17 May 2018 14:15

VTB doubles IFRS net profit to 55.5 bln rubles in Q1

MOSCOW. May 17 (Interfax) - VTB doubled IFRS net profit to 55.5 billion rubles in Q1 2018, up from 27.6 billion rubles in the same period last year, VTB reported.

The result substantially exceeded the expectations of analysts, who told Interfax in a consensus forecast that net profit would be 37.2 billion rubles.

Profit was driven by growth of net interest income and net fee and commission income, continued improvement of cost efficiency, and supported by stable asset quality.

The lender's net interest income totaled 116.3 billion rubles, up 2.9% year-on-year. Net commission income increased 11.2% to 21.9 billion rubles.

Net interest margin remained unchanged for the fifth quarter in a row, and stood at 4.1% in 1Q 2018.

Provision charges in 1Q 2018 amounted to 20.7 billion rubles, down 54.9% year-on-year, while the cost of risk was 0.9% in the quarter, compared to 1.9% in Q1 2017 and 1.6% in full 2017.

Staff costs and administrative expenses totaled 63.1 billion rubles in the quarter, up 2.4% year-on-year.

In Q1 2018, VTB's loan book grew 1.1% to 9.95 trillion rubles , with gross loans to individuals up 2.6% and gross loans to legal entities up 0.6%

The lender's nonperforming loan (NPL) ratio rose from 6.9% of gross customer loans as of January 1, 2018 to 7.1% as of the end of March. The allowance for loan impairments remained flat at 7.9% of the total loan book as of March 31, 2018, compared to January 1, 2018. The NPL coverage ratio was 105.8% as of March 31, 2018, compared with 107.9% as of January 1, 2018.

Deposits from legal entities were down 0.2% in the quarter to 5.51 trillion rubles, while individual deposits increased 5.5% to 3.82 trillion rubles