VTB has planned for profit growth to reach ₽650 billion by 2026

Based on the results of the new three-year development strategy, VTB plans to earn 650 billion rubles. The state bank plans to return to paying dividends by the end of 2025, their size should be 80 billion rubles.

President and Chairman of the Board of VTB Andrey Kostin presented financial goals as part of the group’s new development strategy for 2024–2026. The bank's profit by 2026 should amount to 650 billion rubles.

The previous strategy was adopted for the period 2019–2022, but after the start of the Russian military operation in Ukraine and the imposition of sanctions against VTB, Kostin said that the group would develop a new one. Work on it continued throughout 2023, the document was approved by the VTB Supervisory Board on December 19, 2023.

“It (the strategy -) was the result of our rethinking of the situation that has developed in recent years, of the new tasks facing the country, society, and the bank,” Kostin said. Commenting on the results of the previous strategy, he emphasized that the tasks that the bank set “were completed, despite the fact that the latest events of February 2022 made significant adjustments to our activities.” VTB also implemented a digital transformation program for the bank - Kostin estimated the effect of digitalization at 350 billion rubles.

The bank's net profit at the end of 2024 could amount to 435 billion rubles, at the end of 2025 - 520 billion rubles, the return on capital will be at the level of about 19%, and in 2026 - about 20%, follows from the presentation, which presented by the first deputy chairman of VTB Dmitry Pyanov. VTB also plans to return to paying dividends by the end of 2025. Their size should be 80 billion rubles. VTB’s market share in terms of assets should be at least 18%, and in foreign economic activity - at least 15%, Kostin added.

The bank expects the key rate to remain high even with “victory over inflation,” Pyanov said. So, by 2026 it should decrease from the current 16% to 9% with inflation of 4%. In the long term, it will be at the level of 8%, Pyanov added. “High real rates and tight regulation are dragging market growth to a six-year low, with lending growth slower relative to liabilities,” the bank said in a presentation.

The main shareholder of VTB is the Russian government - it owns 61.8% of voting shares. Since 2022, VTB has been under blocking sanctions from the US , EU , UK , and Canada. This means that the bank's assets in these countries are frozen, and citizens and companies from these countries are prohibited from dealing with VTB and its structures.

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Based on the results of the previous strategy, VTB planned to receive 310 billion rubles in 2022. net profit. As a result, this result was achieved back in 2021, when net profit amounted to 327.4 billion rubles. But in 2022, against the background of the imposed sanctions, VTB received a record loss of 756.8 billion rubles. according to RAS and 612.6 billion rubles. according to IFRS. Before this, the group recorded a loss only in 2009 due to the global financial crisis, but then it was significantly less - 59.6 billion rubles. according to IFRS. As Pyanov explained, the loss when assessed under IFRS turned out to be less than under RAS, because the bank took into account one-time income of 165 billion rubles. from the merger of Otkritie, otherwise the group’s “organic loss” would have amounted to about 777 billion rubles. However, the bank’s business indicators began to improve at the beginning of 2023, and according to its results, VTB’s net profit reached a record 432.3 billion rubles. according to IFRS.

What other goals has VTB set?

Earlier, the bank spoke about development plans for certain business areas: retail business , technological transformation, servicing small and medium-sized businesses (SMEs), as well as the corporate and investment block.

During the implementation of the new strategy, VTB wants to increase the availability of its financial services to 100 million Russians; now the bank covers more than 50 million people in cities with a population of 100 thousand or more. To do this, he plans to increase the number of branches by 40%, to 1.8 thousand points and open offices in cities with a population of 20 thousand people. The bank also plans to develop courier delivery of its products so that in 2026 it will operate in 23 thousand cities and towns. The active customer base should be expanded to 35 million people.

Over three years, the bank plans to increase the volume of ruble savings of retail clients from 6.2 to more than 11 trillion rubles. Thus, VTB’s share in the ruble savings market of individuals will exceed 21%. The bank expects that growth drivers will be ruble demand funds. VTB also intends to increase its share in the payroll projects market: by 2026, the number of payroll clients should grow by at least 40% and reach 11 million people. VTB plans to focus on developing its brokerage business. He wants to increase his market share to 25%. Currently, the VTB broker's clients are more than 3.2 million clients, and about 1.4 trillion rubles are under management. In the corporate investment business, the loan portfolio and deposits should grow by an average of 9% per year over the three years of the strategy. As a result, VTB's share in the market for loans to large businesses should be 21.1%, and in the deposit market - 22.6%. The number of clients - representatives of SMEs over three years should increase by one and a half times, and the growth of the SME loan portfolio should be 40%. Currently, the bank’s services are used by 1.3 million clients, entrepreneurs and companies.