VTB Group announces IFRS results for August and 8 months of 2018

VTB Bank, the parent company of VTB Group, today publishes its unaudited consolidated IFRS results for August 2018 and the 8 months ended 31 August 2018.

Income Statement

• Net profit was RUB 127.1 billion in 8M 2018 (85.0% increase year-on-year) and RUB 11.9 billion in August 2018 (12x increase year-on-year) versus net profit of RUB 68.7 billion in 8M 2017 and RUB 1.0 billion in August 2017. Net operating income before provisions grew 15.7% year-on-year in 8M 2018 and 24.3% year-on-year in August 2018 to RUB 423.8 and RUB 52.6 billion respectively;
• Net interest income was RUB 320.7 billion in 8M 2018, up 4.4% year-on-year, and RUB 41.5 billion in August 2018, up 3.2% year-on-year. Net interest margin was 4.1% in 8M 2018 and 4.0% in August 2018 unchanged versus 8M 2017 and down 20 bps versus August 2017;
• Net fee and commission income was RUB 62.4 billion in 8M 2018 and RUB 8.1 billion in August 2018, up 4.0% and down 11.0% year-on-year, respectively;
• Total provision charge for credit losses and other provisions amounted to RUB 98.0 billion in 8M 2018 and RUB 17.2 billion in August 2018, down 11.4% and 7.5% year-on-year, respectively. Cost of risk was 1.5% in 8M 2018 and 1.7% in August 2018 versus 1.7% in 8M 2017 and 2.1% in August 2017;
• Staff costs and administrative expenses amounted to RUB 165.5 billion in 8M 2018 and RUB 19.4 billion in August 2018, up 0.7% and down 13.4% year-on-year, respectively. Cost-to-income ratio was 39.0% in 8M 2018 and 36.9% in August 2018 versus 44.9% in 8M 2017 and 52.8% in August 2017.

Statement of Financial Position

• Total assets amounted to RUB 14,052.0 billion as of 31 August 2018, up 4.5% in August and up 8.5% year-to-date (31 July 2018: RUB 13,448.6 billion; 30 June 2018: RUB 13,683.3 billion; 01 January 2018: RUB 12,947.4 billion). Gross loans and advances to customers grew 4.1% in August and 8.9% year-to-date to 10,716.2 billion as of 31 August 2018 (31 July 2018: RUB 10,298.8 billion; 30 June 2018: RUB 10,206.2 billion; 01 January 2018: RUB 9,841.1 billion). Gross loans to legal entities increased by 4.6% in August and by 7.4% year-to-date, while gross loans to individuals increased by 2.7% in August and by 13.3% year-to-date;
• NPL ratio was 7.0% of total gross loans as of 31 August 2018, down 20 bps month-on-month and up 10 bps year-to-date. As of 31 August 2018, NPL coverage ratio was 110.1% (31 July 2018: 107.0%; 30 June 2018: 102.3%; 01 January 2018: 107.9%);
• Total customer deposits increased by 3.9% in August and by 9.0% year-to-date, reaching RUB 9,968.7 billion as of 31 August 2018. Deposits from legal entities increased 4.5% in August and 3.9% year-to-date, while deposits from individuals grew 3.1% in August and 16.8% year-to-date;
• Loan-to-deposit ratio was 99.2% as of 31 August 2018 (31 July 2018: 99.1%; 30 June 2018: 95.7%; 01 January 2018: 99.6%);
• As of 31 August 2018, Tier 1 CAR was 12.1% (31 July 2018: 12.5%; 30 June 2018: 12.2%; 01 January 2018: 12.6%), and total CAR was 13.9% (31 July 2018: 14.2%; 30 June 2018: 13.9%; 01 January 2018: 14.4%).