VTB plans to participate actively in banking sector consolidation in future

ST. PETERSBURG. Oct 21 (Interfax) - VTB , which has extensive experience in M&A, intends to actively participate in the consolidation of the banking sector in the future, the lender's Vice President and Deputy Head of Strategy and Corporate Development Alexander Voronov said during the Future Management 2022 conference.

"Active participation in banking sector consolidation. A crisis is a time for the strong, when strong banks, strong players can strengthen their positions via consolidation with other players in the market. We have the best analysts with relevant competencies to buy and integrate other banks," he said.

Among other strategic priorities of VTB in the face of geopolitical challenges, he mentioned maintaining a full product line for operations in rubles and increasing the share of ruble operations, supporting demand for lending resources (including through active participation in government programs), financing support for new investment projects, and intensifying operations with currencies of friendly countries.

The bank, which was one of the first to be included on the U.S. and EU sanctions lists and disconnected from SWIFT, also plans to ensure its own technological sovereignty and actively participate in enhancing the sovereignty of the banking industry as a whole.

"These are some hypotheses on how to properly respond to such challenges. These are not yet formalized initiatives that will be set down in the strategy, but some vectors," Voronov said.

VTB is planning one M&A deal this year - the acquisition of Otkritie Bank shares from the Central Bank. The regulator intends to sell Otkritie at a market price, with options being discussed now. The evaluation of the bank was supposed to be completed by mid-October, and the deal itself may take place before the end of 2022, Central Bank of Russia (CBR) Governor Elvira Nabiullina said. Crimea's RNKB bank will be included in the perimeter of VTB Group (its shares are due to be included in VTB's capital).

Unlike Sberbank , VTB has historically actively used M&A in its expansion, both through bailouts of other players and through market acquisitions.