MOSCOW, March 26 (Reuters) - Russia's second-largest bank VTB on Thursday reported an 11% year-on-year decline in its net profit for January-February to 68.8 billion roubles ($849.17 million). The
VTB Sees 11% Profit Decline in Jan–Feb, Warns March Will Be More Volatile
VTB's Financial Performance and Economic Outlook
Profit Decline in Early 2024
MOSCOW, March 26 (Reuters) - Russia's second-largest bank VTB on Thursday reported an 11% year-on-year decline in its net profit for January-February to 68.8 billion roubles ($849.17 million).
Market Conditions and Volatility
Calm Start to the Year
The first two months of the year were calm, First Deputy CEO Dmitry Pyanov said, adding that March will be more turbulent due to the war in the Middle East and a worsening situation with yuan settlements.
Central Bank Policy Response
Pyanov said weak economic activity may prompt the Russian central bank to cut rates more actively. It last reduced its key rate by 50 basis points to 15% on March 20.
Rouble Outlook and Fiscal Policy
Impact of Oil Prices and Fiscal Rule
Positive Scenario for the Rouble
Pyanov said high oil prices and the decision to delay adjustments to the government's fiscal rule until 2027 were shaping a positive scenario for the rouble in 2026.
($1 = 81.0205 roubles)
(Reporting by Elena Fabrichnaya, writing by Anna Peverieri; Editing by Mark Trevelyan)
