|Full name||Public Joint-Stock Company "Bank VTB 24"|
|Licence||1623 | Summary on the Central Bank of Russia Site|
|on 01.05.2016 г.||
101000, Moscow, Myasnickaya street, 35
VTB 24 was established on the basis of Guta-Bank that collapsed during the inter-bank crisis of 2004 and was acquired by Vneshtorgbank (now VTB Bank) with participation of the Bank of Russia. Guta-Bank (CJSC) was renamed Vneshtorgbank Retail Services in 2005, and turned into VTB 24 in November 2006, and the banks corporate status changed to a public joint stock company (PJSC) in October 2014.
VTB Bank (PJSC) controls a 99.93% interest in VTB 24, with 0.07% falling to minority shareholders. Since July 2005 Mikhail Zadornov has been the banks management board chairman after serving as the Russian finance minister from November 1997 through May 1999 (including August 1998). It should also be noted that in late April 2012 Bryansk-based Bezhitsa-Bank ended up under the wing of VTB 24 and was renamed Leto Bank. In late October 2013 VTB Group said that the merger of its two banks, VTB 24 and Transcreditbank (the latter was folded into VTB 24), was wrapped up and the Transcreditbank brand ceased to exist in November 2013. As a result of this merger VTB 24s retail credit portfolio expanded by around 11%, while retail deposits jumped 5.2%. The banks united clientele equals roughly 12 mln active clients, its aggregate workforce is 34,500 people, 28,000 of whom are VTB 24 staff, and the rest falls to the people employed by Transcreditbank.
VTB 24 is part of international banking group VTB, with a focus on households, individual entrepreneurs and small enterprises. The lenders sales network is comprised of over 1,060 divisions in 72 constituent entities of the Russian Federation, including 8 branches in largest cities of Russia. As of October 1, 2015 the banks average headcount equaled 33,913 people.
VTB 24 provides a wide range of standard banking services, including mortgage loans, online banking, investment and leasing services, safety deposit boxes, money wires via Western Union, Visa, MasterCard and Diners Club bank cards, renders private banking services, etc. The number of valid credit and debit cards that VTB 24 issued exceeds 9 mln, and the banks ATM network includes over 11,500 machines all across Russia. Around a half of the cards was issued within payroll projects that cover employees of 27,000 businesses. One of the primary benefits from folding Transcreditbank into VTB 24 is the fact that VTB 24 added 2 mln new clients in more than a hundred cities. So, the banks united clientele equals around 12 mln active clients.
From January through October 2015 the banks net assets fell 1.55%, or by Rub 44.6 bln in absolute terms, to Rub 2.8 tln as of November 2015. On the liabilities side, this contraction was driven by a decline in funds borrowed in the inter-bank lending market (down 73.73%, or Rub 354.4 bln), which the lender offset, to a large extent, by retail deposits (a surge of 18.66%, or Rub 281.9 bln), funds of corporate clients (a 8.41% rise, or Rub 25 bln) and by the additional issue of promissory notes (up Rub 10.1 bln). As for assets, the bank saw its credit portfolio shrinking (both corporate and retail), a decline in highly liquid assets, other assets, and against this backdrop the bank increased liquidity deposited at banks and invested more in securities.
Also, 63.23% of the banks liabilities falls to retail deposits, 11.37% to the balances held on settlement and deposit accounts of enterprises and institutions, the banks equity accounts for 9.27%, 4.45% falls to the funds borrowed from banks (inter-bank loans), and debt securities account for 1.34%. Monthly turnover on clients accounts ranges from Rub 2 tln to Rub 2.5 tln.
In addition, 56.35% of the banks assets falls to the credit portfolio which has declined 4.55% since the beginning of the year to Rub 1.6 tln as of early November 2015.
As of the balance sheet date 85.6% of the credit portfolio fell to retail loans, and the rest to corporate loans. The banks retail credit portfolio fell 1.96% (or Rub 27.4 bln) in January — November 2015, while the corporate credit portfolio slid 17.55% (or Rub 48.9 bln). Most retail loans were extended for 3Y+, while corporate loans were granted for mid- and long-term periods. Since January 1, 2015 overdue debt climbed 21.11%, accounting for 9.41% of the credit portfolio (7.77% at the beginning of the year). The NPL coverage ratio is 12.22% (9.47% at the beginning of the year), with 42.7% of the portfolio being asset-backed (40.1% at the beginning of the year).
Also, 25.82% of the banks net assets falls to inter-bank loans placed in the domestic market, over two thirds of which were issued for 12M+. The money was assumedly provided to its subsidiary bank, Leto Bank.
The banks securities portfolio is modest. As of November 1, 2015 it amounted to Rub 234.1 bln, and during the period under analysis the securities portfolio rose marginally (2.15%, or Rub 4.9 bln). Also, nearly 96.8% of the portfolio falls to bonds (corporate bonds issued by foreign and Russian companies, and also federal loan bonds and Bank of Russia Bonds), and Russian stocks account for the remainder.
Until recently a considerable portion of the securities portfolio was assigned as collateral under repurchase transactions, but presently only a small proportion of the securities is provided under repurchase transactions. In separate months turnover on the securities portfolio exceeded Rub 1.7 tln.
VTB 24 both lends and borrows in the inter-bank lending market, and most often the bank is a net creditor. The bank is an aggressive player in the currency market.
In line with the banks RAS financial statement, FY14 net profit totaled Rub 31.5 bln (over Rub 22.2 bln in 2013). In the January — October period of 2015 the bank posted a loss of Rub 6.9 bln.
The Supervisory Board: Andrei Kostin (chairman), Mikhail Zadornov, Herbert Moos, Mikhail Oseevsky, Ekaterina Petelina, Andrei Puchkov and Vasily Titov.
The Management Board: Mikhail Zadornov (chairman, president), Anatoly Pechatnikov, Vyacheslav Vorobiev, Mikhail Kozhokin, Ekaterina Petelina, Alexander Melenkin, Sergei Rusanov, Alexander Sokolov, Valery Chulkov, and Nadia Cherkassova.
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