Profit VTB surprise waiting loss market


Thursday, March 17, VTB has reported financial results for the 2015 under IFRS. Net profit of the second Bank of the country amounted to 1.7 billion rubles (against 800 million profit a year earlier). The Bank’s results were above analysts ‘ expectations, predicted yesterday that VTB in 2015 couldn’t get out of losses. According to the consensus forecast of the Bank prepared on the basis of a survey of 13 analysts, the market expected that VTB will show a loss of 600 million rubles

To gain profit and to cope with the consequences of a sharp reduction in net interest margin VTB was able due to the “significant growth in non-interest income and strict cost control”, presented in a press release from the Bank by the Chairperson of the management Board Andrei Kostin.

Net interest income in 2015 decreased by 16.8% to 289,1 billion rubles due to faster growth of interest expenses over interest income. The net interest margin by the end of 2015 fell to 2.6% compared with 4.0% for 2014.

That VTB received a record fee and Commission income at 76.2 billion rubles Allocations to reserves in 2015, lower than the previous year by 1.5 times and amounted to RUR 178.1 billion (forecast-level – 179,5 billion rubles). In the fourth quarter of the costs of reserves amounted to 41,2 billion rubles, which is 2.6 times lower than a year earlier (consensus forecast – 50,63 billion rubles).

Shares of VTB Bank on the background of the publication of the annual accounts of the Bank at the auction of the Moscow exchange have grown on 1,09%.

A year earlier, the Bank reported profits of 800 million rubles., and in the first 9 months. 2015 reported a loss of 10.9 billion rubles. thus, as previously stated the head of VTB Andrey Kostin, the Bank planned to obtain zero profit by the end of 2015. “We said that the 1 percentage point the key rate is 21 billion rubles to our financial results. The Central Bank has reduced by 1 percentage point, respectively, plus 21 billion rubles to our financial results. This year we expect zero profit and, therefore, zero loss,” — said the banker.

In October of 2015 Kostin said that the Bank may reach profitability in 2016. “We are able, in particular, earn on corporate business, but I still believe that we have this year there is no profit – a large profit. I think that earning will be next year,” he said in an interview with CNBC.