14 Oct 2009 18:19

VTB could shut unprofitable overseas banks down

MOSCOW. Oct 14 (Interfax) - The VTB Group could shut its overseas banks down if they do not show profit, the bank's first deputy chairman, Vasily Titov, told Interfax.

Titov said VTB would develop its overseas subsidiaries on condition they are profitable, and that only the banks in France and Germany were so far showing profit.

"We recently had a big meeting with the overseas banks, and gave a clear signal: we no longer have any reasons other than economic ones to preserve these banks. The times to keep the political flag flying at any cost have passed. The only reason to preserve their status is their financial results, and if they don't produce we'll reorganize them, and some of them might even be shut down," he said.

VTB is also thinking of expanding into the markets of Kuwait, Oman and Saudi Arabia, Titov said.

"We recently opened an office in the UAE, and are now thinking of opening offices in Kuwait, Oman and Saudi Arabia. I think this might happen as early as the first half of next year," he said.