VTB's financial performance

Main article: VTB

2023: Capital increase by 30% to RUB 1 trillion

At the meeting of shareholders, VTB which took place on January 30, 2023, an increase in the authorized capital of the bank was approved by placing ordinary shares by 301.96 billion - rubles up to 952.99 billion rubles. 30.196 trillion shares will be issued, they will be redeemed and, Rosimushchestvo Ministry of Finance using cash and non-cash funds, including shares Russian National Commercial Bank (RKNB) and requirements under the agreement on the placement of funds of the National Welfare Fund for a subordinated deposit with VTB. The nominal value of additional ordinary shares of VTB Bank is determined at 0.01 per ruble share, the method of placing the additional issue is a closed subscription.

According to Kommersant, the meeting of shareholders at the end of January 2023 also approved a change in VTB's charter, which implies an increase in the maximum number of announced shares from 14 trillion to 65 trillion. This means expanding the limit within which the bank can place an additional amount of shares without amending the charter, Ivan Semenkin, partner of the law firm EMPP, explained to the newspaper. According to him, you can often find a reserve of two to four capital. Taking into account the planned placement of VTB, its reserve for future additional capitalizations will amount to 20.8 trillion ordinary shares.

VTB increases authorized capital by 30% to 1 trillion rubles

The publication notes that VTB found itself in a difficult situation after the start of a military special operation in Ukraine. He was among the first to fall under tough Western sanctions, the volume of frozen assets of the bank reaches 0.6 trillion rubles

In October 2022, the Government of the Russian Federation received the right to make RNKB shares as Russia's contribution to VTB's authorized capital. At the same time, this Crimean bank, before making it into VTB's own funds, should be capitalized by 7.1 billion rubles.^[1]

2022: Losses of 756.8 billion rubles

The loss VTB on IFRS for the crisis year 2022 amounted to 612.6 billion. rubles This is 10 times more than the previous record negative result in 2009. According to RAS, the net loss of the credit institution reached 756.8 billion rubles, while in 2021 a net profit of 242.6 billion rubles was registered. Such figures in early April 2023 were announced by the deputy chairman of the bank Dmitry Pyanov.

According to him, the key were four components of the loss in the context of IFRS:

• expenses less income on operations with foreign currency and precious metals (300 billion rubles before taxes);
• losses on the disposal of subsidiaries and associates and joint ventures (RUB 229 billion before taxes) primarily due to the loss of VTB Group's control over VTB Bank Europe and VTB Capital Plc due to the sanctions imposed on the group;
• creation of reserves extraordinary due to sanctions (344 billion rubles before taxes);
• losses due to the realization of interest rate risk (33 billion rubles before taxes).

According to RAS, VTB's net loss reached 756.8 billion rubles

From the financial statements of VTB it follows that the bank's assets in 2022 increased by 17% - from 20.9 to 24.4 trillion rubles. The volume of loans to legal entities increased by 18.4%, loans to individuals - by 17.5% (excluding Otkrytie, the growth was 6 and 4%, respectively). The volume of customer funds in 2022 increased by 22% - from 15.2 to 18.6 trillion rubles. Moreover, without taking into account the accession of Otkritie, the growth would be only 6%. Net interest income of the bank fell twice - from 646.3 to 321 billion rubles, commission income - by 7.4%, to 146.8 billion rubles.

At the end of 2022, the total capital of the VTB Group under IFRS amounted to 1.531 trillion rubles, over the year it sank by almost a third (minus 31%), Pyanov said. At the same time, capital standards were at the border of requirements, taking into account allowances, he added.^[2]

2021

VTB assets exceeded 20 trillion rubles for the first time

By the end of 2021, VTB assets reached an all-time high of 20.9 trillion rubles under IFRS. The total loan portfolio before provisions amounted to 14.7 trillion rubles, an increase of 11.6% over the year. The bank released such data on February 22, 2022.

In 2021, VTB customer funds increased by 18.3% compared to 2020 and amounted to 15.2 trillion rubles. The growth of funds of clients - legal entities amounted to 23.5% (up to 8.76 trillion rubles), while the balances on the current accounts of legal entities increased by 29.4%. According to the results of 2021, the volume of funds of individual customers increased by 682.3 billion rubles, or by 11.9%, amounting to 6.4 trillion rubles.

VTB assets exceeded 20 trillion rubles for the first time

As noted in the bank, in the second half of 2021, against the background of tightening the monetary policy of the Central Bank of the Russian Federation, there was an inflow of household funds for term deposits, which replaced the growth of current retail accounts in the first half of the reporting period.

As of December 31, 2021, loans to legal entities in VTB amounted to 9.93 trillion rubles, loans to individuals - 4.76 trillion rubles.

The share of non-performing loans (NPLs) in the total loan portfolio has decreased since the beginning of 2021 by 170 bp, amounting to 4.0% at the end of the same year. Total loan portfolio coverage with impairment reserves amounted to 6.2% (6.8% as of December 31, 2020), non-performing loans coverage with reserves amounted to 153.3% (compared to 120.6% at the beginning of the year).

VTB for 2021 received a net profit of 327.4 billion rubles, which is 4.3 times more than the result of 2020. The cost of creating reserves decreased 2.2 times - up to 116 billion rubles, follows from the group's report.

According to the results of 2021, VTB Bank increased the customer base of medium and small businesses by 35% to 858 thousand customers. The number of active individual clients increased by 2 million to 16 million people, which is more than 20% of the economically active population of Russia.^[3]

VTB increased its net profit by 516 times - 242.6 billion rubles

In 2021, VTB's net profit under RAS amounted to 242.6 billion rubles, which is 516 times more than profit a year ago.

The past year was in many indicators a record for the bank under RAS... We see, based on current indicators, confirmation that the ambition will be fulfilled, and when making a decision by shareholders and management to pay the corresponding share of profit of 50% of IFRS, it will be from which to pay the corresponding dividends, this is just the basis for RAS, - said VTB Chief Accountant Mikhail Kovalenko.

The bank explained that the main components of the growth of net interest income at the end of 2021 remain the increased volume of the bank's loan portfolio and debt securities portfolio.

VTB increased its net profit by 516 times - 242.6 billion rubles

Customer funds in VTB accounts increased by 22% in 2021, to 16.5 trillion rubles. Funds of legal entities increased by 25.9%, amounting to 10.7 trillion rubles. The funds of individuals increased by 15.5%, to 5.8 trillion rubles.

Expenses on reserves for 2021 amounted to 88.4 billion against 309.7 billion rubles a year earlier. Loans to legal entities increased by 6.9%, to 9.2 trillion rubles, loans to individuals - by 28.1%, to 4.2 billion rubles. The growth of funds of large business customers was ensured, among other things, by attracting funds from customers of the oil and gas and nuclear industry, the VTB press service reports.

VTB's total assets at the end of 2021 amounted to 19.1 trillion rubles, an increase of 17% on an annualized basis. The structure of client attraction remained stable: 64.7% are funds of legal entities, 35.3% are funds of individuals.

Net commission income of the bank for 2021 increased by 12.6% and reached 147.9 billion rubles. The main drivers of the growth of commission income were income for cash and brokerage services.

The growth of the retail portfolio of attracted funds (excluding escrow) in 2021 amounted to 10%, including the portfolio of term deposits increased by 17%.^[4]

2020

Decrease in net profit by 62.6%, to 75.3 billion rubles

Net profit VTB at the end of 2020 amounted to 75.3 billion, rubles down 62.6% compared to 2019. Such a significant decrease in indicators in the bank was associated with an increase in the cost of creating reserves and a negative revaluation of non-financial assets amid the coronavirus pandemic. COVID-19

VTB's net profit registered at the end of 2020 turned out to be the smallest since 2016 - then the bank showed a net profit of 51.6 billion rubles. If not for one-time factors, the bank's net profit would have reached 223 billion rubles, which corresponded to the forecast guidelines before the pandemic, VTB board member Dmitry Pyanov told reporters.

The cost of VTB risk at the end of 2020 increased by 110 basis points, to 1.9%. Expenses on the creation of reserves amounted to 249.8 billion rubles, an increase of 141.8% on an annualized basis. The increased level of expenditures on the creation of reserves was due to the impact of the COVID-19 pandemic on the state of the Russian economy and the quality of the group's loan portfolio, VTB said in a statement.

VTB net profit for 2020 fell 63%

The share of non-performing loans (NPLs) in the total loan portfolio was 5.7% at the end of 2020, compared to 4.7% a year earlier. As of December 31, 2020, the total loan portfolio was subject to impairment at 6.8%.

The portfolio of corporate loans of VTB Group in 2020 grew by 14.9%, retail - by 14.6%. As of December 31, 2020, loans to legal entities amounted to 9.305 trillion rubles, loans to individuals - 3.857 trillion rubles.

Corporate loans grew mainly due to expanded lending amid economic recovery in the third to fourth quarters of 2020. The total portfolio amounted to 13.16 trillion rubles, adjusted for the effect of currency revaluation, growth for the year amounted to 9.2%.^[5]

Capitalization $6.6 billion

The capitalization of Sberbank in comparison with the largest IT and retail companies in Russia.

2019

Net profit growth by 12.9% to RUB 201.2 billion

In 2019, VTB's net profit amounted to RUB 201.2 billion, an increase of 12.9% compared to the previous year. The cost of reserves decreased by a third, to 103.3 billion rubles, according to the reports of the credit institution.

The rise in net profit at VTB was associated with a high growth in commission income and improved asset quality. Net commission income for 2019 increased by 29.2% compared to 2018 to 108.5 billion rubles. The high growth in net commission income is due to operations with securities and operations in the capital markets, remuneration for the distribution of insurance products and agency services and the consolidation of acquired banks, VTB said.

VTB's net profit in 2019 rose 13%

In 2019, VTB's total loan portfolio grew by 0.3% to 11.46 billion rubles. The portfolio of loans to individuals increased by 12.6%. The growth of the portfolio includes large transactions for the sale of mortgage loans as part of securitization. Excluding securitization of mortgage loans, the growth of the portfolio of loans to individuals amounted to 19% in 2019, according to the group's reports.

As of December 31, 2019, loans to legal entities amounted to 8.096 trillion rubles, loans to individuals - 3.365 trillion rubles. As of  December 31, 2019, the share of secured loans (mortgages and car loans) in the total portfolio of loans to individuals amounted to 52%,  unchanged from the beginning of the year.

Net interest income over the past year increased by only 0.2%, to 440.6 billion rubles. At the same time, net interest margin in 2019 decreased to 3.4% compared to 3.7% a year earlier. The cost of funding increased by 30 b.p . compared to last year and amounted to 5.2% in 2019.

 Personnel and administrative expenses amounted to 254.2 billion rubles in 2019 , an increase of 12.6% compared to 2018 .VTB Report 2019 

VTB earned 12.5 billion rubles on the sale of a stake in Tele2

VTB earned 12.5 billion rubles from the sale of a stake in Tele2. This amount came from the transaction with financial instruments and due to the revaluation of the asset between the two disclosure dates, the bank said at a teleconference on the occasion of the publication of statements according to international standards on February 26, 2020.

In the reporting at the end of 2019, the Tele2 package was estimated at 66 billion rubles, in the reporting at the end of 2018, this package was estimated at 53.5 billion rubles. Hence the figure of 12.5 billion rubles.

The sale of Tele2 shares brought VTB 12.5 billion rubles

Settlements on the transaction imply the acquisition of a stake in Rostelecom, first by VTB Bank , and then its redistribution between the bank and the consortium, says Dmitry Pyanov, a member of the bank's board. - And this redistribution will lead to an effective share of ownership of Rostelecom's equity capital by VTB Group both direct and indirect means in the amount of slightly more than 17%. Of these, there will be inside a small share of the direct ownership of VTB Bank and the indirect ownership of VTB Bank through a complex of subsidiaries through a consortium.

Earlier in February 2020, Rostelecom announced the consolidation of a 100% stake in Tele2. Before the transaction, the company owned 45% of the shares of the mobile operator, the rest of the stake was owned by Tele2 Russia Holding AB, in which VTB has a 50% stake, Invintel B.V. businessman Alexey Mordashov - 40% and bank "" Russia- 10%. Thus, VTB directly owned only 27.5% of the operator's shares. This share was estimated at 53.3 billion rubles IFRS in 2018, according to "."Sheets

According to Dmitry Pyanov, the composition of the consortium and its share in the capital of Rostelecom should be discussed at later stages to complete the settlement of the transaction.

According to data from VTB financial statements, in 2019 the group earned a total of 201.2 billion rubles of net profit under IFRS. Compared to 2018, the indicator increased by 12.9% (then the indicator was 178.2 billion rubles) amid high growth in commission income and improved asset quality.^[6]

Growth of the portfolio of attracted funds of individuals for 9 months to more than 5 trillion rubles

According to the results of nine months of 2019, the volume of the portfolio of attracted funds of VTB individuals, taking into account investment products, increased by 11.5% and amounted to more than 5 trillion rubles. The retail loan portfolio has increased since the beginning of the year by 14.4%, to 3.2 trillion rubles. This was announced on November 6, 2019 by the Deputy President-Chairman of the Board of VTB Anatoly Pechatnikov.

Since the beginning of the year, the volume of the portfolio of attracted funds of VTB individuals (excluding investment products) has grown by 7.5% and reached 4.1 trillion rubles. According to this indicator, VTB grew faster than the market by 4.4 percentage points, as a result of which the bank's share increased by 0.6 percentage points, to 14.1%. Since the beginning of the year, VTB's portfolio of investment products has grown by 34%, to 920 billion rubles. Since the beginning of this year, more than 360 thousand new brokerage accounts have been opened in the bank.

The volume of sales of VTB credit products increased by 12.3% over the three quarters, which is 3.3 percentage points above the market. In total, more than 1.1 trillion rubles of loans were issued to the population. The most popular are mortgages (issues increased by 11%, to 462 billion rubles) and cash loans (an increase of 14%, to 582 billion). Since the beginning of the year, VTB's mortgage portfolio has grown by 14%, exceeding 1.6 trillion rubles. The portfolio of cash loans increased by 16%, to 1.38 trillion rubles.

VTB continues to develop its digital sales channels. So, at the end of September of this year, 64% of deposits and 17% of loans were issued by customers remotely. By the end of 2020, the bank plans to bring these indicators to 70% and 25%, respectively. As of November 6, every second active VTB client uses VTB online, and the share of transfers made through the Internet and mobile bank already reaches 99%.

See also

• Sberbank's financial performance

Notes