VTB Group announces IFRS results for July and 7 months of 2017

VTB Bank, the parent company of VTB Group, today publishes its unaudited consolidated IFRS results for July 2017 and the 7 months ended 31 July 2017.

Income Statement

*     Net profit was RUB 67.7 billion (4 times increase year-on-year) in 7M 2017 and RUB 9.8 billion (4 times increase year-on-year) in July 2017 versus net profit of RUB 17.8 billion in 7M 2016 and RUB 2.4 billion in July 2016;

*     Net interest income was RUB 266.9 billion in 7M 2017, up 10.1% year-on-year, and RUB 39.8 billion in July 2017, up 12.4% year-on-year. The growth of net interest income was driven by expansion of net interest margin (4.1% in 7M 2017 and 4.2% in July 2017 versus 3.7% in 7M 2016 and 3.8% in July 2016);

*     Net fee and commission income was RUB 50.9 billion in 7M 2017 and RUB 7.8 billion in July 2017, up 16.2% and 8.3% 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 92.0 billion in 7M 2017 and RUB 16.0 billion in July 2017, down 27.6% and 33.6% year-on-year, respectively. Cost of risk including credit related commitments was 1.5% in 7M 2017 and 1.8% in July 2017 versus 2.1% in 7M 2016 and 2.7% in July 2016;

*     Staff costs and administrative expenses amounted to RUB 142.0 billion in 7M 2017 and RUB 19.4 billion in July 2017, up 6.4% and 13.5% year-on-year, respectively. Cost-to-income ratio was 43.8% in 7M 2017 and 40.8% in July 2017 versus 47.4% in 7M 2016 and 38.3% in July 2016.  

Statement of Financial Position

*     Total assets amounted to RUB 12,768.3 billion as of 31 July 2017, up 1.3% in July and 1.4% year-to-date. Gross loans and advances to customers grew 0.7% in July and 1.0% in 7M 2017. Gross loans to legal entities increased by 0.5% in July and contracted 1.1% in 7M 2017, while gross loans to individuals increased by 1.5% in July and by 8.3% in 7M 2017;

*     The NPL ratio was 6.4% of total gross loans as of 31 July 2017, up 10 bps month-on-month and remained flat compared to year-end 2016. The NPL coverage ratio was 104.6% at 31 July 2017 (30 June 2017: 105.2%, 31 December 2016: 104.6%);

*     Total customer deposits grew 1.9% in July and 18.0% year-to-date, reaching RUB 8,670.1 billion as of 31 July 2017. Deposits from legal entities grew 1.3% in July and 25.9% in 7M 2017, while deposits from individuals grew 2.9% in July and 6.6% in 7M 2017;

*     Debt securities issued amounted to RUB 331.6 billion at 31 July 2017, down 17.0% year-to-date;

*     The loans-to-deposits ratio was 103.1% as of 31 July 2017 (30 June 2017: 104.4%, 31 December 2016: 120.5%);

*     As of 31 July 2017, Tier 1 CAR was 13.1% (30 June 2017: 13.1%, 31 December 2016: 12.9%), and total CAR was 14.7% (30 June 2017: 14.6%, 31 December 2016: 14.6%).