VTB First-Quarter Profit Far Below Market Consensus
16 Maggio 2016 - 9:31AM
Dow Jones News
By Andrey Ostroukh
MOSCOW--VTB, Russia's second-largest lender, reported a
first-quarter profit far below a market consensus.
VTB said it earned 0.6 billion rubles ($9.25 million) in net
profit in the first three months of 2016 versus a net loss of 18.3
billion rubles in the same period a year ago. Analysts polled by
Interfax news agency had on average expected VTB to report a net
profit of 5.8 billion rubles.
"VTB Group's results for the first quarter reflect the continued
stabilization of business activity in the Russian economy as a
whole, and more predictable macroeconomic conditions following the
volatility seen in the same period a year ago," Andrey Kostin, head
of VTB, said in the earnings report.
A year ago, VTB and other banks suffered from the central bank's
decision to jack up the key interest rate to 17% from 10.5% in
mid-December of 2014 to limit the ruble's depreciation. Since then
the key rate has been lowered to 11% and the rate of inflation has
fallen to 7% from nearly 17%. Analysts predict the economy may
return to growth within a year.
VTB said its net interest income under international financial
reporting standards rose to 98.3 billion rubles in the first
quarter of this year from 44.4 billion rubles in the same period of
2015 because of a 19% drop in interest expenses.
The monetary policy easing during 2015 along with re-pricing of
assets and liabilities helped VTB to bring the net interest margin
to 3.4% in the first-quarter of 2016, up from 1.6% in the first
quarter of 2015 and 3.2% in the fourth quarter of 2015.
Provision charge, or the amount of hedge money against bad
loans, slid 17% over the year to 40.6 billion rubles in the first
three months of 2016, VTB Group said.
Write to Andrey Ostroukh at andrey.ostroukh@wsj.com
(END) Dow Jones Newswires
May 16, 2016 03:16 ET (07:16 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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