MOSCOW, Jan 30 (Reuters) – Russia’s second-largest financial institution VTB (VTBR.MM) will subject further shares value 301.96 billion roubles ($4.32 billion) to high up the Russian state’s stake, the financial institution mentioned on Monday.
The Russian state can pay for the shares in money and non-cash belongings at a non-public subscription, the financial institution mentioned after shareholders accepted the problem. The par worth of the 30,196 billion shares issued might be 0.01 roubles.
VTB Chief Govt Andrei Kostin mentioned in November it was “no secret” the financial institution had capital issues.
The banking sector as a complete returned a small revenue for 2022, round 12 instances decrease than the yr earlier than, with Western sanctions over Russia’s actions in Ukraine significantly concentrating on monetary establishments.
The Financial institution of Russia late final yr offered bailed-out Otkritie Financial institution to VTB for 340 billion roubles, a takeover that analysts mentioned would assist VTB resolve its capital points.
VTB can use the extra share subject to purchase widespread shares in Russian Nationwide Business Financial institution (RNKB), one of many largest lenders in Crimea, the Black Sea peninsula Moscow annexed from Kyiv in 2014. Ukraine has demanded Russia hand again Crimea.
Russia’s dominant lender Sberbank (SBER.MM) this month introduced plans to start working in Crimea.
($1 = 69.9000 roubles)
Reporting by Elena Fabrichnaya; Writing by Alexander Marrow; Enhancing by Edmund Blair
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