At the meeting of VTB Supervisory Council on 2 November 2016, the Council voted to merge the Group’s retail banking arm VTB24 into VTB Bank.
VTB24 will be integrated into VTB Bank in accordance with the VTB Group’s strategic objective to unite the Group’s Russian banks on a universal platform.
The merger of VTB24 into VTB Bank will help optimise the structure of the Group’s retail business in the Russian market, centralising management functions, cutting marketing and advertising costs, unifying the integrated banks’ operating models and IT systems, and creating synergies from the merger of regional networks. This will enable VTB Group to achieve significant cost reductions.
The integration will involve developing a completely new system for interaction between the Group’s global business lines – Corporate-Investment Banking, Mid-Corporate Banking, and Retail business – within a single organisation. This will enable the Group to implement joint strategic initiatives of global business lines and increase the Group’s overall financial performance.
The merger between VTB24 and VTB Bank is expected to be completed by the end of 2017.