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The Group’s net profit plunged 23.6 percent to RUR 46 billion, which makes the 2013 target of 100 billion seem less feasible.
The 3Q 2013 saw only 18.4 billion worth of net income, significantly lower than the RUR 24 billion expected by analysts.
“While macroeconomic factors continue to challenge financial institutions in our home market, VTB Group has achieved further healthy balance sheet growth and strong year-on-year performance on core income lines. At the same time, the Group has continued to build loan provisions, which affected the bottom line”, said Andrey Kostin, VTB President and CEO, according to a press release available on the Group’s webpage.
“We are encouraged by the progress we have made in executing on our non-core asset disposal strategy and de-risking plan around our principal positions, which is expected to further improve the stability of the Group’s earnings going forward,” he added.
Here are some more highlights:
– VTB Group’s core income lines saw solid growth in 9M 2013, with net interest income and fee and commission income up 33.8% and 13.7% year-on-year, respectively.
– Net interest income growth during 9M 2013 was driven primarily by strong expansion of the Group's loan book (in particular a 26.5% year-to-date increase in retail gross loans as of 30 September 2013), as well as by stable interest margins.
– Net interest margin (NIM) was 4.4% in 9M 2013 vs. 4.0% during 9M 2012. In 3Q 2013, the Group’s NIM was 4.5%, up 10 bps vs. 4.4% in 2Q 2013.
FINANCIAL AND OPERATING HIGHLIGHTS
Income statement
|
RUB billion |
9M 2013 |
9M 2012 |
Change, % or pps |
|
Net interest income |
233.2 |
174.3 |
33.8% |
|
Net fee and commission income |
38.9 |
34.2 |
13.7% |
|
Operating income before provisions |
281.3 |
253.4 |
11.0% |
|
Provision charge for impairment of debt financial assets |
(72.8) |
(45.0) |
61.8% |
|
Staff costs and administrative expenses |
(149.2) |
(128.2) |
16.4% |
|
Net profit |
46.0 |
60.2 |
(23.6%) |
|
ROE, % |
7.4% |
12.6% |
(5.2 pps) |
VTB Group, a global provider of financial services, offer a complete range of financial services including retail, corporate and investment banking; broking and other stock-market services, insurance, asset management for pension and unit funds, leasing, and more. The services are available to clients in more than 20 countries across the CIS, Europe, Asia and Africa.
Part of the Group, VTB Bank is Russia’s second largest lender by assets. Classified as blue chips, VTB shares are among the most liquid on the Russian stock market. The Bank’s securities are traded on Russia’s joint MICEX-RTS Exchange and as global depository receipts on the London Stock Exchange under the VTBR ticker. The Russian government owns 60.9 percent of VTB Bank’s equity.
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Author: Mikhail Vesely
