VTB Faces Decline in Net Profit Amidst Net Interest Income Drop

Russian state-controlled lender VTB reported a 3.2% drop in net profits to 327.6 billion roubles over the first eight months, driven by a substantial decline in net interest income. Despite challenges, VTB anticipates a net profit of 500 billion roubles by 2025, with return on equity projected at 18%.

Russia's second-largest lender, VTB, has experienced a 3.2% slip in net profit totaling 327.6 billion roubles over the first eight months of this year. This decline was largely due to a sharp reduction in net interest income.

For 2025, VTB anticipates a net profit of 500 billion roubles with an expected return on equity of 18%, a decrease from last year's 550 billion roubles. Over the same period, net interest income saw a significant decline of 41.4%, amounting to 221.7 billion roubles. The net interest margin decreased to 1.3% in August and stands at 1% for the year to August, compared to 1.9% and 2% during the same times in 2024.

VTB's corporate loan portfolio expanded to 16.7 trillion roubles, showing a 1.1% rise in August and a 4.8% increase since the start of the year. In contrast, retail lending remained stagnant last month and fell by 4.2% from January to August, accounting for 7.5 trillion roubles.