Vtb Bank Group

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. Type | Public company | Traded as | MCX: VTBR
LSE: VTBR | Industry | Banking, Financial services | Founded | 1990 | Headquarters | Federation Tower West , 12, Presnenskaya emb., Moscow, Russia | 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) | Products | Financial Services | Revenue | RUB 525.1 billion (30 September 2012 IFRS Results)[1] | Net income | RUB 60.2 billion (30 September 2012 IFRS Results)[1] | Total assets | RUB 7 184.7 billion (30 September 2012 IFRS Results)[1] | Total equity | RUB 672.2 billion (30 September 2012 IFRS Results)[1] | Owner(s) | The Russian Federation state (75.5% shares) | Employees | 76 528 (30 September 2012 IFRS Results)[1] | Divisions | VTB Capital | Subsidiaries | Bank of Moscow |

Chairman of the Management Board
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
The main shareholder of VTB is the Russian Government, which owns 75.5% 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.

Some Financial Data
In 9 months 2012 VTB Group earned 60.2 billion roubles. The bank’s assets totalled 7 184.7 trillion roubles as of 30 September 2012, and its capital came to 672.2 billion roubles. VTB Bank employed 76 528 people as of 30 September 2012.
Mergers and acquisitions
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 [7][8]
• Armsberbank in Armenia (2004), later renamed VTB Armenia [9]
• Promstroybank (2005), renamed Bank VTB North-West and later reorganised as VTB’s North-Western Regional Centre [10]
• Eurobank in France (2005), later renamed VTB France [11]
• 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[12]
• United Georgian Bank (2005), later renamed VTB Georgia [13]
• Mriya in Ukraine (2006), later merged with VTB Ukraine [14]
• Slavneftebank in Belarus (2007), later renamed VTB Belarus [15]
• AF Bank in Azerbaijan from AF Holding International (2008), later VTB Azerbaijan [16]
TransCreditBank
VTB bought a 43.18% stake in TransCreditBank (TCB) from RZD in December 2010.[17] In July–August 2011 VTB increased its stake in TCB to 74.48% following a second acquisition, and to 77.79% in February 2012.[18] 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%.[19]
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).[20] In September 2012 VTB gained control over Bank of Moscow with more than 95.50 percent of the shares.[1]

Major subsidiaries
VTB's major subsidiaries as of 30 September 2012 were:[1] Company's name | Share | VTB24 Bank | 100% | Insurance company VTB Insurance | 100% | VTB-Development | 100% | VTB Capital | 100% | VTB-Leasing | 100% | TransCreditBank | 99,6 | 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 Eatate | 100% | «Russian Commercial Bank (Cyprus) Ltd» | 60% | VTB Bank (Austria) AG | 100% | VTB Bank (Ukraine) | 99,97% | VTB Bank (Armenia) | 100% | VTB Bank (Georgia) | 96,31% | VTB Bank (Belarus) | 71,42% | VTB Bank (Deutschland) AG | 100% | VTB Bank (Kazahstan) | 100% | VTB Bank (Azerbaijan) | 51 % | Banco VTB Africa S.A. | 66% | | | Strategy ( + ссылка 2 ) | |
On May 26 2010 the Supervisory Council of VTB Bank approved VTB Group’s business development strategy for 2010–2013. The new strategy aims to achieve steady growth that substantially increases profits through an improved revenue structure and greater business efficiency. While previously the focus was on aggressively growing our business and market share, our priority now is greater efficiency, achievement of the targeted return on equity (ROE), and increasing the Group’s market capitalisation.
VTB Group’s key targets for the end of 2013 are as follows: * more than doubling profit compared to the 2010 plan; * at least 15% ROE across the Group and over 20% for high-margin businesses; * significant growth of market capitalisation; * qualitative improvements in revenue structure; * more stable financial results.
The Group intends to further diversify its business as a result developing several supportive business directions, which have significant weight in the Group’s overall profit: corporate, investment and retail businesses, and its foreign network. At the same time the share of high-margin retail and investment businesses will grow. The Group is set to boost fee and commission income in its aggregate operating income, and to improve its funding structure and reduce business concentration.
The new strategy sets specific goals for each business area.
Key corporate business targets include: * developing strong transaction banking capabilities and transforming VTB Bank into the main settlement bank for its customers; * developing an integrated corporate-investment bank and raising the share of large-scaled corporate business through the cross-sale of IB products; * increasing the number of active customers in the medium business sector and the lower end of the large business sector; * creating teams for priority industries that are the best in the business.
The main goals for our investment business are: * building a platform to sell investment banking services to key customer segments within VTB Group; * increasing revenues substantially; * retaining our ranking in the Top 3 Russian banks in terms of key products.
The main goal for our retail business include substantial growth in profits through continued dynamic development and increased business efficiency as well as enhancing market share and retail business as a share of the Group’s portfolio. In terms of retail business development, the Group aims to: * further develop its branch network and alternative sales channels; * shift to a segment-oriented approach to serving customers; * improve its IT platform and technologies; * raise the quality of services; * use VTB24’s expertise and technology to expand retail business in the CIS.
The 2010–2013 development strategy for VTB Group’s financial subsidiaries aims to create efficient, diversified and profit-making businesses as well as to establish and strengthen the company’s position in the respective sectors through the development of its product line, industry and customer diversification, and developing its regional network and other sales channels.
Our priority for international development is to expand our business in markets where the Group already operates. The key region for the Group is the CIS, where we seek to strengthen our market position, boost retail business and make our network and business processes more efficient. In Europe, Asia and Africa, the Group continues to focus on serving customers from Russia and the CIS. Our work contributes to international cooperation and opens up international markets to CIS customers, to whom we offer a unique range of products on the global financial markets.
Supporting the growth of our business by building better infrastructure is important to the Group. We plan to significantly increase our operational capability by streamlining automated business processes and integrating advanced IT platforms and other new technology across the Group.
Our aim is to improve the Group’s management system to achieve greater synergy across business areas, and to benefit from our geographical reach outside the Russian Federation.
«Achieving these goals will allow VTB Group to significantly expand the scale and scope of its business, which, in turn, will have a positive impact on its market capitalisation," said Ekaterina Petelina, Member of VTB Bank Management Board.