| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 2.30 | 130 |
| Graham Formula | 6.70 | 570 |
VTB Bank (PJSC) is one of Russia's largest financial institutions, offering a comprehensive range of banking and financial services across corporate, retail, and investment sectors. Headquartered in Moscow, VTB Bank operates through five key segments: Corporate-Investment Banking, Medium and Small Banking, Retail Business, Treasury, and Other Business. The bank provides diverse financial solutions, including deposits, loans, cash management, trade finance, investment banking, and electronic banking services. Founded in 1990, VTB Bank has expanded its footprint internationally, serving clients in Russia, OECD countries, and beyond. Despite geopolitical challenges, VTB remains a critical player in Russia's financial sector, supporting corporate clients, SMEs, and retail customers. The bank's extensive product portfolio and state-backed position reinforce its role in Russia's economy, though international sanctions have significantly impacted its operations and financial performance.
VTB Bank presents a high-risk investment case due to its exposure to geopolitical tensions and international sanctions, which have severely impacted its financials. In FY 2022, the bank reported a staggering net loss of RUB 619.5 billion, driven by asset write-downs and restricted access to global financial markets. While its diversified business model and state support provide some stability, the bank's long-term viability depends on Russia's economic resilience and potential easing of sanctions. Investors should be cautious, as liquidity constraints, regulatory risks, and limited international operations pose significant challenges. Dividend payouts (RUB 0.56015 per share) may not be sustainable given the bank's strained profitability. Only investors with high risk tolerance and a focus on Russian markets should consider exposure to VTB.
VTB Bank holds a dominant position in Russia's banking sector, competing primarily with state-owned and private domestic banks. Its competitive advantages include a broad service portfolio, strong corporate client relationships, and implicit government backing, which ensures liquidity support. However, international sanctions have weakened its ability to compete globally, restricting access to capital markets and foreign transactions. Domestically, VTB competes with Sberbank, which has a larger retail footprint and stronger digital banking infrastructure. VTB's investment banking and corporate lending segments remain key differentiators, but its reliance on the Russian economy increases vulnerability to macroeconomic instability. The bank's treasury operations have been disrupted by frozen foreign assets, limiting its hedging capabilities. While VTB retains a strong brand in Russia, its competitive positioning has deteriorated due to geopolitical isolation, reducing its appeal to international investors and corporate clients.