VTB entity waives banking license in Singapore

MOSCOW. Feb 14 (Interfax) - A subsidiary of VTB Group has waived its license in Singapore, which allowed it to carry out all major banking operations in this market.

VTB Capital PLC, a subsidiary of VTB in Britain, had a branch in Singapore. After being hit by sanctions, the British subsidiary of VTB, which specialized in investment services, could not find another bank to open accounts, which prevented it from paying off its debts on time. At the end of last year, VTB Capital came under the external management of the specialized company Teneo.

The Singapore branch, which employed fewer than ten people, provided a back-office function for VTB Capital. At the same time, the branch had a full banking license, with which it could carry out investment banking activities, take deposits and issue loans.

According to the lender's reporting, the banking license was waived on Dec. 16, 2022. The Singapore branch is currently winding down its operations and making payments to creditors.

According to the documents of the third-party administrator, the net loss of VTB Capital for 11M of last year amounted to $38.8 million compared with a loss of $36.3 million for the entire year of 2021. The company's assets decreased to $1.3 billion at the end of November from $1.8 billion at the end of 2021.

After the beginning of the military operation in Ukraine, VTB and its subsidiaries were included in the sanctions lists of the U.S., the UK and the EU, which was a serious blow to the group's international business. Singapore also joined the restrictive measures.