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VTB Bank

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For other uses, see VTB (disambiguation).

JSC VTB Bank
Company typePublic (ПAO)
MCX: VTBR
LSE: VTBR
IndustryBanking
Founded1990
Headquarters
Saint Petersburg Edit this on Wikidata
Area served
Russia, CIS, Europe, Asia, Africa, U.S.
Key people
Andrey L. Kostin
(President and Chairman of the Management Board)
Alexey Ulyukayev
(Chairman of the Supervisory Council)
ServicesFinancial services
Revenue1,185,800,000,000 Russian ruble (2017) Edit this on Wikidata
RUB 1.7 billion (31 December 2015 IFRS Results)[1]
Total assetsRUB 13641.9 billion (31 December 2015 IFRS Results)[1]
Total equityRUB 1454.1 billion (31 December 2015 IFRS Results)[1]
OwnerThe Russian Federation state (60.9% shares)
Number of employees
96 167 (31 December 2015 IFRS Results)[1]
Websitewww.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,[2] 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,[3] 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).[4]

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%.[5]

2012: VTB increased its stake in TransCrediBank to 99.6% after buying more stock from Russian Railways.[6]

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%.[7]

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[8][9]
  • Bank of Moscow
  • TransCreditBank
  • Armsberbank in Armenia (2004), later renamed VTB Armenia[10]
  • Promstroybank (2005), renamed Bank VTB North-West and later reorganised as VTB’s North-Western Regional Centre[11]
  • Eurobank in France (2005), later renamed VTB France[12]
  • 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[13]
  • United Georgian Bank (2005), later renamed VTB Georgia[14]
  • Mriya in Ukraine (2006), later merged with VTB Ukraine[15]
  • Slavneftebank in Belarus (2007), later renamed VTB Belarus[16]
  • AF Bank in Azerbaijan from AF Holding International (2008), later VTB Azerbaijan[17]

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.[18]

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.[7]

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 2014: total assets - RUB 12190.8 billion, total equity - RUB 1131.0 billion.[19]

Major subsidiaries

File:VTB’s Head Office.png
VTB’s Head office, Moscow city, Moscow, Russia
The headquarters of VTB Armenia in Yerevan, Armenia

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 100%
Multicarta 100%
VTB Dolgovoi centre 100%
VTB Pension administrator 100%
VTB Factoring 100%
VTB Registrar 100%
Hals-Development 96.44%
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 (Kazakhstan) 100%
VTB Bank (Azerbaijan) 51 %
Banco VTB Africa, SA (Angola) 50.1%

Corporate social responsibility

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. VTB also carries out joint projects with the and the . 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

  1. ^ a b c d 12M 2015 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://m.vtb.com/group/press/news/releases/287067/
  5. ^ 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%
  6. ^ "2012 VTB IFRS Report"
  7. ^ a b "VTB Completes New Offering That Reduces State Stake By 15%", The Moscow Times
  8. ^ "Russian banks 'are not in crisis'", BBC News
  9. ^ "VTB buys GUTA bank for symbolic price"
  10. ^ http://new.vtb.com/we/press-center/releases/21813/ VTB becomes the sole owner of 100% stake in CJSC VTB Bank (Armenia)
  11. ^ http://new.vtb.com/we/press-center/releases/21595/ Vneshtorgbank owns controlling interest in Promstroybank
  12. ^ http://en.vtb.fr/about/news/index.php?ELEMENT_ID=51365 VTB became the main shareholder of BCEN-EUROBANK
  13. ^ http://www.kommersant.com/page.asp?id=606924 VTB to Buy Out Foreign Banks for the Budget Account
  14. ^ https://en.vtb.ge/about/history/2005/index.php?register=yes&ssl= VTB in 2005
  15. ^ http://en.rian.ru/russia/20051103/41981233.html Russian VTB buys bank from ex-senior official in Ukraine – paper
  16. ^ "VTB buys control of Slavneftebank for $25.4 million"
  17. ^ http://new.vtb.com/we/press-center/releases/21922/ VTB holds a controlling interest in AF Bank, Azerbaijan
  18. ^ "VTB bank sale launches privatisation drive in Russia", The Telegraph
  19. ^ "VTB Group announces IFRS results for the first nine months and third quarter of 2015". www.vtb.com. Retrieved 2 March 2016.
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