VTB Group registered net profit of RUB 72.6 billion (approx. $2.4b) in the first nine months of 2011, an increase of 87.1% from a year earlier.

VTB Group delivered a net profit of RUB 72.6 billion for 9M 2011, up 87.1% year-on-year, and quarterly net profit of RUB 19.0 billion for 3Q 2011, a 30.9% quarter-on-quarter decline. The Group’s 9M 2011 organic return on equity (ROE) was 16.2% and earnings per share reached RUB 0.0071, versus an ROE of 9.9% and earnings per share of RUB 0.0040 for 9M 2010.

Financial highlights:

• Net profit of RUB 72.6 billion in 9M 2011, up 87.1% year-on-year, with annualised ROE of 16.2%, versus 9.9% in 9M 2010;
• Net interest income including net recovery of losses on initial recognition of financial instruments and loans restructuring for 9M 2011 amounted to RUB 159.2 billion, up 23.0% year-on-year;
• Net fee and commission income of RUB 27.1 billion for 9M 2011, up 52.2% year-on-year;
• Organic net interest margin stable in 9M 2011 and 3Q 2011 at 4.8% and 4.9%, respectively;
• Operating income before provisions reached RUB 209.9 billion in 9M 2011, up 30.6% year-on-year;
• Strong balance sheet growth supported by Bank of Moscow consolidation from 3Q 2011:
• Total gross loans amounted to RUB 4,429.0 billion, up 35.2% in 3Q 2011; corporate loans increased by 37.4%, retail loans were up 25.4% in 3Q 2011;
• Customer deposits reached RUB 3,550.9 billion, up 34.8% in 3Q 2011;
• Cost of risk was 1.0% of average gross loans (excluding the Bank of Moscow loan book) in 9M 2011, versus 2.0% in 9M 2010;
• Staff and administrative costs for 9M 2011 amounted to RUB 90.8 billion, up 33.5% year-on-year; while in 3Q 2011 staff costs were RUB 23.5 billion, down 31.5% quarter-on-quarter;
• Total CAR and Tier 1 ratios were 13.2% and 9.2%, respectively.

Andrey Kostin, VTB President and Chairman of the Management Board, said: "Despite a challenging global macroeconomic environment VTB has continued to demonstrate strong performance, improving efficiency and achieving healthy lending growth. From September 30th we now consolidate Bank of Moscow, which we believe is a good long-term strategic fit for VTB, helping to strengthen our retail and corporate banking franchise in Russia’s most lucrative region. We are well-prepared for any stress scenario, and we are well-positioned for strong growth when the market environment stabilises."

Source: VTB Bank
Date: 08.12.2011