VTB Group announces IFRS results for October and 10 months of 2017

VTB Group announces IFRS results for October and 10 months of 2017

VTB Bank, the parent company of VTB Group, today publishes its unaudited consolidated IFRS results for October 2017 and the 10 months ended 31 October 2017.

Income Statement

*     Net profit was RUB 15.6 billion (4 times increase year-on-year) in October 2017 and RUB 90.9 billion (2 times increase year-on-year) in 10M 2017 versus net profit of RUB 3.9 billion in October 2016 and RUB 38.0 billion in 10M 2016;

*     Net interest income was RUB 39.0 billion in October 2017, up 14.7% year-on-year, and RUB 382.7 billion in 10M 2017, up 11.1% year-on-year. The growth of net interest income was driven by expansion of net interest margin (4.1% in October 2017 and 4.1% in 10M 2017 versus 3.7% in October 2016 and 3.7% in 10M 2016);

*     Net fee and commission income was RUB 8.0 billion in October 2017 and RUB 75.0 billion in 10M 2017, up 11.1% and 18.9% 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 11.4 billion in October 2017 and RUB 129.6 billion in 10M 2017, down 40.9% and down 21.9% year-on-year, respectively. Cost of risk was 1.4% in October 2017 and 1.6% in 10M 2017 versus 2.4% in October 2016 and 1.5% in 10M 2016;

*     Staff costs and administrative expenses amounted to RUB 22.6 billion in October 2017 and RUB 207.6 billion in 10M 2017, up 16.5% and 8.7% year-on-year, respectively. Cost-to-income ratio was 41.8% in October 2017 and 45.3% in 10M 2017 versus 42.9% in October 2016 and 47.1% in 10M 2016.

Statement of Financial Position

*     Total assets amounted to RUB 12,671.5 billion as of 31 October 2017, up 0.7% year-to-date. Gross loans and advances to customers grew 1.6% year-to-date, reaching RUB 9,640.4 billion as of 31 October 2017. Gross loans to legal entities contracted by 1.8% in 10M 2017, while gross loans to individuals increased by 13.0% in 10M 2017;

*     The NPL ratio was 6.3% of total gross loans as of 31 October 2017, down 10 bps year-to-date. The NPL coverage ratio was 104.4% at 31 October 2017 (31 December 2016: 104.6%);

*     Total customer deposits grew 19.2% year-to-date, reaching RUB 8,760.1 billion as of 31 October 2017. Deposits from legal entities grew 24.3% in 10M 2017, while deposits from individuals were up 11.9% in 10M 2017;

*     Debt securities issued amounted to RUB 333.0 billion at 31 October 2017, down 16.7% year-to-date;

*     The loans-to-deposits ratio was 102.8% as of 31 October 2017 (31 December 2016: 120.5%);

*     As of 31 October 2017, Tier 1 CAR was 13.2% (31 December 2016: 12.9%), and total CAR was 14.7% (31 December 2016: 14.6%).