VTB Group plans to spend to fold Transcreditbank into VTB 24 roughly Rub 7.5 bln that will pay off within two years, VTB 24 deputy management board chairman Vyacheslav Vorobiev said in an interview with VTB Group’s corporation edition, Prime-TASS wired.
Transcreditbank’s integration into the group stipulates that the bank’s corporate operations (over 2,000 customers, 600 of which are linked with Russian Railways) should be assigned to VTB Bank, while retail and SME activities will go to VTB 24. And starting November 1, 2013 Transcreditbank will legally merge with VTB 24.
“We plan to spend around Rub 7.5 bln on the project. Primary cost items are expenses related to the integration of the workforce, renovation and furnishment of Transcreditbank offices under VTB 24 standards, technology support of the merger and the buyout of minority shares," said Vorobiev.
At the same time, VTB Group expects to see a synergetic effect from the banks’ integration of roughly Rub 4—5 bln a year. “Investment in the integration project will pay off, as we estimate, within a couple of years," added the executive.
