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VTB Bank bank

ВТБ
 
Name
VTB Bank
Full name
PJSC "VTB Bank"

Ranking

on 01.02.2019
Headquarter
190000, Saint-Petersburg, str. Bolshaya Morskaya, 29
Banki.ru reference

The lending institution was founded in 1990 as Foreign Trade Bank (later Vneshtorgbank, now VTB Bank). Until the third quarter of 2002 a 99.9% stake in the bank was held by the Russian Federation that assigned it to the Ministry of Property Relations of Russia as part of a banking reform. The bank held a successful IPO in May 2007. During the initial public offering 17.7% of the bank’s shares were bought by institutional Russian and foreign investors, and around 120,000 households picked up 4.8%. The bank issued additional shares in September 2009, as a result of which the state’s stake reached 85.5%. At the time of the IPO VTB Bank was valued at $35.5 bln. VTB Bank issued additional shares worth Rub 102.5 bln in May 2013, and announced a reduction in the state’s stake (via the Federal Agency for State Property Management) from 75.5% to 60.9%, while other shares constitute free float.

In 1999, the Bank of Russia made injections into the bank’s capital and provided liquidity to eliminate consequences of the 1998 crisis (VTB Bank’s capital was negative). Guta-Bank (now VTB Bank’s subsidiary, VTB 24) that failed to withstand the aftermath of the inter-bank crisis 2004 was also restructured using CBR funds and with the regulator’s solid support. Since 2002 after the Central Bank of Russia assigned VTB Bank shares to the Russian government the bank has been led by Andrey Kostin who held a similar position at Vnesheconombank, and who also worked at National Reserve Bank that is owned by Alexander Lebedev, businessman, a former Duma member and now regional member of parliament.

The bank has been a member of the national deposit insurance system since January 2005. Also in 2005, the bank moved its headquarters from Moscow to Saint Petersburg, and also received decent assets in the form of a chain of Soviet foreign banks of the USSR (Mosnarbank, BCEN-Eurobank, Ost-West Handelsbank and East-West United Bank). The state-owned banking group (VTB Group) which was established in 2006 is now comprised of over 20 lending and financial institutions in 17 CIS member states, Europe, Asia and Africa.

VTB Bank gathered 99.6% of Transcreditbank shares in October 2012, and as early as November 2013 all the bank’s corporate and retail operations were fully brought to VTB Bank and VTB 24, and the TCB brand ceased to exist.

VTB Bank purchased most Bank of Moscow shares in early 2011. The Bank of Moscow’s reorganization was wrapped up on May 10, 2016 by folding the bank into VTB Bank, and the latter gained most of the former’s business. A separate retail division, VTB Bank of Moscow (to serve households and small businesses), was set up after integration. VTB Bank of Moscow puts emphasis on the rollout of innovative high-tech products and services, in particular, the bank is fairly aggressive in consumer lending, bank card and mortgage lending markets. As part of integration VTB Bank hooked up over 10 mln households and small enterprises.

In addition, the so-called «light bank» (Leto Bank) was launched on the basis of regional lender Bezhitsa-Bank (the former Bank of Moscow subsidiary), with a focus on express lending, credit cards and cash loans. A decision was adopted in 2015 to set up Pochta Bank on the basis of Leto Bank, and as of today VTB Group holds in Pochta Bank a controlling stake (50% + 1 share, held by VTB 24), and Pochta Bank’s second shareholder is a Russian Post subsidiary.

At present, the Russian Federation represented by the Federal Agency for State Property Management (Rosimushchestvo) holds a 60.93% equity stake in VTB Bank, a 2.95% interest is in the hands of the State Oil Fund of the Republic of Azerbaijan (SOFAZ), Swiss bank Credit Suisse owns a 2.36% interest, a 1.57% stake is held by Bank Saint Petersburg, and Bank Rossiya holds a 1.26% equity position. Minority shareholders own 30.93% of the lending institution’s shares. The bank’s common shares are listed on the Moscow Exchange, and also on the London Stock Exchange as GDRs.

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