The size of the planned additional capitalization of VTB will exceed 500 billion rubles.

The price of shares to be additionally placed by VTB will be 1.7 kopecks. This will make it possible to capitalize the bank by 516 billion rubles.

The price of shares to be additionally placed by VTB Bank will be slightly less than 1.7 kopecks. The corresponding decision was approved by the Supervisory Board of VTB, follows from the message of the state bank on the corporate information disclosure portal.

On January 30, the bank announced that it would place 30.2 trillion additional ordinary shares in favor of the Federal Property Management Agency and the Ministry of Finance. At a price of 1.7 kopecks. per share, the amount of additional capitalization of VTB with the full placement of the additional issue may amount to almost 516 billion rubles. The controlling shareholder of VTB is the state.

The price of the shares being placed is close to the market quotations of VTB - on the evening of February 1, the bank's shares are traded at 1.72 kopecks. They reacted to the news about the amount of additional capitalization with a moderate growth of about 1%, subsequently the growth slowed down.

The Central Bank revealed the scale of additional capitalization of banks due to the crisis

After the start of the Russian military operation in Ukraine, VTB came under US , EU and UK sanctions . The head of VTB, Andrey Kostin, said in September that the bank's loss for the year would exceed the losses incurred in the whole of 2009, when the economy faced the consequences of the global financial crisis. Then they amounted to a little less than 60 billion rubles. RBC sent a request to VTB.

The statement of the state bank specifies that additional capitalization can be provided with money, shares of the Russian National Commercial Bank (operates in Crimea, will be merged with VTB in 2023) and requirements under an agreement on the placement of funds from the National Welfare Fund on a subordinated deposit in VTB.

For comparison: in just 2022, Russian banks were recapitalized by 180 billion rubles, the capital injection affected 29 credit institutions, the Central Bank estimated. The financial results of the sanctioned VTB, like the vast majority of other Russian banks, for 2022 are unknown, since the regulator banned them from publishing full regular reports. Sberbank reported that it ended the year with a net profit of 300 billion rubles, and this largely affected the result of the entire banking sector - it avoided a loss and showed a profit of 203 billion rubles last year, according to the Central Bank. But the result is “very patchy,” the regulator admitted.

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The Central Bank announced the sale of Otkritie to VTB Bank for ₽340 billion Finance

“We believe that there is no need for systemic additional capitalization, but some banks may have such a need. According to the results of stress testing, which we conducted last year, the total volume of additional capitalization in the sector was estimated at up to 0.7 trillion rubles. until the end of 2023. The scenario assumed continued sanctions pressure, deterioration in the credit quality of borrowers, as well as stagflation of the global economy,” the Bank of Russia reported on February 1.

How VTB compensates for the consequences of the crisis

At the end of last year, another large state-owned bank, Otkritie, joined the VTB Group. Unlike the RNKB, which the government will transfer to VTB, it belonged to the Central Bank. VTB paid the regulator 340 billion rubles for Otkritie: 233 billion rubles. - money, and the remaining 107 billion rubles. — federal loan bonds (OFZ).

Against the backdrop of the crisis, VTB also had to cut payments to holders of its bonds. In December, he announced that he would temporarily not pay coupons on $2.25 billion of "perpetual" Eurobonds and 12 other issues of subordinated bonds. According to RBC's calculations, taking into account the exchange rate the day after the announcement, December 7, holders of these VTB securities in 2023 will not receive coupon income in the amount of 70.12 billion rubles.

The additional capitalization, firstly, is designed to absorb the financial losses of VTB, and secondly, to help finance acquisitions of other banks, says independent analyst Andrei Barkhota. In addition, “the group has always strived to utilize capital as efficiently as possible, maintaining a relatively lower capital adequacy ratio,” he notes: “In an environment where there is still no complete picture of the situation with the restructuring in the corporate sector, and the scale of the drawdown in the retail sector is unclear, additional replenishment of capital will be useful to create a special reserve for possible future losses.

“Valuing the capital of banks is an issue where simple math doesn't work. On the one hand, the contribution to VTB’s capital is really intended to cover the bank’s losses, and not only for 2022, but also probable future losses associated, for example, with reserves for foreign assets. But on the other hand, the amount of this fee probably takes into account some expected profitability that the bank will generate in future periods, and the bank’s ability to resort to regulatory easing,” adds Olga Ulyanova, another independent expert on the banking sector.