VTB Group announces IFRS results for April and first 4 months of 2017

30 may 2017

VTB Bank, the parent company of VTB Group, today publishes its unaudited consolidated IFRS results for April 2017 and the 4 months ended 30 April 2017.

Income Statement

  • Net profit was RUB 35.3 billion (27 times increase year-on-year) in 4M 2017 and RUB 7.7 billion (11 times increase year-on-year) in April 2017 versus net profit of RUB 1.3 billion in 4M 2016 and RUB 0.7 billion in April 2016. Net operating income before provisions grew 31.6% year-on-year in 4M 2017 and 20.1% year-on-year in April 2017;
  • Net interest income was RUB 150.3 billion in 4M 2017, up 13.4% year-on-year, and RUB 37.3 billion in April 2017, up 9.1% year-on-year. The growth of net interest income was driven by continuing recovery of net interest margin (4.1% in 4M 2017 and 4.1% in April 2017 versus 3.5% in 4M 2016 and 3.8% in April 2016);
  • Net fee and commission income was RUB 26.3 billion in 4M 2017 and RUB 6.6 billion in April 2017, up 11.0% and 4.8% year-on-year, respectively;
  • Total provision charges for impairment of debt financial assets and for impairment of other assets, credit related commitments and legal claims amounted to RUB 59.7 billion in 4M 2017 and RUB 13.8 billion in April 2017, up 6.8% and down 9.8% year-on-year, respectively. Cost of risk including credit related commitments was 1.8% in 4M 2017 and 1.6% in April 2017 versus 1.5% in 4M 2016 and 1.5% in April 2016;
  • Staff costs and administrative expenses amounted to RUB 82.2 billion in 4M 2017 and RUB 20.6 billion in April 2017, up 1.6% and 1.5% year-on-year, respectively. Cost-to-income ratio was 43.3% in 4M 2017 and 45.2% in April 2017 versus 53.8% in 4M 2016 and 51.7% in April 2016.

Statement of Financial Position

  • Total assets amounted to RUB 12,501.6 billion as of 30 April 2017, up 0.4% in April and down 0.7% year-to-date. Gross loans and advances to customers grew 0.7% in April and contracted 0.9% in 4M 2017. Gross loans to legal entities increased by 0.5% in April and contracted 2.3% in 4M 2017, while gross loans to individuals increased by 1.3% in April and by 3.8% in 4M 2017;
  • The NPL ratio was 6.6% of total gross loans as of 30 April 2017, up 10 bps month-on-month and 20 bps year-to-date. The NPL coverage ratio was 107.2% (31 March 2017: 108.1%, 31 December 2016: 104.6%);
  • Total customer deposits grew 1.7% in April and 12.5% year-to-date, reaching RUB 8,267.5 billion as of 30 April 2017. Deposits from legal entities grew 1.5% in April and 22.2% in 4M 2017, while deposits from individuals grew 2.0% in April and contracted 1.5% in 4M 2017;
  • Debt securities issued amounted to RUB 317.0 billion at 30 April 2017, down 20.7% year-to-date;
  • The adjusted loan-to-deposit ratio was 101.1% as of 30 April 2017 (31 March 2017: 102.9%, 31 December 2016: 105.4%);
  • Capital base remained strong. As of 30 April 2017, Tier 1 CAR was 12.9% (31 March 2017: 13.4%, 31 December 2016: 12.9%), and total CAR was 14.6% (31 March 2017: 15.0%, 31 December 2016: 14.6%).

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