VTB Group announces IFRS results for November and first 11 months of 2016

VTB Bank ('VTB' or 'the Bank'), the parent company of VTB Group ('the Group'), today publishes its unaudited consolidated IFRS results for November 2016 and the 11 months ended 30 November 2016.

Income Statement

- Net profit was RUB 7.5 billion in November and RUB 45.5 billion in 11M 2016 versus net profit of RUB 10.9 billion in November (down 31.2% year-on-year) and RUB 3.0 billion in 11M 2015 (up 1416.7% year-on-year). Net operating income before provisions was RUB 39.3 billion in November and RUB 451.7 billion in 11M 2016, up 18.4% and 23.9% year-on-year, respectively;

- Net interest income was RUB 33.7 billion in November and RUB 378.1 billion in 11M 2016, up 24.4% and 48.3% year-on-year, respectively. The growth of net interest income followed the year-on-year recovery of net interest margin (3.7% in November and 3.7% in 11M 2016, versus 2.8% in November and 2.5% in 11M 2015);

- Net fee and commission income was RUB 7.4 billion in November and RUB 70.5 billion in 11M 2016, up 4.2% and up 2.9% 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 11.2 billion in November and RUB 177.2 billion in 11M 2016, up 761.5% and 13.2% year-on-year, respectively. The Group's cost of risk, including credit related commitments, was 1.2% in November and 1.8% in 11M 2016, versus 0.1% in November and 1.6% in 11M 2015;

- Staff costs and administrative expenses amounted to RUB 18.0 billion in November and RUB 209.0 billion for 11M 2016, up 4.0% and 6.5% year-on-year, respectively. The Group's cost-to-income ratio was 45.8% in November and 46.9% for 11M 2016, versus 52.0% in November and 53.6% for 11M 2015.

Statement of Financial Position

- The Group's total assets amounted to RUB 12,980.4 billion at 30 November 2016, up 3.2% in November and down 4.8% year-to-date. Gross loans and advances to customers increased 1.7% in November and contracted 4.0% year-to-date. Gross loans to legal entities were up 1.9% in November and down 7.2% year-to-date, while gross loans to individuals were up 1.0% in November and 9.4% year-to-date;

- The NPL ratio was 6.8% of total gross loans at 30 November 2016, down 10 bps month-on-month and up 50 bps year-to-date. The NPL coverage ratio at 30 November 2016 was 104.6% (31 October 2016: 104.4%, 31 December 2015: 105.8%);

- Total customer deposits were down 1.3% in November and up 11.6% year-to-date, reaching RUB 8,110.9 billion at 30 November 2016. Deposits from legal entities were down 3.3% in November and up 16.8% year-to-date, while deposits from individuals were up 2.2% in November and 3.7% year-to-date;

- Debt securities issued amounted to RUB 455.2 billion at 30 November 2016, down 27.0% year-to-date;

- The adjusted loan-to-deposit ratio was 99.8% as of 30 November 2016 (31 October 2016: 100.0%, 31 December 2015: 104.9%). The non-adjusted loan-to-deposit ratio was 111.2% as of 30 November 2016 (31 October 2016: 107.8%, 31 December 2015: 129.9%);

- As of 30 November 2016, Tier 1 CAR was 13.2% (31 October 2016: 13.3%, 31 December 2015: 12.4%), and total CAR was 14.9% (31 October 2016: 15.0%, 31 December 2015: 14.3%).