Having survived four years of depression and a drop in quotations to lows since the annexation of Crimea, VTB Bank shares on the Moscow Exchange switched to a rally mode and showed growth that investors have not seen for almost six years.
From the end of March to May 4, the securities of the country’s second state bank rose in price by 45%, outstripping all the blue chips of the Russian market.
A large buyer appeared in VTB shares on March 31 – the day the bank published its financial statements for January-February. Trading volumes jumped 6 times, and quotes by 7% after VTB reported a 1.5-fold increase in profit and confirmed its annual forecast at 250-270 billion rubles.
In April, VTB quotes soared by 20.8%, and on the first trading day in May added another 5.2%, reaching the maximum since April 2018 – 5.49 kopecks apiece.
The rally, which raised the bank’s capitalization by 218 billion rubles in five and a half weeks, fueled the statements and statements of top managers during the investor day, said Freedom Finance analyst Yevgeny Mironyuk. At the end of the quarter, VTB doubled its net profit, to 85.1 billion rubles, and in 2022 laid its growth to 310 billion rubles, simultaneously announcing an aggressive expansion strategy: the bank intends to increase its client base, now amounting to 14 million, to 30 million rubles. 2025 year.
The VTB Supervisory Board approved dividends for 2020 for 35.65 billion rubles – this gives a yield of only 2.7%, which is lower than that of Sberbank (~ 6.5% / 6.8% on common and preferred securities, respectively) and the Bank ” St. Petersburg “(~ 6.8%), said the analyst of Alfa-Bank Evgeny Kipnis.
However, management confirmed plans to give shareholders 50% of its IFRS profits. This means that “VTB’s dividend yield for 2021 and beyond could be double-digit (10%) if the bank can improve its capital position,” adds Kipnis.
The acceleration of VTB quotes is taking place against the background of expectations that a large stake in the bank may be “sold to the market”. We are talking about 9% of VTB, which, by decision of the Central Bank, are transferred from the balance sheet of Otkritie Bank to the non-core assets bank Trust.
In December, the head of the bank, Andrei Kostin, said that the sale of these shares on the market had been agreed with the Central Bank and could take place in the spring. According to Kostin, pension funds have shown interest in the package.