On May 31, 2018, the parent company of the VTB Group VTB Bank released its unaudited consolidated International Financial Reporting Standards (IFRS) results for April 2018 and the four months that ended on April 30, 2018.

VTB Group’s net profit was RUB67.6 billion (91.5-percent increase year-on-year) in the first four months of 2018 and RUB12.1 billion (57.1-percent increase year-on-year) in April 2018 versus net profit of RUB35.3 billion in the first four months of 2017 and RUB7.7 billion in April 2017. Net operating income before provisioning grew 12 percent year-on-year in the first four months of 2018 and 33.9 percent year-on-year in April 2018.

According to the announcement, VTB Group’s net interest income stood at RUB156.5 billion in the first four months of 2018, up 4.1 percent year-on-year, and RUB40.2 billion in April 2018, up 7.8 percent year-on-year. Net interest margin was 4.1 percent in the first four months of 2018 and 4.1 percent in April 2018, unchanged in relation to the first four months of 2017 and April 2017.

The report went on to state that VTB Group’s net fee and commission income was RUB30.4 billion in the first four months of 2018 and RUB8.5 billion in April 2018. These figures demonstrated an increase of 15.6 percent and 28.8 percent year-on-year, respectively.

VTB Group’s total provisioning charges for debt financial assets impairment, for the impairment of other assets, as well as for credit-related commitments and legal claims amounted to RUB46.9 billion in the first four months of 2018 and RUB26.2 billion in April 2018, down 21.4 percent and up 89.9 percent year-on-year, respectively. Risk costs were 1.5 percent in the first four months of 2018 and 3.4 percent in April 2018 against 1.8 percent in the first four months of 2017 and 1.8 percent in April 2017.

Staff costs and administrative expenses for the VTB Group amounted to RUB83 billion in the first four months of 2018 and RUB19.9 billion in April 2018, up one percent and down 3.4 percent year-on-year, respectively. The cost-to-income ratio was 38.9 percent in the first four months of 2018 and 32.7 percent in April 2018 against 43.3 percent in the first four months of 2017 and 45.2 percent in April 2017.

VTB Group’s total assets as of April 30, 2018 amounted to RUB13,627 billion, a figure reflecting an increase of 3.9 percent for April and of 5.2 percent in year-to-date terms. Assets stood at RUB13,109.4 billion as of March 31, 2018 and at RUB12,947.4 billion as of January 1, 2018. Gross loans and advances to customers grew 0.6 percent in April and 1.7 percent year-to-date. Loans totaled RUB10,013.1 billion on April 30, 2018, RUB9,952.8 billion on March 31, 2018, and RUB9,841.1 billion on January 1, 2018. Gross loans to legal entities increased by 0.1 percent in April and by 0.7 percent year-to-date, while gross loans to individuals increased by 2.1 percent in April and by 4.8 percent year-to-date.

VTB Group’s NPL ratio (nonperforming loans) was 7.6 percent of total gross loans as of April 30, 2018, up 50 basis points (bps) month-on-month and 70 bps year-to-date. As of April 30, 2018, the NPL coverage ratio was 104.3 percent. The ratio stood at 105.8 percent as of March 31, 2018 and 107.9 percent as of January 1, 2018.

VTB Group’s total customer deposits grew 1.8 percent in April and 3.9 percent year-to-date, reaching RUB9,497.9 billion as of April 30, 2018. Deposits held by legal entities increased 0.4 percent in April and 0.2 percent year-to-date, while deposits from individuals grew 3.7 percent over the month of April and 9.4 percent year-to-date.

VTB Group’s loan-to-deposit ratio was 97.1 percent as of April 30, 2018. The entity’s loan-to-deposit ratio was 98.7 percent on March 31, 2018 and 99.6 percent on January 1, 2018.

As of April 30, 2018, the group’s tier one capital adequacy ratio (CAR) was 12.7 percent (March 31, 2018: 12.7 percent, January 1, 2018: 12.6 percent), and the total CAR was 14.4 percent (March 31, 2018: 14.5 percent, January 1, 2018: 14.4 percent).