Vneshtorgbank plans to set up a holding company consolidating its subsidiaries in Europe, to be headquartered in London, by the end of 2006, the chief executive of Russia's state-run foreign trade bank said Thursday.
Andrei Kostin told President Vladimir Putin that the holding, "with headquarters in London, will be called VTB-Europe."
State-controlled foreign trade bank Vneshtorgbank and its subsidiaries (VTB Group) is a leading Russian commercial banking group, offering a wide range of banking services and carrying out operations in the country and abroad. As of June 30, 2006, VTB Group included 151 branches.
Kostin said the consolidation is aimed at creating a major financial institution to attract foreign investment in Russia and to provide services to Russian firms abroad.
The banker said VTB is seeking further expansion worldwide, with branches to operate in 21 countries in the next 18 months. He added that VTB currently has branches in 13 countries and plans to open branches in the ex-Soviet states and in Asia, including in Vietnam, China, and India.
Kostin said Tuesday VTB expects to receive more than 30 billion rubles (about $1.1 billion) in net profit in 2006.
VTB's own capital as of the end of the second half of 2006 was $5.8 billion.
Kostin said the bank intends to launch an initial public offering of its shares in the first half of 2007. |
