A press briefing was held on 14 May 2008, where VTB Bank announced its performance results in medium-sized business for 2007 and its development plans for 2008-2010.
According to Andrey Kiselev, VTB Senior Vice President, the Bank is doing well in this market segment under the current program on services to medium-sized customers. For the last two years, outstanding loans increased more than 2.3 times to RUR 108 billion, customer deposits accounted for 230.8% to RUR 93 billion. And VTB Bank succeeded in achieving transaction growth ahead of the average market rates. Thus, lending to such customers rose 1.5 times within the banking sector, while VTB bank loan portfolio increased 1.9 times in 2007. Medium-sized and regional customers have grown in number by 5,000 to exceed 22,000 companies.
Remarkable results in medium-sized business were achieved due to improved techniques in credit product sales and risk assessment, enlarged customer service in this segment and the staff motivation system adjusted for specific targets. Moreover, further extension of VTB Group regional network with product-oriented offices throughout Russia also played an important role in the programme success. The transfer of retail business to VTB24 to be completed in 2008 will help VTB Bank and VTB North-West Bank channel their funds to medium-sized and large businesses as their target segments. And, VTB24, as a VTB Group member bank with a more innovative and competitive retail product line, is set to meet corporate demand for retail services under the joint cross-selling programmes.
Regarding development plans for 2008, as Andrey Kiselev mentioned, "VTB strives to considerably expand its product range and provide better terms and conditions for time deposits. For this purpose, at the beginning of this year, we launched two new products for medium-sized businesses - "Long-term lending for up to a 7-year term" and "Term replenishable deposit with partial withdrawals".
Under this programme, VTB management is going to increase lending by 80% and raise deposits by 50% in this segment. By 2010, the Bank aims to increase by 13-15% its market share in corporate banking.