VTB says to regain control over Post Bank as sanction threat falls

MOSCOW, Aug 30 (PRIME) – VTB Group plans to regain control over Post Bank by buying two shares from its head Dmitry Rudenko in the next few months amid falling sanctions risks, VTB board member Dmitry Pyanov told reporters on Monday.

“VTB Group is planning to buy two shares of Post Bank from Dmitry Rudenko, as a result of which VTB’s stake will become 50% plus 1 share. The main motivation is that, according to our estimates, the sanctions risks have now decreased, and VTB can regain full operational control over the Post Bank as a majority shareholder,” Pyanov said.

According to Pyanov, the terms and parameters of this buyback have not yet been determined, they will depend on the necessary corporate procedures and approvals. “We expect this buyback to take place within the next few months,” he added.

The top manager also said that the partnership with Russian Post has been and remains the key element in the development of the Post Bank and its business model.

The change in the ownership share will lead to a change in the consolidation method of Post Bank in the group accounts. This will not affect the final financial result, but it will strengthen the retail part of the group’s balance sheet, which corresponds to VTB’s strategic objectives, Pyanov explained.

“As of June 30, the loan portfolio of Post Bank (before provisions) stood at 10.5% of the retail loan portfolio and 3.3% of the total loan portfolio of VTB Group, meaning that full consolidation of Post Bank will not significantly change the balance sheet of the group,” he concluded.

VTB lost control over Post Bank in late 2017. VTB has been under U.S. and EU sectoral sanctions since 2014, which restrict it from raising financing.

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