VTB Group announces IFRS results for May and the five months of 2017

VTB Bank, the parent company of VTB Group, today publishes its unaudited consolidated IFRS results for May 2017 and the five months ended 31 May 2017.

Income Statement

- Net profit was RUB 14.8 billion in May 2017 (30 times increase year-on-year) and RUB 50.1 billion in 5M 2017 (28 times increase year-on-year) versus net profit of RUB 0.5 billion in May 2016 and RUB 1.8 billion in 5M 2016. Net operating income before provisions grew 11.5% year-on-year in May 2017 and 27.0% year-on-year in 5M 2017;

- Net interest income was RUB 38.7 billion in May 2017, up 10.6% year-on-year, and RUB 189.0 billion in 5M 2017, up 12.8% year-on-year. The growth of net interest income was driven by expansion of net interest margin (4.1% in May 2017 and 4.1% in 5M 2017 versus 3.8% in May 2016 and 3.5% in 5M 2016);

- Net fee and commission income was RUB 7.6 billion in May 2017 and RUB 33.9 billion in 5M 2017, up 20.6% and 13.0% year-on-year, respectively;

- Total provision charges for impairment of debt financial assets and for impairment of other assets, credit related commitments and legal claims amounted to RUB 11.1 billion in May 2017 and RUB 70.8 billion in 5M 2017, down 45.3% and 7.1% year-on-year, respectively. Cost of risk including credit related commitments was 1.2% in May 2017 and 1.7% in 5M 2017 versus 2.4% in May 2016 and 1.7% in 5M 2016;

- Staff costs and administrative expenses amounted to RUB 19.2 billion in May 2017, unchanged year-on-year, and RUB 101.4 billion in 5M 2017 up 1.3% year-on-year. Cost-to-income ratio was 40.3% in May 2017 and 42.7% in 5M 2017 versus 46.6% in May 2016 and 52.2% in 5M 2016.

Statement of Financial Position

- Total assets amounted to RUB 12,349.8 billion as of 31 May 2017, down 1.2% in May and down 1.9% year-to-date. Gross loans and advances to customers grew 0.4% in May and contracted 0.5% in 5M 2017. Gross loans to legal entities increased by 0.1% in May and contracted 2.3% in 5M 2017, while gross loans to individuals increased by 1.3% in May and by 5.2% in 5M 2017;

- The NPL ratio was 6.5% of total gross loans as of 31 May 2017, down 10 bps month-on-month and up 10 bps year-to-date. The NPL coverage ratio was 106.6% (30 April 2017: 107.2%, 31 December 2016: 104.6%);

- Total customer deposits grew 2.5% in May and 15.3% year-to-date, reaching RUB 8,470.6 billion as of 31 May 2017. Deposits from legal entities grew 3.5% in May and 26.5% in 5M 2017, while deposits from individuals grew 0.5% in May and contracted 0.9% in 5M 2017;

- Debt securities issued amounted to RUB 327.3 billion at 31 May 2017, down 18.1% year-to-date;

- The adjusted loan-to-deposit ratio was 103.0% as of 31 May 2017 (30 April 2017: 101.1%, 31 December 2016: 105.4%);

- As of 31 May 2017, Tier 1 CAR was 13.1% (30 April 2017: 12.9%, 31 December 2016: 12.9%), and total CAR was 14.5% (30 April 2017: 14.6%, 31 December 2016: 14.6%).