JSC VTB Bank (VTBR) 
JSC VTB Bank: VTB Group announces IFRS financial results for November and 
11M 2020 
 
29-Dec-2020 / 08:00 CET/CEST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
VTB Group announces IFRS financial results for November and 11M 2020 
 
VTB Bank, the parent company of VTB Group (the "Group"), today publishes its 
unaudited consolidated IFRS financial results for November and the first 11 
months of 2020. 
 
Andrey Kostin, VTB President and Chairman of the Management Board, said: 
"Our performance in November and 11 months of the year is in line with our 
updated forecasts for 2020, which includes the negative economic impact of 
the coronavirus pandemic on our profitability. 
 
 "VTB's net profit in November amounted to RUB 5.4 billion. In 11M 2020, the 
Group earned RUB 69.9 billion, which corresponds to ROE of 4.5%. Even taking 
        into account the drop in transactional activities in spring, we have 
      achieved excellent operating performance and robust growth of business 
         volumes and our customer base. I am confident that the considerable 
         provisions created this year will enable VTB Group to return to our 
                            strategic track to profitability going forward." 
 
In 11M 2020, the Group demonstrated excellent operating performance and 
strong business growth 
 
? As of 30 November 2020, loans and advances to customers (hereinafter 
before provisions) amounted to RUB 13.1 trillion, up 14.3% since the 
beginning of the year (8.5% adjusted for the effect of currency 
revaluation). In November 2020, the total loan portfolio remained 
unchanged (adjusted for the effect of foreign exchange revaluation, it 
grew 0.8%). 
 
? Loans to individuals increased by 0.6% in November to RUB 3.8 trillion; 
growth since the beginning of the year was 13.4%. Mortgage lending, which 
continues to increase at a faster pace, was up 1.8% in November and 21.3% 
for 11M 2020. 
 
? In November, loans to legal entities decreased by 0.2% (adjusted for the 
effect of currency revaluation, however, an increase of 0.8% was 
recorded). Loans to legal entities increased by 14.6% in 11M 2020 and 
amounted to RUB 9.3 trillion as of 30 November 2020 (adjusted for the 
effect of currency revaluation, the increase was 6.7%). 
 
? As of 30 November 2020, customer funding amounted to RUB 12.9 trillion. 
In November 2020, total customer funding increased by 0.7% (excluding the 
effect of currency revaluation, customer funding increased by 2.0%). Since 
the beginning of the year, customer funding has grown by 17.9% (excluding 
the effect of currency revaluation, the increase is 10.6%). 
 
? Customer funding from legal entities increased by 1.3% in November 
(excluding the effect of currency revaluation, the increase was 2.6%). 
Since the beginning of the year, customer funding from legal entities has 
grown by 24.7% and amounted to RUB 7.4 trillion as of 30 November 2020 
(excluding the effect of currency revaluation, the increase was 18.1%). 
 
? Customer funding from individuals decreased by 0.1% in November 
(excluding the effect of currency revaluation, it increased by 1.3%). 
Since the beginning of the year, funding from individuals has increased by 
9.9%, amounting to RUB 5.5 trillion as of 30 November 2020 (excluding the 
effect of currency revaluation, funding from individuals increased by 
1.8%). 
 
? The share of customer funding in the Group's total liabilities increased 
in 11M 2020 to 80.0% (compared with 79.2% as of 31 December 2019). 
 
? As a result of the faster growth in customer funding, the 
loans-to-deposits (LDR) ratio decreased to 94.3% as of 30 November 2020 
(compared with 98.2% as of 31 December 2019). 
 
Profitability metrics were under pressure in the context of the COVID-19 
pandemic against a backdrop of higher provisions and a revaluation of 
investment properties, while core banking income has demonstrated robust 
growth 
 
? VTB Group's net profit amounted to RUB 69.9 billion in 11M 2020 and RUB 
5.4 billion in November 2020, down 57.7% and 69.7% year-on-year, 
respectively. 
 
? Net interest income was RUB 482.3 billion for 11M 2020 and RUB 47.4 
billion in November 2020, up 20.8% and 25.4% year-on-year, respectively. 
 
? Net interest margin was 3.7% for 11M 2020 and in November 2020 (an 
increase of 40 bps and 30 bps year-on-year, respectively). The net 
interest margin has risen amid the easing of monetary policy and the 
fast-paced revaluation of liabilities. 
 
? Net fee and commission income showed organic growth year-on-year and 
amounted to RUB 108.0 billion for 11M 2020 (up 22.2% year-on-year) and RUB 
12.1 billion in November 2020 (up 61.3% year-on-year). The strong growth 
in fee and commission income was supported by the fast pace of growth in 
the Group's transaction business and by steadily increasing commissions 
from the sale of insurance products. 
 
? The cost of risk was 1.9% for 11M 2020 and 2.8% in November 2020, up 
from 0.9% and 0.6% year-on-year, respectively. The provision charge 
amounted to RUB 224.7 billion for 11M 2020 and RUB 29.5 billion in 
November 2020, an increase of 2.4x and 4.3x year-on-year, respectively. 
 
? The allowance for loan impairment was 6.9% of the total loan book 
(before provisions) as of 30 November 2020, an increase of 10 bps in 
November and 90 bps since the beginning of the year. 
 
? The non-performing loans (NPL) ratio was 5.3% as of 30 November 2020 (up 
60 bps since the beginning of the year). The NPL coverage ratio was 128.6% 
as of 30 November 2020 (compared with 128.7% as of 31 December 2019). 
 
? Staff costs and administrative expenses amounted to RUB 234.6 billion 
for 11M 2020 and RUB 21.3 billion in November 2020, up 3.6% and 8.1% 
year-on-year, respectively. The cost-to-income (CIR) ratio was 43.1% in 
11M 2020, up from 42.6% a year earlier. 
 
Attachment 
 
File: VTB Group IFRS 11M2020 Financial Highlights [1] 
 
ISIN:          US46630Q2021 
Category Code: MSCM 
TIDM:          VTBR 
LEI Code:      253400V1H6ART1UQ0N98 
Sequence No.:  90463 
EQS News ID:   1157669 
 
End of Announcement EQS News Service 
 
 
1: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=18af1533745a035212dd7ff50bb99469&application_id=1157669&site_id=vwd&application_name=news

(END) Dow Jones Newswires

December 29, 2020 02:00 ET (07:00 GMT)