Investor relationsInvestor relations

Developing relations and supporting a constructive dialogue with shareholders and representatives of the investment community have traditionally been a high priority for VTB Group and extend beyond required corporate procedures. VTB has been recognised as one of the leaders in Russia in this area, and in 2020 the Russian Institute of Directors raised VTB Bank’s national corporate governance rating to 8 (best corporate governance practice).

VTB’s senior management and authorised units engage with investors on an ongoing basis. The Investor Relations Department is responsible for communications with institutional investors, and its Shareholder Relations Service is responsible for communications with individual shareholders. On average, the Bank processes about 1 thousand communications from minority shareholders every month.

In addition, the Bank’s subsidiaries VTB Registrar and VTB Capital Investments as well as the business divisions of the Retail Business global business line interact with shareholders in providing special products and services for Bank shareholders.

Amid the pandemic in 2020, most communications with shareholders and investors took place online. Large-scale events, including shareholder seminars and Investor Days, were temporarily suspended in the interests of safety and in accordance with government regulations. As a result, remote and electronic communication channels took on particular importance.

In 2020, the key investor relations events were:

  • a twofold increase of the number of shareholders: the number of VTB shareholders more than doubled from the previous year to more than 330 thousand as of December 2020;
  • the transfer of most communications with shareholders and investors to online venues;
  • the holding of the Annual General Meeting of Shareholders by absentee voting; a special website was developed for the meeting;
  • new reporting forms and online resources for shareholders and investors;
  • the development of a programme of special offers and products for shareholders, the introduction of new products on special terms and a record increase in the number of programme participants;
  • an increase in the number of participants in financial reporting webcasts, partly the result of invitations to private investors;
  • the expanded functionality of the VTB Shareholder mobile application.

The number of shareholders continued to increase dramatically in 2020: the number of VTB Bank shareholders increased by 111%, or by 177 thousand individuals. The total number of Bank shareholders as of 1 December 2020 was 337.1 thousand, including 336.1 thousand individuals.

Shareholder growth factors:
  • the rapid influx of new private investors into the market;
  • increased market volatility in 2020 amid the coronavirus pandemic and falling stock prices ;
  • recovery of the Bank’s stock prices after a serious drop in March, followed by an upward trend (more than 20% by the end of the year);
  • new formats for shareholder relations, including a benefits and privileges programme;
  • increased activity and engagement on the part of shareholders and private investors as a result of the successful implementation of a comprehensive shareholder engagement programme.
INDIVIDUAL SHAREHOLDERS BY METHOD OF SHARE ACQUISITION, %
PURCHASED SHARES ON THE SECONDARY MARKET IPO PARTICIPANTS FORMER SHAREHOLDERS OF VTB NORTH-WEST (FORMER PROMSTROYBANK) FORMER SHAREHOLDERS OF VTB24
2020 84 (up 17.7 p.p. year-on-year) 13 (down 14.8 p.p. year-on-year) 2 1
2019 66 28 4 2

VTB Shareholder mobile application

An important area in which the system of relations with minority shareholders is being improved is the development of digital communication channels. One of the key objectives in developing communications in 2020, including because of COVID-19, was to improve existing digital channels and to provide shareholders with new possibilities for communication. The Bank’s flagship channel for electronic communications with shareholders is the VTB Shareholder mobile application.

Thanks to the mobile application, any shareholder, regardless of where they live or are currently located, has access to news about the activities of the Bank and VTB Group as a whole, and can take part in the management of the Bank by voting at general meetings, receive announcements about events for shareholders and investors and register to participate in them.

Users of the application have access to recommendations from leading analysts in VTB Group, real-time information on stock prices, the ability to maintain records of their investment portfolio and to stay up to date on important news and events for shareholders. The application enables users to see all existing privileges for VTB Bank shareholders. In addition, clients can use the feature of filtering the available privileges. To do this, a user only needs to specify the number of shares they own. For active investors, a function was added that allows investors to connect to the trading system in the VTB My Investments application.

In 2020, a major update of the mobile application was carried out. VTB conducted a survey of users of the application in order to identify trouble spots for users and to determine what information they would like to see. This resulted in the addition of several new sections, including Analytics and Reporting, which publishes analytical materials on shareholders relations, legislative reviews, VTB Group’s financial statements and stock market analyses.

In 2020, a number of the application’s processes were streamlined, and work began on a major design change aimed at improving the user experience.

Shareholder newsletter

In order to maintain constant communication with shareholders, VTB prepares a monthly news digest and shares it by e-mail with the Bank’s shareholders. The newsletter continues to be one of the most convenient and most popular ways for the Bank to communicate with its shareholders. Available in HTML and PDF formats, the newsletter contains information on important corporate and shareholder events, new products and services, financial performance and other important topics of interest to shareholders. The newsletter was published 12 times in 2020, and each issue reached an average of about 120 thousand recipients.

Social networks

There are dedicated Facebook and Twitter accounts for VTB shareholders; they are administered on behalf of the Shareholders Consultative Council. Social networks enable the Bank to promptly convey important information to shareholders, to attract a younger audience and to interact with new shareholders. Owing to COVID-19-related restrictions, VTB received an increased number of communications from shareholders through social networks.

In 2020, social networks were used for, among other things, a series of thematic posts on financial literacy, the 75th anniversary of Victory Day (ending World War II) and the 30th anniversary of the founding of VTB Bank. In addition, information about the activities of the Shareholders Consultative Council is regularly posted on social media. In 2020, the Shareholders Consultative Council arranged a reporting webinar for the first time in preparation for the Annual General Meeting of Shareholders.

The number of subscribers to the Facebook pages for VTB shareholders increased by 37% in 2020; the number of posts increased by 43%. The number of followers on Twitter increased by 2%; the number of posts increased by 43%. A total of 241 posts were published in 2020, which were viewed more than 73 thousand times.

VTB website section for shareholders and investors

The Investor Relations section was one of the most popular on the Bank’s website in 2020, having been visited by more than 900 thousand users; the number of section page views increased by 17%. VTB started updating the section for shareholders and investors in accordance with current trends and user requests.

VTB Shareholder’s Guide

A new interactive format for providing information to shareholders and investors, the Shareholder’s Guide, was prepared and released for the first time in June 2020. The purpose of the guide is to help private investors purchasing VTB shares to familiarise themselves with VTB Group structures and corporate governance principles and to understand their rights and obligations. The guide offers a compact overview of all the information that may be useful to investors – from the structure of VTB Group and its ownership to information about the Bank’s ESG initiatives.

The Shareholder’s Guide replaces the FAQ section for shareholders that used to be on the website. The information in the guide is updated on a quarterly basis. Both interactive and PDF versions are available for shareholders.

Meetings with shareholders and investors

One of the key elements of the road map to improve the Bank’s image is meetings with shareholders and other interested parties (stakeholders).

The COVID-19 pandemic forced the Bank to make a number of significant adjustments to its plans to hold events for shareholders and other stakeholders. The Shareholder Relations Service had planned at least 70 events for private investors, regional media and investment companies, students and analysts, but VTB managed to hold only nine of them before restrictions were introduced.

In early February 2020, a seminar was held for VTB shareholders and investors in Samara. It was attended by 105 participants.

On 9 February, VTB held an Investor Day in Yekaterinburg, with 420 people taking part. Speakers included representatives of the Bank’s management as well as members of the Shareholders Consultative Council and experts from Moscow Exchange. The 10th Investor Day in Yekaterinburg welcomed a record number of participants. Eight specialised areas were set up for shareholder consultations about the Bank and its subsidiaries.

In March, an event for shareholders was held in Sochi with 53 participants. VTB experts also held meetings in these regions with representatives of investment firms and brokerages, analysts and journalists.

Starting in mid-March 2020, all events were moved online. For individual shareholders, VTB organised three online conferences with management (in partnership with VTB Capital Investments, BCS and Aton) and an online conference on the future of the stock market on the VTB Registrar platform. These conferences were viewed a total of 11.6 thousand times.

Starting in 2020, individual shareholders and representatives of the Shareholders Consultative Council were also able to take part in webcasts on the disclosure of VTB Group’s financial statements. Information about the date and location of webcasts is published through the VTB Shareholder mobile application.

The format for communication with institutional investors and analysts also had to be adapted to the reality of 2020 – all events took place online. Despite the slowdown in business activity in 2020, there was frequent communication with the investment and analytical community, and the Bank was an active participant in online meetings and international investment conferences, which were also held online. VTB Capital’s annual international investment forum Russia Calling! was no exception, as it was broadcast online – to a wide audience – for the first time in its history.

Online training courses

Quarantine measures and remote work gave many people an opportunity to engage in personal development in 2020. Taking this trend into account as well as the rapid growth in the number of private investors among shareholders, the Bank developed a number of training courses aimed at improving the financial literacy of individual investors.

At the end of April 2020, VTB launched its Beginner Investor’s Course, an online course on corporate law and management for private investors. The training consisted of three tasks: a quiz, an analytical task and a ranking of issuers by rate of return. More than 10 thousand users took the course.

The second part of the Beginner Investor’s Course was launched in July 2020 together with Moscow Exchange; this part was dedicated to exchange instruments, the organisation of trading and various strategies for stock market investments. More than 10 thousand VTB shareholders and clients completed the training.

Online training courses

In November, a new project was launched called Quest Invest – an interactive online game for Bank shareholders and customers. More than 5 thousand users from more than 30 regions of Russia took part in the game, which consisted of three mini-quests. The winners received valuable prizes: tablets, urban backpacks, a discount on brokerage fees and useful gadgets.

In December 2020, VTB and Moscow Exchange organised an Investment Marathon for VTB Capital Investment clients and VTB shareholders. The intensive training consisted of 10 YouTube webinars and a self-administered test. The training was viewed more than 200 thousand times. Following the training, the participants took a test and received certificates.

Shareholders Consultative Council

The SCC has been representing minority shareholders for 12 years, protecting their interests and playing an active role in the development of VTB Group – shaping its strategy and monitoring its implementation.

The Shareholders Consultative Council (SCC) is an independent advisory body that represents the interests of VTB’s minority shareholders. All SCC members are current shareholders. In Russian practice, such shareholder councils are very rare. At the same time, the Bank of Russia, as the regulator, notes that this practice is an effective way to increase the activity and involvement of shareholders.

MAIN TYPES OF INTERACTION BETWEEN THE SCC AND THE BANK


  • Meetings with the Bank’s top management
  • Test purchases
  • Development proposals

MAIN TYPES OF INTERACTION BETWEEN THE SCC AND SHAREHOLDERS


  • Participation in Bank events
  • Social networks, e-mail, VTB Shareholder mobile application
  • Online conferences and webinars

MAIN ISSUES OF INTEREST TO THE SCC


  • Corporate governance
  • Dividend policy
  • Financial statements and forecasts
  • Investor relations
  • Strategy and risk management
  • Investment and retail products
  • Shareholder privileges
  • Performance of subsidiaries
  • IT solutions and digitalisation

MEMBERS OF THE SHAREHOLDERS CONSULTATIVE COUNCIL AS OF 31 DECEMBER 2020

Education:

1988 — Lomonosov Moscow State University, specialisation in land hydrology

Professional activities:

Since 2001 — Deputy Executive Director of the Professional Investors Association

Positions in other organisations:

  • Chairman of the Board of Directors of the Federal Centre for Geoecological Systems

Ownership of shares in the Bank as of 31 December 2020:

% of ordinary shares ► 0.0000002315%
% of the charter capital ► 0.0000000461%

Ownership of shares in the Bank as of 31 December 2020

% of ordinary shares ► 0.000015431%
% of the charter capital ► 0.000003072%

Education:

Graduated from the Moscow Lenin State Pedagogical University, candidate of economic sciences

Professional activities:

Deputy CEO of Gazprombank — Asset Management

Achievements:

  • Winner of a Russia’s Financial Elite award for Most Senior Player in the collective investment market
  • Included on the list of Russia’s Top 1,000 Managers
  • Was a TACIS expert for the World Bank on pension reform in Russia

Ownership of shares in the Bank as of 31 December 2020

% of ordinary shares ► 0.000016866%
% of the charter capital ► 0.000003358%

Education:

Lomonosov Moscow State University, candidate of economic sciences

Professional activities:

Chairman of the Russian State Duma Committee on Civil Society, Public Associations and Religious Organisations

Ownership of shares in the Bank as of 31 December 2020

% of ordinary shares ► 0.000000772%
% of the charter capital ► 0.000000154%

Education:

Graduated from the Financial University under the Government of the Russian Federation and the Russian State Social University

Professional activities:

Head of Premier BCS projects at BCS

Ownership of shares in the Bank as of 31 December 2020

% of ordinary shares ► 0.00000000000772%
% of the charter capital ► 0.00000000000154%

Education:

Graduated from Moscow State University of Design and Technology, candidate of economic sciences

Professional activities:

Director of the Institute of Social Engineering at Kosygin Russian State University, Associate Professor in the Management Department

Ownership of shares in the Bank as of 31 December 2020

% of ordinary shares ► 0.000008179%
% of the charter capital ► 0.000001628%

Education:

Lomonosov Moscow State University with a bachelor’s degree in law and a master’s degree in corporate law

Professional activities:

Lawyer for the United Metallurgical Company, specialising in corporate law

Ownership of shares in the Bank as of 31 December 2020

% of ordinary shares ► 0.000008102%
% of the charter capital ► 0.000001613%

Education:

Completed undergraduate and graduate studies at Lomonosov Moscow State University

Professional activities:

Head of the Analytics Division in VTB Bank’s Brokerage Services Department

Ownership of shares in the Bank as of 31 December 2020

% of ordinary shares ► 0.000000077%
% of the charter capital ► 0.000000015%

Education:

Holds several university degrees as well as a Chartered Financial Analyst (CFA) diploma, candidate of economic sciences

Professional activities:

Deputy Chairman of the Management Board at the Institute for the Development of Financial Markets

Ownership of shares in the Bank as of 31 December 2020

% of ordinary shares ► 0.000018518%
% of the charter capital ► 0.000003686%

Education:

Graduated from Urals State Technical University (information systems in economics)

Professional activities:

Advisor to the Chairman of the Management Board at Astramed-MS

Ownership of shares in the Bank as of 31 December 2020

% of ordinary shares ► 0.000000772%
% of the charter capital ► 0.000000154%

Education:

Graduated from Ukhta State Technical University

Professional activities:

Engineer at St. Petersburg Alferov Academic University

Ownership of shares in the Bank as of 31 December 2020

% of ordinary shares ► 0.000027069%
% of the charter capital ► 0.000005389%

Education:

Graduated from the Irkutsk Polytechnical Institute (cybernetics)

Professional activities:

Self-employed entrepreneur in the field of construction and real estate

Ownership of shares in the Bank as of 31 December 2020

% of ordinary shares ► 0.000003933%
% of the charter capital ► 0.000000783%

Education:

Graduated from the Moscow State Institute of International Relations of the Russian Foreign Ministry with a degree in international economic relations, candidate of economic sciences

Professional activities:

Advisor to the Senior Vice President of Norilsk Nickel

At the AGM in 2020, shareholders once again elected representatives of the Shareholders Consultative Council to the Bank’s management and oversight bodies.

Igor Repin, Chairman of the Bank’s Shareholders Consultative Council, was re-elected as a member of the Bank’s Supervisory Council.

Vadim Soskov was re-elected as a member of the Bank’s Statutory Audit Commission.

In 2020, the Shareholders Consultative Council held one in-person meeting; two meetings online, a new format for the SCC; and an online conference on the impact of COVID-19 on the stock market. In addition, the report of the SCC Chairman on the Council’s activities, which is traditionally presented at the Annual General Meeting of Shareholders, was presented instead as a reporting webinar.

The SCC’s first meeting of 2020 was held in-person on 12 February. The subject of the meeting was the development of VTB Group’s investment products. The invited speaker was Vladimir Potapov, head of VTB Capital Investments, head of the Brokerage Department and Senior Vice President of VTB. He presented the results of work for 2019, shared work plans for 2020, answered questions of interest to SCC members and also took on board the requests, advice and comments that SCC members had collected.

On 10 April, an online conference took place called Stock Market 2020: Crisis or New Opportunities? The following members of the SCC took part as experts: Stanislav Kleschev, Valery Petrov, Igor Repin, Vadim Soskov, Ilya Khersontsev and Yelena Shafranskaya. SCC members answered 110 questions from conference participants and shared their views on the situation in the stock market after it experienced a serious correction in March 2020.

The next meeting of the Bank’s Shareholders Consultative Council took place on 22 July. Deputy President and Chairman of the Management Board Vadim Kulik took part in the event. The meeting, on the implementation of the Bank’s IT strategy, was the first-ever SCC meeting held online.

A reporting webinar on the SCC’s work for the year was held on 14 August. Representatives of the Shareholders Consultative Council — Igor Repin, Vadim Soskov and Ilya Khersontsev — spoke about the SCC’s work, further work plans and forthcoming election, and they also answered questions from minority shareholders.

The Bank’s Shareholders Consultative Council held its last meeting of 2020 on 21 December. SCC members held discussions with representatives of the Retail Products Department on the results and further development of the programme of special products and services for shareholders.

During the year, the Shareholders Consultative Council continued to work on key issues and existing projects. For example, as part of the Accessible Bank project, the SCC is closely involved in adapting VTB’s banking services to meet the needs of customers with disabilities. Studies were conducted on customer needs in 2020, and specific proposals were made regarding the product line and the accessibility of services for customers with disabilities.

In implementing the Youth Bank initiative, SCC members made a number of proposals for the development of the VTB brand and for the creation of a product line for the youth segment. SCC members have also traditionally taken part in organising and conducting workshops for students as well as programmes to improve financial literacy.

In the spring of 2021, the current members of the SCC will complete their four-year term, and elections will be held to elect a new Council. Any VTB shareholder over the age of 21 can run for election to the Council. Information about the SCC elections is available on the website.

Preferential products for shareholders

Since 2017, VTB has been developing a programme of special offers for its shareholders that is unique for the Russian market; it involves a comprehensive offer of a wide range of banking and financial services on preferential terms.

In 2020, VTB Bank noted a significant increase in shareholder interest in the programme. For example, the number of service packages issued to the Bank’s shareholders increased 3.7x over the year to more than 180 thousand. The number of loans issued to shareholders on preferential terms increased to 54 thousand over the same period. Overall, more than 290 thousand of the Bank’s 336 thousand minority shareholders are currently VTB customers.

In 2020, VTB continued to expand the shareholder programme’s product line. For example, a new option for VTB Multicard holders was launched – cash back with shares – that enables programme members to use the cash they get back for purchases made with their card to buy VTB shares and other investment assets.

One of the Bank’s partners, the Sogaz insurance group, is offering shareholders a new telemedicine product. During the year, several holiday promotions were held during which shareholders were offered discounts of up to 50% on basic insurance products – for example, a promotion to mark VTB Bank’s 30th anniversary. In addition, a special page was added to the Sogaz website to make it easy for VTB shareholders to submit an application for preferential insurance products.

VTB Bank will continue to develop its programme of benefits and privileges in order to expand the list of products and services for shareholders, including through the Group’s subsidiaries.

CREDIT PRODUCTS PURCHASED BY SHAREHOLDERS
SERVICE PACKAGES PURCHASED BY SHAREHOLDERS
THE NUMBER OF VTB SHAREHOLDERS-USERS OF THE BANK’S RETAIL PRODUCTS, THOUSAND PEOPLE