Bank VTB : VTB Group announces IFRS results for July and first 7 months of 2016

25 August 2016

VTB Bank ('VTB' or 'the Bank'), the parent company of VTB Group ('the Group'), today publishes its unaudited consolidated IFRS results for July 2016 and the 7 months ended 31 July 2016.

• Net profit was RUB 2.4 billion in July and RUB 17.8 billion in 7M 2016 versus net profit of RUB 2.1 billion and net loss of RUB 15.0 billion in July and 7M 2015, respectively. Net operating income before provisions was RUB 44.7 billion in July and RUB 289.4 billion in 7M 2016, up 22.1% and 40.7% year-on-year, respectively;
• Net interest income was RUB 35.4 billion in July and RUB 242.4 billion in 7M 2016, up 30.6% and 76.7% year-on-year, respectively. The growth of net interest income was driven by continuing recovery of net interest margin (3.8% in July and 3.7% in 7M 2016, versus 3.0% in July and 2.2% in 7M 2015);
• Net fee and commission income was RUB 7.2 billion in July and RUB 43.8 billion in 7M 2016, up 20.0% and 13.5% 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 24.1 billion in July and RUB 127.0 billion in 7M 2016, up 60.7% and 33.8% year-on-year, respectively. The Group's cost of risk, including credit related commitments, was 2.7% in July and 2.1% in 7M 2016, versus 1.7% in July and 1.6% in 7M 2015;
• Staff costs and administrative expenses amounted to RUB 17.1 billion in July and RUB 133.4 billion for 7M 2016, down 6.0% and up 7.6% year-on-year, respectively. The Group's cost-to-income ratio was 38.3% in July and 47.4% for 7M 2016, versus 49.1% in July and 59.7% for 7M 2015.

• The Group's total assets amounted to RUB 12,566.6 billion at 31 July 2016, up 1.9% in July and down 7.9% year-to-date. Gross loans and advances to customers grew 1.6% in July and contracted 5.9% year-to-date. Gross loans to legal entities increased by 1.7% in July and contracted 8.6% year-to-date, while gross loans to individuals increased by 1.2% in July and by 5.4% year-to-date;
• The NPL ratio was 7.1% of total gross loans at 31 July 2016, unchanged month-on-month and up 80 bps year-to-date. The NPL coverage ratio at 31 July 2016 was 104.9% (30 June 2016: 103.9%, 31 December 2015: 105.8%);
• Total customer deposits grew 2.3% in July and 10.6% year-to-date, reaching RUB 8,040.3 billion at 31 July 2016. Deposits from legal entities grew 1.6% in July and 16.1% year-to-date, while deposits from individuals grew 3.5% in July and 2.3% year-to-date;
• Debt securities issued amounted to RUB 448.0 billion at 31 July 2016, down 28.1% year-to-date;
• The adjusted loan-to-deposit ratio was 102.3% as of 31 July 2016 (30 June 2016: 102.3%, 31 December 2015: 104.9%). The non-adjusted loan-to-deposit ratio was 109.5% as of 31 July 2016 (30 June 2016: 110.4%, 31 December 2015: 129.9%);
• As of 31 July 2016, Tier 1 CAR was 13.1% (30 June 2016: 13.3%, 31 December 2015: 12.4%), and total CAR was 15.0% (30 June 2016: 15.1%, 31 December 2015: 14.3%).

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