Due to restrictive measures during the coronavirus pandemic, profits VTB in April fell more than four times – up to 900 million rubles. from 3.9 billion rubles. in April last year, the bank said in accordance with IFRS. In four months, the state bank earned 40.7 billion rubles, which is 19% less than a year earlier.
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The decrease in profits was also due to the growth of expenses on reserves: in four months, deductions more than doubled, to 62.4 billion rubles. Of this amount, 17.3 billion rubles, or 28%, came in April. An additional contribution to the growth of reserves was made by the macronaddition – 10 billion rubles. for the I quarter and another 6.6 billion rubles. in April. Banks create such reserves not for specific loans, but in anticipation of upcoming problems and an increase in arrears in principle. From 16.6 billion rubles. 13.6 billion rubles for this type of reserves. the bank directed to lending to legal entities, 2.9 billion – to citizens.
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VTB sent an additional 6.6 billion rubles. reserves associated with the macronutrition factor because it worsened the forecast for a fall in Russian GDP, VTB board member Dmitry Pianov said at a press conference: if, according to the results of the first quarter, the macronavtag corresponded to the annual decline in Russia’s GDP by about 2%, now the basic scenario of the state bank assumes it drop within 3%.
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The deterioration in financial results was influenced by the retail business, Pyanov explained. According to him, the negative factor in operating income was restrictive measures and lack of access to retail customers. So, in April the commission income of the state bank fell by 20.5% to 6.6 billion rubles. compared with April last year amid a significant drop in business activity, the bank said.
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Company funds increased by 1% in April and by 9.1% in four months, amounting to 6.5 trillion rubles. The funds of individuals, on the contrary, decreased by 1.6% in April, but excluding currency revaluation, they grew by 0.4%. Since the beginning of the year, citizens ’funds have increased by 5.6% to 5.3 trillion rubles. Net interest income VTB in April amounted to 42 billion rubles, and in four months reached 161.7 billion rubles, having increased by 15.6% and 17.6%, respectively, compared to the same periods of the previous year. Net interest margin was 3.7% and 3.6% in April and four months, respectively (an increase of 40 bp year-on-year in both periods).
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In May, VTB recorded an increase in overdue debts of citizens and expects a likely continuation of this trend and an increase in reserves for loans to individuals, Pyanov noted, without giving specific numbers. “What we see at the end of May – in May we ended the holiday regime – we see, at least in the first half of May, a serious exit to the delay of loans to individuals, which was partially repaid, partially remained on the reporting date on May 31 in terms of technical, and in some cases not technical delay, ”said the banker.
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A similar situation is with Sberbank. In April, he earned 11.5 billion rubles. net profit, follows from its reporting according to Russian standards – 6.5 times less than in April last year. Its net fee and commission income for the month decreased by 20%, and deductions to reserves increased by 63 billion rubles. – largely due to macronutrients.
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Reporting VTB reflects the general situation in the market, says S&P analyst Roman Rybalkin: the bank expectedly continues to increase deductions to reserves (the cost of risk rose to 1.6% in annual terms for 4 months of 2020 compared with 1.5% for three months of 2020), fee and commission income from due to the recession in the economy. VTB probably has yet to create additional reserves in view of the expected increase in arrears and worsening financial position of borrowers – especially given that the financial statements of borrowers, reflecting the impact of the current situation, will be published only third in the quarter, the expert says.
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Profit of the banking sector in April fell 2.6 times to 32 billion rubles. compared with the same period a year ago, the Central Bank survey said: the decline in profits was mainly due to the negative revaluation of foreign currency transactions. According to the results of April, the ruble exchange rate strengthened relative to the March values, due to which banks lost more than 100 billion rubles. In March, when the ruble fell against the dollar and the euro, this, on the contrary, supported the profit of banks, the regulator noted.
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A coronavirus pandemic and a shocking drop in oil prices will inevitably lead to an economic recession in Russia, which means that the banking sector will not avoid losses in the loan portfolio, noted Analysts at the National Rating Agency (NKR): they modeled three scenarios for the development of the crisis. With the implementation of the most favorable, banks will finish this year with a profit of 706 billion rubles. When the worst is realized, the banks will actually go to zero, showing 2 billion rubles. loss.
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