VTB Bank

JSC VTB Bank

Type	Public (ПAO)
Traded as	MCX: VTBR LSE: VTBR
Industry	Banking
Founded	1990
Headquarters	Moscow, Russia
Area served	Russia, CIS, Europe, Asia, Africa, U.S.
Key people	Andrey L. Kostin (President and Chairman of the Management Board) Alexey Ulyukaev (Chairman of the Supervisory Council)
Services	Financial services
Revenue	RUB 252.30 billion (2015)[1]
Operating income	RUB 12.30 billion (2015)[1]
Net income	RUB 1.70 billion (2015)[1]
Owner	Federal Agency for State Property Management (60.9%)[2]
Number of employees	96.167 (2015)[3]
Website	www.vtb.com

VTB Bank (Russian: ПАО Банк ВТБ, former Vneshtorgbank) is one of the leading universal banks of Russia. VTB Bank and its subsidiaries form a leading Russian financial group – VTB Group, offering a wide range of banking services and products in Russia, CIS, Europe, Asia, Africa, and the U.S. The Group’s largest subsidiaries in Russia are VTB 24, Bank of Moscow.

VTB was ranked 446th on the FT Global 500 2012,^[4] The Financial Times’ annual snapshot of the world's largest companies. It climbed to 210th in the ranking of the 500 largest companies in Europe, the FT Europe 500 2014,^[5] and to 127th in the FT Emerging 500 2014, the list of the 500 largest companies on the world’s emerging markets. The Moscow-based bank is registered in St. Petersburg and came 66th in the British magazine The Banker’s Top 1,000 World Banks in terms of capital in 2014.

History

1990: Russia’s Foreign Trade Bank (Vneshtorgbank) was established with the support of the Russian State Bank and the Ministry of Finance. It was set up as a limited liability company with the aim of servicing Russia’s foreign trade operations and promoting Russia’s integration into the global economy.

1997: The bank was converted into a public company, majority owned (96.8%) by the Russian government represented by the Central Bank

2002: The bank’s stocks were transferred to Russia’s Ministry of State Property.

2004: The bank acquired a majority stake (85.81%) in Guta Bank, which was struggling with liquidity problems and experiencing serious financial difficulties. The new acquisition was reorganised into a retail bank, Vneshtorgbank 24. The bank also acquired the Armenian Armsberbank, which was later renamed VTB Armenia.

2005: The bank acquired 75.5% plus three shares of the Promstroybank (PSB), which was reorganised as Bank VTB North-West and later became VTB’s North-Western Regional Centre.

2006: Vneshtorgbank and Vneshtorgbank 24 were rebranded VTB and VTB 24. The bank set up a subsidiary, VTB Africa in Angola, and bought the Ukrainian bank Mriya, which was later merged with VTB Bank (Ukraine).^[6]

2007: The bank took over Slavneftebank in Belarus, later renamed VTB Belarus. VTB was the first Russian bank to offer an initial public offering (IPO), raising $8 billion in what became the largest international banking IPO at the time.

2008: VTB set up a subsidiary, VTB Kazakhstan.

2009: The bank acquired AF Bank in Azerbaijan from AF Holding International, later renamed VTB Azerbaijan.

2010: VTB bought a 43.18% stake in TransCreditBank from Russian Railways.

2011: VTB sold a 10% stake to foreign investors 2011. The deal yielded over 95 billion rubles for the Russian government. The bank pioneered in realization of privatization plan for state-run companies. As a result of the privatization, the government’s stake in the bank’s equity decreased to 75.5%.

By the end of December 2011, VTB had increased its stake in Bank of Moscow to 94.84%.^[7]

2012: VTB increased its stake in TransCrediBank to 99.6% after buying more stock from Russian Railways.^[8]

2013: VTB carries out additional share issue. As a result of the SPO the Russian government’s share in VTB has decreased by almost 15%.^[9]

2015: an agreement was signed between the bank president, Director of Russian Post Dmitry Strashnov and Minister of Communications and Mass Media Nikolai Nikiforov on the purchase of 50% minus 1 share of Leto Bank from VTB Bank, with the purpose of reorganising it into the National Post Bank.

2016: a set of documents was signed between VTB 24 and Russian Post on establishing the Post Bank. Russian Post purchased 50% minus 1 share of the newly established Post Bank through its 100% subsidiary.

Mergers and acquisitions

VTB Bank took over 12 banks between 2002 and February 2012, including four in Russia, three in Europe, and five in the CIS:

• Guta Bank (2004), later renamed VTB24^[10][11]
• Bank of Moscow
• TransCreditBank
• Armsberbank in Armenia (2004), later renamed VTB Armenia^[12]
• Promstroybank (2005), renamed Bank VTB North-West and later reorganised as VTB’s North-Western Regional Centre^[13]
• Eurobank in France (2005), later renamed VTB France^[14]
• Evrofinance Mosnarbank in Great Britain (2005), later renamed VTB Europe Plc, and then VTB Capital Plc
• Ost-West Handelsbank AG in Germany (2005), later renamed VTB Germany^[15]
• United Georgian Bank (2005), later renamed VTB Georgia^[16]
• Mriya in Ukraine (2006), later merged with VTB Ukraine^[17]
• Slavneftebank in Belarus (2007), later renamed VTB Belarus^[18]
• AF Bank in Azerbaijan from AF Holding International (2008), later VTB Azerbaijan^[19]

Corporate affairs

Shareholders

The main shareholder of VTB is the Russian Government, which owns 60.9% of the lender through its Federal Agency for State Property Management. The remaining shares are split between holders of its Global Depository Receipts and minority shareholders, both individuals and companies.

In February 2011, the Government floated an additional 10% minus two shares of VTB Bank. The private investors, who paid a total of 95.7 billion rubles ($3.1 billion) for the assets, included the investment funds Generali, TPG Capital, China Investment Corp, a sovereign wealth fund responsible for managing China’s foreign exchange reserves, and companies affiliated with businessman Suleiman Kerimov.^[20]

In May 2013 VTB completed a secondary public offering (SPO), issuing 2.5 trillion new additional shares by public subscription. All the shares have been placed on Moscow’s primary stock exchange. The government has not participated in the SPO so its stake in the bank decreased to 60.9% after the subscription has been closed. The bank has raised 102.5 billion rubles worth of additional capital. Three sovereign wealth funds Norway’s Norges Bank Investment Management, Qatar Holding LLC and the State Oil Fund of the Republic of Azerbaijan (SOFAZ) and commercial bank China Construction Bank became the largest investors during the SPO after purchasing more than half of the additional share issue.^[9]

Management

As of March 2016, its Management Committee consists of Andrey Kostin (Chairman since 10 June 2002), Yuri Soloviev (First Deputy President and Chairman), Vasily Titov (First Deputy President and Chairman), Herbert Moos (Deputy President and Chairman), Mikhail Oseevskiy (Deputy President and Chairman), Andrey Puchkov (Deputy President and Chairman), Denis Bortnikov (Member of Management Board), Victoria Vanurina (Member of Management Board), Maxim Kondratenko (Member of Management Board), Valery Lukyanenko (Member of Management Board), Erkin Norov (Member of Management Board).

Financial data

Interim Consolidated Statement of Financial Position as at 31 December 2015: total assets - RUB 13641.9 billion, total equity - RUB 1454.1 billion, net income - RUB 1.7 billion.^[4]

Major subsidiaries

Federation West Tower (in left), is VTB’s Head office in Moscow City, Moscow, Russia

VTB owner of the Eurasia Tower^[21]

VTB's major subsidiaries as of April 2014 were:

Corporate social responsibility

The headquarters of VTB Armenia in Yerevan, Armenia

VTB provides sponsorship and charity support to sports, culture, healthcare and targeted social aid.

Sports

VTB is the general sponsor of the following Russian sports teams: the KAMAZ –Master rally team since 2005; the Dynamo Moscow Football Club since 2009; the Dynamo Hockey Club since 2010; the men’s volleyball national team since 2003 and the National Gymnastics Federation since 2006. VTB also sponsors the Volleyball Federation of Russia. In 2008, it launched a joint project with the Russian Basketball Federation – the VTB United League basketball tournament.

Culture

VTB is a member of the Bolshoi Theater’s Board of Trustees. Since 2006, VTB has been the General Partner of the Mariinsky Theater. The bank also supports the Moscow-based Pyotr Fomenko Workshop Theater. Since 2002 VTB has been on the Tretyakov Gallery’s Board of Trustees and a participant in its many programmes. In 2004, the bank became a member of the ’s Board of Trustees. Since 2011, the bank has supported the ‘Russia-Culture’ TV channel.

Healthcare

VTB’s charity programme ‘World without Tears’ provides support to children’s healthcare centres.

References

External links

Wikimedia Commons has media related to VTB.

• VTB corporate site
• Russian website
• Austrian subsidiary

Moscow Exchange Index
Acron Aeroflot ALROSA Bashneft Credit Bank of Moscow DIXY FGC UES Gazprom Inter RAO LSR Group Lukoil M.video Magnit Mechel MMK MegaFon Moscow Exchange Mosenergo MTS NCSP Norilsk Nickel NLMK Novatek PhosAgro PIK Group Polymetal Polyus Gold Rosneft Rostelecom Rusal RusAgro RusHydro Russian Grids Sberbank Severstal Sistema Surgutneftegas Tatneft Transneft Unipro UWC Uralkali VSMPO-AVISMA VTB Bank Yandex
Valid: December 16, 2016 to March 15, 2017 Official list: http://moex.com/s777

MSCI Russia companies of Russia (May 05, 2016)
ALROSA Gazprom Lukoil Magnit (GDR) MegaFon (GDR) Mobile TeleSystems (ADR) Moscow Exchange Norilsk Nickel Novatek (GDR) Rosneft Rostelecom RusHydro Sberbank Severstal Sistema (GDR) Surgutneftegas Surgutneftegas (p) Tatneft Transneft (p) VTB Bank

50 largest banks in Russia in terms of net assets
In alphabetical order, as of December 2014
Absolut Bank Ak Bars Alfa-Bank Bank of Moscow Bank Saint Petersburg B&N Bank Citibank Credit Bank of Moscow Credit Europe Bank Eastern Express Bank Gazprombank Globexbank Home Credit Bank ING Bank Khanty-Mansiysk bank Otkritie MDM Bank Mosoblbank Moscow Industrial Bank MTS Bank National Bank Trust National Clearing Centre Nordea Novikombank Otkritie FC Bank OTP Bank Petrocommerce Promsvyazbank Raiffeisenbank Renaissance Credit Rosbank Rosevrobank Rosselkhozbank Rossiya Rossiyskiy Kredit Rossiysky Capital Russian Standard Bank Sberbank SMP Bank Sovcombank Sviaz-Bank Tatfondbank Transcapitalbank UniCredit Ural Bank for Reconstruction and Development Uralsib V.Bank Vneshprombank VTB VTB 24 Zenit
Source: Banki.ru

15 largest banks in Ukraine in terms of total assets
Alfa-Bank Crédit Agricole First Ukrainian International Bank OTP Bank Pivdennyi Bank PrivatBank Prominvestbank Raiffeisen Bank Aval Sberbank State Export-Import Bank of Ukraine State Savings Bank of Ukraine Ukrgasbank UkrSibbank Ukrsotsbank VTB
In alphabetical order, as of April 1, 2016. Source: National Bank of Ukraine