Russia’s second-largest lender VTB reported a 63 percent decline in net profit last year as the COVID-19 pandemic triggered a hike in provisions against bad debt.
State-run VTB saw its net profit shrink to RUB 75.3 billion. Before the coronavirus hit Russia’s economy, VTB had aimed to make up to RUB 230 billion in 2020.
The company is now targeting net profit of RUB 250-270 billion in 2021, according to board member Dmitry Pyanov. This year, VTB sees its retail loans growing above the market, which it expects to expand by 10 percent, and corporate loans to increase by 5 percent.
In the fourth quarter, VTB’s net profit reached RUB 16.2 billion, down from RUB 73.2 billion in October-December of 2019. The bank’s financial performance took a hit from provisions against bad loans that VTB increased 150 percent year-on-year to RUB 63.9 billion in the fourth quarter.
