DJ VTB Group announces IFRS financial results for 2M 2021
JSC VTB Bank (VTBR)
VTB Group announces IFRS financial results for 2M 2021
31-March-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.
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VTB Group announces IFRS financial results for 2M 2021
VTB Bank, the parent company of VTB Group (the "Group"), today publishes its unaudited consolidated financial results
in accordance with IFRS for the first two months of 2021.
Dmitry Pianov, member of the Management Board and Chief Financial Officer of VTB Bank, said:
"Our performance in the first two months of 2021 confirms that VTB Group is solidly on track to meet its profit
targets, having left the main negative impacts of last year's COVID-19 pandemic behind. VTB's net profit in
January-February amounted to RUB 58.4 billion, which corresponds to a return on equity of 20.4%, an increase of 51%
year-on-year - prior to the pandemic.
"These results are fully in line with our forecasts for operating income and net income for the current year in the
context of the economic recovery and the ongoing technological transformation of our business, as well as continued
growth of our active client base."
- As of 28 February 2021, gross loans and advances to customers had increased by 0.4% and amounted to RUB 13.2
trillion (currency revaluation effect did not influence this performance).
- Loans to individuals increased by 2.9% since the beginning of 2021, amounting to RUB 4.0 trillion. The total
portfolio of loans to legal entities decreased by 0.7% (adjusted for currency revaluation, loans to legal entities
decreased by 0.6%). At the same time, the loan portfolio in the SME segment has increased by 2.4% since the
beginning of the year.
- Since the beginning of 2021, customer funding has increased by 6.8% to RUB 13.7 trillion (excluding currency
revaluation, the increase was 6.6%).
- Customer funding from legal entities has increased by 12.2% since the beginning of the year on the back of strong
growth in current account balances (adjusted for currency revaluation, the increase was 12.0%). Customer funding
from individuals has increased by 0.1% since the beginning of the year as a result of a significant increase in
savings account balances along with a decrease in funds invested in term deposits (adjusted for currency
revaluation, individual customer funding decreased by 0.1%).
- The share of customer funding in the Group's total liabilities increased in the first two months of 2021 to 82.0%
(up from 78.1% as of 31 December 2020).
- As a result of faster growth in customer funding, the Group's LDR ratio decreased to 89.8% as of 28 February 2021
(down from 95.6% as of 31 December 2020).
The Group greatly improved profitability amid strong growth in key sources of revenue and stability in terms of the
quality of the loan portfolio.
- VTB Group's net profit in the first two months of 2021 amounted to RUB 58.4 billion, an increase of 50.5%
year-on-year.
- Net interest income amounted to RUB 94.6 billion, up 23.7% year-on-year. Net interest margin was 3.7%, an increase
of 10 bps year-on-year.
- Net fee and commission income amounted to RUB 24.0 billion, an increase of 36.4% year-on-year. The strong growth in
net fee and commission income was driven by the Group's expanding transactional business and steadily increasing
commissions from the sale of insurance products and brokerage commissions.
- The Group's cost of risk was 0.4% for the first two months of the year, down 60 bps year-on-year. At the same time,
provision charge amounted to RUB 8.4 billion, down 53.3% year-on-year.
- The Group's NPL ratio amounted to 5.6% as of 28 February 2021 (down 10 bps from the beginning of the year). As of
28 February 2021, the NPL coverage ratio remained high at 122.7% (compared with 120.6% as of 31 December 2020).
- Staff and administrative expenses amounted to RUB 41.8 billion for the first two months of 2021, down 4.6%
year-on-year.
- Rising profitability supported a considerable improvement in operating efficiency: the costs to operating income
before provisions ratio decreased 4.8 p.p. year-on-year and amounted to 33.8%.
The VTB Capital Investments platform for investment products continues to deliver strong growth in client assets and
fee and commission income
- For the first two months of 2021, VTB Capital Investments' total client assets increased by 5.5%, to RUB 3.6
trillion. Assets from individual customers have grown by 8.9% since the beginning of the year to RUB 2.0 trillion.
- In the first two months of this year, the client base of VTB Capital Investments grew by more than 160 thousand and
about 200 thousand new accounts were opened.
- VTB Capital Investments fee and commission income for the first two months of 2021 increased 2.5x year-on-year and
reached RUB 4.5 billion.
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Attachment
File: VTB Group 2M2021 IFRS financial Highlights
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ISIN: US46630Q2021
Category Code: MSCM
TIDM: VTBR
LEI Code: LEI: 253400V1H6ART1UQ0N98
Sequence No.: 96655
EQS News ID: 1179990
End of Announcement EQS News Service
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(END) Dow Jones Newswires
March 31, 2021 03:00 ET (07:00 GMT)
