the VTB Group earned 51.6 billion rubles of net profit. It more than in 30 times more, than the previous year. However, despite good indicators of profitability, the group could not show positive dynamics of crediting. In a year the total loan portfolio of VTB was reduced by 6.2%, to 9.48 trillion rub. The corporate loan portfolio was reduced in a year by 10.3%, retail grew by 11%.
The volume of the client funds raised by VTB Group in a year grew by 1.1%, to 7.346 trillion rub. Growth was provided by means of natural persons — their volume increased by 4.2% in a year, and here the amount of funds of corporate clients decreased in a year by 0.9%. The group reduced dependence on the capital attracted in the debt markets. At the end of 2016 the share of the funds raised from them decreased from 5.1% to 3.6% in cumulative obligations of bank.
2014: The collapse of profit to 0.8 billion rub, a loss of 85.4 billion rub in Ukraine
The net profit of VTB Group decreased by 125.6 times, from 100.5 billion rubles to 800 million rubles, follows from the consolidated banking group according to the International Financial Reporting Standards (IFRS) for 2014. At the same time operating income of VTB for last year grew by 27.5%, from 429.3 billion to 547.5 billion rub.
For the first time since 2009 the bank also received a quarter loss. According to the results of the fourth quarter 2014 the group had to record losses in the amount of 4.6 billion rubles.
VTB notes that growth of total volume of the credits of group was connected with strengthening of dollar exchange rate, at the same time quarters of the credits and advance payments to clients of VTB Group are nominated in dollars. As a result the bank reviewed the strategy of crediting, having toughened requirements to providing the credits.
Also the net percentage margin (the difference relation between interest income and interest expenses to assets of bank) — from 4.5 decreased to 4.1%. In the group growth of reserves and decrease in a margin were explained with the sharp growth of a key interest rate from 10.5 to 17% in December, 2014.
At the end of 2014 losses of VTB from the Ukrainian business made 85.4 billion rubles. At the same time more than a half of all loss falls on the fourth quarter: in the last three months 2014 VTB lost about 45.3 billion rubles in Ukraine.
As a result because of the Ukrainian crisis the cost of risk of group grew more than in two, from 1.6% in 2013 to 3.4%.
Overview of assets: 20 banks in 19 countries
In 2012 the VTB Group had the international network, unique for the Russian banks, which contained more than 20 banks and financial companies in 19 countries of the world.
The VTB bank and its subsidiary banks are the leading Russian financial group providing a broad spectrum of banking services in Russia and a number of foreign countries. In Russia the group performs banking activities through one parent (VTB bank) and five subsidiary banks, the largest of which are VTB 24, Bank of Moscow and Transcreditbank.
Outside Russia the group performs the activity through 15 subsidiary banks located in the CIS countries (Armenia, 2 banks in Ukraine, 2 banks in Belarus, Kazakhstan and Azerbaijan), Europe (Austria, Cyprus, Germany, France, Great Britain and Serbia), Georgia, Africa (Angola), 2 representations in Italy and China, 2 VTB branches in China and India and 3 VTB Capital branches in Singapore, Dubai and Hong Kong.
In 2012 joined the board of bank:
- Kostin Andrey Leonidovich, president, chairman of the board, member of the Supervisory board
- Solovyov Yury Alekseyevich, the first deputy vice president, chairman of the board
- Titov Vasily Nikolaevich, the first deputy vice president, chairman of the board
- Herbert Moos, vice president, chairman of the board
- Puchkov Andrey Sergeyevich, vice president, chairman of the board
- Bortnikov Denis Aleksandrovich, board member
- Vanurina Victoria Gennadyevna, board member
- Dergunova Olga Konstantinovna, board member
- Lukyanenko Valery Vasilyevich, board member
- Norov Erkin Rakhmatovich, board member
- Petelina Ekaterina Vladimirovna, board member
Net profit record 54.8 billion rub
Net profit for 2010 according to International Financial Reporting Standards was record 54.8 billion rubles, by one and a half times net commission income increased, operating expenses, opposite were cut down. Growth of assets of group was promoted also by consolidation of Transcreditbank.
Considerably positions of VTB Bank in corporate business which in 2010 provided profit in the amount of 35 billion rubles amplified. Within creation of uniform corporate and investment business VTB carried out the serious restructuring directed to further strengthening of positions in the market due to closer integration of commercial and investment segments of group and improvement of model of customer service.
In the field of corporate crediting 2010 was characterized by normalization of a market situation, decrease in crisis expectations and the phenomena that, as a result, caused revival of activity of clients. The group managed to use successfully a situation and increased the loan portfolio to 2.5 trillion rubles, and its market share in this segment made 12.2%.
In general for the period 2008-2010 the investment division VTB Capital took part in 130 transactions in the market of debt and capital stock that more than $55 billion allowed to attract in the Russian economy investments for the amount. At the end of 2010 VTB Capital came out on top among organizers of bond issues and eurobonds in the markets of Russia and the CIS. Issues of eurobonds of bank in Singapore dollars and the Chinese yuans, sovereign eurobonds of Ukraine and eurobonds of Russian Railway became noticeable events.
2010 became the first year of implementation of new strategy of group regarding retail business which cornerstone the combination of customer-oriented approach and increase in profitability is. In general the number of active retail clients in the territory of Russia made 7.3 million people, small businesses – 115 thousand. Experience and technologies of retail direction VTB 24 are successfully applied in the field of business development outside Russia, in the CIS countries (Ukraine, Armenia, Azerbaijan, Kazakhstan and Belarus) and Georgia the bank serviced 428 thousand individuals for the end of 2010.
The current status of a banking system allows to look forward with confidence – representatives of VTB believe, but already work on development of the new development strategy for 2011-2015. The transition to intensive growth based on quality improvement of financial services and efficiency of banking activity will become its main task.
So far in the conditions of slow rates of market development VTB passed to increase in efficiency and growth of qualitative indexes. The bank intends to place emphasis on development of the products and segments of business having the increased profitability. Till 2013 in the main directions profitability should make not less than 15%. In 2011 increase in net profit of group up to level not less than 80 billion rubles is expected.
Acceptance of strategy for 2010-2013
The conditions of business which changed as a result of crisis caused need of acceptance of new strategy by VTB Group. On May 26, 2010 the Supervisory board of VTB Bank approved the Strategy of development for group for 2010-2013.
Main directions of conversions:
- Unlike the previous stage when aggressive accumulation of volumes of business and a market share was the main objective, now increase in efficiency, achievement of target return on the capital, growth of capitalization of group became a priority
- The key purposes of VTB Group for the end of 2013 – profit increase more than twice in comparison with the plan for 2010 and increase in stability of financial results
- The group is going to continue policy of diversification of business as a result of which it will be created several reference business directions having significant weight in profit: corporate, investment and retail business, foreign network.
- The share of high-marginal businesses, such as retail and investment will grow. Also the share of commission income in a group total operating income will increase.
Development of the new directions
2009 became for Russia one of the most difficult periods economically. Global financial crisis significantly changed conditions and premises of business. The available liquidity in international markets of the capital was reduced, the credit risk considerably grew, the financial status of the companies in international market, including, clients of VTB Group worsened.
In the conditions of cardinal deterioration in a situation VTB Bank delivered preserving of stability of key indicators and ensuring stable work as a priority task. Quickly taken measures included correction of credit policy, improvement of risk management system and an intensification of work with problem debt. Along with it problems of cost reduction were solved.
As a result, crisis for VTB Group became not only serious testing, but also a source of new opportunities. The group undertook a role of the conductor of the state measures for support of the Russian economy, first of all, in providing credit resources to the real sector. "VTB bank" one of the few continued crediting and could attract on service of new perspective clients. In 2009 the group increased the volume of the raised funds for 35.7%.
Active development of the new high-marginal directions of business continued. The investment banking business created in 2008 reached profitability, other non-bank financial directions began to be added to it the direction. In 2009 factoring business was started, leasing, insurance and provision of pensions continued development.
Overview of assets. 40 thousand employees
As of December 31, 2009 the network of sales of Group consisted of 941 offices in Russia, the CIS and Europe, including the 476th office of VTB 24 bank. Outside Russia the Group performs the activity through five subsidiary banks in the CIS countries (Armenia, Ukraine, Belarus, Azerbaijan and Kazakhstan), subsidiary bank in Georgia, five subsidiary banks in the countries of Europe (Austria, Germany, France, Great Britain and Cyprus), one subsidiary bank and one financial company in Africa (Angola, Namibia) and also the associated bank in Vietnam. Offices of the British investment bank of VTB Group work in Singapore and the United Arab Emirates, besides, the Group has branches in India and China. In Russia VTB performs the activity on the basis of the general license of Central Bank of Russian Federation No. 1000 existing since 1990.
The VTB Group works in spheres of corporate, retail and investment banking. Within corporate business the Group provides wide range of products and services, crediting, the foreign trade transactions, syndicated loans, deposits and settlement services and also depository service, leasing services and services in resource management for large and medium-sized companies and financial institutions. In the field of retail business VTB offers the clients deposits and checking accounts, crediting and also a number of additional services for individuals and the companies of small business. In the field of investment banking service VTB provides such services as underwriting in the debt capital markets, project financing, financing of transactions on merge and absorption, consulting services, asset management and venture funds.
As of December 31, 2009 in Group 40,447 employees worked. The Government of the Russian Federation which on behalf of Federal Agency for State Property Management possesses 85.5% of capital stock of group remains the major shareholder of VTB.
Among assets of group (for 2009):
- VTB 24,
- Bank of Moscow,
- VTB Debt center,
- VTB Capital,
- VTB Capital Asset management,
- VTB-Leasing Finance,
- VTB Real estate,
- VTB Pension plan administrator,
- VTB Pension fund,
- VTB Registrar,
- VTB Specialized depositary,
- VTB Insurance,
- VTB Factoring,
- VTB Capital holding,
- VTB Capital holding Ai Bee,
- VTB Capital Markets Limited,
- VTB Europe Strategic Investments,
- VTB Leasing (Europe),
- VTB-Leasing Capital,
- Banco VTB-Africa,
- Russian Commercial Bank (Cyprus),
- Vietnam-Russia Joint Venture Bank,
- VTB Bank (Austria),
- VTB Bank (Deutschland),
- VTB Bank (France),
- VTB Capital (Namibia),
- VTB bank (Azerbaijan),
- VTB bank (Armenia),
- VTB bank (Belarus),
- VTB bank" (Georgia),
- VTB bank (Kazakhstan),
- VTB Bank (Ukraine),
- Representative office of VTB Bank in the Kyrgyz Republic,
- Representative office of VTB Bank in Italy,
- Representative office of VTB Bank in China,
- VTB bank branch in New Delhi (India),
- The VTB Bank branch of JSC to Shanghai (China).
2007: The first IPO among the Russian banks for $8 billion
In 2007 among the Russian banks of VTB carried out by the first primary public placement of the actions. It became the international bank IPO largest at that time. The volume of the raised funds in the capital of bank was $8 billion. In Russia over 120 thousand citizens of the country became its shareholders. The received means allowed VTB to enter into number 100 of the largest banks of the world by the amount of equity.
With transformation of VTB Bank into the public company its level of openness significantly increased. Independent directors were involved in management, at the Supervisory board the Committee on Audit was formed, and in bank there began activity Management on work with investors. In 2007 the international rating agency Standard & Poor's recognized VTB one of the most information and transparent Russian banks.
2006: Transition to a uniform brand and transfer of head office to St. Petersburg
In 2006 the bank performed large-scale rebranding thanks to which its child structures in Russia and abroad began to work under a uniform brand of VTB. The supervisory board approved the development strategy of bank and its child organizations for 2007-2010 designed to strengthen even more its positions in the Russian and international markets of banking services.
The bank also received a new legal address in the Northern Capital of Russia – the city of St. Petersburg.
2004: Purchase of Guta Bank and start of VTB 24
In 2004 VTB purchased Guta Bank and in 2005 started the project of specialized retail bank VTB 24, most successful in Russia, on its basis. Purchase of Industrial Construction Bank (St. Petersburg) allowed VTB to strengthen the positions in North-West Region. VTB turned into one of the most dynamically developing credit institutes of Russia on growth rates advancing average market indicators.
At the same time VTB started creation of the powerful international banking group capable to compete to the leading western banks on equal terms. Consistently selling strategic plans of expansion of presence in foreign markets, VTB created subsidiary banks in Ukraine, Armenia and Georgia, redeemed from the Bank of Russia of a share in the Russian foreign banks in Western Europe. These steps were followed by opening of joint venture bank in Vietnam, subsidiary bank in Angola, to financial company in Namibia.
2002: The Government of the Russian Federation redeems VTB from the Central Bank. Andrey Kostin is the head of bank
In 2002 the Government of the Russian Federation which redeemed a share of its participation in authorized capital of Bank from the Central Bank of Russian Federation became the core shareholder of VTB. The new team of managers led by Andrey Kostin came to bank. They set for themselves the strategic task – to turn VTB into the leading bank institute of the country.
For a short time VTB was succeeded not only to increase significantly volumes of investment crediting of economy, but also to come to the second place in Russia on the volume of attraction of financial resources of the population. The bank started two large-scale target programs for financing of small business and development of mortgage housing lending. It allowed to lay the long-term foundation of leadership of VTB in the Russian market of retail banking services.
1997: Incorporating bank from shares of the Central Bank of 96.8%
In 1997 the state made the decision on conversion of VTB from closed in open joint stock company. The Central Bank of Russian Federation became the largest shareholder of Bank from shares of 96.8%. Against the background of an acute financial crisis of 1998 the bank could avoid a fate of many bankrupt large credit institutions and saved complete solvency. He continued to perform uninterruptedly calculations and to timely register payments according to the obligations to clients and partners.
Impeccable reputation promoted fast inflow of new corporate clients. In 1999 authorized capital of VTB grew to 42.1 billion rubles, and the share of the Central Bank of Russian Federation in the capital increased to 99.9%. VTB became the most capitalized credit institute not only in Russia and the CIS, but also in Central and Eastern Europe.
At the same time VTB expanded cooperation with the international financial institutions, in particular the European Bank for Reconstruction and Development. At the same time presence of bank in Western Europe amplified, it was among shareholders of Ist-Vest United of Bank (Luxembourg), Ost-Vest of Handelsbank (Frankfurt am Main), increased a share of the participation in the capitals of Donau-bank (Vienna).
1990: Creation of Vneshtorgbank
The history of activity of VTB Bank conducts the counting since October 17, 1990 when with the assistance of National bank of RSFSR and the Ministry of Finance of RSFSR the Bank for Foreign Trade or in abbreviated form Vneshtorgbank was founded. It was created for service of the external economic transactions of Russia and assistance of integration of the country into the world economy.
Entrusted "VTB bank" the solution of important national objectives. It acted as the agent of the state on attraction and service of the external loans connected with financing of large investment projects. The bank acquired the exclusive right of implementation of precious metals in foreign market at the request of the Government of the Russian Federation and the Central Bank of Russian Federation. Also VTB was charged by service of the Republican currency reserve of Russia and stabilization currency fund of the Central Bank of Russian Federation.
For the second year of work VTB covered correspondent network the whole world. The bank established business relations with more than 200 lead financial institutions of Europe, America, Asia, Africa and Australia. During this period the bank serviced nearly a third of all foreign trade turnover of Russia.
Active participation of the state in life of bank and implementation of a number of successful projects caused the international recognition. The leading rating agency Thomson Bank Watch assigned to VTB the highest credit rating among all Russian banks. The authoritative magazine International Investor included bank in number of thirty most highly liquid financial institutions of the world. The international Moody's Investors Service assigned to VTB Bank credit rating at the level of the sovereign rating of the Russian Federation.
- ↑ VTB earned 12.5 billion rubles from sale of the share in Tele2
- ↑ Payment biomass: VTB will transfer clients to cards from ecoplastic
- ↑ Opened investors: 5 thousand records about clients of VTB are on sale in Network
- ↑ of the VTB Bank VTB bank v 2018 godu uvelichil in 2018 increased the loan portfolio of small and medium business by 24%
- ↑ Ukraine dropped VTB