Retail wins banking business
Retail wins banking business
Last year was the most successful in the history of the retail business of VTB24 Bank. He again entered the top three most powerful banks in Russia, earning a record profit of 47 billion rubles. The bank’s growth is ahead of the market by about 1.5%, therefore, the organization’s management intends to continue working with retail operations.
For the second year in a row, VTB24 is one of the three most profitable banks in Russia. Last year, the bank earned 47 billion rubles, net profit amounted to 37 billion rubles. This was announced at a press conference on the results of 2012, the President and Chairman of VTB24 Mikhail Zadornov.
He noted that “compared with 2011, net profit increased by 28%. In terms of the growth rate of net profit, the bank is 1.5 times ahead of the market. 2012 was the most successful in the history of VTB24.” This is not surprising – VTB24 assets increased by 25% (301 billion rubles) to 1.47 trillion rubles. Such was the market trend – the growth of assets of the entire banking sector of the Russian Federation last year amounted to 18.9%.
According to analysts at Investkafe, in 2011, VTB received 24.4 billion rubles. net profit according to IFRS standards, of which 37.7% (9.205 billion rubles) were allocated to dividend payments. As a result, the dividend per share amounted to 0,00088 rubles, which implies a dividend yield of 1.39%.
“Last year, VTB received 21.56 billion rubles, which is 2.4% higher than the same indicator in 2011. The dividend policy of the group suggests that payments in 2010-2013 will amount to 10-20% of net profit under IFRS. Considering that VTB’s profit for the year will not be lower than in 2011, it is obvious that the amount of dividend payments can be the same as a year earlier, that is, about 37.7% according to RAS. , will amount to at least 8.128 billion rubles. This implies that the dividend per share will be equal to 0.00078 rubles. “, – knula expert Ekaterina Kondrashov.
VTB24 is also a leader (second in the market) in terms of the amount of attracted funds of the population. The retail attraction portfolio grew by 18.6% (172 billion rubles) to 1.1 trillion rubles. The volume of deposits of individuals increased by 22% (146.5 billion rubles) to 818.5 billion rubles. The issuance of loans to small businesses increased last year compared to 2011 by 1.8 times. In total, the bank issued loans worth 156.4 billion rubles, Vedomosti noted.
Banks independently choose the most successful form of interaction with their own customers. One of the most sought-after products launched by VTB24 last year was the Business Express loan. Sales began in April last year, and until December loans worth 28 billion rubles were issued. The advantage of this product is the consideration of applications within three days. A loan can be issued in the amount of 1 to 4 million rubles at a rate of 14.5% per annum.
Also, the program on lending to developers brought its results. Under the terms of the new program, the bank will provide loans to developers working in the regions of Russia for at least three years. All the facilities being constructed under the project are multi-storey buildings of the Economy and Economy + class.
Attracting loans from AHML as part of a program to provide loans for the construction and purchase of housing can also become successful. As part of the program, AHML assumes obligations to finance VTB24 operations in terms of lending to housing projects.
Thus, preliminary results under IFRS, profit according to international reporting standards showed the success of the areas of work, Zadornov emphasized. At this stage, retail has been and remains a priority with an average margin in the sector above 10%. The bank can send part of its earned profit to its own capitalization in order to maintain the required capital adequacy ratio. This complies with the requirements of the Bank of Russia, which last year toughened them several times. But according to the results of the year, VTB24 Bank showed such results that neither the management, nor the shareholders will become worse from this. And the credit organization has a good long-term potential in the long term.