VTB expecting slower corporate lending growth of 10% in 2024, 5% for retail lending

MOSCOW. Feb 20 (Interfax) - VTB is predicting a 10% increase in corporate lending in 2024, while retail lending rises 5%, First Deputy Chairman Dmitry Pyanov told reporters.

"From the standpoint of our growth ambitions, we are planning less than a 10% increase in loans to businesses, and up to 5% - with a hard landing - in loans to individuals," he said.

VTB forecasts that the banking sector will see an increase in 2024 in loans to individuals of 6%-7% and of 7%-8% to businesses. Funds from businesses in the sector as a whole will increase 12%-13% in 2024, while funds from individuals will rise 9%-10%. "The banking sector will have a hard landing with regard to loans," the first deputy chairman said.

VTB expects that its cost of risk will remain unchanged in 2024 at about 1%, with a net interest margin of 2.5%.