Russian bank VTB delays forecast despite record profit in 2021

Logos are displayed outside a branch of VTB bank in Moscow, Russia May 30, 2019. REUTERS/Evgenia Novozhenina

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MOSCOW, Feb 22 (Reuters) – Russian state bank VTB (VTBR.MM) on Tuesday reported record net profit of 327.4 billion rubles ($4.1 billion) in 2021, but said that it would give no forecast until the markets stabilized.

Collectively, Russian banks made a record profit of 2.4 trillion rubles last year as a rebound from the coronavirus crisis revived loan growth and boosted interest in real estate assets, the bank said. central last month. Read more

However, shares of VTB fell 18.25% on Monday, underperforming the broader Russian market, amid fears that new Western sanctions in response to Moscow sending troops to two separatist regions backed by Russia in eastern Ukraine does not target key financial institutions. Read more

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Russian stock indexes took a hit after President Vladimir Putin recognized the regions’ independence, a move the West fears could portend a major war. Read more

Shares of VTB, Russia’s second-largest bank by assets, were down 3.1% at 0843 GMT on Tuesday, after earlier hitting their lowest level since March 2020.

VTB board member Dmitry Pyanov declined to comment on the bank’s dividend plans and gave no forecast for the coming year.

“The market situation is currently very volatile, so we refrain from making financial forecasts for 2022,” Pyanov told reporters. “We plan to update the market on our expectations and plans for 2022 once the market situation stabilizes.”

VTB’s net profit in the fourth quarter was 69.8 billion rubles, compared to 16.2 billion rubles in October-December 2020. Its profit for the full year was up from 75.3 billion rubles in 2020.

The bank said its return on equity (RoE), a key measure of profitability, rose to 16.5% in 2021, while its cost of risk fell 120 basis points to 0.7%.

Provisions for bad debts fell to 116 billion rubles from 249.8 billion rubles, VTB said, while its net interest margin fell to 3.7% in the fourth quarter from 3.9% in July. -September.

($1 = 79.7025 rubles)

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Reporting by Elena Fabrichnaya; Written by Alexander Marrow; Editing by Andrey Ostroukh and Alexander Smith

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Shawanda H. Saldana