JSCVL JSC VTB Bank (CE)

By Adam Clark

VTB Bank (VTBR.MZ) on Tuesday said its fourth-quarter profit dropped on lower interest income and fees, although it exceeded its target for 2018 overall.

Russia's second-largest bank said its fourth-quarter net profit came to 39.1 billion rubles ($597.5 million), down 13% from the year-earlier quarter.

Net interest income dropped 5.6% to RUB110.0 billion and fee-and-commission income fell 27% to RUB20.6 billion. VTB said it was hit by a declining net interest margin, the difference between what it earns on loans and pays to gather deposits and funding.

For 2018 overall, VTB made a net profit of RUB178.8 billion, up 49% from 2017. Profit was boosted by rising interest income and falling provisions for bad loans.

"2018 was the second year of our current three-year strategy, and I am pleased to announce that for the second consecutive year we have beaten our own strategic targets for net profit," Chairman Andrey Kostin said.

Write to Adam Clark at adam.clark@dowjones.com; @AdamDowJones

(END) Dow Jones Newswires

February 26, 2019 05:15 ET (10:15 GMT)

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