VTB posts 9M 2010 net profit of 38.8 billion roubles

Russia’s second largest bank, VTB, has posted a 9M 2010 net profit of 38.8 billion roubles under IFRS.

­The net result compares with a net loss of 45.5 billion roubles over the same period 2009, as 9M net interest income rose from 107.4 billion roubles to 129.5 billion roubles, and 9M operating income came to 118.4 billion roubles after an operating loss of 5.9 billion roubles a year earlier.

In its statement the bank noted that despite an overall economic recovery, with rising incomes and consumption, and falling unemployment, economic growth remained fragile.  But it noted 9M net fee and commission income was up 21% year on year to 17.8 billion roubles, boosted by a strong performance from its retail business. Customer deposits rose by 17% from the start of the year to reach 1.839 trillion roubles at the end of the reporting period, with corporate deposits up 13% over that period to 1.239 trillion roubles and retail deposits up 26% to 600 billion roubles.

VTB’s loan portfolio rose 10% over since the start of the year to reach 2.796 trillion roubles as non performing loans fell from 9.8% to 9.5%.

VTB President, Andrei Kostin, said the figures reflected the economic rebound and development of VTB’s corporate strategy.

“We are well on track to achieving the goals set out in the Group’s new strategy, as we continue to develop an unrivalled corporate and investment banking franchise and to build on strong earnings momentum in the retail business.”