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VTB Discount to Sberbank Shrinks on State Aid Speculation

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VTB Group’s discount to Russia’s biggest lender shrank to the narrowest in three years as traders speculate the government will help fund the bank, which has been targeted by international sanctions.

VTB, Russia’s second-largest lender, trades at 0.67 times its book value while OAO Sberbank has a multiple of 0.82. The 19 percent discount is the smallest since December 2011, data compiled by Bloomberg show. Sberbank fell 3.5 percent in New York yesterday, trading near a three-year low and extending its 2014 slump to 46 percent. Moscow-based VTB slipped 0.2 percent to $2.03 in London after surging 16 percent in three weeks.