VTB 24 forecasts 25% increase in IFRS net profit for 2012
MOSCOW. Oct 18 (Interfax) - VTB 24 will boost its net profit to International Financial Reporting Standards (IFRS) by 25% for 2012 as a whole to about 35.6 billion rubles, the bank's President and CEO Mikhail Zadornov told journalists.
Last year, VTB 24 generated 28.5 billion rubles in net profit to IFRS.
In January-September of this year, the bank's net earnings to Russian Accounting Standards (RAS) totaled 26.4 billion rubles. Zadornov noted that there is not a big difference between VTB 24's financial results to RAS and IFRS.
The bank's nine-month net profit to IFRS will be slightly lower but "very close to what you will see for RAS," Zadornov said.
VTB 24 had 1.375 trillion rubles in assets for the first nine months of this year, compared to 1.17 trillion rubles as of December 31, 2011.
Its loan portfolio expanded by 23% in January-September to 896 billion rubles, including a 25% jump in the cash loan portfolio to 358 billion rubles, a 20% increase in the mortgage loan portfolio to 294 billion rubles, a 38.2% rise in the credit card portfolio to 51 billion rubles, a 24% climb in vehicle loans to 88 billion rubles, and a 49% increase in loans to small businesses to 99 billion rubles.
For 2012 as a whole, VTB 24 anticipates 40% growth in its loan portfolio. The retail lending market will expand by 38% this year, and banks' retail deposits will rise by 18%-19%, according to Zadornov's estimates. From the point of view of attracting deposits, VTB 24 plans to grow significantly more rapidly than the market, he said.
VTB 24 sold 9.5 billion rubles worth of bad debt in the first three quarters of this year. By the end of the year it plans to sell delinquent loans on 1.6 billion rubles of the principal debt, Zadornov said.
The level of VTB 24's debt in arrears has fallen to 4.85% since the beginning of the year, compared to 6% at the start of 2012. In January-September, the bank's return on equity (ROE) topped 29%.
Since the beginning of 2012, the level of provisions for VTB 24's loan portfolio has declined from 8% to 6.8%, Zadornov said.
VTB 24 plans to carry out four or five deals to securitize its loan portfolio this year and next year. It is considering another deal to securitize its automobile loan portfolio. Zadornov did not specify the amounts of parameters of the deals.