MOSCOW (Reuters) -Russian state-controlled lender VTB posted a 3.2% drop in net profit over the first eight months of the year to 327.6 billion roubles ($3.9 billion), hurt by a slide in net interest
VTB Bank Aims for Increased MOEX Index Weight Amid Profit Decline
VTB Bank's Index Weighting and Financial Performance
By Elena Fabrichnaya and Robert Harvey
MOSCOW (Reuters) -Russia's VTB will apply to increase its weighting in the MOEX Russia Index following a $1 billion secondary public offering in September, the state-controlled lender said on Friday, as it announced net profit fell in January-August.
"The weight in the index is currently 1%, and we expect a multiple increase in the share in the index," CFO Dmitry Pyanov told reporters.
Impact of Increased Free Float
The MOEX Russia index will next be rebalanced in November, with details to be published on December 1-5.
Financial Results Overview
INDEX SHARE BOOST
Net Profit Decline
A higher weighting typically increases demand for an equity among funds whose portfolios are linked to the index.
Future Profit Forecast
VTB can expect a revision to reflect a sharp increase in free float following last week's additional share sale, which aimed to raise up to 84.7 billion roubles ($1.01 billion).
Pyanov said VTB's free float is more than 49% following the issue, with the Russian state's share dropping to the minimum permitted level of 50% plus one share.
EIGHT MONTH RESULTS
VTB's IFRS financial results for the first eight months of 2025 showed a 3.2% drop in net profit to 327.6 billion roubles ($3.92 billion).
The fall was driven by a 41.4% tumble in net interest income during the January-August period, to 221.7 billion roubles. That reflected pressure on its net interest margin, which declined to 1.3% in August and 1% for the year to August from 1.9% and 2% respectively for the same periods in 2024.
Faced with a drop in net interest income, which has traditionally driven profits, VTB said recently it would switch focus to scaling up income from commissions from servicing foreign trade.
VTB has forecast a net profit of 500 billion roubles in 2025, implying a return on equity of 18%. That would be less than last year's profit of roughly 550 billion roubles.
($1 = 83.5000 roubles)
(Reporting by Elena Fabrichnaya; Writing by Robert Harvey; Editing by Lisa Shumaker, Edwina Gibbs and Catherine Evans)
