VTBR.L Regulatory News (VTBR)

21 Dec 2007 15:47

JSC VTB Bank21 December 2007 VTB GROUP KEY FIGURES FOR THE NINE MONTHS OF 2007 Moscow, December 21, 2007 - VTB, Russia's leading universal banking group, ispleased to confirm today its consolidated IFRS financial results for 9M2007 andpublish full financial details showing performance during the third quarter of2007. By the end of September 30 2007, the VTB Group's total assets had increased by41.7% to US$74,255 million. Total gross loan portfolio of the Group grew by53.3% to US$46,345 million, with loans to individuals increasing by 2.2 times.Net interest income before provisions increased by 46.2% year-on-year toUS$1,732 million, and net fee and commission income went up by 56.8% amountingto US$414 million. In the reporting period, operating income of the Groupincreased by 41.9% to US$2,570 million from US$1,811 million in the first ninemonths of 2006. Net profit was US$1,051 million for the nine-month period endedSeptember 30, 2007 compared to US $816 million for the same period last year. Financial Highlights Profit and Loss Account (as compared to 9M2006): - Interest income increased to US$3,643 million, up 41.2%; - Net interest income before provisions increased to US$1,732 million, up 46.2% or US$547 million; - Net fee and commission income increased to US$414 million, up 56.8% or US$150 million; - Consolidated net profit for 9M2007 amounted to US$1,051 million, up 28.8%, mostly due to the increase of the net interest income and net fee and commission fee. Assets and Funding (as compared to December 31, 2006): - Total gross loans and advances to customers increased by 53.3% to US$46,345 million. Gross loans to individuals grew strongly by US$3,084 million or 121.8% and totaled US$5,617 million. The share of loans to individuals in the total gross loan portfolio increased to 12% by the end of June 2007 compared to 8% at the end of December 31, 2006. Corporate loan portfolio (gross) increased by 47.0% to US$40,728 million from US$27,702 at the end of 2006; - Securities portfolio totaled US$13,985 million as compared to US$8,957 million (including approximately 5% of shares of EADS); - Customer deposits increased to US$28,923 million, up 44.7%, with deposits of individuals up by 31.4% to US$9,630; - Wholesale funding (which includes debt securities issued, other borrowed funds and subordinated debt) increased by 10.5% to US$19,011 million. The share of wholesale funding in total liabilities decreased to 32.6% from 37.9% in 2006. Full financial information is now available on www.vtb.ru . Comments: Andrei Kostin, President-Chairman of the Management Board: "We are pleased to announce a set of numbers that show continuedout-performance, despite the tough Global market conditions. We are well ontrack to hit our targets at year end and will face the challenges of 2008 with asolid and stable foundation." Nikolai Tsekhomsky, Member of the Management Board and CFO: "Having spent a huge amount of time and effort on the IPO process, our Q3numbers show that we have not taken our eye off the ball in terms of the corebusiness. We are especially happy that the quality of our earnings hascontinued to increase, with the majority of the upside year to date coming fromnet interest income, fees and commissions."Consolidated Balance Sheet (expressed in millions of US dollars) 30 September 31 December 2007 2006 (unaudited)AssetsCash and short-term funds 3,297 3,581Mandatory cash balances with central banks 1,133 648Financial assets at fair value through profit or loss 9,583 5,120Financial assets pledged under repurchase 3,149 2,938agreements and loaned financial assetsDue from other banks 6,452 6,813Loans and advances to customers 45,025 29,262Financial assets available-for-sale 1,239 888Investments in associates 191 200Investment securities held-to-maturity 14 11Premises and equipment 1,566 1,422Investment property 188 178Intangible assets 479 455Deferred tax asset 211 93Other assets 1,728 794 Total assets 74,255 52,403 LiabilitiesDue to other banks 9,245 7,587Customer deposits 28,923 19,988Other borrowed funds 5,714 4,468Debt securities issued 12,130 11,565Deferred tax liability 114 125Other liabilities 1,070 509 Total liabilities before subordinated debt 57,196 44,242 Subordinated debt 1,167 1,169 Total liabilities 58,363 45,411 EquityShare capital 3,084 2,500Share premium 8,792 1,513Treasury stock (20) -Unrealized gain on financial assets available-for-sale 62 154and cash flow hedgeCurrency translation difference 580 352Premises revaluation reserve 332 341Retained earnings 2,674 1,744Equity attributable to shareholders of the parent 15,504 6,604 Minority interest 388 388 Total equity 15,892 6,992 Total liabilities and equity 74,255 52,403 Consolidated Statements of Income (expressed in millions of US dollars) For the three-month For the nine-month period ended period ended 30 September 30 September 2007 2006 2007 2006Interest income 1,408 942 3,643 2,580Interest expense (680) (551) (1,911) (1,395) Net interest income 728 391 1,732 1,185Provision charge for impairment (215) (188) (355) (373) Net interest income after 513 203 1,377 812provision impairment Gains less losses arising from financial 110 88 196 174assets at fair value through profit or lossNet gains (losses) from (34) - (33) 119available-for-sale financial assetsGains less losses arising 206 48 347 48from dealing in foreign currenciesForeign exchange translation gains less losses 107 26 134 253Fee and commission income 168 121 468 303Fee and commission expense (21) (18) (54) (39)Share in income of associates - 8 7 13Income arising from non-banking activities 30 23 73 61Other operating income 14 19 55 67 Net non-interest income 580 315 1,193 999 Operating income 1,093 518 2,570 1,811 Staff costs and administrative expenses (480) (306) (1,289) (883)Expenses arising from non-banking activities (20) (17) (47) (50)Profit from disposal of associates and 62 56 80 56subsidiaries Profit before taxation 655 251 1,314 934 Income tax expense (108) (19) (263) (128) Profit after taxation 547 232 1,051 806from continuing operations Profit from discontinued operations - 8 - 10 Net profit 547 240 1,051 816 Net profit attributable to:Shareholders of the parent 555 227 1,029 781Minority interest (8) 13 22 35 Consolidated Statements of Cash Flows (expressed in millions of US dollars) For the nine-month period ended 30 September 2007 2006Cash flows from operating activitiesInterest received 3,571 2,288Interest paid (1,871) (1,321)Income received on operations with financial assets 145 111at fair value through profit or lossIncome received on dealing in foreign currency 203 73Fees and commissions received 468 303Fees and commissions paid (70) (37)Income arising from non-banking activities 106 128and other operating income receivedStaff costs, administrative expenses and (1,196) (921)expenses arising from non-banking activities paidIncome tax paid (265) (206) Cash flows from operating activities before 1,091 418changes in operating assets and liabilities Net decrease (increase) in operating assetsNet increase in mandatory cash balances with central banks (449) (112)Net decrease in restricted cash 11 8Net (increase) decrease in financial assets at fair value through (4,655) 572profit or lossNet decrease (increase) in due from other banks 557 (1,339)Net increase in loans and advances to customers (15,078) (6,751)Net increase in other assets (895) (380)Net (decrease) increase in operating liabilitiesNet increase (decrease) in due to other banks 1,423 (183)Net increase in customer deposits 7,989 6,504Net decrease in promissory (576) (430)notes and certificates of deposits issuedNet increase in other liabilities 184 130 Net cash used in operating activities (10,398) (1,563) Cash flows from investing activitiesDividends received 22 27Proceeds from sales or maturities of financial assets 690 616available-for-salePurchase of financial assets available-for-sale (443) (2,040)Purchase of subsidiaries, net of cash acquired (11) (14)Sale of disposal group held for sale - 122Acquisition of minority interest in subsidiaries (50) -Disposal of associates 44 -Disposal of subsidiaries, net of cash disposed 66 (16)Purchase of associates (10) -Purchase of investment securities held-to-maturity (9) -Proceeds from redemption of investment securities held-to-maturity 6 2Purchase of premises and equipment (216) (184)Proceeds from sale of premises and equipment 30 32Purchase of intangible assets (12) (2)Proceeds from sale of intangible assets - 6 Net cash from (used in) investing activities 107 (1,451) For the nine-month period ended 30 September 2007 2006Cash flows from financing activitiesDividends paid (133) (63)Proceeds from issuance of RUR denominated bonds - 659Redemption of RUR denominated bonds (102) (72)Proceeds from issuance of Eurobonds 2,524 1,248Redemption of Eurobonds (1,300) (350)Proceeds from issuance of SSD debentures (Schuldscheindarlehen) - 254Redemption of SSD debentures (Schuldscheindarlehen) (227) (157)Proceeds from syndicated loans 1,518 2,963Repayment of syndicated loans (595) (1,210)Proceeds from other borrowings 1,294 709Repayment of other borrowings (918) (499)Proceeds from share issue, less transaction costs 7,842 -Cash paid for treasury stock (20) - Net cash from financing activities 9,883 3,482 Effect of exchange rate changes on cash and cash equivalents 135 116 Net (decrease) increase in cash and cash equivalents (273) 584 Cash and cash equivalents at beginning of the year 3,479 2,541 Cash and cash equivalents at the end of the period 3,206 3,125 Some of the information in this presentation may contain projections or otherforward-looking statements regarding future events or the future financialperformance of JSC VTB Bank ("VTB") and its subsidiaries (together with VTB, the"Group"). Such forward-looking statements are based on numerous assumptionsregarding the Group's present and future business strategies and the environmentin which the Group will operate in the future. We caution you that thesestatements are not guarantees of future performance and involve risks,uncertainties and other important factors that we cannot predict with certainty.Accordingly, our actual outcomes and results may differ materially from what wehave expressed or forecasted in the forward-looking statements. Theseforward-looking statements speak only as at the date of this presentation andare subject to change without notice. We do not intend to update thesestatements to make them conform with actual results. Contacts: Nataly LoginovaElena ErshovaIrina Mokeeva Telephone:+7 (495) 739-77-998-800-200-77-99(toll free number for Russian regions) E-mail:InvestorRelations@vtb.ru This information is provided by RNS The company news service from the London Stock Exchange