|Full name||Public Joint-Stock Company "Bank VTB 24"|
|Licence||1623 | Summary on the Central Bank of Russia Site|
|on 01.02.2015 г.||
VTB 24, a public joint stock company, is one of the largest financial institutions in Russia that is in charge of VTB Groups retail business. VTB Bank controls 99.92% of VTB 24 shares, and the banks business focus is to serve households, individual entrepreneurs and SMEs.
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).
VTB Bank controls a 99.92% interest in VTB 24, with 0.08% 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 since 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 Transcreditbank employees.
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 1,062 offices in 72 constituent entities of the Russian Federation, including 15 branches in the countrys largest cities. The bank employs more than 35,000 people.
VTB 24 provides a wide range of standard banking services, including mortgage loans, online banking, investment and leasing services, safety deposit boxes, money transfers via Western Union, VTB24 — Sprint and Anelik, issues 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 totals 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.
Since the beginning of 2014 VTB 24s assets have climbed 31.77% to Rub 2.8 tln as of early December 2014. The banks liabilities expanded on the back of a sharp rise in inter-bank loans, additional funds brought by households to deposit accounts, the money held on accounts and deposit accounts of corporate clients and equity. As regards assets, the credit portfolio expanded tangibly (primarily retail loans), the money invested in the securities portfolio and inter-bank loans granted rose.
Also, 54.37% of the banks liabilities falls to retail deposits, 9.58% to the balances held on settlement and deposit accounts of enterprises and institutions, the banks equity accounts for 9.27%, and 15.92% falls to the funds borrowed from banks (inter-bank loans). Monthly turnover on clients accounts is Rub 1.5 tln to Rub 2.2 tln.
In addition, 60.73% of the banks assets falls to the credit portfolio which has expanded 22.09% since the beginning of the year to Rub 1.7 tln as of early December 2014.
As of the reporting date 83% of the credit portfolio fell to retail loans, and the rest to corporate loans. The banks retail credit portfolio jumped 22.3% (or Rub 255.4 bln) in January — November 2014, while the corporate credit portfolio climbed Rub 48.8 bln. Most retail loans were extended for 3Y+, while corporate loans were granted for mid- and long-term periods. Since January 1, 2014 overdue debt climbed 71.3%, equaling 7.4% of the credit portfolio (5.3% at the beginning of the year). The coverage ratio is 9.68%, with 38.8% of the portfolio being asset-backed.
Also, 23% of the banks net assets falls to inter-bank loans provided on the domestic market, and over two thirds of which were issued for 12M+. The money was assumedly provided to its subsidiary bank, Leto Bank.
In January — November 2014 the bank slashed stock investments by 73.46%, but at the same time doubled its bond portfolio, and also increased investments in the capitals of other institutions. As a result, since January 1, 2014 its aggregate securities portfolio has expanded 80.26%, and the portion of bonds in the securities portfolio increased to 98%. The bulk of the bonds maintained on the banks balance sheet is under collateral against repurchase transactions, with the remainder falling to bonds issued by Russian banks and businesses, and also federal loan bonds. Turnover on bonds provided under repurchase transactions ranges from Rub 1.1 tln to Rub 1.5 tln.
VTB 24 both lends and borrows on the inter-bank lending market, and most often the bank is a net creditor.
In line with the banks RAS financial statement, FY13 net profit totaled Rub 22.2 bln (over Rub 36.9 bln in 2012). As of December 1, 2014 the bank earned Rub 23.2 bln in net profit.
The Supervisory Board: Andrei Kostin (chairman), Mikhail Zadornov, Herbert Moos, Mikhail Oseevsky, Ekaterina Petelina, Yulia Chupina, 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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