Russia’s second-largest financial institution, VTB, reported Wednesday an enormous loss amounting to $7.7 billion in 2022 after it was hit onerous by Western sanctions over Moscow’s offensive in Ukraine.
VTB, which was well-connected internationally, was one of many first banks to be excluded from the SWIFT international funds system after the battle erupted in late February 2022.
Its chief, Andrei Kostin, an affiliate of President Vladimir Putin, was individually sanctioned by Britain and the United States.
The financial institution mentioned Wednesday its losses totaled 612.6 billion rubles final yr.
“In 2022, the VTB group faced unprecedented hardships and challenges,” the financial institution’s chief monetary officer, Dmitry Pianov, mentioned.
“We were the first target for the maximum sanctions possible, which led to significant losses,” Pianov mentioned.
The financial institution posted a web revenue of 327 billion rubles in 2021.
The financial institution mentioned it suffered from an “unprecedented outflow of (foreign) currencies” and losses associated to the disposal of subsidiaries, together with VTB Bank Europe.
The financial institution additionally mentioned it was impacted by the Russian central financial institution’s rate of interest hikes.
“Difficult external conditions forced us to take quick and clear decisions,” Pianov mentioned.
In 2020, VTB counted 15 million shoppers in Russia and employed round 80,000 staff.
Source: www.dailysabah.com
