VTB Bank continues to dynamically implement its mid-size business servicing program. Over the first half of 2008, the Bank has increased the funding for this customer category by almost time and a half, resulting in the loan portfolio increasing to RUR 170 billion, which is nearly twice as high as compared to the market average.
Against the increased costs of borrowing, VTB has managed to enhance the attractiveness of its products offered to customers due to favorable pricing - deposit interest rate higher by 1.5% at average, - and due to extended responsibilities of the Bank's territorial divisions to raise funds. At the same time, the Bank succeeded in maintaining the efficiency yield gained from operations with its mid-size customers. Interest income from loans to these customers amounted to RUR 8.3 billion in the first six months of 2008, which a twofold increase, y-o-y.
Pursuing the mid-size business servicing program, VTB Bank is constantly streamlining and enhancing its product line, and applies a comprehensive approach to mid-size customer servicing by offering a wide spectrum of universal services in cash and settlement, and in export/import finance. This year, the dynamic growth of business with regional customers allowed the fee and commission income share to increase to 18-21% of the total income volume (from 12-14%) across the Bank's regional network.
As a new business line in corporate banking, VTB is planning to offer investment banking products to its customers - this market is still fledgling in the regions, though it has a huge growth potential.
Citing Andrey Kisselev, VTB Senior Vice President, "in the near future VTB Bank will continue developing and offering innovative products to its customers. We are absolutely satisfied with our performance in the fist half of 2008, though unfavorable environment in financial and corporate markets this fall have made the Bank place a stronger focus on risk control and project quality. Our priorities remain the same - to develop a comprehensive approach to customer relationships".
Under the classification applied at VTB, the mid-size customer segment includes enterprises with the annual proceeds from RUR 90 million to 3 billion. These are dynamically growing enterprises set to develop their own business, enhance their competitive strengths, and access new markets, including international ones.
Business with mid-size customers has always been one of top priority for VTB Bank. That's why it is for the third year running that a special sale model has been applied to this customer segment.