VTB reports interim losses
by Richard Kilner
Story link: VTB reports interim losses
Russian bank VTB has announces its unaudited interim results for the first half of the year.
The bank saw customer deposits surge by 41.7% to RUB 1.6 trillion, with core income up (on a year-on-year basis) by 36.8% to RUB 80bn.
Net fee and commission income was also up sharply, increasing by more than a quarter on both a year-on-year basis and from Q1 to Q2.
However, for the first half of the year VTB incurred a loss of RUB 31.5bn due to the high cost loan loss provisions (RUB 96.6bn) although the loss did decline in Q2 compared to Q1.
A similar issue affected Sberbank, which saw its half-yearly profits shrink to from RUB 96.6bn to just RUB 7.1bn, despite significant rises in operating income, net fee and comission income and interest income.
Andrei Kostin, VTB’s president and chairman, has said that the results come during a difficult economic time, but expressed the view that the second half of 2009 would see the beginnings of signs that the bank was starting to recover.
