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By Elena Fabrichnaya MOSCOW, Feb 14 (Reuters) - Russian lender VTB managed to grow its retail loan portfolio in 2022 despite sanctions-induced losses, and should develop in line with the market's expected 11% expansion this year, a senior bank official said.
CEO Andrei Kostin has blamed VTB's undisclosed 2022 losses entirely on sanctions. The West blocked VTB's access to the international SWIFT payments system soon after Moscow sent tens of thousands of troops into Ukraine on Feb. 24, with VTB forced to shutter operations across much of Europe. After a 27% year-on-year jump in 2021, VTB missed its forecast of at least 12% retail lending growth last year.
"In February-March last year Russian banks had to tighten their risk policies on lending to the population," Deputy President-Chairman of VTB's management board Anatoly Pechatnikov told reporters in comments cleared for publication on Tuesday.
"Banks could not do otherwise due to extra-high rates."
The central bank raised its key interest rate in an emergency hike to 20% in late February, before gradually easing to 7.5%. On Friday, the bank issued a hawkish signal as it kept the cost of borrowing unchanged.
VTB's retail lending portfolio climbed 7.2% to 5.03 trillion roubles ($68.2 billion) in 2022, driven by mortgage loans, which were supported by a preferential mortgage scheme, extended late last year until mid-2024.
Pechatnikov said VTB planned to grow the retail portfolio in 2023 in line with market expansion of an expected 11%.
Retail savings continue to shift to rouble, yuan or gold
products, said Pechatnikov, expecting Russia's 'dedollarisation'
drive to continue.
"As there is no need for the population to attract cash
dollars and euros, we will soon exclude the cash deposits in
these currencies from the savings lineup," Pechatnikov said. "In
general, there is no particular need for liquidity in U.S.
dollars or euros."
Pechatnikov said banks were forming demand for yuan assets
and that the market's overall portfolio for funds in yuan would
exceed 10 billion yuan ($1.5 billion) this year.
($1 = 73.7800 roubles)
($1 = 6.8215 Chinese yuan renminbi)
(Reporting by Elena Fabrichnaya; Writing by Felix Light and
Alexander Marrow; Editing by Stephen Coates)
