VTB’s net profit under IFRS for nine months amounted to 375.9 billion rubles

VTB net profit (MOEX: VTBR) at the end of the third quarter of 2023 decreased by more than 1.5 times compared to the second quarter and amounted to 86.1 billion rubles. In total, based on the results of nine months of this year, VTB’s net profit amounted to 375.9 billion rubles, as follows from the group’s financial statements under IFRS (.pdf).

In January-September, VTB assets increased by 15.7% (by 5.7% in the third quarter) and reached 28.2 trillion rubles. The volume of the total loan portfolio before provisions amounted to RUB 20.1 trillion. Expenses for creating reserves for credit losses and other reserves reached RUB 130 billion in January-September, of which RUB 35.9 billion in the third quarter.

The volume of loans to individuals over the nine months increased by 19.4%, to 6.7 trillion rubles, to legal entities – by 13.9% (taking into account adjustments for the effect of currency revaluation, the growth was 7.8%), to 13.4 trillion rubles . Funds from legal entity clients as of October 1 amounted to 12.2 trillion rubles, which is 9.5% higher than the figures at the beginning of this year. Individuals’ funds in banks in January-September increased by 16.8% and reached 8.7 trillion rubles.

“At the end of the third quarter and nine months of 2023, VTB Group demonstrated strong growth rates against the backdrop of record profitability, driven by both strong underlying revenue dynamics and high cost efficiency against the backdrop of stable asset quality. Our business remains highly resilient, which allows us to improve our forecast for net profit for the full year,” commented Dmitry Pyanov, First Deputy Chairman of the Board of VTB, commenting on the results.

In the first quarter of 2023, VTB’s net profit was a record – 147.2 billion rubles. Due to one-time income from the purchase of banks, in the second quarter profit decreased to RUB 142.6 billion predicted by the bank.

The head of VTB, Andrei Kostin, predicted in early September that the group would receive a record net profit of 420 billion rubles by the end of 2023. According to Mr. Kostin, VTB will pay dividends based on the results of the year, “most likely will not” At the end of 2022, the group’s loss under IFRS amounted to RUB 613 billion. because of sanctions.