VTB Group announces IFRS results for 2 months of 2017

28 March 2017

VTB Bank, the parent company of VTB Group ('the Group'), today publishes its unaudited consolidated IFRS results for the 2 months ended 28 February 2017.

Income Statement

- Net profit in 2M 2017 increased 10 times to RUB 20.4 billion compared to net profit of 2.1 billion for 2M 2016;

- In 2M 2017, net interest income was RUB 72.9 billion, up 14.4% year-on-year (2M 2016: RUB 63.7 billion) due to increase of net interest margin to 4.1% in 2M 2017 from 3.2% in 2M 2016;

- In 2M 2017, net fee and commission income grew 6.0% year-on-year to RUB 12.3 billion (2M 2016: RUB 11.6 billion);

- Total provision charges for impairment of debt financial assets and for impairment of other assets, credit related commitments and legal claims amounted to RUB 19.4 billion in 2M 2017, down 36.8% year-on-year (2M 2016: RUB 30.7 billion);

- Staff costs and administrative expenses amounted to RUB 37.5 billion in 2M 2017, down 4.1% year-on-year. Cost-to-income ratio was 44.3% in 2M 2017 versus 51.9% in 2M 2016.

Statement of Financial Position

- Total assets amounted to RUB 12,543.3 billion as of 28 February 2017, down 0.3% year-to-date. Gross loans and advances to customers contracted 1.3% in 2M 2017. Gross loans to individuals grew 0.9%, while gross loans to legal entities contracted 2.0%;

- The NPL ratio was 6.6% of total gross loans as of 28 February 2017, up 20 bps year-to-date. The NPL coverage ratio was 104.4% (31 December 2016: 104.6%);

- Total customer deposits grew 12.4% in 2M 2017, reaching RUB 8,257.0 billion as of 28 February 2017. For 2M 2017 deposits from legal entities grew 22.5%, while deposits from individuals contracted 2.2%;

- The adjusted loan-to-deposit ratio was 102.8% as of 28 February 2017 (31 December 2016: 105.4%);

- The Group maintained strong capital base. As of 28 February 2017, Tier 1 CAR was 13.3% (31 December 2016: 12.9%), and total CAR was 15.0% (31 December 2016: 14.6%).