VTB Group announces IFRS results for May and first 5 months of 2018

VTB Group announces IFRS results for May and first 5 months of 2018

27.06.2018

VTB Bank, the parent company of VTB Group, today publishes its unaudited consolidated IFRS results for May 2018 and the 5 months ended 31 May 2018.

Income Statement

• Net profit was RUB 87.1 billion (73,9% increase year-on-year) in 5M 2018 and RUB 19.5 billion (31.8% increase year-on-year) in May 2018 versus net profit of RUB 50.1 billion in 5M 2017 and RUB 14.8 billion in May 2017. Net operating income before provisions grew 12.6% year-on-year in 5M 2018 and 15.1% year-on-year in May 2018;
• Net interest income was RUB 198.6 billion in 5M 2018, up 5.1% year-on-year, and RUB 42.1 billion in May 2018, up 8.8% year-on-year. Net interest margin was 4.1% in 5M 2018 and 4.2% in May 2018 unchanged versus 5M 2018 and up 10 bps versus May 2017;
• Net fee and commission income was RUB 38.0 billion in 5M 2018 and RUB 7.6 billion in May 2018, up 12.1% and flat year-on-year, respectively;
• Total provision charges for credit losses on debt financial assets and for credit losses on other financial assets, credit related commitments and legal claims amounted to RUB 56.9 billion in 5M 2018 and RUB 10.0 billion in May 2018, down 19.6% and 9.9% year-on-year, respectively. Cost of risk was 1.6% in 5M 2018 and 1.8% in May 2018 versus 1.7% in 5M 2017 and 1.0% in May 2017;
• Staff costs and administrative expenses amounted to RUB 103.3 billion in 5M 2018 and RUB 20.3 billion in May 2018, up 1.9% and 5.7% year-on-year, respectively. Cost-to-income ratio was 38.5% in 5M 2018 and 37.1% in May 2018 versus 42.7% in 5M 2017 and 40.3% in May 2017.

Statement of Financial Position

• Total assets amounted to RUB 13,509.1 billion as of 31 May 2018, down 0.9% in May and up 4.3% year-to-date (30 April 2018: RUB 13,627.0 billion; 01 January 2018: RUB 12,947.4 billion). Gross loans and advances to customers grew 0.7% in May and 2.5% year-to-date (31 May 2018: RUB 10,084.4 billion; 30 April 2018: RUB 10,013.1 billion; 01 January 2018: RUB 9,841.1 billion). Gross loans to legal entities increased by 0.3% in May and by 1.0% year-to-date, while gross loans to individuals increased by 2.0% in May and by 6.8% year-to-date;
• NPL ratio was 7.3% of total gross loans as of 31 May 2018, down 30 bps month-on-month and up 40 bps year-to-date. As of 31 May 2018 NPL coverage ratio was 108.0% (30 April 2018: 104.3%;  01 January 2018: 107.9%);
• Total customer deposits grew 2.0% in May and 6.0% year-to-date, reaching RUB 9,692.0 billion as of 31 May 2018. Deposits from legal entities grew 3.5% in May and 3.7% year-to-date, while deposits from individuals grew 0.1% in May and 9.5% year-to-date;
• Loan-to-deposit ratio was 95.9% as of 31 May 2018 (30 April 2018: 97.1%;  01 January 2018: 99.6%);
• As of 31 May 2018, Tier 1 CAR was 12.2% (30 April 2018: 12.7%; 01 January 2018: 12.6%), and total CAR was 13.9% (30 April 2018: 14.4%; 01 January 2018: 14.4%). On 23 May 2018 VTB's Annual general meeting of shareholders approved the dividend payment for 2017 in the amount of RUB 73.5 billion.