Banks VTB deemed BM-Bank as having no affiliation
In a series of significant developments, the integration of BM Bank with VTB Group has taken an unexpected turn. The initial plan, approved by the Bank of Russia, called for the credit organization to be integrated into VTB no later than October 1, 2026. However, recent events have introduced new complexities.
The first stage of the integration process, which concluded in late 2024, saw 'Open' products being transferred to VTB. The second stage, completed in January 2025, saw 'Open' becoming a branch of BM Bank, servicing the remaining products not transferred to VTB.
However, a decision by the London court has introduced a new factor into the equation. The court satisfied the claim of holders of subordinated bonds of 'Open' bank, written off after its bailout in 2017. This decision could potentially impact VTB's structures, as reported by Dmitry Pyanov, VTB's First Deputy Chairman.
In light of this development, VTB is revising its plan for integrating BM Bank. The integration may require additional protective measures to safeguard VTB's structures from "contamination" by the London court case. Measures are being taken to ensure that these protective measures are in place when BM Bank is integrated into VTB.
The future of BM Bank remains unclear. According to its financial report under IFRS for the first half of 2025, the group has no intention or need for liquidation and plans to continue its activities in the foreseeable future. However, BM Bank, as stated, is not integrating at this time.
Currently, there is no publicly available detailed information on the exact integration scenario of BM Bank into VTB if the integration does not occur as planned in 2026. The integration timeline may be affected by the revisions.
Initially, it was planned that BM Bank would join VTB by the end of 2025. The integration scenarios are currently being re-evaluated in light of the London court decision. The integration of BM Bank into VTB was supposed to be the third stage of 'Open' joining VTB.
By May 2026, 'Post Bank' is expected to complete the integration marathon. Meanwhile, various integration scenarios for BM Bank are being worked out, with the integration of BM Bank into VTB potentially facing challenges due to the London court case.
As the situation evolves, updates on the integration of BM Bank into VTB will be closely watched by the financial community.
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