Interview with Alexei Yakovitsky

Global CEO VTB Capital

The growth that we can see in various parts of the world now is really quite unstable. We have even seen a slight slowdown in so-called ‘developing’ markets, including Russia. As an investment bank, we clearly perceive this impact... Banks are more sensitive to any macroeconomic fluctuations than other entities.

We are optimistic about the next stage, which is the development 'of the global banking system' that will be characterised by extensive regionalisation... So the balance will shift towards banks that we can call ‘regional’.

China is currently Russia's largest trading partner, even bigger than the European Union. Everyone knows that. Many people tend to forget about it as there is not much news about this cooperation, but in reality, the trading volume is immense.

In demographic terms, it is quite interesting because it is commonly believed that China is a very big country, which it definitely is. However, with respect to population growth rates, these are practically non-existent. The policy that China has upheld over the last few decades is now likely producing a boomerang effect.

In Western Europe and the US, we have seen some steps taken by regulators, which are actually correct in terms of raising transparency, capital requirements and the overall reliability of the banking system. How much all of the approaches proposed by regulators are synchronised and adequate for where we are in the business cycle is a major issue.

Investors are very important for us, as are stockholders and interested parties... The state is our shareholder and regulator, and there are societal aspects, bearing in mind the role that the group plays. And, of course, there are the clients... Healthy growth is client growth.

As part of PwC's 17th Annual Global CEO Survey, we spoke with Alexei Yakovitsky, Global CEO of VTB Capital. In this short video, Alexei shares his outlook on the global economy and talks of the impact of macroeconomic fluctuations on the investment banking sector. He highlights the growing trend towards 'regionalisation' within the global banking industry as the number of truly global banks reduces, and highlights the importance of China as Russia's largest trading partner.

Alexei Yakovitsky joined VTB Capital in 2008. He is responsible for the strategic and operational development of VTB Capital holding companies.

Institutional Investor rated him one of the top three Russian telecom analysts four years in a row (2004-08), while in 2007 the organizers of the Financial Olympus named Alexei the best analyst on the Russian market. The telecoms team headed by Alexei took first place in EMEA emerging markets in Extel’s 2005, 2006 and 2007 surveys.

Alexei joined VTB Capital from Deutsche Bank where he worked as head of research in the bank's Moscow branch (2007-2008).

Prior to that, he was co-head and then head of research at leading Russian investment bank United Financial Group (UFG) (2005-2007), which was bought by Deutsche in 2006.

Alexei joined UFG in 2000 as a telecommunications analyst.

He holds an MA in Political Science from the Nelson A. Rockefeller College of Public Affairs and Policy in the U.S. (1998) and a PhD in History from the Moscow State University (graduated in 1997).

These interviews contain the opinions and views of the CEOs interviewed, and do not necessarily represent the opinions and views of PwC.