VTB Group announces IFRS results for the full year and the fourth quarter of 2020


VTB Bank (“VTB” or “the Bank”), the parent company of VTB Group (“the Group”), today publishes its Consolidated Financial Statements for 2020, along with the independent auditor’s report on these statements.

Andrey Kostin, VTB President and Chairman of the Management Board, said:

"The year 2020 was a time of unprecedented challenges for the banking industry as a result of the COVID-19 pandemic and ensuing economic restrictions. In this context, VTB Group’s top priorities were looking after the health and safety of its partners and employees; supporting every type of client that found themselves in a difficult situation; and ensuring strong operating performance amid a rapid acceleration of the technological transformation of our services and business processes.

"In 2020, net interest income and net fee and commission income increased by 19%, underpinning the strength and sustainability of VTB’s business model. At the same time, staff and administrative expenses increased by just 6%. Over the year, we grew our loan book by 15%, significantly increasing mortgage issuance. Client funding rose by 17% and the Group also became the leader in terms of client inflows into investment products. VTB Bank added 1 million individuals and legal entities to its client base in Russia, bringing the total number of active clients to 14.9 million. At the same time, the negative economic impact of the pandemic required a steep rise in provisions, which drove net profit down to a level considerably below our target.

“In 2020, around 400 thousand of our individual clients who faced a drop in their incomes took advantage of payment holidays to restructured debt worth over RUB 300 billion. For small and medium-sized businesses affected by the pandemic, VTB restructured loans worth approximately RUB 230 billion and the total amount of loans restructured for large businesses amounted to RUB 1.3 trillion. As part of the Russian state programme for lending to restart business activities, VTB provided support to more than 20 thousand legal entities, which provide employment for over 1 million people.

“Throughout the year, we improved the functionality, reliability and stability of VTB’s digital services for retail and corporate clients. In particular, a new VTB Online app was launched in November. This app now has 10 million active users. We also launched a number of partnerships that offer VTB customers expanded possibilities and strengthen the Group’s position in the digital economy. We maintain our strategic commitment to delivering 100% of our products online while delivering 50% of our sales remotely and minimising the use of paper documents. The digital transformation of business amid economic recovery and continued robust growth in operating performance will support the Group’s further development. We are confident that this year our profit performance will reach the target level stated in our strategy.”


RUB billion

31 December 2020

30 September 2020

31 December 2019

Change in 2020, % or bps

Change in 4Q 2020, % or bps







Loans and advances to customers, including pledged under repurchase agreements (before loan loss provisions), as reported






Loans to legal entities






Loans to individuals






Customer deposits






Deposits from legal entities






Deposits from individuals






NPL ratio




100 bps


LDR ratio




-260 bps

-190 bps

In 2020, VTB Group demonstrated solid business growth and resilience in the face of negative economic trends

The total loan book grew by 14.8% in 2020, and customer deposits increased by 16.9%

  • In FY 2020 and 4Q 2020, the Group’s total loan book increased by 14.8% and 1.7%, respectively, to RUB 13,162.6 billion. Adjusted for the effect of foreign currency revaluation, the increase in the total loan book for the year was 9.2% (2.8% for 4Q 2020) amid the recovery in corporate lending in the second half of the year and accelerated growth in the portfolio of retail loans to individuals during the year.
  • Loans to legal entities increased by 14.9% during the year (7.2% adjusted for foreign currency revaluation) mainly due to the expansion of corporate lending in 3Q and 4Q 2020 against the backdrop of an economic recovery.

  • Loans to individuals grew by 14.6% during the year largely due to a 24.3% increase in mortgage lending, which was partly offset by a decrease in the volume of car loans. The Group’s mortgage portfolio expanded in 4Q 2020 by a record RUB 122.4 billion, which was in part due to VTB’s participation in a state-run mortgage assistance programme launched in April 2020. Since the start of the programme, VTB has issued over 63 thousand preferential-rate mortgage loans worth RUB 198 billion.
  • As of the end of 2020, secured loans (mortgages and car loans) accounted for 55.2% of total retail lending, an increase of 170 bps in 4Q and 340 bps for FY 2020.

Customer funding increased by 16.9% in 2020

  • Customer funding in FY 2020 and 4Q 2020 grew by 16.9% and 3.7%, respectively, to RUB 12,831.0 billion. Adjusted for the effect of foreign currency revaluation, the increase was 10.5% and 6.0%, respectively.
  • Customer funding from legal entities increased by 19.6% and 4.0% in FY 2020 and 4Q 2020 (adjusted for the effect of foreign currency revaluation 13.9% and 6.3%), respectively. Customer funding from individuals increased by 13.8% and 3.4% (excluding the effect of foreign currency evaluation 6.4% and 5.6%), respectively, in particular due to an increase in balances in brokerage accounts and in balances in escrow accounts used for the acquisition of housing from real estate developers.
  • In 2020, the Group saw a considerable increase in the share of current accounts in total customer funding: from 25.2% as of 31 December 2019 to 40.1% as of 31 December 2020.
  • The loans-to-deposits (LDR) ratio was 95.6% as of 31 December 2020, down from 97.5% as of 30 September 2020 and 98.2% as of 31 December 2019.

Income statement

RUB billion

FY 2020

FY 2019

Change, %

4Q 2020

4Q 2019

Change, %

Net interest income







Net fee and commission income







Operating income before provisions







Provision charge(1)







Staff costs and administrative expenses







Net profit







(1) Includes provision charge for credit losses on debt financial assets, provision charge for credit losses on credit-related commitments and other financial assets, and provision charge for legal claims and other commitments.

In 2020, key banking income demonstrated solid growth, with net interest income and net fee and commission income increasing by 20.7% and 12.5%, respectively.

  • The Group’s net profit was RUB 75.3 billion in FY 2020 and RUB 16.2 billion in 4Q 2020, down 62.6% and 77.9% year-on-year, respectively, due to an increase in provision charges and a negative revaluation of non-core assets amid the COVID-19 pandemic.
  • Net interest income for 2020 increased by 20.7% year-on-year, reflecting the growth in interest-earning assets and an increase in net interest margin. Net interest margin was 3.8% for both FY 2020 and 4Q 2020, up from 3.4% and 3.5% for FY 2019 and 4Q 2019, respectively. The easing of monetary policy and decline in the cost of funding that outpaced the decrease in the return on interest-earning assets had a positive impact on net interest margin during the year.
  • Funding costs for FY 2020 decreased by 150 bps year-on-year to 3.7%, driving down interest expense by 21.4% year-on-year, while interest income decreased at a slower rate of 4.6%. The return on interest-earning assets decreased by 90 bps during the year to 7.5%.
  • Net fee and commission income for FY 2020 increased by 12.5% year-on-year to RUB 136.8 billion. The growth in net fee and commission income was driven mainly by robust growth in commissions on operations with securities and in capital markets, supported, inter alia, by the robust development VTB Capital Investments’ business and by rising commissions from the sale of insurance products.
  • Staff costs and administrative expenses for FY 2020 amounted to RUB 269.9 billion, an increase of 6.2%, including as a result of investments in IT infrastructure as part of digitalisation initiatives. The Group continues to take measures to reduce costs and improve operational efficiency in line with its strategy and long-term development priorities. The costs-to-assets ratio decreased to 1.6% in FY 2020, down from 1.7% a year earlier.

External factors, including oil price volatility and the COVID-19 pandemic, drove up the cost of risk and provisioning costs in 2020

  • The cost of risk increased by 110 bps in 2020 to 1.9%. Provision charges amounted to RUB 249.8 billion, an increase of 141.8% year-on-year. The increase in provision charges was due to the impact of the COVID-19 pandemic on the Russian economy and the quality of the Group’s loan book. At the same time, amid the gradual improvement in the economic situation, the Group’s cost of risk decreased in 4Q 2020 by 50 bps from the previous quarter.
  • The NPL ratio stood at 5.7% of gross customer loans as of the end of the year, unchanged from 30 September 2020 and up from 4.7% as of 31 December 2019. The allowance for loan impairments was 6.8% as of 31 December 2020, up from 6.0% as of 31 December 2019. The NPL coverage ratio was 120.6%.

Key results and initiatives of the Group’s Global Business Lines

Supporting customers affected by the COVID-19 pandemic

  • Retail clients: VTB provided robust support for individual borrowers facing financial difficulties as a result of restrictive measures related to COVID-19. Around 400 thousand of our clients were able to take advantage of repayment holidays to restructure debt worth over RUB 300 billion.
  • Large business clients: VTB participated in programmes to support backbone sectors affected by the pandemic. In 2020, VTB provided concessional financing to 75 groups of large businesses. The total amount of loans restructured for large businesses amounted to RUB 1.3 trillion.
  • Medium and small business clients: The Bank restructured approximately RUB 230 billion in loans to medium and small businesses affected by the pandemic.

Leadership in investment banking

In 2020, VTB Capital confirmed its leadership in the Russian investment banking market.[1] The Company ranked first in terms of the number and volume of M&A transactions in Russia and the CIS. VTB Capital was also recognised as the leader in equity capital markets in Russia, the CIS and Eastern Europe and was #1 in debt capital markets in Russia and the CIS.

VTB Capital Investments continues to see rapid growth in assets under management and in fee and commission income

  • VTB Capital Investments’ assets under management increased in FY 2020 and 4Q 2020 by 74% and 16%, respectively, to RUB 3.4 trillion. The assets of retail and corporate clients rose by 88% and 60%, respectively, during the year. VTB Capital Investments’ client base grew by 60% to 1.2 million individuals and legal entities. VTB Capital Investments’ fee and commission income almost doubled year-on-year in 2020 to RUB 21.8 billion.
  • Total trading volume for 2020 exceeded RUB 23 trillion, three times the volume for 2019.
  • VTB Capital Investments remains focused on the development of its digital investment platform, VTB My Investments. The VTB My Investments mobile application saw active users quadruple during the year to over 1 million; the average number of daily active users increased fivefold to 260 thousand.
  • The company continued to improve the functionality of its investment platform in 2020. In particular, clients were given the opportunity for the first time in Russia to participate in IPOs and SPOs on Moscow Exchange via a mobile application. In addition, the company began to use artificial intelligence technologies to create portfolios of securities as part of its automated investment advice service (robo-advisor).

In 2020, VTB Capital Investments attracted investments worth RUB 160 billion in mutual investment funds. The amount of client funds invested in mutual funds increased by 59% during the year to RUB 160 billion. VTB’s portfolio consists of 57 investment funds, including nine ETFs.

Corporate Investment Business global business line

  • In partnership with key real estate developers, VTB continued to scale up its residential development finance model using escrow accounts. In 2020, the Bank financed 154 housing projects worth more than RUB 354 billion. During the year, VTB clients opened more than 47 thousand escrow accounts, with balances in excess of RUB 240 billion.
  • As part of the development of online services for VTB’s transactional business, a standard service was introduced enabling corporate clients to accept payments from individuals using the Faster Payment System.
  • The Bank continued to implement special niche solutions for clients, including the launch of a project enabling payment for travel in Moscow’s public transport system using a biometric facial recognition system. The service was successfully piloted in the Moscow metro in 2020.

Retail Business global business line

Customer experience improvement and digitalisation projects

  • In November 2020, VTB released a new version of its VTB Online mobile application and online bank, featuring a major update to its design and architecture. The outstanding features of the new version of the application include its simplicity and ease of navigation, as well as greatly expanded functionality. The application now operates twice as fast as before, and its maximum capacity tripled.
  • In December 2020, VTB Online’s active users exceeded 10.1 million, an increase of 25% over the year. Earlier, Markswebb took note of VTB Online’s systematic development by including VTB among its top five Internet banks in the “Daily Banking” category.
  • As part of implementation of the strategic task of moving financial services online, VTB continued to introduce new digital tools for consumer, mortgage and car lending. In December 2020, VTB became one of the first banks in the Russian market to enable customers to get a car loan and complete a purchase entirely online by submitting an application through VTB Online (launched in January 2021).

Medium and Small Business global business line

Projects to ensure growth of the client base, expand market coverage and increase transaction activity

  • VTB Bank’s medium and small business client base increased by more than 25% in 2020 to 636 thousand.
  • In December 2020, VTB updated its VTB Business Lite mobile bank to serve entrepreneurs. The application added new functionalities, such as invoicing, as well as simplified transfers to legal entities and individuals or between a business’s own accounts. Thanks to the product update and promotion of the application, the number of users increased 150% in 2020 to almost 90,000.
  • VTB Bank is constantly developing products that make day-to-day banking more convenient for entrepreneurs. In 4Q 2020, we launched a pilot product called VTB-Kassa. This is a state-of-the-art business solution that combines the functionality of a cash register (including online data transfer to the Federal Tax Service) and a terminal for accepting bank cards. The device also enables customer payments through the Faster Payment System. In addition, we made it possible for entrepreneurs to remotely reserve a current account via the bank’s website with minimal client data required.

In 4Q 2020 and throughout the year, the Group implemented a number of flagship technological transformation projects:

  • A targeted processing layer was added to the unified omnichannel platform, which enables customers to use key services and products 24/7 through any one of the Bank’s convenient communication channels (the application, branch offices, personal accounts, the call centre, etc.); customers can change the method they use to contact the Bank easily and without restrictions.
  • As part of its technological transformation strategy, the Bank continued introducing automated solutions and machine learning technologies in its digital services, such as investment advisory service available through the VTB My Investments application.
  • In November 2020, the Bank’s updated automated collection service was launched. In addition to collecting overdue debts, the service offers borrowers loan restructuring.
  • VTB transferred processing for all pre-approved loans and digital credit cards through VTB Online to a new retail credit conveyor (RCC 2.0). The volume of applications processed through RCC 2.0 quadrupled, while the processing time decreased three-fold. The approval rate for loan applications in the new conveyor for guaranteed pre-approved offers increased by 11 pp from 53% to 64%.

[1] According to Dealogic, Refinitive, Mergermarket and Bloomberg rankings