VTB Group announces IFRS results for 2 months of 2018

30 March 2018

VTB Bank, the parent company of VTB Group, today publishes its unaudited consolidated IFRS results for 2 months ended 28 February 2018.

Income Statement

*     Net profit was RUB 30.5 billion in 2M 2018, up 49.5% year-on-year (2M 2017: RUB 20.4 billion);

*     Net interest income was RUB 75.6 billion in 2M 2018, up 3.7% year-on-year (2M 2017: RUB 72.9 billion). Net interest margin was 4.1% in 2M 2018 (2M 2017: 4.1%);

*     Net fee and commission income was RUB 14.1 billion in 2M 2018, up 14.6% year-on-year (2M 2017: RUB 12.3 billion);

*     Total provision charges for impairment amounted to RUB 16.2 billion in 2M 2018, down 16.5% year-on-year (2M 2017: RUB 19.4 bn). Cost of risk ratio was 0.9% in 2M 2018, down 40 bps year-on-year (2M 2017: 1.3%);

*     Staff costs and administrative expenses amounted to RUB 42.8 billion in 2M 2018, up 14.1% year-on-year (2M 2017: RUB 37.5 billion). Cost-to-income ratio was 43.2% in 2M 2018, down 110 bps year-on-year (2M 2017: 44.3%).

Statement of Financial Position

*     As of 28 February 2018, total assets amounted to RUB 12,825.8 billion, down 1.0% year-to-date. Gross loans and advances to customers contracted by 0.6%. Gross loans to individuals increased by 1.0%, while gross loans to legal entities contracted by 1.2%;

*     As of 28 February 2018, NPL ratio was 5.3% of total gross loans, down 20 bps year-to-date (1 January 2018: 5.5%), NPL coverage ratio was 125.8% (1 January 2018: 120.5%);

*     As of 28 February 2018, loan-to-deposit ratio was 100.5% (1 January 2018: 99.8%). Total customer deposits amounted to RUB 9,010.4 billion, down 1.5% year-to-date. In 2M 2018, deposits from legal entities contracted by 2.3% and deposits from individuals by 0.2%;

*     As of 28 February 2018, Tier 1 CAR was 13.1% (1 January: 12.6%), total CAR was 14.8% (1 January 2018: 14.3%).

The data presented as at 01.01.2018 has been compiled based on IFRS 9 and IFRS 15, and reflect the best estimate of the effect of the transition to IFRS 9 and IFRS 15 available to the Group as of the date of publication. The Group expects to finalise the quantification of the full impact of adoption of IFRS 9 and IFRS 15 and make the relevant disclosures in the interim consolidated financial statements for the three months ending 31 March 2018.

The final effect of adoption of IFRS 9 and IFRS 15 might be different from the numbers presented herein. The Group will not change the numbers herein at any future date based on the final effects.