VTB

VTB is Russia’s second-largest bank and leading universal institution, with the most visible international footprint in the Russian banking sector. VTB has transformed itself since its IPO in 2007, more than doubling its balance sheet to $126 bln, bringing in new management and creating a banking group incorporating investment, corporate and retail banking across several geographies in the CIS and beyond. In Russia it has a 12% share of assets, 11% of retail and 13% of corporate lending, as well as 6% of retail deposits. VTB’s long-term strategy focuses on raising profitability to 15-20% ROAE by 2013 through cross-selling investment banking services to its key large corporate client base alongside expansion of its retail franchise (VTB 24) and value-accretive M&A activity.

The government owns an 85.5% stake in VTB, with the remaining equity traded locally and on the LSE. The state’s stake is included in the 2011-13 privatization plan, which calls for the sale of a 35% stake within the next three years.