VTB Capital's chairman says Russian banks can grow another 20% in 2012
Bloomberg has been speaking to Yuri Soloviev, chairman of the board at VTB Capital, and Yuri Soloviev has some good news: despite the eurozone crisis, Russia's banks should still be able to grow (and hire) in 2012.
Last year, the Russian banking sector expanded 25%, said Soloviev. This year, despite recent capital flight and the fact that Russia is a 'high-beta market' which over-performs the rest of the market when things are good globally and under-performs when things are bad, he thinks growth of 16-20% is still a possibility.
As we've pointed out before, privatisation should be a big driver of growth in Russia. The Russian government wants to raise $70bn by selling its stakes in the largest Russian companies between 2012 and 2017. JPMorgan has estimated that $300m will be raised in 2012, with a massive $32bn planned for 2013. This should create big opportunities for capital markets bankers in the country.
Soloviev thinks the privatisations will go ahead: the new Russian cabinet combines mature politicians with younger reformers, he said. And the Russian government wants to reduce its influence and stake in the economy. Nevertheless, Soloviev said Russia still needs to address concerns over its investment climate - which have contributed to the outflow of capital.
