VTB Group announces 2024 IFRS financial results
VTB Bank (“VTB” or the “Bank”), the parent company of VTB Group (the “Group”), today publishes its summary consolidated financial statements prepared in accordance with the International Financial Reporting Standards (“IFRS”) together with the independent auditor’s report for the year ended 31 December 2024.
Dmitry Pianov, First Deputy Chairman of the Management Board and Chief Financial Officer of VTB Bank, said:
“VTB Group showed record-high results in 2024, with a net profit of RUB 551.4 bn, a 27.6% increase year-on-year. ROE was at 22.9% at year-end.
Strong profitability was supported by active business growth, with the loan portfolio up 13.2% year-on-year, and customer funding up 20.5%.
2024 was the first in our three-year strategy, and VTB Group surpassed the strategy targets not only in terms of profit but also by the number of active retail customers, whose number grew by a record 5.2 million, reaching over 24.5 million.
The financials of 2024 were boosted by our effective work with frozen assets and robust growth of net fee and commission income at 24%.
VTB Group’s performance in 2024 has become a solid foundation for further business development in 2025, when the challenging operating conditions for banks will remain, and for reaching the strategic 2024–2025 profit target”.
VTB Group IFRS financial results
The Group achieved business growth significantly above initial expectations
VTB Group (IFRS): balance sheet highlights
| (RUB billion) | 31 December 2024 | 30 September 2024 | Change q-o-q | 31 December 2023 | Change YTD |
|---|---|---|---|---|---|
| Assets | 36,070.2 | 33,668.5 | 7.1% | 29,382.2 | 22.8% |
| Loans and advances to customers, including pledged under repurchase agreements, before provisions | 23,763.7 | 23,730.0 | 0.1% | 20,999.6 | 13.2% |
| Loans to legal entities | 15,938.3 | 16,041.5 | -0.6% | 14,019.2 | 13.7% |
| Loans to individuals | 7,825.4 | 7,688.5 | 1.8% | 6,980.4 | 12.1% |
| Customer funding | 26,926.8 | 25,592.5 | 5.2% | 22,346.8 | 20.5% |
| Funding from legal entities | 13,907.6 | 14,337.1 | -3.0% | 12,741.7 | 9.2% |
| Funding from individuals | 13,019.2 | 11,255.4 | 15.7% | 9,605.1 | 35.5% |
| NPL ratio | 3.5% | 3.2% | 30 b.p. | 3.2% | 30 b.p. |
| LDR ratio | 84.0% | 88.0% | -4.0 p.p. | 88.9% | -4.9 p.p. |
As at the end of 2024, VTB Group’s total loan book (before provisions) amounted to RUB 23.8 trillion, up 13.2% year-on-year. Throughout the year, the total loan book expansion gradually decelerated due to the Bank of Russia’s tighter monetary policy and restrictive macro prudential measures. In 4Q 2024, growth stood at 0.1%, compared to 3.0% in 3Q 2024, 4.1% in 2Q 2024, and 5.4% in 1Q 2024 respectively.
Loans to individuals in 2024 increased by 12.1% year-on-year to RUB 7.8 trillion. Retail lending growth decelerated notably in 2H 2024, with an increase of just 1.8% in 4Q 2024. Loans to legal entities in 2024 grew by 13.7% year-on-year to RUB 15.9 trillion. A pattern of decelerating growth emerged toward the year’s end, with the Group’s corporate loan book contracting by 0.6% in 4Q 2024. Loans to small and medium-sized enterprises in 2024 rose by 17.1% year-on-year, reaching RUB 3.8 trillion, or 16% of the Group’s total loan book. As a result, the share of retail lending in the Group's total loan book remained flat at 33% as at 31 December 2024 (33% as at 31 December 2023).
As at 31 December 2024, the Group’s total customer funding increased by 20.5% year-on-year to RUB 26.9 trillion. The growth in funding from individuals significantly outpaced that from legal entities. Funding from individuals in 2024 rose by 35.5% year-on-year to RUB 13.0 trillion, while funding from legal entities went up by 9.2% year-on-year to RUB 13.9 trillion. The share of funding from individuals in the Group’s total customer funding increased from 43% as at the end of 2023 to 48% as at the end of 2024.
The loan-to-deposit ratio (LDR) decreased to 84.0% as at 31 December 2024 compared to 88.9% at the end of 2023.
The Group achieved strong profitability despite increased pressure on the net interest margin and tighter banking regulations
| (RUB billion) | 4Q 2024 | 4Q 2023 | Change | 2024 | 2023 | Change |
|---|---|---|---|---|---|---|
| Net interest income | 65.0 | 190.6 | -65.9% | 487.2 | 761.4 | -36.0% |
| Net fee & commission income | 82.4 | 58.8 | 40.1% | 269.0 | 217.0 | 24.0% |
| Other operating income | 155.1 | -11.3 | 14.8x | 316.6 | 127.3 | 148.7% |
| Net operating income (before provisions) | 302.5 | 238.1 | 27.0% | 1,072.8 | 1,105.7 | -3.0% |
| Provision charge for expected credit losses and other provisions(1) | 73.0 | -57.2 | -2.3х (reсovery) | -20.1 | -187.2 | -89.3% |
| Staff costs and administrative expenses | -155.8 | -127.9 | 21.8% | -478.8 | -400.3 | 19.6% |
| Net profit | 176.4 | 55.9 | 215.6% | 551.4 | 432.2 | 27.6% |
| Return on equity (RoE) | 27.0% | 10.3% | 16.7 p.p. | 22.9% | 22.3% | 60 b.p. |
| Net interest margin (NIM) | 0.8% | 2.9% | -210 b.p. | 1.7% | 3.1% | -140 b.p. |
| Cost of risk (CoR) | -0.6% | 0.5% | -110 b.p. | 0.3% | 0.9% | -60 b.p. |
| Cost/income ratio (CIR) | 51.3% | 53.7% | -240 b.p. | 44.6% | 36.2% | 840 b.p. |
(1) Includes provisions for expected credit losses on debt financial assets, credit-related commitments, other financial assets, court actions and other commitments.
In 2024, VTB Group achieved a record net profit of RUB 551.4 billion, up 27.6% year-on-year. In 4Q 2024, net profit reached RUB 176.4 billion, a 215.6% increase compared to the same period last year. The Group solidified its position among the top banks in terms of profitability, reporting a return on equity of 22.9% in 12M 2024 (up from 22.3% in 12M 2023). In 4Q 2024, return on equity reached 27.0%, compared to 10.3% in 4Q 2023.
Net operating income before provisions amounted to RUB 1,072.8 billion in 2024 (down 3.0% year-on-year) and RUB 302.5 billion in 4Q 2024 (up 27.0% year-on-year) respectively. Net interest income decreased by 36.0% year-on-year to RUB 487.2 billion in 2024 and by 65.9% year-on-year to RUB 65.0 billion in 4Q 2024 due to pressure on the Group’s net interest margin. Net interest margin was 1.7% in 2024, compared to 3.1% in 2023, and 0.8% in 4Q 2024, compared to 2.9% in 4Q 2023.
Net fee income was RUB 269.0 billion in 2024, up 24.0% year-on-year, and RUB 82.4 billion in 4Q 2024, up 40.1% year-on-year, largely due to a positive contribution from foreign exchange transactions and transaction fees related to cross-border payments.
The Group posted a full-year 2024 provision charge of RUB 20.1 billion, with a RUB 73.0 billion provision release in 4Q 2024. The release of provisions in 4Q contributed to a decline in the cost of risk in 12M 2024, which stood at 0.3%, compared to 0.9% in 2023. In 4Q, the cost of risk turned negative at -0.6%, compared to 0.5% in 4Q 2023.
As at 31 December 2024, the share of NPLs in the total loan book remained low at 3.5%, attesting to the strong health of VTB Group’s loan portfolio. The NPL provision coverage declined to 138.7% following the release of provisions for several large loans to legal entities (compared to 169.8% as at 31 December 2023).
Staff costs and administrative expenses totalled RUB 478.8 billion in 2024 and RUB 155.8 billion in 4Q 2024, up 19.6% year-on-year and 21.8% year-on-year respectively, driven by the planned increase in investments in technology and transformation, expansion of the retail segment as per the Group’s new development strategy, and recognition of staff costs and administrative expenses of RNCB, which was consolidated by VTB Group in March 2023. The ratio of costs to net operating income before provisions was 44.6% in 12M 2024 (36.2% in 2023) and 51.3% in 4Q 2024 (53.7% in 4Q 2023), while the ratio of costs to assets was consistently low at 1.5% in 12M 2024 (1.5% in 2023).
The Bank’s capital adequacy ratios are at levels exceeding the regulatory minimums. As at 1 January 2025, the N20.0 ratio (total capital) was 9.1% (minimum allowable value, including buffers, – 8.75%), N20.1 (CET 1 capital) was 6.2% (minimum allowable value, including buffers, – 5.25%) and N20.2 (Tier 1 capital) was 8.1% (minimum allowable value, including buffers, – 6.75%).
Highlights of VTB Group's global business lines
Retail Business. In 2024, the number of active retail customers expanded by a record 5.2 million, reaching over 24.5 million customers and surpassing the market's largest player by the share of growth. During the year, more than 7.8 million VTB customers utilised deposits or savings accounts, with every third VTB customer today being a depositor. At year-end, VTB Online served over 22 million monthly active users (MAU), with monthly adoption of digital services growing by almost 50% year-on-year.
In 2024, monthly Me2Me transfers to VTB via the Faster Payments System exceeded RUB 500 billion. The amount of card purchases through POS terminals and payments made by individuals in favor of legal entities (C2B) increased by 40% compared to 2023. The Bank actively rolled out new product offerings, driving customer acquisition: the redesigned loyalty programme introduced rouble-based cashback with increased monthly limits across all segments. VTB pioneered the Family Bank concept and introduced the Loved Ones section in VTB Online, enabling group formation. VTB customers have established more than 3 million family connections by now. A comprehensive federal advertising campaign attracted 740,000 new customers.
Medium and Small Business. At year-end 2024, the Bank serviced approximately 1.67 million businesses and entrepreneurs. During the year, VTB implemented a new service model, assigning relationship managers to all clients regardless of size, turnover, or tenure. Also, the Bank expanded its presence to Crimea and new regions, introducing specialised "South" service packages tailored to regional business requirements.
Corporate Investment Business. By year-end 2024, VTB Group served 24,000 major corporate clients and 1,800 company groups, achieving 86% market coverage. The Bank maintained its market position in Corporate Investment Business loans and deposits while significantly expanding its current account market share, despite the interest rate and competitive funding environment. VTB Bank strengthened its leadership in investment services, encompassing structured products, precious metals, currency exchange transactions, bonds, digital financial assets, derivatives, and other financial instruments. Throughout 2024, the Bank prioritised developing international settlement solutions to support clients' foreign economic activities amidst current market constraints. The Internet bank platform for Corporate Investment Business clients earned top rankings in independent assessments, reflecting enhanced process automation and product delivery.
VTB's retail brokerage assets grew by 17% to exceed RUB 1.6 trillion in 2024, with the customer base expanding to 3.6 million. The Bank introduced weekend trading and withdrawal capabilities for brokerage clients, extended its Advisory team's regional presence to 22 cities for in-person investment consultations, pioneered shareholder meeting voting through the VTB My Investments app, and launched the FinCode educational platform. VTB began offering brokerage services to legal entities in 2024. The Bank received recognition as the Best Bond Market Company in the Capital Market Elite contest, while VTB My Investments earned the Investfunds Award for Best Brokerage Mobile App.
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