KEY OPERATING RESULTS OF THE YEAR 2009
Despite the difficult macroeconomic situation, VTB has consolidated its position in key business segments and has reached the stated strategic objectives; Group Investment Business, VTB Capital, has shown a record result for pretax profit of 16.4 billion rubles in the first full year of operations; Retail Bank Group, VTB 24, has strengthened its position as the second largest player in the retail banking market in Russia, significantly ahead of the market at a growth rate of loans and deposits. FINANCIAL HIGHLIGHTS
Income from operating activities increased by 33% compared to the same period last year to 173.2 billion rubles; Net interest income increased by 34% to 152.2 billion rubles; Net interest margin increased to 5,3% in the fourth quarter of 2009, a record high in history as a public VTB Group, as compared to 4,4% in the third quarter of 2009 and 4,6% in the fourth quarter of 2008; Net fee and commission revenue grew 29% to 21 billion rubles Value of expenditure and income from operations decreased to 44 , 1% compared with 51.9% in 2008 deterioration of the quality of loan portfolio slowed down – the volume of non-performing loans amounted to 9,8%, non-performing loans coverage ratio is a comfortable reserve at 95%; net loss of $59.6 billion rubles due to the increased cost of redundancy in the amount of 154.7 billion rubles. structure of liabilities had improved due to increased share of clients’ funds in liabilities to more than 50% and full repayment of unsecured loans, borrowed from the Bank of Russia; As a result placement of additional issue shares of capital adequacy ratio reached 20.7% of VTB. Andrei Kostin, President – Chairman of the Board of VTB, said: “VTB has made considerable progress in the development of one of the strongest retail banks and leading investment bank in Russia. With stable funding structure, we were also able to significantly expand its customer base, strengthening relationships with corporate clients. These businesses are already making a significant contribution to revenue and profit of the Group. Last year was difficult for VTB, and for the banking sector as a whole, but our achievements are a good basis for the success of the Group in terms of economic growth in 2010 В».
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