May 8, 2020 / 7:01 AM / 23 days ago

Russia's VTB Q1 net profit slips because of higher provisions

MOSCOW, May 8 (Reuters) - Russian state bank VTB’s first-quarter net profit fell 14% year-on-year to 39.8 billion roubles ($539.98 million)because of higher provisions against non-performing loans and losses from the revaluation of its non-core assets, the bank said on Friday.

VTB, Russia’s second biggest bank, said it had set aside 45 billion roubles in provisions against non-performing loans (NPL), triple the amount it had earmarked for that purpose in the first quarter of 2019.

It said its NPL accounted for 4.9% of its overall loan portfolio, which was worth 12.1 trillion roubles as of end of March.

Dmitry Pyanov, a member of VTB’s board, said the bank could adjust its net profit guidance for this year and change its dividend payout ratio on last year’s results to make up for losses caused by the coronavirus crisis.

The bank had initially set its dividend payout ratio at 50%. ($1 = 73.7065 roubles) (Reporting by Tatiana Voronova Writing by Katya Golubkova Editing by Gabrielle Tétrault-Farber)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below