MILES AXLE Translation. Region: Russian Federation –
Source: Mainfin Bank –
Why is VTB accelerating integration with Post Bank?
Post Bank is jointly owned VTB and Russian Post, but after the deal, VTB will become the institution’s sole shareholder. The acceleration of integration into Post Bank is explained by several reasons:
the merger of the two banks will be easier to implement if there is a single decision-making center; Russian Post is experiencing a financial deficit; last year the company suffered a loss of over 7 billion rubles; high key rate – the seller of Post Bank will be able to place the received capital with maximum benefit.
The financial difficulties of Russian Post have been going on for a long time, for example, in 2022 the company suffered a loss of 27 billion rubles. In 2023, the organization developed a plan to overcome the crisis, among the possible measures is obtaining additional capital.
What is known about the merger deal between Pochta Bank and VTB?
VTB management plans to complete the buyout of shares in Pochta Bank in the coming months – the deal is currently undergoing preparation and approval by regulatory authorities (permission from the FAS and the Central Bank of the Russian Federation has not yet been received). The following is known about the merger:
VTB is to buy out 49.99% of shares from Russian Post and two shares from the bank’s top manager; the deal is valued at an average of RUB 35 billion; the integration of the two banks will be carried out throughout 2025; the complete closure of the Post Bank brand will take place in 2026.
“A decision on the integration processes has not yet been made; a separate sub-brand may appear on the basis of Pochta Bank – this issue will be discussed only after the completion of the deal,” VTB states.
Pochta Bank enters the top 30 banks countries in terms of asset size and capital volume, the key area of work is serving individuals and providing consumer creditsThe key feature of the company is an extensive network of offices, represented both independently and in the branches of Russian Post.
12:00 08.10.2024
Source:
Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.
Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.
http://mainfin.ru/news/completion-in-2024-VTB-accelerates-merger-with-post-bank
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.