VTB group retail business expects some 60 bln rubles net profit in 2014
MOSCOW. June 18 (Interfax) - The retail business of the VTB group is looking to make net profits to International Financial Reporting Standards (IFRS) of around sixty billion rubles next year and more than eighty billion rubles the following year, the chief of the VTB retail subsidiary VTB 24 , Mikhail Zadornov, said during a Tuesday press conference.
"Retail will earn around sixty billion rubles in 2014 and more than eighty billion rubles in 2015," Zadornov said in comments on the bank's new strategy for 2013-2016. At issue is not only VTB 24, but also the group's entire retail business, he said.
VTB 24 net profits will amount to seventy to eighty billion rubles in 2016, Zadornov said. The net profit target for the group's retail business was a hundred billion rubles earlier.
Leto-Bank, another of the group's retail projects, specializes in express loans and was launched last summer. Zadornov said it will continue to be a loss-maker for this year and next.
According to the new strategy, return on equity for the group's retail business and VTB 24 will be 25% for 2016. The cost to income ratio prior to provisioning for VTB 24 and the group's retail business will generally grow somewhat and amount to 40%-42% for that year.