Share the article
twitter-iconcopy-link-iconprint-icon
share-icon

Building blocks for leadership

Vneshtorgbank is using its acquisition of Guta Bank to build up its retail services, planning more branches and aiming for a leading role in the mortgage market. By Brian Caplen.Russian state-owned Vneshtorgbank is pushing ahead on the retail front, aiming to claim an 8%-10% share of the market by 2010. During that period, total assets are expected to rise from $15bn to $35bn, including a forecast rise in mortgages from $150m to $2bn and in consumer lending from $300m to $3bn.
Share the article
twitter-iconcopy-link-iconprint-icon
share-icon

The bank’s retail strategy was given a major boost by last year’s acquisition of Guta Bank and a major rebranding exercise is now under way using the name Vneshtorgbank 24. Eighty branches of Vneshtorgbank 24 will be located in Moscow and 40 major Russian regions. The aim is to increase the number of branches to 175 next year and to 300 in the next couple of years.

“The plan is to divide Vneshtorgbank into two parts, one part will be Vneshtorgbank retail services, based on the former Guta Bank, and which will focus on retail services and small and medium-sized enterprises (SME). The other part will be the corporate and investment bank. We will swap assets between the two parts to achieve the required focus,” says Andrey Kostin, the bank’s chairman and CEO.

To continue reading, join our community and benefit from

  • In-depth coverage across key markets
  • Comments from financial leaders and policymakers worldwide
  • Regional/country bank rankings and awards
Activate your free trial