Russian VTB Bank makes 22% ROE in 8M24

By bne IntelliNews October 1, 2024

Russia’s second-largest state-controlled bank VTB posted RUB41bn and RUB339bn net profit for August and 8M24 respectively, making a return on equity of 19% and 22%.

As followed by bne IntelliNews, VTB Group posted record profit under IFRS of RUB432bn (€4.4bn) for 2023, with net profit of RUB56bn in 4Q23 alone. The group has also revised upwards its record loss for 2022, from RUB613bn to RUB668bn (€6.8bn). Despite record profit of 2023, VTB’s management still has no plans to offer shareholders dividends.

In August, “the tangible growth in profit compared to July was due to an increase in the contribution of other income, including currency revaluation,” Renaissance Capital analysts commented on September 30.

VTB Bank maintains its profit forecast for 2024 at RUB550bn, a substantial part of which (RUB 108bn) is expected to come from continued work with frozen and sanctioned assets. In March 2024, VTB announced its medium-term strategy with a profitability target of 19%-20% and focus on the retail segment.

The bank is also preparing a major merger deal with the Postal Bank.

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