OREANDA-NEWS. On December 10, 2007 VTB, Russia’s leading universal banking group, has announced preliminary consolidated IFRS financial results for 9M2007.  Final results for the quarter are to be published on December 21, 2007, reported the press-centre of VTB Bank.

By the end of September 30 2007, the VTB Group’s total assets had increased by 41,7% to US$74,255 million. Total gross loan portfolio of the Group grew by 53,3% to US$46,345 million, with loans to individuals increasing by 2,2 times. Net interest income before provisions increased by 46,2% year-on-year to US$1,732 million, and net fee and commission income went up by 56,8% amounting to US$414 million. In the reporting period, operating income of the Group increased by 41,9% to US$2,570 million from US$1,811 million in the first nine months of 2006.  Net profit was US$1,051 million for the nine-month period ended September 30, 2007 compared to US $816 million for the same period last year.

Financial Highlights
Profit and Loss Account (as compared to 9M2006):
Interest income increased to US$3,643 million, up 41,2%;

Net interest income before provisions increased to US$1,732 million, up 46,2% or US$547 million;

Net fee and commission income increased to US$414 million, up 56,8% or US$150 million;

Consolidated net profit for 9M2007 amounted to US$1,051 million, up 28,8%, mostly due to the increase of the net interest income and net fee and commission fee.

Assets and Funding (as compared to December 31, 2006):
Total gross loans and advances to customers increased by 53,3% to US$46,345 million. Gross loans to individuals grew strongly by US$3,084 million or 121,8% and totaled US$5,617 million. The share of loans to individuals in the total gross loan portfolio increased to 12% by the end of June 2007 compared to 8% at the end of December 31, 2006. Corporate loan portfolio (gross) increased by 47,0% to US$40,728 million from US$27,702 at the end of 2006;

Securities portfolio totaled US$13,985 million as compared to US$8,957 million (including approximately 5% of shares of EADS);

Customer deposits increased to US$28,923 million, up 44.7%, with deposits of individuals up by 31,4% to US$9,630;

Wholesale funding (which includes debt securities issued, other borrowed funds and subordinated debt) increased by 10,5% to US$19,011 million.  The share of wholesale funding in total liabilities decreased to 32,6% from 37,9% in 2006.

Comments:
Andrei Kostin, President-Chairman of the Management Board:
“We are pleased to announce a set of numbers that show continued out-performance, despite the tough Global market conditions.  We are well on track to hit our targets at year end and will face the challenges of 2008 with a solid and stable foundation.”
   
Nikolai Tsekhomsky, Member of the Management Board and CFO:
“Having spent a huge amount of time and effort on the IPO process, our Q3 numbers show that we have not taken our eye off the ball in terms of the core business.  We are especially happy that the quality of our earnings has continued to increase, with the majority of the upside year to date coming from net interest income, fees and commissions.”