VTB Bank announced a remarkable 223% increase in profit for November, reaching ₽47.5 billion. For the first 11 months of the year, the bank's earnings totaled ₽452.2 billion, an 8% rise compared to the same period last year.
However, net interest income saw a significant decline, dropping 67% in November to ₽22 billion and 32% year-to-date to ₽473 billion. In contrast, commission income surged by 57% in November to ₽26 billion and increased 24% to ₽241.5 billion over the 11 months, largely attributed to cross-border payment services.
The bank's total loan portfolio grew by 1.4% in November and 16.3% since the beginning of the year, now standing at ₽24.4 trillion. Corporate loans rose by 2.5% in November and 20% year-to-date to ₽17 trillion, while individual loans declined by 1% in November but increased by 8.6% since the start of the year.
Client funds also experienced growth, rising 1.3% in November and 17.6% year-to-date to ₽26.3 trillion.
VTB's CEO, Andrey Kostin, previously expressed concerns about competition from marketplace financial services, which he believes pose a threat to traditional banks due to their regulatory advantages.
In early December, VTB acquired a 49.99% stake in Post Bank for ₽36 billion, a share it had previously sold to Russian Post.
Market analysts note that the bank's performance aligns with expectations, but the substantial profit increase in November may be linked to VTB's open currency position, where the bank holds more foreign assets than liabilities, leading to revaluation gains.
However, there are concerns regarding the sustainability of this profit due to potential illiquidity of some assets resulting from sanctions. Analysts maintain a neutral-to-negative outlook on investing in VTB shares, despite the bank's low valuation multiples, as high key interest rates continue to pressure the loan portfolio.