Supporting small and medium businesses (SMB)Supporting small and medium businesses (SMB)
In 2020, VTB Group companies made significant efforts to provide loan support to small and medium businesses. We continued to improve the quality of service: VTB Bank accelerated the introduction of new digital solutions for our customers. An absolute majority of settlement transactions at VTB became available to small and medium businesses remotely.
The overall number of active customersActive SME customers are existing customers that have either non-zero net operating income over 12 months before the reporting date or have active salary project cards as of the reporting date. in the medium and small business segment increased by over 25% over 2020 to 636 thousand.
The loan portfolio of VTB Bank's SMB customers grew by 12% in 2020 year-on-year to RUB 1.42 trillion.
In the total volume of the loan portfolio, the leading companies are companies in the field of trade, (12%), housing and commercial construction, real estate and building materials (10.5%), food processing and agriculture (9.4%), transport and infrastructure construction (5%).
In 2020, VTB Bank continued to actively participate in the implementation of government programmes, the number of active agreements under which on 1 January 2021 has exceeded 32 thousand. The loan portfolio of the medium and small business segment under concessional instruments increased 2.3 times compared to the same indicator in 2019 and exceeded RUB 476 billion. A significant volume of the portfolio is formed by Programme 1764Decree of the Government of the Russian Federation No. 1764 dated 30 December 2018., aimed at concessional lending to small and medium businesses, and Programme 1528Decree of the Government of the Russian Federation No. 1528 dated 29 December 2016., designed to support the agricultural sector.
The aggregate loan value of these programmes in the VTB Bank portfolio amounted to RUB 327.3 billion. The total value of VTB's loans under state employment support programmes during the COVID-19 pandemic exceeded RUB 111.6 billion.
Projects simplifying SMEs’ operations
"Our strategic objectives are to support the economy of the country’s regions, customer focus and development of digital products and services. Moving toward our goal of becoming the bank of first choice for our customers, we are improving our processes to make the full range of services available to entrepreneurs as much as possible and to meet all of their business development needs. VTB uses the best international and our own practices to develop and implement cutting-edge technological solutions, thus contributing to the growth of our customers’ businesses".
Denis Bortnikov Deputy President and Chairman of the Management Board, VTB Bank
VTB Bank actively promotes the development of regional small and medium-sized businesses. For example, in 2020 the Bank provided:
Three lines of credit in the total amount of RUB 5.8 billion to Susumanzoloto JSC. The funds were used to implement gold mining plans and to build a mining and processing facility at the Verkhne-Alinskoye gold ore deposit in Zabaykalsky territory;
Medium-term financing for the construction of a hotel and business compound in Petropavlovsk-Kamchatsky: two lines of credit worth RUB 2 billion were extended to Novy Dom LLC under the preferential lending programme (Programme 1764). The project value is RUB 5.5 billion;
Financing for the purchase of a fishing vessel by Kamchattraflot LLC in the amount of RUB 460 million, the funds were granted for a period of five years;
A line of credit for the Mir Remonta (World of Repair) company in the amount of RUB 580 million for a period of four years. Part of the funds will be used for the implementation of the investment project to preserve a cultural heritage site − the building of the Molot publishing house in the centreof Rostov-on-Don.
The VTB Group’s subsidiary banks also provide support to companies in the countries and regions of operation:
VTB Bank (Kazakhstan) and the leading operator on the telecommunications market of the Republic of Kazakhstan Ksell JSC signed an agreement on granting a credit limit of KZT 6 billion for a period of 36 months to the company;
VTB Bank (Armenia) restructured 1.3 thousand corporate loans for AMD 400 million of deferred payments within the announced repayment holiday;
VTB Bank (Georgia) granted a loan in the amount of GEL 670,000 to Georgian Fruits cooperative for the construction of a refrigerating facility in the village of Sakobo, Sighnaghi district.
VTB Accelerator is a platform for cooperation between technology start-ups and the Bank's business units, which select solutions that interest them and allow them to launch pilot projects. VTB specialists test innovative technologies and assess their maturity, potential business impact and opportunities for integration into the banking infrastructure.
In 2020, the second cycle of the VTB Accelerator was completed. At the request of the Bank's business units, 16 innovative solutions of technology start-ups were piloted. Twelve of them have begun testing their solutions at the Bank and another four are in the preparation stage. The selected pilots include facial recognition payment technologies, mobile electronic document signing technologies, HR services etc.