JSCVL JSC VTB Bank (CE)

By Andrey Ostroukh

MOSCOW--Russia's second-largest lender VTB Group (VTBR.MZ) saw a 12-fold increase in profit in the second quarter as the country's business activity improved, it said Tuesday.

Net profit rose to 14.8 billion rubles ($232 million) from 1.2 billion rubles in the same period a year ago, under international financial reporting standards.

The results reflect an improving economy: In 2015, Russia's gross domestic product shrank by 3.7%, while this year the economy is likely to start growing in the next few months, according to the government.

VTB said profit increased on the back of higher net interest income, which rose 65.4% on the year to 108.7 billion rubles in the second quarter.

The central bank's monetary policy easing played a positive role for VTB, which saw a 11.6% growth in net fee and commission income to 19.2 billion rubles.

The bank's provisions against bad losses increased to 62.3 billion rubles in the quarter from 31 billion rubles a year earlier.

"We are in a good position to benefit as Russia returns to economic growth, with a strong balance sheet, solid capital ratios and a sharp focus on continuously improving operational efficiency," Andrey Kostin, VTB's president and chairman, said in the earnings report.

Write to Andrey Ostroukh at andrey.ostroukh@wsj.commailto:andrey.ostroukh@wsj.com

(END) Dow Jones Newswires

August 16, 2016 04:22 ET (08:22 GMT)

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