Annual report 2011 - VTB

VTB Annual Report 20113. The economy and banking sector14VTB Group’s key strengths3. The economy and banking sector15Impressive business scale and strongmarket positionVTB Group is the leading Russian financial group. The Group’s universal business model and thescale of the business enable it to successfully compete in Russia and abroad.Brilliant success storyBy implementing its strategy for aggressive growth and diversification, VTB Group has substantiallyincreased its business volumes. Between 2001–2011, VTB Group’s assets grew 35-fold,transforming the Group from a corporation bank to a global financial institution.The Russian economy in 2011In 2011, the Russian economy continued its postcrisisrecovery at a moderate pace, growing by 4.3%in real terms. National GDP totalled RUB 54.4 trillion,or nearly USD 1.9 trillion, for the year. The key growthdrivers throughout the year were domestic consumptionand fixed capital investments. Retail turnover grew by7.2%, investments increased by 8.3% and industrialproduction saw growth of 4.7%.Broad network of sales offices across RussiaVTB Group’s network of sales offices is one of the most developed in Russia and covers more than90% of the country’s population. Its widespread presence in the regions brings VTB closer to itsclients, enabling it to build long-lasting relationships, based on a clear understanding of clientneeds.Real growth of Russian GDP compared to other countries, % year-on-yearExtensive corporate customer base andwell-established relationships withthe largest Russian companiesVTB Group has one of the largest corporate customer bases in Russia that covers a diverse range ofindustries. At the end of 2011, VTB served at least 50% of large Russian companies.RussiaGlobalEuro area CentralChina USAand Eastern Europe14.2Well-developed expertise in investmentbankingOne of the largest retail bankingbusinesses in RussiaVTB has quickly established itself as one of the strongest investment banks in Russia and the CISthrough VTB Capital. The Group’s investment banking business regularly receives top rankings fromDealogic, Institutional Investor, Thomson Reuters, Cbonds, etc., for work conducted in segmentscovering debt and equity transactions, M&A activities, trading and market research.As at the end of 2011, VTB Group was the second-largest bank in Russia by the number of retailloans and deposits of individual customers. Today, around 15 million individuals are VTB clients.8.55.24.3 4.35.45.14.02.8–0.73.00.41.81.65.53.14.5 4.39.6 9.210.39.51.9–0.33.01.5–4.3–3.6–3.5A recognised and trusted brandThe VTB brand has more than 20 years of history in Russia and its name is associated with reliabilityand quality of services. VTB has won numerous awards, including the well-known internationalaward “The Best Russian Bank”, organised by Global Finance magazine–7.820072008200920102011Source: IMF World Economic Outlook Database and Federal State Statistics Services (Rosstat) for Russian data.