May 29, 2019 / 5:17 PM / 4 months ago

Russia's VTB sees no need for more bad loan provisioning

MOSCOW, May 29 (Reuters) - VTB has no need for additional provisioning against bad loans after it set aside 50 billion roubles ($765.85 million) last year at the central bank’s request, a senior bank executive told Reuters.

VTB Chief Executive Andrey Kostin told Reuters early last year his bank had set aside some 50 billion roubles after checks by the central bank, which it carries out regularly to assess the state of the banking system.

Russia’s second-biggest lender and the central bank had agreed to scrutinise its loan portfolio until mid-2018 to see if VTB needed extra capital injections, Kostin said at the time.

First Deputy Chief Executive Dmitry Olyunin told Reuters in remarks cleared for publication this week that VTB has “fully closed” the issues raised during the central bank’s checks though VTB will keep a close eye on some assets.

“Some of the assets, of course, remain under our watch, but there is an understanding that no provisioning is needed for them,” Olyunin told Reuters.

He added that this year, VTB expects its loan portfolio to grow by 8% versus 16.6% in 2018. ($1 = 65.2868 roubles) (Writing by Katya Golubkova; Editing by Gabrielle Tétrault-Farber and Emelia Sithole-Matarise)

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