MOSCOW (Reuters) - Russia's second-largest bank VTB reported a 17% drop in first-quarter net profit to 122.4 billion roubles ($1.33 billion), CFO Dmitry Pyanov said, but expects to make record profits in 2024 as net fee and commission income continues growing.
VTB made a record 432.2 billion roubles in 2023, rebounding from a sanctions-induced loss of 667.5 billion roubles the year before, but still expects to surpass that total in 2024.
"The second quarter will definitely be better in terms of net profit, than the first," Pyanov told reporters in comments cleared for publication on Thursday.
First-quarter profit in 2023 had been abnormally high, Pyanov said, partly as VTB had consolidated Russian National Commercial Bank (RNKB).
Net fee and commission income increased 23% to 51.7 billion roubles, while net interest income fell 13% to 154 billion roubles. Return on equity (ROE) in the first quarter stood at 22%.
Pyanov also touched on VTB's legal dispute with JPMorgan Chase, saying the process had begun in adversarial fashion. Both banks have sued each other in their own jurisdictions.
JP Morgan Chase last week sued VTB in New York to halt its efforts to recover $439.5 million from an account that was blocked after VTB was hit with sweeping Western sanctions over Russia's actions in Ukraine.
A Russian court, meanwhile, has ordered the seizure of some JPMorgan Chase funds in bank accounts in Russia.
"The Russian Federation, as a state position, recognises these sanctions as illegal," Pyanov said. "We also consider them illegal and unjustified.
"Therefore it is logical to challenge this blocking from our side in an accessible legal way."
JPMorgan Chase has previously declined to comment on the Russian court's seizure of some of its assets. It has described VTB's attempt to recover the money in Russia as a "blatant breach" of its agreement to have disputes addressed in New York.
($1 = 92.2705 roubles)
(Reporting by Elena Fabrichnaya; Writing by Alexander Marrow; Editing by Tomasz Janowski)
By Elena Fabrichnaya
