VTB Group 2012 Profit Drops Less Than Forecast as Lending Grows

VTB Group said profit fell 4 percent percent last year, a smaller drop than analysts forecast as Russia’s second-biggest bank boosted lending.

Net income attributable to shareholders declined to 85.8 billion rubles ($2.7 billion) from 89.4 billion rubles a year earlier, the Moscow-based bank said in a statement today. That beat an average estimate of 78.9 billion rubles from eight analysts surveyed by Bloomberg.

Gross loans increased 10.8 percent last year to 5.1 trillion rubles. The lender said its Tier 1 capital ratio, a measure of financial strength, rose to 10.3 percent from 9 percent at the start of the year. The share of non-performing loans was unchanged compared with Dec. 31, 2011 at 5.4 percent. The bank’s net interest margin, which measures the profit margin on lending, rose 4.2 percent in the year.

“We made considerable progress in strengthening capital and optimizing risk in our asset base,” VTB Chief Executive Officer Andrey Kostin said in the statement.

VTB shares listed in Moscow jumped 1.6 percent to 4.6 kopeks as of 11:43 a.m. in Moscow. The Micex Index (VTBMICX) rose 1 percent.

To contact the reporter on this story: Vladimir Kuznetsov in Moscow at vkuznetsov2@bloomberg.net

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net

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