22 Dec 2022 12:20

RNCB to be recapitalized by 7.1 bln rubles before joining VTB Group

MOSCOW. Dec 22 (Interfax) - Russian National Commercial Bank (RNCB), the largest lender in Crimea, will be recapitalized by 7.1 billion rubles before it becomes part of VTB Group "for further growth," RNCB chief executive Mikhail Yakunin told reporters.

RNCB now has charter capital of 45.15 billion rubles and its sole shareholder is the Federal Property Management Agency.

The recapitalization is needed for RNCB's further development and growth, Yakunin said. "This is not for the deal with VTB. This is, in principal, part of the bank's development program. This is not our first recapitalization. We are growing rapidly, developing, [and] capital is needed for this," he said.

RNCB's capital is expected to be increased by the end of 2022, and in 2023 the bank will be folded into the VTB Group, he said.

RNCB is now being appraised. "Naturally, an appraisal is needed for the transfer of shares. Obviously, a bank with different capital costs a different amount of money. Obviously, appraisal processes will be concluded," Yakunin said.

All of RNCB's subsidiaries are also expected to become part of VTB Group.

RNCB will close 2022 with a net profit of 8 billion rubles, a return on capital of 15% and assets of about 330 billion rubles, Yakunin said. "We are growing twice as fast as the market by many parameters," he said.

It was reported earlier that 100% of shares in RNCB will be given to VTB Group as a contribution to capital, but the Crimean bank will remain a separate legal entity.

RNCB was the 27th largest bank in the Interfax-100 ranking at the end of 2021, with capital of 59.6 billion rubles and assets of 334.8 billion rubles.