Midnight in Moscow ?
Bloomberg News reports that Russia’s second-biggest bank should fire four in ten employees at its overseas investment banking unit and drop more than two-thirds of its clients after costs rose to 95% of revenue, the division’s head wrote.
VTB Capital International has missed its profitability targets for the past five years, Atanas Bostandjiev wrote in a November 15 memo to Yuri Soloviev, deputy CEO of parent VTB Group.
Bostandjiev, 38, proposed shutting the equity derivatives, commodities and structured credit trading groups, cutting the client roster to 300 from about 1,000 and eliminating 231 out of 556 jobs, according to the document, which Bloomberg News says it reviewed.
'We need to immediately address and pro-actively take steps to reposition, restructure and refocus the business in order to deliver sustainable and attractive economic returns', Bostandjiev, hired from Goldman Sachs two years ago to run the unit, wrote in the 12-page document.
'We are constantly reviewing the execution of our international strategy', Alexei Yakovitsky, CEO of VTB Capital, said in a statement. 'We are generally happy with the progress we made internationally in the last couple of years and expect further growth in international revenue'.
image: © Pavel "KoraxDC" Kazachkov