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VTB Group announces IFRS results for 1Q 2021

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JSC VTB Bank (VTBR)
30-Apr-2021 / 08:59 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

VTB Group announces IFRS results for 1Q 2021

VTB Bank ("VTB" or "the Bank"), the parent company of VTB Group ("the Group"), today publishes its Interim Condensed Consolidated Financial Statements for the three months ended 31 March 2021, along with the independent auditor's report on these statements.

Dmitry Pianov, a member of the Management Board and Chief Financial Officer of VTB Bank, said:

"We are pleased to report excellent first-quarter results that reflect both our strong operating performance - underpinned by the effects of the business transformation achieved to date - and the post-pandemic economic recovery. VTB's net profit in the first quarter amounted to RUB 85.1 billion (ROE of 19.2%), having more than doubled year-on-year. This result was driven by strong organic growth in core banking revenues, with net interest income increasing 21.6% year-on-year, while net fee and commission income rose by 19.1%.

"The operating environment was quite favourable for us. A high level of business activity, and positive economic dynamics led to a decrease in provision costs. The cost of risk in the first quarter was 0.7%, while provision charges halved compared with the same period last year.

"Controlling costs remains a key priority for VTB as we increase investments in our technological transformation. In the first quarter, staff costs and administrative expenses increased by just 1.2% year-on-year, well below inflation, while rapid growth in operating income resulted in a considerable improvement in operating efficiency. The costs to net operating income ratio was 33.5%, down 5.8 p.p. year-on-year.

"VTB Group continued to expand its business, increasing the share of the retail banking business in assets. The total loan book remained practically unchanged during the quarter, while loans to individuals increased by 4.4%. Assets managed by VTB Capital Investments grew by 12% to RUB 3.8 trillion, of which assets under management from individuals increased by 16% to RUB 2.1 trillion.

"These results are fully in line with our forecasts for the current year and provide a solid foundation for the continuous delivery of a strong return on equity."

Financial highlights

(RUB billion)

31 March 2021

31 December 2020

Change

Assets

18,588.4

18,142.2

2.5%

Loans and advances to customers, including pledged under repurchase agreements (gross), as reported

13,145.6

13,162.6

-0.1%

Loans to legal entities

9,118.8

9,305.4

-2.0%

Loans to individuals

4,026.8

3,857.2

4.4%

Customer deposits

13,690.8

12,831.0

6.7%

Deposits from legal entities

7,969.0

7,095.1

12.3%

Deposits from individuals

5,721.8

5,735.9

-0.2%

NPL ratio

5.5%

5.7%

-20 bps

LDR ratio

89.4%

95.6%

-620 bps

Total loan book remains stable amid an increase in the share of retail lending

Income statement 

 (RUB billion)

1Q 2021

1Q 2020

Change

Net interest income

145.6

119.7

21.6%

Net fee and commission income

38.6

32.4

19.1%

Operating income before provisions

194.0

163.2

18.9%

Provision charge(1)

-22.6

-45.1

-49.9%

Staff costs and administrative expenses

-64.9

-64.1

1.2%

Net profit

85.1

39.8

113.8%

(1) Includes provision charge for credit losses on debt financial assets, provision charge for credit losses on credit-related commitments and other financial assets, and provision charge for legal claims and other commitments.

Substantial improvement in profitability amid a strong increase in key banking revenues and stabilisation of the quality of the loan book

Corporate-Investment Business

Investment banking leadership

Rapid growth of the investment platform VTB Capital Investments

Development of the product portfolio

Medium and Small Business

Digitalisation of customer service, development of the product portfolio and expansion of transactional operations in 1Q 2021

Customer support and the expansion of market coverage in 1Q 2021

Retail Business

Progress achieved in 1Q 2021 to digitalise customer service, develop the product portfolio, reduce the cost of funding and improve the customer experience

Business digitalisation and the development of a digital ecosystem

Key business digitalisation initiatives in 1Q 2021

Attachment

File: VTB 1Q2021 IFRS Financial Results

ISIN:

US46630Q2021

Category Code:

MSCM

TIDM:

VTBR

LEI Code:

LEI: 253400V1H6ART1UQ0N98

Sequence No.:

102186

EQS News ID:

1190937


 

End of Announcement

EQS News Service

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