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2021-02-25

VTB Group announces IFRS results for the full year and the fourth quarter of 2020

JSC VTB Bank (VTBR)
VTB Group announces IFRS results for the full year and the fourth quarter of 2020

25-Feb-2021 / 08:01 CET/CEST
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VTB Group announces IFRS results for the full year and the fourth quarter of 2020

 

VTB Bank ("VTB" or "the Bank"), the parent company of VTB Group ("the Group"), today publishes its Consolidated Financial Statements for 2020, along with the independent auditor's report on these statements.

Andrey Kostin, VTB President and Chairman of the Management Board, said:

"The year 2020 was a time of unprecedented challenges for the banking industry as a result of the COVID-19 pandemic and ensuing economic restrictions. In this context, VTB Group's top priorities were looking after the health and safety of its partners and employees; supporting every type of client that found themselves in a difficult situation; and ensuring strong operating performance amid a rapid acceleration of the technological transformation of our services and business processes.

"In 2020, net interest income and net fee and commission income increased by 19%, underpinning the strength and sustainability of VTB's business model. At the same time, staff and administrative expenses increased by just 6%. Over the year, we grew our loan book by 15%, significantly increasing mortgage issuance. Client funding rose by 17% and the Group also became the leader in terms of client inflows into investment products. VTB Bank added 1 million individuals and legal entities to its client base in Russia, bringing the total number of active clients to 14.9 million. At the same time, the negative economic impact of the pandemic required a steep rise in provisions, which drove net profit down to a level considerably below our target.

"In 2020, around 400 thousand of our individual clients who faced a drop in their incomes took advantage of payment holidays to restructured debt worth over RUB 300 billion. For small and medium-sized businesses affected by the pandemic, VTB restructured loans worth approximately RUB 230 billion and the total amount of loans restructured for large businesses amounted to RUB 1.3 trillion. As part of the Russian state programme for lending to restart business activities, VTB provided support to more than 20 thousand legal entities, which provide employment for over 1 million people.

"Throughout the year, we improved the functionality, reliability and stability of VTB's digital services for retail and corporate clients. In particular, a new VTB Online app was launched in November. This app now has 10 million active users. We also launched a number of partnerships that offer VTB customers expanded possibilities and strengthen the Group's position in the digital economy. We maintain our strategic commitment to delivering 100% of our products online while delivering 50% of our sales remotely and minimising the use of paper documents. The digital transformation of business amid economic recovery and continued robust growth in operating performance will support the Group's further development. We are confident that this year our profit performance will reach the target level stated in our strategy."

 

 

FINANCIAL HIGHLIGHTS

 

RUB billion

31 December

2020

30 September

2020

31 December

2019

Change in 2020, % or bps

Change in 4Q 2020, % or bps

Assets

18,142.2

17,425.7

15,516.1

16.9%

4.1%

Loans and advances to customers, including pledged under repurchase agreements (before loan loss provisions), as reported

13,162.6

12,936.6

11,461.5

14.8%

1.7%

Loans to legal entities

9,305.4

9,188.5

8,096.2

14.9%

1.3%

Loans to individuals

3,857.2

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