VTB Group announces IFRS results for November and 11 months of 2018
VTB Bank, the parent company of VTB Group, today publishes its unaudited consolidated IFRS results for November 2018 and the 11 months ended 30 November 2018.
Income Statement
Net profit was RUB 163.9 billion in 11M 2018 (65.9% increase year-on-year) and RUB 12.0 billion in November 2018 (51.9% increase year-on-year) versus net profit of RUB 98.8 billion in 11M 2017 and RUB 7.9 billion in November 2017. Net operating income before provisions grew 17.5% year-on-year in 11M 2018 and 25.4% year-on-year in November 2018 to RUB 592.9 and RUB 58.3 billion respectively;
Net interest income was RUB 432.3 billion in 11M 2018, up 2.8% year-on-year, and RUB 35.8 billion in November 2018, down 5.3% year-on-year. Net interest margin was 3.9% in 11M 2018 and 3.4% in November 2018 down 20 bp and 60 bp versus 11M 2017 and November 2017, respectively;
Net fee and commission income was RUB 84.8 billion in 11M 2018 and RUB 8.9 billion in November 2018, up 2.7% and 17.1% year-on-year, respectively;
Total provision charge for credit losses and other provisions amounted to RUB 142.3 billion in 11M 2018 and RUB 13.7 billion in November 2018, down 1.4% and 6.8% year-on-year, respectively. Cost of risk was 1.6% in 11M 2018 and 1.5% in November 2018 versus 1.6% in 11M 2017 and 1.0% in November 2017;
Staff costs and administrative expenses amounted to RUB 229.3 billion in 11M 2018 and RUB 19.4 billion in November 2018, up 0.4% and down 6.7% year-on-year, respectively. Cost-to-income ratio was 38.7% in 11M 2018 and 33.4% in November 2018 versus 45.2% in 11M 2017 and 44.6% in November 2017.
Statement of Financial Position
Total assets amounted to RUB 14,610.2 billion as of 30 November 2018, down 0.3% in November and up 12.8% year-to-date (01 January 2018: RUB 12,947.4 billion).
Gross loans and advances to customers grew 1.0% in November and 15.4% year-to-date to 11,353.2 billion as of 30 November 2018 (01 January 2018: RUB 9,841.1 billion). Adjusted for the effect of change in consolidation method of Post Bank gross loans to customers grew 17.9% year-to-date. Gross loans to legal entities increased by 0.3% in November and by 15.5% year-to-date, while gross loans to individuals increased by 3.0% in November and by 14.9% year-to-date. Gross loans to individuals adjusted for the effect of change in consolidation method of Post Bank grew 25.4% year-to-date;
NPL ratio was 5.8% of total gross loans as of 30 November 2018, down 70 bp month-on-month and 110 bp year-to-date. As of 30 November 2018, NPL coverage ratio was 110.2% (01 January 2018: 107.9%);
Total customer deposits increased by 2.7% in November and by 11.5% year-to-date, reaching RUB 10,192.6 billion as of 30 November 2018. Adjusted for the effect of change in consolidation method of Post Bank total customer deposits increased by 13.6%. Deposits from legal entities increased 3.4% in November and 9.7% year-to-date, while deposits from individuals grew 1.7% in November and 14.1% year-to-date. Adjusted for the effect of change in consolidation method of Post Bank deposits from individuals increased by 19.7%.
Loan-to-deposit ratio was 104.3% as of 30 November 2018 (01 January 2018: 99.6%); As of 30 November 2018, Tier 1 CAR was 12.1% (01 January 2018: 12.6%), and total CAR was 13.5% (01 January 2018: 14.4%).
In September 2018, VTB Group and the Russian Post signed an amended shareholder agreement with respect to PJSC Post Bank, which turned the latter into a joint venture. Starting from 30 September 2018, VTB Group accounted for its shareholding in PJSC Post Bank as an investment into a joint venture accounted under the equity method.
