VTB Bank assets have grown 64%, to RUB 2,473 billion from RUB 1,507 billion according to Russian Accounting Standards (RAS), during the eleven months of 2008. In November alone, the Bank's assets increased 12%.
Encouraged by the Russian Government to provide lending support to the real economy, VTB continues to extend financing to the leading industries. The Bank's corporate loan portfolio, before provisions, has increased 78% to RUB 1,409 billion over the eleven months of 2008.
This was achieved due to the considerable growth in funds raised from corporate customers, a RUB 200 billion subordinated loan from Vnesheconombank and the funding received by VTB from the Russian Government to support the country's financial sector liquidity. Since the beginning of 2008, corporate customers' accounts and deposits have grown 50 percent.
As of 1 December 2008, the Bank's net profit amounted to RUR 12.2 billion against RUR 2.6 billion as of 1 November 2008. This result was primarily caused by increased interest and fee income, as well as the positive revaluation of foreign currency assets compensating for the negative effect of similar operations in October. As stated earlier, the Bank's risks related to its foreign exchange operations are fully hedged with the hedging operations being reflected in the off-balance accounts and not affecting the RAS accounting.
Nikolai Tsekhomsky, member of VTB's Management Board, commented, "Despite the current turbulent market, VTB is continuing to achieve its priorities. Our current objective is to continue our financial support to both industrial leaders and medium-sized businesses, with a special focus being placed funding sources and loan quality and terms including margins to compensate appropriately for risk. We are actively monitoring and managing our loan portfolio to maintain a reasonable risk level."
The unconsolidated financial statements prepared under Russian Accounting Standards are only for the parent bank - JSC VTB Bank.