For 10 months of 2023, VTB’s net profit under IFRS exceeded RUB 400 billion.

VTB Group net profit (MOEX: VTBR) according to IFRS for ten months of 2023 amounted to 402.8 billion rubles, for October – 26.8 billion rubles. The first deputy chairman of the board of VTB, Dmitry Pyanov, told reporters about this. This financial result corresponds to a return on capital of 25.3% for ten months and 14.7% in October. Thus, the top manager emphasized, the group has already compensated for two-thirds of the 2022 loss (613 billion rubles), and in less than two years, according to his estimates, it will cover it completely.

“For us, this is a very good result in terms of recovery time.— “Kommersant”) of our capital and restoring our profitability,” he noted. In 2023, the group’s net profit will reach 430 billion rubles, the head of the bank, Andrei Kostin, estimated in September.

Net interest income since the beginning of the year amounted to 634.9 billion rubles, net commission income – 178.7 billion rubles. Since the beginning of the year, retail client funds have grown, taking into account currency revaluation, by 14.8%, to RUB 8.7 trillion; corporate client funds – by 11.7%, to RUB 12.8 trillion. The net interest margin for the ten months was 3.1%.

In October, the cost of risk was 1.6%, when RUB 22.3 billion was created during the month. contributions to reserves. For comparison: in the third quarter, VTB contributed 35.9 billion rubles to reserves. As Dmitry Pyanov explained, within the October volume of reserves, there were “abnormally high” risks for loans to legal entities, for which the bank allocated 12.9 billion rubles.

“For a number of borrowers – not just one – in a large investment business, we were forced to provide for a scenario where a long period of an increased key rate of 15% could affect the borrower’s ability to service their loans in the future according to the original schedule,” explained the top manager. According to him, the increased reserves included investment projects, developers within the framework of project financing, as well as clients from the corporate real estate segment not secured by escrow. According to him, the increase in deductions is a one-time negative effect of October. For retail clients the situation is stable, the cost of risk was 1.4%.

Against the backdrop of high profits of Russian banks, the Central Bank decided not to extend a number of relaxations introduced for them after the outbreak of hostilities in Ukraine and massive sanctions pressure on the financial system of the Russian Federation. But some measures will remain in place for another year.

Read more about this in the material “Banks have lost some of their benefits”.

Olga Sherunkova