Kostin called the term of liquidation of the brand of VTB24

The Supervisory Council of VTB Bank approved the program of joining of the Bank VTB24, said in an interview with TV channel “Russia 24” Chairman of the Board VTB Andrey Kostin. According to him, the absorption of the retail “daughter” will end on the first business day of 2018, after which the brand of VTB24 will disappear.

“Name “24” will only have “Russia 24″ — the Bank next year will not be. Accession date — this is the first working day after the January holidays in 2018”, — said Kostin (quoted by TASS).

He also noted that some employees VTB24 will be transferred to VTB in the first quarter of 2017, but finally the process will be completed after the completion of the merger. A number of current top managers of VTB 24, according to Kostin, will occupy key positions in VTB.

According to Kostin, the banking Corporation will give a significant synergistic effect, can reduce the cost and increase efficiency.

“We are aiming for a sharp increase in the efficiency of the Bank. First, in terms of net profit, return on capital. We expect that in 2019, the net profit will be at least 200 billion rubles, and return on capital — not less than 14%”, — said Kostin.

In the message the press service of VTB noted that the approved 14 December 2016 Supervisory Board the development strategy of VTB group for 2017-2019 stipulates, as one of the priorities of the Association of banks of VTB and VTB24 “no later than January 2018, and the construction of a single universal Bank.”

The document particularly emphasizes that the unification will not only achieve significant cost optimization and improve the group’s financial performance, but also enhance handling and create a “unified competitive structure that will enable effective communication of the business lines in addressing common challenges”.