VTB

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For other uses, see VTB (disambiguation).
JSC VTB Bank
Type Public (OAO)
Traded as MCXVTBR
LSEVTBR
Industry Banking
Founded 1990
Area served Russia, CIS, Europe, Asia, Africa, U.S.
Key people

Andrey L. Kostin
(President and Chairman of the Management Board)

Sergey K. Dubinin
(Chairman of the Supervisory Council)
Services Financial services
Revenue RUB 405.4 billion (30 June 2013 IFRS Results)[1]
Net income RUB 27.6 billion (30 June 2013 IFRS Results)[1]
Total assets RUB 9 402.3 billion (31 March 2014 IFRS Results)[1]
Total equity RUB 952.4 billion (31 March 2014 IFRS Results)[1]
Owners The Russian Federation state (60.9% shares)
Employees 95 161 (30 June 2013 IFRS Results)[1]
Divisions VTB Capital
Subsidiaries Bank of Moscow
Website www.vtb.com

VTB Bank (Russian: ОАО 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 VTB24, Bank of Moscow, and TransCreditBank.

VTB was ranked 236th on the FT Global 500 2011,[2] The Financial Times’ annual snapshot of the world's largest companies. It climbed to 82nd in the ranking of the 500 largest companies in Europe, the FT Europe 500 2011,[3] and to 38th in the FT Emerging 500 2011,[4] the list of the 500 largest companies on the world’s emerging markets. The Moscow-based bank is registered in St. Petersburg and came 65th in the British magazine The Banker’s Top 1000 World Banks in terms of capital in 2010.[5]

History[edit]

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.

1998: The bank was converted into a public company, with a majority stake owned by the Russian government represented by the Central Bank, which owned a 96.8% share.

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 (RZD).

2011: VTB sold a 10% stake to foreign investors 2011. The deal yielded over 95 billion roubles 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 RZD.[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]

2013: According to CISTRAN Finance, several U.S. senators allege that VTB bank holds personal accounts for Syrian President Bashar al-Assad. VTB refutes the accusations and puts out a statement that it does not hold any funds belonging to Assad or his government's leaders.[10]

Mergers and acquisitions[edit]

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

• Guta Bank (2004), later renamed VTB24 [11][12]

• Armsberbank in Armenia (2004), later renamed VTB Armenia [13]

• Promstroybank (2005), renamed Bank VTB North-West and later reorganised as VTB’s North-Western Regional Centre [14]

• Eurobank in France (2005), later renamed VTB France [15]

• 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[16]

• United Georgian Bank (2005), later renamed VTB Georgia [17]

• Mriya in Ukraine (2006), later merged with VTB Ukraine [18]

• Slavneftebank in Belarus (2007), later renamed VTB Belarus [19]

• AF Bank in Azerbaijan from AF Holding International (2008), later VTB Azerbaijan [20]

TransCreditBank

VTB bought a 43.18% stake in TransCreditBank (TCB) from RZD in December 2010.[21] In July–August 2011 VTB increased its stake in TCB to 74.48% following a second acquisition, and to 77.79% in February 2012.[22] VTB paid 46 billion roubles ($1.5 billion) for the asset, with a capital multiplier of 1.64. In September 2012, VTB bought more TCB stock from RZD, boosting its interest in the lender to 99.6%.[23]

Bank of Moscow

In February 2011, VTB Bank bought a 46.48% stake in Bank of Moscow which was owned by the Moscow government, as well as 25% plus one share of Capital Insurance Group, which owned 17.32% of Bank of Moscow, for a total purchase price of 103 billion rubles (over $3 billion).[24] In September 2012 VTB gained control over Bank of Moscow with more than 95.50 percent of the shares.[8]

Corporate affairs[edit]

The VTB headquarters in Moscow

Chairman of the Management Board[edit]

Valery M. Telegin (1990–1993)

Yuri V. Poletayev (1993–1996)

Dmitry V. Tulin (1996–1999)

Yuri V. Ponomaryov (1999–2002)

Andrey L. Kostin (from 2002)

Shareholders[edit]

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 roubles ($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. [25]

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[edit]

As of September 2009, the Supervisory Council of VTB Bank consists of Alexei Kudrin (Deputy Prime Minister, Minister of Finance of the Russian Federation), Arkady Dvorkovich (Aide to the President of the Russian Federation), Anton Drozdov (Chairman of the Management Board, Russian Pension Fund), Andrey Kostin (President and Chairman of the Management Board, JSC VTB Bank ), Alexey Savatyugin (Head of Financial Policy Department of the Ministry of Finance of the Russian Federation), Vitaly Saveliev (CEO, JSC Aeroflot-Russian Airlines), Alexei Ulyukaev (First Deputy Chairman of the Central Bank of the Russian Federation), Grigory Glazkov (Independent Consultant), Matthias Warnig (Managing Director, Nord Stream AG), Nikolai Kropachev (Rector of the St. Petersburg State University) and Muhadin Eskindarov (Rector of Finance Academy under the Government of the Russian Federation).

As of September 2009, its Management Committee consists of Andrey Kostin (Chairman since 10 June 2002), Mikhail Kuzovlev (First Deputy Chairman), Vasily Titov (First Deputy Chairman), Andrey Puchkov (Deputy Chairman), Gennady Soldatenkov (Deputy Chairman), Olga Dergunova (Member of the Board), Valery Lukyanenko (Member of the Board), Evgueny Novikov (Member of the Board).[26]

As of October 2012, the Supervisory Council of VTB Bank consists of Sergey Dubinin (Chairman of the Supervisory Council Member of the Board of Directors, CJSC VTB Capital), David Bonderman (President of TPG Investment Fund), Leonid Melamed (Board of Directors, Chairman, CJSC «Team Drive»), Andrey Kostin (President and Chairman of the Management Board, JSC VTB Bank ), Alexey Savatyugin (Deputy Finance Minister of the Russian Federation), Leonid Kazinets (Board of Directors Chairman, CJSC ‘BARKLI’), Alexei Ulyukaev (Deputy Chairman of the Bank of Russia), Matthias Warnig (Managing Director, Nord Stream AG), Nikolai Kropachev (Rector of the St. Petersburg State University), Gennadiy Melikyan (Member of Advisory Council under the Bank of Russia Chairman) and Alexey Uvarov (Director of Department of the Ministry of Economic Development of Russian Federation).[27]

As of October 2012, 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), Andrey Puchkov (Deputy President and Chairman), Mikhail Oseevskiy (Deputy President and Chairman), Denis Bortnikov (Member of the Board), Valery Lukyanenko (Member of the Board), Victoria Vanurina (Member of the Board) and Erkin Norov (Member of the Board)[28]

Financial data[edit]

In 6 months of 2013 VTB Group earned 27.6 billion roubles. The bank’s assets totalled 8 355.8 billion roubles as of 30 June 2013, and its capital came to 866.5 billion roubles. VTB Bank employed 95 161 people as of 30 June 2013.[1]

Major subsidiaries[edit]

A VTB branch in Nakhodka
The headquarters of VTB Armenia in Yerevan

VTB's major subsidiaries as of April 2014 were:

Company's name Share
VTB24 Bank (incl. Leto Bank) 100%
Insurance company VTB Insurance 100%
VTB Capital 100%
VTB-Leasing 100%
Bank of Moscow 95,52%
Multicarta 100%
VTB Dolgovoi centre 100%
VTB Pension administrator 100%
VTB Factoring 100%
VTB Registrar 100%
Hals-Development 51.24%
VTB Arena 75.00%
VTB Real Estate 100%
VTB Bank (Austria) AG (incl. VTB Bank (Deutschland) AG, VTB Bank (France) SA) 100%
VTB Bank (Ukraine) 99,97%
VTB Bank (Armenia) 100%
VTB Bank (Georgia) 96,31%
VTB Bank (Belarus) 100%
VTB Bank (Kazahstan) 100%
VTB Bank (Azerbaijan) 51 %
Banco VTB Africa, SA (Angola) 50.1%

Corporate social responsibility[edit]

VTB Bank is active in sponsoring sports, culture and health care and is very much involved in charity projects. It has been supporting the KAMAZ-Master rally team since 2005 and sponsored several sports teams, including FC Dynamo Moscow since 2008, the Dynamo five-a-side football team and the HC Dynamo Moscow since 2010, the national women’s basketball team since 2008, the national men’s volleyball team since 2011, and Russia’s Artistic Gymnastics Federation. The bank is an official partner of the International Association of Athletics Federations. VTB also sponsors the Russian Volleyball Federation. In 2008, it founded the VTB United League, an international professional basketball league, a joint project with the Russian Basketball Federation.

Over the past few years, VTB Bank has provided support to Russia’s leading museums and theatres. It is a member of the Bolshoi Theatre Board of Trustees. It has been the general partner of the Mariinsky Theatre in St. Petersburg since 2006. It also supports Moscow’s Fomenko Studio Theatre. VTB has been a member of the Tretyakov Gallery’s Board of Trustees since 2002. It is also a member of the Friends of the Russian Museum International Society. The bank’s corporate charity programme World Without Tears provides targeted support to children’s healthcare centres.

References[edit]

  1. ^ a b c d e f 1H 2013 VTB IFRS Report
  2. ^ http://media.ft.com/cms/33558890-98d4-11e0-bd66-00144feab49a.pdf FT Global 500 2011
  3. ^ http://www.ft.com/intl/cms/32aafd58-98d4-11e0-bd66-00144feab49a.pdf FT Europe 500 2011
  4. ^ http://www.ft.com/intl/cms/8371d3d0-9e40-11e0-8e61-00144feabdc0.pdf FT Emerging 500 2011
  5. ^ (Russian)http://www.banki.ru/news/lenta/?id=2050740 The Banker: в списке крупнейших банков мира Сбербанк на 43-м месте по капиталу, ВТБ — на 65-м
  6. ^ http://m.vtb.com/group/press/news/releases/287067/
  7. ^ http://www.interfax.co.uk/russia-business-and-financial-news/vtb-ups-stake-in-bank-of-moscow-to-94-84/ VTB ups stake in Bank of Moscow to 94.84%
  8. ^ a b 2012 VTB IFRS Report
  9. ^ a b VTB Completes New Offering That Reduces State Stake By 15% - The Moscow Times
  10. ^ Douglas Waits, "VTB issues statement refuting U.S. claims on Syria funds", CISTRAN Finance, 9/20/13. (Retrieved 9/23/13).
  11. ^ http://news.bbc.co.uk/2/hi/business/3874963.stm Russian banks 'are not in crisis' – BBC News
  12. ^ http://www.russiajournal.com/node/18171 VTB buys GUTA bank for symbolic price
  13. ^ http://new.vtb.com/we/press-center/releases/21813/ VTB becomes the sole owner of 100% stake in CJSC VTB Bank (Armenia)
  14. ^ http://new.vtb.com/we/press-center/releases/21595/ Vneshtorgbank owns controlling interest in Promstroybank
  15. ^ http://en.vtb.fr/about/news/index.php?ELEMENT_ID=51365 VTB became the main shareholder of BCEN-EUROBANK
  16. ^ http://www.kommersant.com/page.asp?id=606924 VTB to Buy Out Foreign Banks for the Budget Account
  17. ^ https://en.vtb.ge/about/history/2005/index.php?register=yes&ssl= VTB in 2005
  18. ^ http://en.rian.ru/russia/20051103/41981233.html Russian VTB buys bank from ex-senior official in Ukraine – paper
  19. ^ http://business.highbeam.com/407705/article-1G1-161811004/vtb-buys-control-slavneftebank-254-mln VTB buys control of Slavneftebank for $25.4 mln
  20. ^ http://new.vtb.com/we/press-center/releases/21922/ VTB holds a controlling interest in AF Bank, Azerbaijan
  21. ^ http://www.finamrus.com/investments/daily00001024FF/default.asp VTB seals primary deals with Transcreditbank
  22. ^ http://www.tcb.ru/en/newsroom/news/2012/198/ VTB Bank increases its share in TransCreditBank to 77.79 percent
  23. ^ http://www.rbcnews.com/free/20120927113728.shtml VTB targets TransCreditBank takeover
  24. ^ http://www.rcbcy.com/newsdetail.php?id=47 VTB acquires stake in the Bank of Moscow and Capital Insurance Group
  25. ^ http://www.telegraph.co.uk/sponsored/russianow/business/8345564/VTB-bank-sale-launches-privatisation-drive-in-Russia.html VTB bank sale launches privatisation drive in Russia
  26. ^ http://www.vtb.com/rus/web.html?s1=377&l=2
  27. ^ http://www.vtb.com/group/management/council/
  28. ^ http://www.vtb.com/group/management/guide/

External links[edit]