The Russian banking system's net profit in 2017 will be record high and exceed Rub 1 tln, VTB 24 president and management board chairman Mikhail Zadornov thinks.
Primary factors that will allow banks to reap record profit, as Zadornov thinks, are as follows. Firstly, banks will allocate less funds to provisions as the growth rate of NPLs is slowing down. Secondly, fewer banks will go bankrupt. The VTB 24 CEO hopes that the main stage of the banking system's cleanup has already come to a close. And the third factor is a continuing reduction in the cost of liabilities (deposit rates will keep falling), and finally banks will contain the cost side.
Zadornov also noted that VTB 24 posted record net profit of Rub 43.1 bln (under RAS) in 2016. The banking system's total net profit amounted to Rub 930 bln in 2016.
VTB 24's total credit portfolio reached Rub 1.88 tln in 2016, while the mortgage portfolio expanded 14% to Rub 879.1 bln.
Also, VTB 24 saw its deposit portfolio growing. VTB 24's retail deposits jumped 4.5% to Rub 2.11 tln last year.
