MIRA
INFORM REPORT
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Report Date : |
13.09.2012 |
IDENTIFICATION DETAILS
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Name : |
JSC VTB BANK |
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Registered Office : |
Ul. Bolshaya Morskaya 29 |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Year of Establishment : |
1990 |
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Legal Form : |
Public Parent |
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Line of Business : |
Retail, Corporate & Investment Banking & Other Financial Services |
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No. of Employees : |
65,000 |
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RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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Russia |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
RUSSIA - ECONOMIC OVERVIEW
Russia has undergone significant changes since the collapse of the Soviet Union, moving from a globally-isolated, centrally-planned economy to a more market-based and globally-integrated economy. Economic reforms in the 1990s privatized most industry, with notable exceptions in the energy and defense-related sectors. The protection of property rights is still weak and the private sector remains subject to heavy state interference. Russian industry is primarily split between globally-competitive commodity producers. In 2011, Russia became the world's leading oil producer, surpassing Saudi Arabia; Russia is the second-largest producer of natural gas; Russia holds the world's largest natural gas reserves, the second-largest coal reserves, and the eighth-largest crude oil reserves. Russia is the third-largest exporter of both steel and primary aluminum. Other less competitive heavy industries remain dependent on the Russian domestic market. Russia's reliance on commodity exports makes it vulnerable to boom and bust cycles that follow the highly volatile swings in global commodity prices. The government since 2007 has embarked on an ambitious program to reduce this dependency and build up the country's high technology sectors, but with few results so far. The economy had averaged 7% growth in the decade following the 1998 Russian financial crisis, resulting in a doubling of real disposable incomes and the emergence of a middle class. The Russian economy, however, was one of the hardest hit by the 2008-09 global economic crisis as oil prices plummeted and the foreign credits that Russian banks and firms relied on dried up. According to the World Bank the government's anti-crisis package in 2008-09 amounted to roughly 6.7% of GDP. The Central Bank of Russia spent one-third of its $600 billion international reserves, the world's third largest, in late 2008 to slow the devaluation of the ruble. The government also devoted $200 billion in a rescue plan to increase liquidity in the banking sector and aid Russian firms unable to roll over large foreign debts coming due. The economic decline bottomed out in mid-2009 and the economy began to grow in the third quarter of 2009. However, a severe drought and fires in central Russia reduced agricultural output, prompting a ban on grain exports for part of the year, and slowed growth in other sectors such as manufacturing and retail trade. High oil prices buoyed Russian growth in 2011 and helped Russia reduce the budget deficit inherited from the lean years of 2008-09. Russia has reduced unemployment since 2009 and has made progress on reducing inflation since 2010. Russia's long-term challenges include a shrinking workforce, a high level of corruption, difficulty in accessing capital for smaller, non-energy companies, and poor infrastructure in need of large investments.
Source
: CIA
Company name and address
JSC VTB Bank
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Business
Description
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Retail, Corporate & Investment Banking & Other Financial
Services |
Industry
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Industry |
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ANZSIC 2006: |
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NACE 2002: |
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NAICS 2002: |
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UK SIC 2003: |
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UK SIC 2007: |
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US SIC 1987: |
Key Executives
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1 - Profit &
Loss Item Exchange Rate: USD 1 = USD 1
2 - Balance Sheet Item Exchange Rate: USD 1 = USD 1
Corporate Overview
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Corporate Structure News
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Total Corporate
Family Members: 19 |
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Company Name |
Company Type |
Location |
Country |
Industry |
Sales |
Employees |
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Parent |
Saint Petersburg |
Russian Federation |
Commercial Banks |
13,501.1 |
65,000 |
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Subsidiary |
St. Petersburg |
Russian Federation |
Commercial Banks |
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4,359 |
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Subsidiary |
Moscow |
Russian Federation |
Investment Services |
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300 |
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Subsidiary |
Limassol |
Cyprus |
Commercial Banks |
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150 |
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Subsidiary |
Paris |
France |
Commercial Banks |
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149 |
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Subsidiary |
Wien |
Austria |
Commercial Banks |
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85 |
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Subsidiary |
Frankfurt Am Main, Hessen |
Germany |
Commercial Banks |
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81 |
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Subsidiary |
Moscow |
Russian Federation |
Commercial Banks |
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Subsidiary |
Nicosia |
Cyprus |
Investment Services |
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Subsidiary |
Moscow |
Russian Federation |
Investment Services |
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Subsidiary |
London |
United Kingdom |
Commercial Banks |
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350 |
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Subsidiary |
Aberdeen |
United Kingdom |
Investment Services |
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Subsidiary |
London |
United Kingdom |
Investment Services |
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Subsidiary |
London |
United Kingdom |
Commercial Banks |
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Subsidiary |
London |
United Kingdom |
Commercial Banks |
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Subsidiary |
Saint Petersburg |
Russian Federation |
Investment Services |
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Subsidiary |
Moscow |
Russian Federation |
Investment Services |
2.1 |
161 |
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Subsidiary |
Moscow |
Russian Federation |
Consumer Financial Services |
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Subsidiary |
Minsk |
Belarus |
Commercial Banks |
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Executives Report
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VTB Q1 net profit decreases
Datamonitor BankingWire
09 July 2012
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[What follows is
the full text of the news story.] JSC VTB Bank, or
VTB Group, a Russian financial group, has reported that net profit
attributable to shareholders of the parent, for the first quarter ended March
31, 2012 was RUB22.7 billion, or RUB0.0022 per share, compared to RUB26
billion, or RUB0.0025 per share, for the same quarter ended March 31, 2011. Net interest
income for the first quarter ended March 31, 2012 was RUB54 billion, compared
to RUB46 billion for the same quarter ended March 31, 2011. Operating income
for the first quarter ended March 31, 2012 was RUB74.8 billion, compared to
RUB65.1 billion for the same quarter ended March 31, 2011. Total assets as
of March 31, 2012 were RUB6.45 trillion, compared to RUB6.79 trillion, as of
December 31, 2011. Andrey Kostin, president
and chairman of the management board of VTB, said: "We delivered solid
results with a strong ROE of 15% for the first three months of 2012. Having
grown substantially over the past few years, we are now focused on extracting
value from VTB's unique franchise by optimizing our asset base, further
strengthening risk management policies and improving our operational
efficiency. We believe these steps will help us maintain a strong position in
an extremely challenging global market environment." |
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Deal snapshot: VTB COMPLETES OFFER TO BANK OF MOSCOW'S MINORITY
SHAREHOLDERS
M&A Navigator
18 May 2012
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[What follows is
the full text of the news story.] Russian
state-run lender VTB (MCX:VTBR) said it had wrapped up an offer placed with Bank
of Moscow's (MCX:MMBM) minority shareholders to buy out their stakes in the
lender. Country: Russia Sector:
Banking/Financial Services Target: Bank of
Moscow Buyer: JSC VTB
Bank Vendor: Minority
shareholders Deal size in
USD: 2.7m Type: Corporate
acquisition Status: Closed |
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VTB completes offer to Bank of Moscow's minority shareholders
M&A Navigator
17 May 2012
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[What follows is
the full text of the news story.] 17 May 2012 - Russian
state-run lender VTB (MCX:VTBR) said on Thursday it had wrapped up an offer
placed with Bank of Moscow's (MCX:MMBM) minority shareholders to buy out
their stakes in the lender. Following the
tender completion, VTB's stake in the Moscow-based lender was lifted to
94.87% following the purchase of RUB84m (USD2.7m/EUR2.1m) worth of shares. The offer was
presented in March to 1,030 shareholders owning an aggregate 0.05% of Bank of
Moscow. The bid was accepted by some 80 minority stockholders, resulting in
the sale of 75,700 shares, or a stake of 0.03%. VTB's board
member Yekaterina Petelina said the bank was satisfied with the offer's
outcome. In December, VTB
boosted its holding in Bank of Moscow to 94.84% from 92.2% by purchasing
RUB102bn worth of stock as part of the lender's additional share issue. VTB, which was
cleared by its supervisory board to gradually acquire Bank of Moscow
(MCX:MMBM) in February 2011, had battled for control of the lender for almost
a year, but eventually discovered a gaping hole in the target's loan book
after it sealed the deal. Bank of Moscow obtained state funds of RUB295bn to
remain afloat last year, the largest bailout in Russian financial history. Country: Russia Sector:
Banking/Financial Services Target: Bank of
Moscow Buyer: JSC VTB
Bank Vendor: Minority
shareholders Deal size in
USD: 2.7m Type: Corporate
acquisition Status: Closed |
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Polyus Gold closes minority stake sale to VTB, Chengdong
M&A Navigator
11 May 2012
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[What follows is
the full text of the news story.] 11 May 2012 �
Russian gold producer Polyus Gold International Ltd (LON:POLG), or PGIL, said
today it had concluded the sale of 5% less-one-share and 2.5% stakes to
Chinese fund Chengdong Investment Corp and Russian VTB Bank JSC (MCX:VTBR),
respectively. Polyus said it
had received gross proceeds of USD635.5m (EUR491.2m) from the two
transactions. It intends to use the proceeds to pay back outstanding debt and
to finance development. When first
announcing the deals at the end of last month, Polyus Gold�s chief
executive officer German Pikhoya said he viewed the investment as a vote of
confidence. At the same date, the company unveiled it would seek a premium
listing for all of its shares in London in an effort to improve its global
profile, ensure better access to capital and boost corporate governance
standards and liquidity. Under the terms
of the stake sale transactions, the company�s fully-owned unit Jenington
International Inc sold some 151.6m PGIL ordinary shares to Chengdong
Investment, a unit of CIC International Co Ltd, and nearly 50.2m shares and
25.15m level 1 global depositary receipts (GDRs) to VTB Bank. Both
transactions have been privately negotiated at a price of USD2.80 apiece. VTB Capital plc
and Debevoise & Plimpton LLP consulted Polyus Gold and Jenington in the
share purchase transactions. Country: Russia Sector:
Metals/Mining Target: Polyus
Gold International Limited Buyer: JSC VTB
Bank , Chengdong Investment Corporation, CIC International Co Ltd Vendor:
Jenington International Inc Deal size in
USD: 635.5m Type:
Stakebuilding Status: Closed |
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Chengdong Investment Corp, VTB Bank to buy into Polyus Gold
M&A Navigator
30 April 2012
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[What follows is
the full text of the news story.] 30 April 2012 -
Russian gold producer Polyus Gold International Ltd (LON:POLG), or PGIL, said
on Monday that Chinese fund Chengdong Investment Corporation and Russian JSC
VTB Bank (MCX:VTBR) will buy 5% less-one-share and 2.5% in it, respectively. German Pikhoya,
Polyus Gold�s CEO welcomed the new investors, saying he viewed their
decision to buy into the company as a vote of confidence. Under two
separate agreements, Polyus Gold�s fully-owned unit Jenington International
Inc will sell 151.6m PGIL ordinary shares to Chengdong Investment, a unit of
CIC International Co Ltd, and 50.2m shares and 25.15m level 1 global
depositary receipts (GDRs) to VTB Bank. Both
transactions have been privately negotiated at a price of USD2.80(EUR2.11) a
share, bringing total gross proceeds of USD635.5m, which Polyus Gold will use
to pay back outstanding debt and to finance development, it said. The two deals,
subject to one another and to other conditions, are expected to wrap up by 11
May 2012. The agreements
stipulate lock-up periods of 180 days for the bought PGIL shares, as well as
restrictions on the purchase of further PGIL shares or level 1 GDRs by
Chengdong and VTB. Polyus Gold also
said it would seek a premium listing for all of its shares in London, a move
expected to improve its global profile, ensure better access to capital, as
well as boost corporate governance standards and liquidity, the Russian gold
producer said. JPMorgan Cazenove has been selected as sponsor for the
listing. VTB Capital plc
and Debevoise & Plimpton LLP are advising Polyus Gold and Jenington in
the share purchase transactions. Country: Russia Sector:
Metals/Mining Target: Polyus
Gold International Ltd Buyer: JSC VTB
Bank , Chengdong Investment Corporation, CIC International Co Ltd Vendor:
Jenington International Inc Deal size in
USD: 635.5m Type:
Stakebuilding Status: Agreed |
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VTB plans to take full control of Belarusian arm
M&A Navigator
30 January 2012
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[What follows is
the full text of the news story.] 30 January 2012
- Russian state-run lender VTB (MCX:VTBR) is getting ready to make a bid for
the 28.6% it does not already own in its Belarusian arm from the Belarusian
state, Olga Dergunova, member of the Russian bank�s management board, told
Prime Tass today. At present, VTB
holds a 71.4% stake in its Belarusian unit and is mulling buying the rest of
it. The Belarusian
government intends to dispose of its minority stakes in VTB Bank Belarus, Belarusbank
and Belagroprombank JSC along with its controlling interests in Belinvestbank
JSC and Paritetbank OJSC. Country:
Belarus, Sector:
Banking/Financial Services Target: VTB Bank
(Belarus) Buyer: Bank VTB
OAO Type:
Privatisation Status: Bidding |
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Financials
Consolidated Statements of Financial Position as at 31 December
(in billions of Russian Roubles)
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Note |
2011 |
2010 |
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Assets |
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Cash and short-term funds |
7 |
407.0 |
275.5 |
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Mandatory reserve deposits
with central banks |
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71.9 |
26.4 |
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Financial assets at fair
value through profit or loss |
8 |
571.5 |
344.6 |
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Financial assets pledged
under repurchase agreements and |
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loaned financial assets |
9 |
198.6 |
16.9 |
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Due from other banks |
10 |
424.6 |
349.9 |
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Loans and advances to
customers |
11 |
4,301.6 |
2,785.4 |
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Assets of disposal group
held for sale |
19 |
10.3 |
- |
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Financial assets
available-for-sale |
12 |
167.7 |
55.9 |
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Investments in associates
and joint ventures |
13 |
32.5 |
15.7 |
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Investment securities
held-to-maturity |
14 |
32.4 |
34.2 |
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Premises and equipment |
15 |
116.8 |
113.2 |
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Investment property |
16 |
122.5 |
102.2 |
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Intangible assets and
goodwill |
17 |
141.2 |
30.5 |
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Deferred tax asset |
33 |
42.7 |
37.9 |
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Other assets |
18 |
148.3 |
102.6 |
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Total assets |
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6,789.6 |
4,290.9 |
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Liabilities |
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Due to other banks |
20 |
699.7 |
397.3 |
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Customer deposits |
21 |
3,596.7 |
2,212.9 |
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Liabilities of disposal
group held for sale |
19 |
8.5 |
- |
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Other borrowed funds |
22 |
734.6 |
185.7 |
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Debt securities issued |
V: |
664.5 |
593.1 |
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Deferred tax liability |
33 |
10.0 |
7.3 |
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Other liabilities |
25 |
209.4 |
110.9 |
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Total liabilities before
subordinated debt |
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5,923.4 |
3,507.2 |
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Subordinated debt |
24 |
241.1 |
205.5 |
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Total liabilities |
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6,164.5 |
3,712.7 |
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Equity |
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Share capital |
26 |
113.1 |
113.1 |
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Share premium |
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358.5 |
358.5 |
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Treasury shares |
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(0.6) |
(0.3) |
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Unrealized gain on financial
assets available-for-sale and cash |
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flow hedge |
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7.9 |
4.0 |
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Premises revaluation
reserve |
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11.4 |
11.4 |
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Currency translation
difference |
|
11.0 |
11.0 |
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Retained earnings |
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102.2 |
56.6 |
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Equity attributable to shareholders
of the parent |
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603.5 |
554.3 |
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Non-controlling interests |
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21.6 |
23.9 |
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Total equity |
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625.1 |
578.2 |
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Total liabilities and
equity |
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6,789.6 |
4,290.9 |
Consolidated Income Statements for the Years
Ended 31 December
(in billions of Russian Roubles)
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Note |
2011 |
2010 |
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Interest income |
27 |
416.7 |
330.5 |
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Interest expense |
27 |
(189.7) |
(159.4) |
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Net interest income |
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227.0 |
171.1 |
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Provision charge for
impairment of debt financial assets |
32 |
(31.6) |
(51.6) |
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Net interest income after
provision for impairment |
|
195.4 |
119.5 |
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(Losses net of gains) /
gains less losses arising from financial |
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instruments at fair value
through profit or loss |
28 |
(30.8) |
14.8 |
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Gains less losses /
(losses net of gains) from available-for-sale |
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financial assets |
12 |
4.1 |
(0.1) |
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Losses net of gains
arising from extinguishment of liability |
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(0.7) |
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Net recovery of losses /
(losses) on initial recognition of financial |
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instruments, restructuring
and other gains / (losses) on loans and |
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advances to customers |
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20.2 |
(0.2) |
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Gains less losses / (losses
net of gains) arising from dealing in |
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foreign currencies |
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6.1 |
(7.5) |
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Foreign exchange
translation (losses net of gains) / gains less losses |
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(6.5) |
12.1 |
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Fee and commission income |
29 |
47.4 |
28.8 |
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Fee and commission expense |
29 |
(8.2) |
(4.1) |
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Share in income /(loss) of
associates and joint ventures |
13 |
7.5 |
(0.7) |
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Provision charge for
impairment of other assets, contingencies and |
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credit related commitments |
32 |
(1.4) |
(2.2) |
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Income arising from
non-banking activities |
30 |
20.4 |
11.0 |
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Expenses arising from
non-banking activities |
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(9.1) |
(7.2) |
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Other operating income |
30 |
9.2 |
3.1 |
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Net non-interest income |
|
58.2 |
47.8 |
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Operating income |
|
253.6 |
167.3 |
|
Staff costs and
administrative expenses |
31 |
(141.5) |
(95.1) |
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Impairment of goodwill |
17 |
- |
(1.1) |
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Profit from disposal of
subsidiaries and associates |
|
3.4 |
- |
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Profit before taxation |
|
115.5 |
71.1 |
|
Income tax expense |
33 |
(25.0) |
(16.3) |
|
Net profit |
|
90.5 |
54.8 |
|
Net profit / (loss)
attributable to: |
|
|
|
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Shareholders of the parent |
|
89.4 |
58.2 |
|
Non-controlling interests |
|
1.1 |
(3.4) |
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Basic and diluted earnings
per share |
|
|
|
|
(expressed in Russian
Roubles per share) |
34 |
0.00855 |
0.00557 |
Consolidated
Statements of Comprehensive Income for the Years Ended 31 December
(in
billions of Russian Roubles)
|
|
2011 |
2010 |
|
Net profit |
90.5 |
54.8 |
|
Other comprehensive
income: |
|
|
|
Net result on financial
assets available-for-sale, net of tax |
2.7 |
0.6 |
|
Actuarial losses net of
gains arising from difference between pension plan assets and obligations |
(0.5) |
(0.2) |
|
Share of other
comprehensive income of associates and joint ventures |
(0.5) |
(0.2) |
|
Effect of translation, net
of tax |
2.4 |
(2.4) |
|
Other comprehensive
income, net of tax |
4.1 |
(2.2) |
|
Total comprehensive income |
94.6 |
52.6 |
|
Total comprehensive income
attributable to: Shareholders of the parent
Non-controlling interests |
93.7 0.9 |
56.3 (3.7) |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.26 |
|
|
1 |
Rs.88.85 |
|
Euro |
1 |
Rs.71.13 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.