Page 121 - RusRPTJul24

"VTB Group posted a net profit of RUB30bn and RUB233.4bn in May and the first five months of 2024, having decreased by 7.7% and by 3.2% y/y compared to the same periods last year.
The decrease compared to last year was caused by the presence of a significant one-off component in the results of the first half of 2023 in the form of a positive revaluation of the structural foreign exchange position," the report stated.
As of May 31, 2024, VTB Group's total loan book before loan loss provisions reached RUB22.8 trillion ($265bn), up 1.7% in May and 8.6% year-to-date.
Loans to legal entities increased by 9.7% to RUB15.4 trillion ($178bn) during the reporting period. Lending to individuals rose by 1.9% in May and by 6.4% in the first five months of 2024, with the retail loan portfolio amounting to RUB7.4 trillion ($86bn).
The group's total customer funding grew by 5.5% year-on-date to RUB23.6 trillion ($274bn). Funding from legal entities increased by 3.5% to RUB13.2 trillion, while funding from individuals saw an 8.2% rise in the first five months, reaching 10.4 trillion.
"In May, there was a seasonal decrease in funding from legal entities against the backdrop of payments of taxes and dividends by enterprises - clients of VTB Group," the bank noted.
"We maintain robust profitability supported by strong growth in our business and our loan book. This success unfolds against a backdrop of consistent asset quality, resilient balance sheet structure, and commendable cost efficiency. The financial results for May and the first five months align with our expectations, further bolstering our projections for record-breaking profits this year," said Dmitry Pianov, First Deputy Chairman of the Management Board and Chief Financial Officer.
VTB Group anticipates its net profit under International Financial Reporting Standards (IFRS) to exceed 250 billion rubles ($2.8 billion) for the first half of 2024, Dmitry Pianov, First Deputy Chairman of the Management Board, told reporters.
"[Net profit] in the first three months of 2024 amounted to 122 billion rubles. Consequently, we will most likely close six months considering the deal (sale of part of blocked assets to a counterparty - TASS) with over 250 billion rubles. This is why the point that the second quarter will exceed the first one is true," Pianov said.
The bank's performance in the first quarter sets a strong foundation, and the
121 RUSSIA Country Report July 2024 www.intellinews.com