VTB Europe deposits down 40%, but CEO says business is stable

FRANKFURT (Reuters) – VTB Europe, the one-time division of the Russian bank VTB, has seen a more than 40% fall in deposits but the business is stable, it said in a statement on Wednesday.

In April, following the imposition of sanctions, VTB in Europe was no longer allowed to take instructions from the parent bank and assets were cut off.

Deposits were down to 2.4 billion euros ($2.52 billion) at the end of May from 4.1 billion euros at the end of last year.

“The bank’s liquidity situation is stable, and we have been able to cope with the strong outflows of deposits,” said Frank Hellwig, chief executive who was appointed by Germany’s regulator BaFin.

($1 = 0.9511 euros)

(Reporting by Tom Sims and Marta Orosz; Editing by Riham Alkousaa)