Retail boosts VTB’s first half net profit to RUB25.1bn

Russia’s VTB bank said it posted “record” net
profit of RUB25.1bn ($813.5m) in the first half of 2010, reversing
a loss of RUB31.5bn in the year-ago period.

The bank said its retail segment “increased
strongly” with a pre-tax profit of RUB11.1bn versus a loss of
RUB4bn in the first half of 2009.

Retail loans stood at RUB441.9bn, up 7% from
RUB 413.2bn in the year-ago period. 

VTB’s market share in retail loans reached
10.7% by the end of the first half of 2010, up from 10.2% at the
end of 2009.

Retail deposits jumped 32.7% to RUB551
billion, up from 415.2bn in the year-ago period.  Market share
in retail deposits was flat at 6.1%. 

VTB24, the retail bank, increased its branch
network to 480 from 476 during the six months to June 2010. The
number of ATMs also ticked 6% higher to 4,272 in the same
period.

The results are in line with VTB’s three-year
strategy, unveiled in May, that aims to double annual profit, grow
its branch network by 40%, and ramp up its cross-sell to three or
four products per person from two products. 

The three strategy plan targets net earnings
of RUB120bn by 2013.

Retail banking should account for around 20%
to 25% of assets and net profits by 2013, according to VTB’s
plan.

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