VTB net profit down 23%

VTB Bank published its Interim Condensed Consolidated Financial Statements for the three months and first half of the year ended 30 June 2019, with the Independent Auditor’s Report on Review of these Statements.

As Andrey Kostin, VTB President and Chairman of the Management Board, said: “We achieved robust business growth in the first half, and continued to expand our market shares in our priority Retail and SME segments. With lending volumes up, an improving interest rate environment and stable credit quality, as well as proactive efficiency measures to keep staff costs and administrative expenses in check, we are poised to post strong results in 2H 2019 and deliver on our FY 2019 net profit target of RUR 200 bln. While remaining focused on achieving our financial targets, we are also delivering on long-term strategic goals, transforming VTB into an efficient, technology-driven, client-centric bank that demonstrates intensive growth supported by initiatives in the digital economy.”

Bank’s net profit for 1H 2019 decreased by 23.0% year-on-year, as pressure on the net interest margin brought net interest income down by 10.3% year-on-year and other operating income declined by 68.0% year-on-year.

Net interest income amounted to RUR 213.6 bln ($3.3 bln) in 1H 2019, compared to RUR 238.1 bln ($4 bln) a year earlier. The net interest margin for the period amounted to 3.3%, compared to 4.1% for 1H 2018.

The costs to operating income before provisions ratio was 46.6% in 1H 2019, compared to 39.4% for 1H 2018, while the cost to assets ratio was 1.7% in 1H 2019 compared to 1.9% for 1H 2018.

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