Finance
Russia's VTB reports drop in quarterly profit, raises full-year outlook
Published by Global Banking and Finance Review
Posted on July 31, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on July 31, 2025
2 min readLast updated: January 22, 2026
VTB reports a 10% drop in Q2 profit but raises its full-year forecast, citing improved commission income despite sanctions.
By Elena Fabrichnaya
MOSCOW (Reuters) -Russia's second-largest lender VTB on Thursday reported a 10% year-on-year drop in second-quarter net profit to 139.2 billion roubles ($1.72 billion), as high interest rates squeezed the bank's net commission income.
VTB raised its full-year profit forecast to 500 billion roubles from 430 billion roubles, noting that the bank has started earning more on commissions for cross-border transactions, in spite of sweeping Western sanctions.
VTB's net interest income slumped by 30% year-on-year in the quarter to 94.2 billion roubles, but banks are set to benefit from easing borrowing costs after the central bank slashed its key interest rate by 200 basis points to 18% last week.
The prospect of lower rates is allaying concerns about a rise in the share of consumer debt falling overdue. Earlier this month, VTB CFO Dmitry Pyanov told Reuters that every 1% cut in central bank interest rates gives Russia's VTB Bank an extra 20 billion roubles in net profit.
Cut off from the SWIFT global financial messaging system as the West imposed sanctions on Russia over the conflict in Ukraine, VTB slumped to a sanctions-induced loss in 2022, but has rebounded since then.
The bank said it now expects net fee and commission income in 2025 to increase by around 10%, having previously expected a similar level to 2024.
Pyanov put this outlook improvement down to improved cross-border trade and conversion payments.
Throughout 2025, VTB has been freeing up capital from its retail loan portfolio and directing this to its corporate and investment business.
VTB's Moscow-listed shares rose after the bank reported results, but dropped after VTB announced another share issue in which it expects to raise 80-90 billion roubles.
By 0812 GMT, VTB's shares were trading 2.5% lower on the day.
($1 = 80.8000 roubles)
(Reporting by Elena Fabrichnaya; Writing by Alexander Marrow; Editing by Louise Heavens)
Net profit is the amount of money a company has left after all its expenses, taxes, and costs have been subtracted from its total revenue.
Interest rates are the amount charged by lenders to borrowers for the use of money, typically expressed as a percentage of the principal.
Sanctions are restrictions imposed by countries or international organizations to influence or penalize a nation or entity, often affecting trade and financial activities.
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