27 Nov 2023 15:42

VTB expects decline in revenue for bank and entire sector in 2024 - VTB president Kostin

MOSCOW. Nov 27 (Interfax) - VTB expects a decline in the revenue of the bank and in the entire Russian banking sector in 2024 amid tight monetary policy and measures to cool consumer lending, VTB President and Board Chairman Andrei Kostin said during a meeting with President Vladimir Putin.

"This year has been very successful not only for VTB, but for the entire banking sector. You know, I reported to you last year that the bank had suffered greatly from the fact that there was an absolute outrageous situation against us, with foreign banks taken away from us, and they are currently being liquidated here. We of course suffered serious losses. However, we have seriously compensated for this this year. We are restoring the capital base and achieving record profits of about 420 billion rubles, which, of course, is very substantial. It is important that we were able to rebuild quickly. Having lost Western markets, we have of course focused primarily on Russia, but on friendly markets as well," Kostin said.

Kostin said that the VTB branch in Shanghai would double the turnover of its activities in a year, which reflects the positive development of Russia-China trade and economic relations.

"However, I must say that we still expect a decline in growth of the banking sector and our income next year, because the Central Bank has taken anti-inflationary measures by hiking the rate and limiting lending, including consumer lending," Kostin said.

Kostin also said that VTB would present a new development strategy for the group early next year. "It will, of course, take into account the colossal changes that have taken place in the banking sector as a whole. However, I think that we are looking forward today with great optimism. This is our mood," Kostin said.

VTB has improved its profit forecast to over 430 billion rubles for this year from the previous target of more than 420 billion rubles, and profit could be within the range of 300-400 billion rubles in 2024, VTB Deputy Executive Board Chairman and CFO Dmitry Pyanov said last week.