Net profit of VTB under RAS in June amounted to 17.5 billion rubles, an increase of 175 times compared to the same month last year, the bank’s press service reported.
Net interest income increased by more than a third in annual terms – to 51.9 billion rubles. This is due to an increase in the volume of interest-bearing assets – the loan portfolio and debt securities of Russia.
Net fee and commission income grew at an outstripping pace, VTB noted. It amounted to 12.9 billion rubles, which is 38.7% more than in June 2020.
The total loan portfolio of the bank in June increased by 0.4%. The volume of loans to individuals increased by 3.7% and reached 3.8 trillion rubles, and to legal entities, on the contrary, decreased by 0.9% – to 8.8 trillion rubles.
In general, over the six months, VTB’s RAS net income grew 2.5 times compared to the same period last year. It amounted to 129.5 billion rubles. Net interest and commission income increased by 28.7% and 36.3% to RUB 287.1 billion. and 77.8 billion rubles. respectively.
“The results of June and the first half of the year reflect the bank’s reaching a stable level of profitability against the background of a significant increase in the balance sheet and the volume of transactions in the current year. The combination of strong organic business growth, normalization of impairment costs and moderate growth in costs creates the basis for strong results in the second half of the year and for the whole year, ”said Mikhail Kovalenko, Senior Vice President, Head of Accounting and Reporting at VTB.
In the first half of 2020, against the backdrop of the coronavirus pandemic, VTB’s RAS net profit decreased by almost 2.2 times compared to the same period in 2019 and amounted to 51.8 billion rubles. The bank explained that this was due to an increase in the provision for possible losses and an estimated provision for expected credit losses on loans.
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