VTBR.L Regulatory News (VTBR)

VTB Bank announces RAS financial results (standalone) for May and 5M 2021

8 June 2021

VTB Bank (PJSC) (hereinafter referred to as the Bank) publishes its standalone key RAS financial results for May and five months of 2021.

Dmitry Pianov, Member of the Management Board, CFO of VTB Bank, noted:

"With a view to enhance the transparency of operations and in order to ensure prompt reporting of financial results of the Bank, we are introducing a new format of public disclosure - standalone key financial results in accordance with Russian accounting standards (RAS), calculated on the basis of accounting and management data.

Today we are publishing key RAS financial results for May and five months of 2021, and will be making such disclosures within five working days after the end of each month.

We treat these results as a harbinger that will help you shape an early understanding of the trends in consolidated IFRS results, considering the fact that under normal circumstances, net profit under IFRS is greater than RAS net profit.

We hope that this new disclosure format is going to be useful for investors and wider analytical community."

Revenues and profitability

In May 2021, the Bank further improved the profitability metrics, continuing the positive momentum of the current year. Net profit was RUB 112.0 billion in 5M 2021, including RUB 25.4 billion in May 2021, 2.2 times and 28.2 times up, respectively.

Net interest income amounted to RUB 235.2 billion in the first five months of 2021 and RUB 56.2 billion in May, up by 27.7% and 47.9% respectively versus the same periods of the past year. The key driver for the net interest income growth was the larger loan book. Additionally growth of interest income from investments in debt securities of the Russian Federation and other residents had a positive effect on total interest income. The income from the debt securities of the Russian Federation increased by 241.7% and amounted to RUB 26.7 bn.

Net fee and commission income amounted to RUB 13.5 billion in May and RUB 65.0 billion in the first five months of 2021, an increase of 64.6% and 36.3% respectively, from the same periods last year. Brokerage commissions were the main driver for the growth of net fee and commission income.

Staff and administrative expenses amounted to RUB 14.9 billion in May (down 7.5% year-on-year) and RUB 78.6 billion for 5M2021 (up 0.1% year-on-year).

Capital and capital adequacy ratios

As of 1 June 2021, total regulatory capital was RUB 1,719.4 billion, up 1.6% in May and 4.5% since the beginning of the year. Total regulatory capital includes Base capital (CET 1) of RUB 1,247.4 billion and main capital (Tier 1) of RUB 1,463.1 billion.

As of 1 June 2021, total risk-weighted assets amounted to RUB 15,089.1 billion, increasing by 1.5% in May and by 3.4% since the beginning of the year.

Capital adequacy ratios are well above the minimum regulatory requirements. As of 1 June 2021, the N1.0 (total capital) ratio was equal to 11.4%, N1.1 (common equity) - 8.25% and N1.2 (Tier 1 capital) - 9.68%.

Balance sheet

As of 1 June 2021, total assets amounted to RUB 17.9 trillion, increasing by 2.5% in May and by 9.3% since the beginning of the year.

Total loan book reached RUB 12.6 trillion, increasing by 1.2% in May and by 6.1% in 5M2021. Loans to individuals were RUB 3.7 trillion, growing by 2.7% and 12.5% in May and for 5M21 respectively, while loans to legal entities were RUB 8.9 trillion, increasing by 0.6% in May and by 3.7% since the beginning of the year.

Securities portfolio grew by 37.4% in 5M2021 to RUB 2.9 trillion, including 5.2% growth in May. Bank's investments into federal loan bonds of the Russian Federation (OFZs) mostly contributed to the growth.

As of 1 June 2021, total customer funding was RUB 15.4 trillion, increasing by 2.5% in May and by 14.2% since the beginning of the year. Within total customer funding 66.4% were deposits of legal entities and 33.6% deposits of individuals.