VTB to quadruple profit to 200 bln rubles in 2019 - CEO
MOSCOW. Sept 21 (Interfax) - VTB Group expects its profit to grow to 200 billion rubles in 2019 from an anticipated 50 billion rubles in 2016, the state bank's CEO, Andrei Kostin said in an interview with CNBC.
He said VTB is drafting a new development strategy for 2017-2019.
The bank expects its profitability to grow, he said, recalling that VTB's profit was about zero last year.
The bank expects that its profit will total 50 billion rubles this year and then grow to 100 billion rubles, 150 billion rubles and more than 200 billion rubles in the subsequent three years, Kostin said. VTB believes this is a fairly realistic scenario, he added.
VTB set profit for 2016 at 50 billion rubles in the optimistic scenario, in the conservative scenario it was forecast at a level close to zero.
VTB's net profit to International Financial Reporting Standards (IFRS) for the 7M 2016 amounted to 17.8 billion rubles. So, in order to post the forecast 50 billion rubles forecast by Kostin, the bank needs to earn more than 32 billion rubles before the end of the year.
In August, the bank's management said that VTB, according to the majority of macro indicators, set down in the forecast for 2016, is moving close to the conservative scenario.
In the conservative scenario, VTB set the Urals oil price for 2016 in the amount of $40 per barrel, the drop in Russian GDP at 1.2%, inflation at 7.6% and the average Central Bank key rate at 10%.
In the optimistic scenario, the bank set the oil prices at $50 per barrel, GDP growth at 0.5%, inflation at 7%, and the average Central Bank key rate at 9.1%.