individuals and legal entities. VTB Capital Investments' income in 1Q 2021 reached RUB 7.0 billion, a twofold

increase year-on-year. ? VTB Capital Investments' customer base grew by 19% in the first quarter to over 1.4 million individuals and legal

entities. VTB Capital Investments' income in 1Q 2021 reached RUB 7.0 billion, a twofold increase year-on-year. ? VTB Capital Investments continues to develop the functionality of the VTB My Investments digital investment

platform. At the beginning of 2021, a service offering individual investment recommendations was launched in the

VTB My Investments app. As of the end of 1Q 2021, the app had about 290 thousand daily active users; the number of

daily transactions was 840 thousand, with turnover of up to RUB 115 billion. ? VTB Capital Asset Management has adopted a responsible investment policy that takes sustainability factors and

risks into account and avoids investments in companies with unacceptable ESG risks. VTB Capital Asset Management's

investment portfolios are off limits to companies that deliberately and systematically violate the basic principles

of human rights and environmental protection and permit misconduct in corporate governance.

Development of the product portfolio ? As part of the development of its transactional business, VTB launched a new digital service called VTB

Business-Online E-Workflow, which enables customers to sign legally binding documents and conclude multilateral

agreements electronically and to access electronic documents in real time, which greatly reduces the processing

time for transactions. ? The implementation of special niche solutions for customers continued. In particular, VTB introduced a new method

of making online payments on the Gazpromneft-Aero blockchain platform. The innovative solution using smart

contracts will enable airlines to pay for fuel at the moment of refuelling by means of a completely secure

financial transaction carried out in real time.

Medium and Small Business

Digitalisation of customer service, development of the product portfolio and expansion of transactional operations in 1Q 2021 ? The Bank expanded the geography of operations for its VTB-Kassa solution, which combines an online cash register

and a payment terminal and enables business operators to accept all types of payments using a single device. The

product is now available in all regions where the Bank operates. ? VTB began issuing fully digital virtual Visa and Mastercard business cards for small and medium-sized businesses.

Customers can apply for and manage their cards through online banking. ? VTB launched a new version of its VTB Business Lite mobile bank, which offers remote services for small business

operators. The app's design and navigation were updated to make them more user-friendly, and customer support chat

and other functions were launched. ? VTB updated its Cifra mobile app offering accounting services for small business owners. As of the end of 1Q 2021,

the app had more than 70 thousand users with 20 thousand customers having registered with the service in the past

three months. The service's response time has improved; in addition, the ability to send documents through the chat

function has been expanded to enable more comprehensive communication with specialists.

Customer support and the expansion of market coverage in 1Q 2021 ? In March 2021, VTB began accepting applications for a new state-run lending programme aimed at the recovery of

business activity in all regions where the Bank operates (Payroll 3.0). Funds are lent at an annual interest rate

of 3% and can be used to cover costs related to any business activity, including the payment of wages or the

payment of interest and principal on existing loan agreements.

Retail Business

Progress achieved in 1Q 2021 to digitalise customer service, develop the product portfolio, reduce the cost of funding and improve the customer experience ? The Bank introduced more than 70 updates to its flagship app and online bank VTB Online, including expanding the

range of functions and investment products available to the users of the app. In February 2021, for example, a

voice assistant was launched within VTB Online. In the first three months of 2021, customers completed 64 million

transfers through VTB Online worth more than RUB 500 billion, a twofold increase year-on-year. VTB Online's user

base grew by 500 thousand and reached 10.6 million active users, an increase of 26% year-on-year. ? In January 2021, VTB launched a unique online service for the Russian market called Smart Savings, which enables

users to select a portfolio of savings and investment products through mobile and online banking. The customer

chooses the investment strategy, amount and term, and the service offers an optimal portfolio of instruments,

including deposits, savings accounts, VTB bonds and federal bonds. ? In January 2021, VTB began issuing loans through the relaunched state programme for preferential car loans, which

enables borrowers to receive a loan for the purchase of an automobile at a discounted rate. The Bank has received

over 24 thousand loan applications through this programme. The state provided assistance in 28% of all sales from

January through March. In addition, a pilot project offering car loans to self-employed individuals was launched in

March 2021. ? VTB expanded its online car loan service to all of the Bank's customers, including iOS users. Approximately 7

thousand applications for car loans are processed through VTB Online every month.

Business digitalisation and the development of a digital ecosystem

Key business digitalisation initiatives in 1Q 2021 ? VTB began providing external partners with access to a new platform of open application program interfaces (APIs),

which enable companies from various sectors, including insurance and retail, to fully automate their connection to

VTB's services. Once connected to the platform, partners can create banking products under their own brands that

will be issued and serviced by VTB. ? Two systems were introduced: one to manage CRM offers for individuals, which allows to instantly fetch the latest

marketing offers for every customer; the other to manage customer data. ? VTB carried out a large-scale upgrade of its retail customer service system at Bank branches and its call centre in

the context of shifting all services and products to its omnichannel platform. As part of the Bank's Reliability

programme, equipment was upgraded to increase the reliability of VTB Bank's call centre to 99.99%, and a mobile app

was also introduced to improve the performance of the Bank's Situation Centre and to improve its response time to

emergency situations. ? In the context of its digital transformation programme, the Bank introduced an automated procurement planning and

implementation system that is based entirely on Russian software. ? The Bank began its transition to its target Automated Banking System: an efficient, powerful IT platform that is

scalable to meet growing business needs. The transition will unify customer service processes, while also reducing

the time to market for new products and services and improving the reliability of key services. ----------------------------------------------------------------------------------------------------------------------- Attachment File: VTB 1Q2021 IFRS Financial Results ----------------------------------------------------------------------------------------------------------------------- 


ISIN:          US46630Q2021 
Category Code: MSCM 
TIDM:          VTBR 
LEI Code:      LEI: 253400V1H6ART1UQ0N98 
Sequence No.:  102186 
EQS News ID:   1190937 
 
End of Announcement  EQS News Service 
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(END) Dow Jones Newswires

April 30, 2021 03:00 ET (07:00 GMT)