VTB posts highest ever quarterly profit

Russia’s second largest lender, VTB,
posted its highest ever quarterly net profit of RUB15.3bn ($491.5m)
in the first quarter of 2010, versus a loss of RUB20.5bn in the
comparable period of 2009. 

Retail banking pre-tax profit also swung
to a profit RUB6.7bn, from a loss of RUB4.3bn in the first quarter
of 2009.

The bank said its retail deposit market
share was maintained at 5.9%, despite strong competition for retail
deposits. 

Retail deposits were up 4% to
RUB493.6bn in the first quarter of 2010, from RUB476.5bn at the end
of December 2009.  

A subdued demand for loans in the first
quarter pushed the bank to focus its efforts on “expanding
operations with quality customers”, but consumer loans still edged
4% higher to RUB190.5bn in the first three months of the
year. 

The group’s market share in retail
lending also jumped 30 basis points to 10.5%. 

The result comes as VTB announced a
three-year strategy plan to double its annual profits and boost its
retail presence in Russia (VTB sets out
3-year strategy plan). 

Andrei Kostin, VTB chairman said: “I am
pleased that the efforts to re-orientate the group towards areas
which can drive profitability are bearing fruit. With the new
strategy announced, I look forward to building on our strong
franchise and delivering solid returns in the future.”

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