VTB posts IFRS net profit of 51.6 bln rubles in 2016, slightly higher than expected
MOSCOW. March 1 (Interfax) - VTB saw IFRS net profit rise to 51.6 billion rubles in 2016, a 30.4-fold increase over the net profit of 1.7 billion rubles in 2015, the bank said in financials.
VTB earned a net profit of 17.5 billion rubles in Q4 2016, up 38.9% from 12.6 billion rubles in the same period last year.
The results were a little better than the consensus forecast compiled by Interfax (for net profits of 16.9 billion rubles in Q4 2016 and 51 billion rubles in 2016 as a whole) and the bank's own guidance for net profit of 50 billion rubles in 2016.
VTB said the growth in profit was due to an increase in revenue from its core business activity, including an increase in net interest income and net fee and commission income, the statement said.
Net interest income grew 43.5% to 415 billion rubles in 2016, including a 12.4% increase in Q4 to 104.6 billion rubles, mainly as a result of a repricing of assets and liabilities, as well as renewed growth in higher-margin retail lending.
Net interest margin increased to 3.7% in 2016 from 2.6% in 2015.
The group increased net fee and commission income by 7.3% to 81.8 billion rubles in 2016 and by 16.7% to 25.9 billion rubles in Q4. The Group's retail business and transaction banking (as part of corporate investment banking and mid-corporate banking) were the two main drivers.
Operating income before provisions totaled 510.6 billion rubles in 2016, up 23.8% compared to 2015.