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VTB completes absorption of Bank of Moscow's healthy assets

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VTB completes absorption of Bank of Moscow's healthy assets

completed theintegration of Bank ofMoscow's core business with assets worth more than 900 billionRussian rubles.

As aresult of the integration, more than 10 million retail, small business andcorporate customers became clients of VTB Bank, the parent company said.

VTBGroup took over Bank of Moscow a few months before its financial in 2011. In 2015, it wasdecided that thehealthy part of the lender would be integrated into VTB Group in May 2016, withthe remainder transferred to a "bad bank."

Some400 billion rubles, or 30% of Bank of Moscow assets, were transferred to thebad bank, including 243 billion rubles of loans provided by the lender to itsformer owners andmanagers, Vedomostireported May 9, citing Dmitry Pyanov, senior vice president in VTB's financedepartment. Pyanov said VTB will not be able to retrieve most of those loans,and these assets will most likely be written down.

Bankof Moscow's Ukrainian unit, PJSCBM Bank, will also remain with the bad bank.

Theintegration is expected to bring a cost reduction of 10 billion rubles per yearand will also result in the reduction of Bank of Moscow staff, Pyanov said,without providing specific figures.

As of May 10, US$1 wasequivalent to 67.28 Russian rubles.