The bank has injected US$53.625 million as part of a capital increase of US$105 mn in the Vietnam-Russia Joint Venture Bank (VRB). The Vietnam Russian bank has increased its authorized capital from US$62.5 mn toUS$168.5 mn, with VTB share increasing by 1% to reach 50%. VRB is a joint venture of JSC VTB Bank and the Bank for Investment and Development of Vietnam. Its major goal is to promote bilateral trade and economic relations between Russia and Vietnam, and to encourage large projects with Russian capital involved. VRB activities are under the patronage of the governments of the two countries.
The bank has been actively developing its branch network and today has six points of presence which include the largest economic centers of Vietnam (Hanoi, Hochiminh and Vung Tau). Besides, a subsidiary of VRB is operating in Moscow. In spring 2008, VRB entered into an agreement with VTB24 to perform bank transfers for individuals.
In February this year, a VTB delegation headed by Vladimir Tatarchuk, Deputy President-Chairman of the Management Board, paid a working visit to Krasnoyarsk Krai when a Cooperation Agreement was concluded, rep[;lacingan earlier agreement signed in August 2004. Krasnoyarsk Krai signed the document by Edkham Akbulatov, Deputy Governor and Chairman of the Krasnoyarsk Krai Government. Andrey Kostin, VTB Bank President and Chairman of the Management Board, had already signed the document in Moscow.
The previous agreement helped the parties build an efficient cooperation to develop the region’s economy. The new agreement is aimed at creating favorable conditions to address social and economic tasks of the region, as well as to accomplish priority national, federal, regional and industrial projects ensuring a friendly investment climate in Krasnoyarsk Krai.
The Agreement will speed up short and long-term lending to municipal entities and enterprises of Krasnoyarsk Krai, with the state support involved. The new Agreement is also focused on facilitating cooperation of the Krasnoyarsk Krai Government and VTB in the securities market, including placement of the region’s securities to create a favorable image of Krasnoyarsk Krai and attract investors.
“The Bank intends to enhance financing of Krasnoyarsk Krai, as we see a great potential in fostering economic growth of one of the most rapidly developing constituents of the Russian Federation. We also expect the leaders of Krasnoyarsk Krai to support our initiatives” said Tatarchuk.
VTB Bank branch in Krasnoyarsk has been operating since 1994. At present, there are 18 outlets of VTB Group in Krasnoyarsk: VTB Bank branch in Krasnoyarsk (operating office in Abakan, sub-offices in Krasnoyarsk and Zheleznogorsk) 10 VTB24 outlets, as well as offices of VTB Insurance, VTB Factoring, VTB Leasing and VTB Pension Fund.
The customer base of VTB Bank branch in Krasnoyarsk amounts to 1,500 corporates representing all business sectors.The branch ranks second (among 70 lending institutions operating in Krasnoyarsk Krai) in the lending market. As of 1 January 2011, the branch’s credit portfolio exceeds RUB 7.5 bln.
BOMBARDIER AIRCRAFT FOR UTAIR
Since July 2010, VTB has issued twenty standby letters of credit to ergional carrier UTair exceeding US$8.5 mn in total to finance the supply of Bombardier CL600-2B19 (CRJ200LR) aircraft. In addition, three more standby L/Cs were issued for UTair totaling US$7.5 mn to perform its contract obligations to provide maintenance services for Boeing 737-500 aircraft.
By this April, the VTB plans to open six more standby L/Cs for US$2.5 mn for UTair to acquyire more Bombardier CL600-2B19 (CRJ200LR) aircraft.
Documentary credit business lies in the core of cooperation between the Bank and the air company. VTB takes an active part in financing UTair purchases of new aircraft within its program aimed at air fleet replacement.
UTair is one of Russia’s largest carriers placed 2nd in terms of passengers transported on domestic routes.
The company’s total profit in 2010 is expected to reach RUB 40 bln which is a 20% increase against 2009. Passenger turnover over the last year grew 37% as compared with 2009 and exceeded 7.98 bln passenger kilometers. Over the same period, UTair transported more than 12 thousand tones of freight (a 21.1% increase against 2009) and more than 3.5 thousand tones of mail (a 79% increase).
ST PETERSBURG METRO
This January, VTB issued two guarantees within the limit at the request of JSC Metrostroy in favor of the Russian Ministry of Regional Development totaling RUB 320 mn.
The guarantees are to ensure the performance by JSC Metrostroy of its obligations to build utilities and tunnels within the framework of constructing the Flood Defense Complex for St.Petersburg.
JSC Metrostroy is the largest construction company involved in building and reconstructing metro tunnels in St.Petersburg. The company is also engaged in such large projects as the Flood Defense Complex, Leningradskaya Nuclear Power Plant-2, the North European Gas Pipeline, Zagorskaya Pumped Storage Power Plant-2, etc.
JSC Metrostroy has been actively cooperating with JSC VTB North-West. The total volume of the company’s business with VTB Group’s banks has exceeded RUB 10 bn.
VTB Bank was awarded second place in the “Best Marketing of 2010” category in the 10th annual expert survey on “Development of Marketing Services Market in Russia” announced in Moscow on February 9.
According to marketing experts (500 experts from 44 Russian cities took part in the survey) VTB Bank picked the right marketing strategy with a distinct focus on business. The experts remarked on the competent VTB brand promotion and positioning, high rate of mass media references, and successful forming of positive Bank image for the target audience.
According to TNS, an international research company, the rate of VTB brand awareness is constantly growing. In 2010 the indicator “unaided awareness” increased from 35% to 50% as compared to 2008, and “prompted awareness” was close to 100%. “Top-500 Banking Brands” report, listing assessment of international brand values, says that VTB brand value grew by almost USD 500 mln, from USD 1.329 bln to USD 1.818 bln, which resulted in 37% growth.