In October 2008, JSC VTB Bank assets according to Russian Accounting Standards (RAS) increased 11%. Over the ten months of this year, the Bank`s assets have grown 46%, to RUR 2,207 billion from RUR 1,507 billion. Its corporate loan portfolio has increased 61% over the same period. As well, there has been considerable growth in funds raised from corporate customers; since the beginning of 2008 corporate customers` accounts and deposits have grown 86%. This growth includes the funding the Bank has received from the Russian Government supporting the liquidity of the Russian financial sector.
As of 1 November 2008, the Bank`s net profit amounted to RUR 2.6 billion against RUR 7.4 billion as of 1 October 2008. This result was primarily caused by the negative dynamics in the financial markets, including volatile currency markets and the mark to market revaluation of the Bank`s securities portfolio.
As noted in previous months, the Bank`s risks related to its securities investments and foreign exchange positions have been hedged and the relative deals are not reflected in its balance sheet. Increased provisions for possible loan losses also affected the financial results in the reporting month.
Nikolai Tsekhomsky, Chief Financial Officer and member of VTB's Management Board, commented, "The current difficult environment in the global financial markets of course affected VTB's financial results. But looking at the larger picture, we are continuing to do our best to meet the Bank`s targets. All our strategic benchmarks for the coming years remain unchanged."
The unconsolidated financial statements have been prepared under Russian Accounting Standards only for the Parent Bank - JSC VTB Bank.