Page 83 - RusRPTOct21

Fees reached Rb51.9bn in August (+16% y/y;+4% m/m) and Rb372.7bn for 8M21 (+17% y/y) –banking cards and acquiring are the main drivers for growth, accounting for 73% of the 8M21 increase. Higher expenses ahead of the new school year and one-off State social payments partially support F&C revenues.
August CoR noticeably increased and stood at 1.5% – the highest since January – and 8M21 CoR at 0.6% vs 0.7-0.9% new 2021 guidance. The August figure was just 20bp lower y/y after -0.4% in July on the back of the recovery of provisions related to the Eurocement. NPLs added 10bp to 2.3%.
OpEx stood at Rb56.2bn in August (+14% y/y; +2% m/m) and Rb425.3bn for 8M21 (+10% y/y) – the result of salary revision in July and calendarization of expenses. CIR decreased to 25.6% in August vs 27.1% in July.
8.1.8ank news
VTB Strategy Session for Wealth and Investment Management (WIM) division. The presentation was madey Vladimir Potapov, CEO of VTB Capital Investments. No particular financial or operational targets were provided. VTB Capital Investments’ customers comprise 1.7mn retail customers vs 15mn for the Group with Rb2.1trn AUM as of 1Q21 on the back of 76% CAGR 2018-20 vs 43% for the market. VTB’s market share was 22.4% in 1Q21y total retail AUM – strong vs 13.8% in 2018. The WIM division consists of a retail brokerage, investment management, institutional brokerage and retail forex VTB sees further market growth, given its current emerging status in Russia, with market AUM to double from Rb8.6trn in 2020 to Rb17.7trny 2023 with the addressable market to reach 20-30mn clients over the next 5 years On the digital side – VTB’s WIM Mobile app has 350,000 DAU and 670,000 MAU as of July 2021 with a monthly turnover of Rb3.2tn. Robo-advisory is rapidly evolving (+75% MAU ytd) The Investment Segment contributed Rb20.5bn gross revenue to the Group in 2020 (+95% vs 2019) on the back of 73% growth in client assets to Rb3.3tn. 7M21 gross revenues rose 82% y/y to Rb17.1bn with AUM at Rb4tn (+19% ytd)
VTB posted stronger monthly earnings in August, with R30.5bn net income. Earnings for 8m21 amounted to R231bn, implying 18.2% ROE.
Core revenues remained robust, with NII up 22% y/y in 8m21 and fee income up 34%.
Risk costs remained low and steady at 0.8% in 8m21, while NPLs stood at 4.8% as of end-August, down 90ps YTD. Costs were up just 6% y/y. The cost/income ratio remained steady at 33.5%.
83 RUSSIA Country Report October 2021 www.intellinews.com