VTB Group says IFRS net loss at 613 bln rbl in 2022

MOSCOW, Apr 5 (PRIME) -- The net loss of Russia's second biggest lender VTB Group amounted to 613 billion rubles in 2022, as calculated under International Financial Reporting Standards (IFRS), Deputy CEO Dmitry Pyanov told reporters on Wednesday.

The sum includes the purchase of Otkritie Financial Corporation (FC) Bank from the central bank in December 2022, Pyanov also said.

“Consolidation of Otkritie has brought a profit to the sum of 613 billion rubles (of loss)… We have bought 340 billion rubles of new assets of Otkritie, whose fair value amounts to almost 505 billion rubles,” he said.

“Excluding the income, VTB’s organic loss… is 777 billion rubles, which is close to the loss under Russian Accounting Standards (RAS),” he added.

The executive told reporters that VTB’s loss under RAS amounted to 765.8 billion rubles in 2022.

In January–February, the bank had a profit of 91.7 billion rubles under IFRS. In January–March, the profit should stand at a record high of 140 billion rubles, and in 2023, VTB expects a record profit of over 327 billion rubles under IFRS, he added.

Pyanov said that VTB’s assets increased by 17% in 2022 although the bank lost its foreign assets.

“Otkritie is inside the rise… It added 4 trillion rubles of assets to us. The price of the consolidation of Otkritie in assets terms is a 20% increase of our assets in December 2022,” he said.

Pyanov said that the bank’s retail loan portfolio grew by 17%, and the corporate loan portfolio grew by 18%, while the portfolio of retail deposits added 15%, and of corporate deposits gained 27% in 2022 also thanks to the Otkritie deal.

As seen by PRIME in VTB’s materials, the portfolio of corporate loans amounted to 11.76 trillion rubles, of retail loans to 5.6 trillion rubles, of corporate deposits to 11.1 trillion rubles, and of retail deposits to 7.4 trillion rubles as of the end of 2022.

Pyanov said that excluding the Otkritie purchase, VTB’s loans grew by 6%, companies’ deposits rose by 6%, and households’ deposits by 4% in 2022.

In January–February 2023, the retail loan portfolio grew by 0.2%, the corporate loan portfolio by 0.9%, the corporate deposits portfolio by 1.6%, and the retail deposits portfolio by 0.4%.

VTB expects growth of its lending and liabilities by 12% in the entire 2023.

VTB Group said in a statement that its provision for possible credit losses and other reserves went up to 514.3 billion rubles in 2022 from 116 billion rubles in 2021.

Pyanov said that VTB is unlikely to pay dividends for 2023 despite a profit.

He also said that the government’s stake in the bank following the first additional shares issue grew to 76.4% from 60.9%, and that the second issue of additional shares has started, but the shares will not be sold to the state.

(79.3563 rubles – U.S. $1)

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