Bank VTB : VTB Group announces IFRS results for August and 8 months of 2017

VTB Group announces IFRS results for Augustand 8 months of2017

VTB Bank, the parent company of VTB Group, today publishes its unaudited consolidated IFRS resultsforAugust2017 and the 8months ended 31 August2017.

Income Statement

*     Net profit was RUB 68.7 billion (3 times increase year-on-year) in 8M 2017and RUB 1.0billion in August2017versus net profit of RUB 26.4 billion in8M 2016 and RUB 8.5billion in August2016;

*     Net interest income was RUB307.1 billion in 8M 2017, up 11.3% year-on-year, and RUB 40.2billion in August2017, up 19.6% year-on-year. The growth of net interest income was driven byexpansion of net interest margin (4.1% in 8M 2017and 4.2% inAugust2017 versus 3.7% in 8M 2016 and 3.6% in August2016);

*     Net fee and commission income was RUB 60.0 billion in 8M 2017 and RUB 9.1billion in August2017, up 20.5% and 54.2% year-on-year, respectively;

*     Total provision charges for impairment of debt financial assets and for impairment of other assets, credit related commitments and legal claimsamounted to RUB 110.6 billion in 8M 2017 and RUB 18.6billion in August2017, down21.9% and up26.5% year-on-year, respectively. Cost of risk including credit related commitments was 1.6% in 8M 2017 and 2.1% in August2017 versus 2.0% in 8M 2016 and 1.7% inAugust2016;

*     Staff costs and administrative expenses amounted to RUB 164.4billion in8M 2017 and RUB 22.4 billion in August 2017, up 7.7% and 15.5%year-on-year, respectively. Cost-to-income ratio was 44.9% in 8M 2017 and 52.8% in August2017 versus 47.2% in 8M 2016 and 46.3% in August2016.

Statement of Financial Position

*     Total assets amounted to RUB 12,752.1billion as of 31August2017,up 1.3% year-to-date. Gross loans and advances to customers grew1.0% in 8M 2017. Gross loans to legal entities contracted by 1.8% in 8M 2017, while gross loans to individuals increased by 10.4% in 8M 2017;

*     The NPL ratio was 6.5% of total gross loans as of31 August2017, up 10 bps year-to-date. The NPL coverage ratio was 103.8% at 31 August 2017 (31 December 2016: 104.6%);

*     Total customer deposits grew 18.2% year-to-date, reaching RUB 8,682.9billion as of31 August2017. Deposits from legal entities grew 24.2% in 8M 2017, while deposits from individuals were up9.6% in 8M 2017;

*     Debt securities issued amounted to RUB 339.9 billion at 31August2017, down 14.9% year-to-date;

*     The loans-to-deposits ratio was 103.0% as of 31 August2017 (31 December 2016: 120.5%);

*     As of 31August 2017,Tier 1 CAR was 13.0%(31 December 2016: 12.9%), and total CAR was 14.6% (31 December 2016: 14.6%).