Exec: VTB Bank’s IFRS net profit at 402.8 bln rbl in Jan–Oct

MOSCOW, Nov 24 (PRIME) -- The net profit of Russia’s second largest bank VTB amounted to 26.8 billion rubles in October and reached 402.8 billion rubles in January–October, as calculated under International Financial Reporting Standards (IFRS), First Deputy CEO Dmitry Pyanov told reporters on Friday without providing a comparison with the same period of 2022.

“We ended the month of October with a net profit of 26.8 billion rubles, which corresponds to a return on equity of 14.7%. This produces a net profit for the first 10 months of more than 400 billion rubles. Our accumulated result for the 10 months stands at 402.8 billion rubles to be exact, and return on equity amounts to 25.3% annually,” Pyanov said.

The two remaining months allow the bank to forecast that its net profit would exceed 430 billion rubles in 2023, he said.

In 2024, VTB Bank’s net profit calculated under IFRS should exceed 300 billion rubles but not 400 billion rubles.

The bank’s board of directors is to consider a new strategy of the banking group that encompasses a higher profit and return on equity until 2026 at the end of December, he said.

VTB’s results for 2023 and 2024 would allow it to cover a loss of 613 billion rubles that the bank suffered in 2022, he pointed out.

He also said that the regulator would possibly have to raise the inflation target for 2024 as it could be impossible for inflation to fall to 4–4.5% until the end of the year.

“All the indicators show that the regulator will have to do its best, to use all of its capabilities, all the open and hidden instruments, all the direct and indirect measures if it wants to drive inflation to the target of 4–4.5% before the end of next year,” Pyanov said.

“The chances of the range being raised some time in 2024 are non-zero because it is impossible to combat the mountain of pro-inflationary factors in such a short period of time.”

The next board meeting of the central bank in December may either raise the key rate again by 100 basis points to 16% or leave it unchanged at 15% annually, he said.

(88.1206 rubles – U.S. $1)

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