26 May 2010 18:13

VTB supervisory board approves strategy to 2013

MOSCOW. May 26 (Interfax) - The supervisory board at VTB Wednesday approved a strategy to 2013, the bank said in a statement.

VTB aims to increase its capitalization and efficiency by expanding its client base, weighting of high-margin products and segments and diversifying business.

It will focus on "increasing the bank's share price, profit and return on equity," VTB chief Andrei Kostin was quoted as saying.

The bank did not give any more details. It aims to present the strategy on Thursday during a conference call.

VTB's Kostin told the Wall Street Journal that the strategy projects growth in the bank's retail and investment banking businesses. Its goal is to boost return on equity to 15% in 2013, which corresponds to a profit of $4 billion-$5 billion, compared with a forecast profit of 50 billion rubles (about $1.6 billion) in 2010.

Kostin also confirmed plans to move major clients into VTB Capital, the group's investment bank, the WSJ said.

The strategy will see retail assets rise to 25% of total assets by the end of 2013 from 18% currently. That might involve establishing direct retail sales in shopping centers, perhaps in partnership with a current player or through acquisition. The corporate business will shrink to just above 50% of the total, down from 64% forecast for the end of 2010.