VTB Bank net interest income increased 88%
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VTB group net interest income increased by 88% year-on-year to RUB 207.0 billion in 1H 2016.
After the Central Bank of Russia’s key rate spike in December 2014, the easing of monetary policy throughout 2015 - 2016, combined with continued re-pricing of assets and liabilities, helped bring the net interest margin for 1H 2016 to 3.7%, up from 2.0% in 1H 2015. Net interest margin in 2Q 2016 grew to 4.0%, versus 3.4% in 1Q 2016.
The provision charge was RUB 102.9 billion, up 28.8% year-on-year.
For 1H 2016, the group’s provision charge was RUB 102.9 billion, up 28.8% year-on-year.
The group’s cost of risk (the annualised ratio of the provision charge for loan impairment to average gross loans and advances to customers) was 1.4% in 1H 2016, compared to 1.7% in 1H 2015.
The group's annualised costs-to-average assets ratio was 1.8% for 1H 2016 versus 1.7% for 1H 2015, while the ratio of cost to operating income before provisions improved to 49.1% for 1H 2016 versus 61.9% for 1H 2015. ■