VTB Bank (Russian: ПАО Банк ВТБ, former Vneshtorgbank, lit. foreign trade bank) 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.
VTB was ranked 446th on the FT Global 500 2012, 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, 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.
VTB Bank was founded as Vneshtorgbank in 1990 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.
In 2004, the bank acquired a majority stake of 85.8% in Guta Bank, which was reorganised into a retail bank, Vneshtorgbank 24 (VTB24). The bank also acquired the Armenian Armsberbank, which was later renamed VTB Armenia. In 2005, the bank acquired 75% plus three shares of the Promstroybank (PSB), which was reorganised as Bank VTB North-West and later became VTB's North-Western Regional Centre, and bought the Ukrainian bank Mriya, which was later merged with VTB Bank (Ukraine).
In 2007, the bank set up a subsidiary in Angola known as VTB África. The bank also took over Slavneftebank in Belarus and later renamed it VTB Belarus. In June, VTB became 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.
In 2008, the bank acquired a 51% stake in AF Bank in Azerbaijan from AF Holding International, later renaming it VTB Azerbaijan. In 2010, the bank's board approved the phased acquisition of TransCreditBank from Russian Railways. In 2013, VTB carried out a secondary public offering (SPO) which raised 102.5 billion rubles ($3.3 billion) and diluted the Russian government's share in VTB from 75.5 percent to 60.9 percent.
In 2011, VTB invested more than $191 million for shares in the Isle of Man company DST Investment 3 which was roughly than half of the funds in Yuri Milner's DST Global. This led to Milner's large stake in Twitter. Kanton had almost no investment in Twitter. DST Investment 3 also issued shares to Alisher Usmanov's Kanton that were used to support the Kremlin's investment in Facebook.
On 7 May 2014, VTB transferred most of its DST Investment 3 to Kanton.
On 24 July 2015, an agreement, which as approved by Dmitry Medvedev, was signed between the bank president, Director of Russian Post, Dmitry Strashnov, and Minister of Communications and Mass Media, Nikolai Nikiforov, on the Russian Post purchase of 50 percent minus 1 share of Leto Bank (Summer Bank) from VTB24, with the purpose of reorganising it into the National Post Bank. The remaining 50 percent plus one share will be owned by VTB24 of VTB Bank. VTB CEO Kostin suggested appointing Dmitry Rudenko, the current head of Leto Bank, as the head of Post Bank (Russia).
On 28 January 2016, sets of documents were signed between VTB24 and Russian Post on establishing the Post Bank. Russian Post purchased 50 percent minus one share of the newly established Post Bank through its 100 percent subsidiary. The remaining 50 percent plus one share is owned by VTB24 of VTB Bank. Dmitry Rudenko, the head of Leto Bank of VTB24, became the head of Post Bank (Russia).
On 28 December 2017, VTB24 sells two shares to Dmitry Rudenko, the Chairman of the Board of Post Bank. VTB 24 and Russia Post have equal shares in Post Bank: each have 50 percent minus one share. VTB24 has 1,062 branches.
On 1 January 2018, VTB acquired VTB24. The integrated network has 1,350 branches.
In May 2013 VTB completed a secondary public offering (SPO), issuing 2.5 trillion new additional shares by public subscription. All shares were placed on Moscow's primary stock exchange. The government did not participate in the SPO, so its stake in the bank decreased to 60.9% after the subscription closed. The bank 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 shares issued.
As of February 2019, its Management Committee consists of Andrey Kostin (Chairman since 10 June 2002),
President and Chairman of VTB Bank Management Board, Member of the Supervisory Council, Dmitry Olyunin (First Deputy President and Chairman of VTB Bank Management Board), Andrey Puchkov (First Deputy President and Chairman of VTB Bank Management Board), Yuri Soloviev (First Deputy President and Chairman of VTB Bank Management Board), Denis Bortnikov (Deputy President and Chairman of VTB Bank Management Board), Olga Dergunova (Deputy President and Chairman of VTB Bank Management Board), Valery Lukyanenko (Deputy President and Chairman of VTB Bank Management Board), Anatoly Pechatnikov (Deputy President and Chairman of VTB Bank Management Board), Maxim Kondratenko (Member of VTB Bank Management Board), Erkin Norov (Member of VTB Bank Management Board), Dmitriy Pianov (Member of VTB Bank Management Board), Oleg Smirnov (Member of VTB Bank Management Board), Valery Chulkov (Member of VTB Bank Management Board).
As of February 2019[update], VTB's Supervisory Council consists of Anton Siluanov (Chairman of the Supervisory Council), Matthias Warnig (member of the Supervisory Council), Sergey Dubinin (member of supervisory council), Yves Thibault de Silguy (Independent member of supervisory council), Mikhail Zadornov (Member of Supervisory Council), Andrey Kostin (President and Chairman of VTB Bank Management Board), Shahmar Movsumov (Independent member of supervisory council), Igor Repin (Independent member of Supervisory Council), Alexander Sokolov (Member of Supervisory Council), Vladimir Chistyukhin (member of supervisory council), Mukhadin Eskindarov (Member of Supervisory Council).
Consolidated Statement of Financial Position as at 31 December 2018: net interest income – 468,6 RUB billion, net fee and commission income – 90,0 RUB billion, operating income before provisions – 641,3 RUB billion, staff costs and administrative expenses – 259,8 RUB billion, net profit – 178,8 RUB billion.
Since 2013, VTB Group has been supporting the Velobike, a bicycle-sharing system in Moscow, a project by the Department for Transport and Development of Road Infrastructure of the city. In 2018, the number of trips exceeded 3 million.
VTB is a member of the Board of Trustees for the Bolshoi Theatre, and the non-profit organisation The Bolshoi Theatre Foundation that was established in 2002. VTB has supported many of the premieres at the Bolshoi, including The Lady with the Camellias, Ivan the Terrible, Onegin, The Sleeping Beauty, The Snow Maiden, Romeo and Juliet, The Legend of Love, Manon Lescaut and others.
Cooperation between VTB and the Pushkin Museum of Fine Arts begun in 2005. The Bank supports many of the museum's exhibits such as Venice of the Renaissance, Titian, Tintoretto, Veronese and Chaim Soutine, Retrospective.
The cooperation between VTB Bank and the State Hermitage began in September 2013, where the Bank promotes the museum's exhibitions and innovative projects. In 2017, with the support of VTB Bank, the museum hosted the exhibition The Winter Palace and the Hermitage. 1917. History Was Created Here.
Since 2014, the Bank has provided charitable assistance to the Jewish Museum and Tolerance Center. In autumn of 2017, VTB helped organise the exhibition To Everyone on Freedom? The History of One People in the Years of the Revolution. In 2018, with support from the bank, an exhibition Isaak Levitan and Author's Cinema was held.
VTB also supports healthcare programmes in Russia, and provides support to the elderly, orphans and disabled people, as well as veteran organisations. Within the framework of the Bank's own charity programme 'The World without Tears', which celebrated its 15-year anniversary in 2018, hundreds of children and hospitals from 52 regions of Russia – from Moscow to the Kamchatka Territory – received the Bank's support. In 2018, the charity event 'The World without Tears' was held in 21 cities of Russia.
In addition, for several years from 2014 to 2018, VTB supported institutions that focused on children's health in the Republic of Karelia.
On 13 August 2014, United States clarifies entities under sectoral sanctions. United States increases its sectoral sanctions on VTB Bank together with its subsidiaries (“the VTB Group”) and the Bank of Moscow through its parent bank, VTB Bank OAO, and other entities that VTB has 50 percent or greater ownership either individually or in the aggregate, either directly or indirectly. Also, US persons cannot use a third party intermediary and they must use caution during "transactions with a non-blocked entity in which one or more blocked persons has a significant ownership interest that is less than 50 percent or which one or more blocked persons may control by means other than a majority ownership interest."
On 12 September 2014, the United States issues a consolidated listing of directives associated with Executive Order 13662 sanctions during the crisis in Ukraine. For the Russian financial sector, Directive 1 was amended to increase the financial sanctions on the Russian financial sector for "all transactions in, provision of financing for, and other dealings" in new equity or new debt issued on or after 12 September 2014 to longer than 30 days maturity. New equity or new debt issued from 29 July 2018 until 12 September 2018 was sanctioned if longer than 90 days maturity.
On 15 March 2017, Ukraine imposed sanctions against VTB Bank and subsidiaries because of the ongoing Russian interference in Ukraine.
On 28 November 2017, the United States increases the Executive Order 13662 sanctions to the Russian financial sector. For the Russian financial sector, Directive 1 was amended to increase the financial sanctions on the Russian financial sector for "all transactions in, provision of financing for, and other dealings" in new equity or new debt issued on or after 28 November 2017 to longer than 14 days maturity. New equity or new debt issued from 12 September 2014 until 28 November 2017 was sanctioned if longer than 30 days maturity.
On 27 November 2018, the National Bank of Ukraine declares the Ukrainian subsidiary of VTB Bank insolvent due to its declining liquidity and worsening financial position.
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^"В России создан "Почта Банк": "Почта России" и ВТБ24 подписали пакет документов о создании "Почта Банка". В церемонии приняли участие генеральный директор "Почты России" Дмитрий Страшнов и президент – председатель правления ВТБ24 Михаил Задорнов" ["Post Bank" was created in Russia: "Post of Russia" and VTB24 signed a package of documents on the establishment of "Post Bank." The ceremony was attended by General Director of Post of Russia Dmitry Strashnov and President and Chairman of the Board of VTB24 Mikhail Zadornov.]. Post Bank website (in Russian). 28 January 2016. Retrieved 12 February 2018.
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^Ukraine central bank declares Russian VTB subsidiary insolvent, Reuters (27 November 2018)