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. Last Updated: 07/27/2016

VTB Plans Investment, Consumer Expansion

VTB Group, which raised $8 billion in the largest initial public offering this year, wants to expand its securities and consumer business to help boost earnings, CEO Andrei Kostin said Friday.

The company aims to double its market share in the country's consumer banking by 2010, Kostin said. VTB is also looking to expand its investment-banking business in London and may start a small securities business in Moscow this year, he added.

State-run VTB, the country's second-biggest business lender, wants to build up its securities business to better use corporate-client relationships. The company would be competing against global securities firms, including Goldman Sachs Group, which are building up a presence in Russia.

"The margin in the retail sector is much higher" than in corporate lending, Kostin said. "This year we expect to at least double our loan portfolio in retail."

The bank is spending at least $1 billion on expanding its consumer-banking network in Russia, and may spend another $1.5 billion on acquisitions in neighboring countries, including Ukraine and Kazakhstan, Kostin said. VTB will also spend "hundreds of millions of dollars" to expand in investment banking, he said.

The bank is selecting "very good experts from the leading investment banks" to strengthen its securities business in London, Kostin said. In Moscow, where it considered making an investment-banking acquisition, VTB will now announce the creation of an "investment boutique" in the fall, he said.