Russian Bank VTB is Relocating Its London Unit to Frankfurt
May 9, 2019 2:26 pm
The bank slashed its London headcount by 55 bankers to 206 from 261 and outlines plans for further cuts
Sanctions and Brexit have hit the bank’s U.K. unit hard: VTB is axing many of its London staff and moving some to Frankfurt.
The U.K. business of Russia’s second-biggest bank saw its post-tax loss balloon to $63.9 million last year from $20.4 million for 2017, according to a filing made to U.K. Companies House late in April. The comprehensive 155-page document shows that the bank slashed its London headcount by 55 bankers to 206 from 261 and outlines plans for further cuts, as well as a new “strategic focus” to build “in parallel” a trading book capability at VTB’s operation in Frankfurt.
The bank undertook a strategic review of its business model with a view to reducing both the liquidity and capital requirements of the bank going forward, given the deterioration in the geopolitical landscape between the UK and Russia and the growing uncertainty around the U.K.’s withdrawal process from the European Union.
Following this review, the bank concluded that it would restructure and reduce its business model within VTBC (London) and, in parallel, build out a trading book capability within its European subsidiary VTB Europe based in Frankfurt.
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