Bank VTB PAO : VTB Group announces IFRS results for April and first 4 months of 2016

31 May 2016

VTB Bank ('VTB' or 'the Bank'), the parent company of VTB Group ('the Group'), today publishes its unaudited consolidated IFRS results for April 2016 and the 4 months ended 30 April 2016.

• Net profit in April 2016 was RUB 0.7 billion, net profit in 4M 2016 was RUB 1.3 billion versus net loss of RUB 19.2 billion in 4M 2015. The recovery of profitability was driven by 25.6% year-on-year growth of net operating income before provisions;
• Net interest income was RUB 34.2 billion in April 2016, up 80.0% year-on-year, and RUB 132.5 billion in 4M 2016, up 109.0% year-on-year. The growth of net interest income was supported by further recovery of net interest margin (3.8% in April and 3.5% in 4M 2016, versus 2.2% in April and 1.8% in 4M 2015);
• Net fee and commission income was RUB 6.3 billion in April and RUB 23.7 billion in 4M 2016, up 12.5% and 12.9% year-on-year, respectively;
• Total provision charges for impairment of debt financial assets and for impairment of other assets, credit related commitments and legal claims amounted to RUB 15.3 billion in April and RUB 55.9 billion in 4M 2016, up 4.1% and down 12.1% year-on-year, respectively. The Group's cost of risk was 1.2% in April and 1.4% in 4M 2016, versus 1.1% in April and 1.9% in 4M 2015;
• Staff costs and administrative expenses amounted to RUB 20.3 billion in April and RUB 80.9 billion for 4M 2016, up 16.7% and 12.4% year-on-year, respectively. The Group's cost-to-income ratio was 51.6% in April and 53.8% for 4M 2016, versus 54.5% in April and 61.3% for 4M 2015.

• The Group's total assets amounted to RUB 12,297.7 billion at 30 April 2016, down 3.9% in April and 9.9% year-to-date. Gross loans and advances to customers contracted 1.7% in April and 10.0% in 4M 2016. Gross loans to legal entities contracted 2.4% in April and 12.9% in 4M 2016, while gross loans to individuals increased 0.8% in April and 2.2% in 4M 2016;
• The NPL ratio was 7.1% of total gross loans at 30 April 2016, down 10 bps month-on-month, and up 80 bps year-to-date. The NPL coverage ratio at 30 April 2016 was 103.0% (31 March 2016: 102.3%);
• Total customer deposits grew 5.3% in April and 7.7% in 4M 2016, reaching RUB 7,823.6 billion at 30 April 2016. Deposits from legal entities grew 9.1% in April and 14.7% in 4M 2016, while deposits from individuals contracted 1.0% in April and 3.0% in 4M 2016;
• Debt securities issued amounted to RUB 501.5 billion at 30 April 2016, down 19.6% year-to-date;
• The adjusted loan-to-deposit ratio was a comfortable 101.0% as of 30 April 2016 (31 March 2016: 100.1%, 31 December 2015: 104.9%);
• As of 30 April 2016 Tier 1 CAR was 13.9%, (31 March 2016: 13.7%, 31 December 2015: 12.4%), and Total CAR was 15.8% (31 March 2016: 15.6%, 31 December 2015: 14.3%).

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