The AAA(RU) credit rating of VTB Bank (PJSC) (hereinafter, VTB Bank or the Bank) reflects the high likelihood of the majority shareholder providing extraordinary support to the Bank if necessary. At the same time, the Bank’s standalone creditworthiness assessment (SCA) is high.
VTB Bank is the second largest Russian bank and the head structure of the group of the same name. It is a universal bank operating in Russia and overseas.
KEY ASSESSMENT FACTORS
The high assessment of the likelihood of extraordinary support from the majority shareholder if necessary stems from: 1) strategic and operational control exercised by the shareholder; 2) previous cases of financial support to the Bank in the form of capital and liquidity; 3) the systemic importance of VTB Bank to the Russian economy.
Taking the above into account, the credit rating of the Bank is determined at AAA(RU).
VTB Bank’s very high business profile assessment is based first of all on its market positions and high diversification of operating revenues due to the universal nature of business. The macroeconomic prerequisites set out in the Bank’s strategy are generally adequate. The corporate governance system is assessed as strong. The ownership structure is transparent.
The satisfactory capital position is based on moderate capital adequacy metrics for VTB Group (including the N20.2 capital adequacy ratio, which was just over 8.0% as of April 1, 2025 and N20.0 at 9.9% as of the same date), which by the end of this year, according to ACRA’s expectations, will not change significantly on the back of additional attraction of capital and payment of dividends (in July 2025). The Bank’s N1.2 and N1.0 ratios continue to be slightly lower than the metrics for the Group. Capacity to generate capital and operational efficiency have recovered and stabilized after the unfavorable economic situation in 2022. The stress test carried out by ACRA shows that VTB Bank is able to withstand a slight increase in the cost of credit risk.
The risk profile assessment remains weak. The total share of non-performing and potential non-performing debt in the Bank’s loan portfolio has practically not changed over the past 12 months. At the same time, IFRS reporting indicates that the absolute size of Stage 3 loans and special purpose consumer loans has grown.
The concentration of loans on the 10 largest groups of borrowers remains low. The share of unsecured loans in the portfolio remains moderate. At the same time, the volume of outstanding loans provided to companies in high-risk industries exceeds 150.0% of common equity. The size of market risk has declined over the past 12 months. ACRA notes that the risk profile assessment is still constrained by non-core, according to the terms of ACRA’s methodology, assets on VTB Bank’s balance sheet (mainly investments in subsidiaries and associated companies and investment real estate).
Adequate assessment of the funding and liquidity factor. ACRA notes that the Bank’s liquidity position remains low, which, however, is compensated by the possibility of raising funds from the Bank of Russia, including as part of an irrevocable credit line. The Bank’s resource base is satisfactory, given the moderate concentration on the largest source (funds from corporations and government bodies) and the largest groups of lenders. VTB Bank’s dependence on the Bank of Russia’s funds is not high.
KEY ASSUMPTIONS
-
The majority shareholder retaining its strategic and operational control over the Bank;
-
VTB Bank upholding its leading market positions.
POTENTIAL OUTLOOK OR RATING CHANGE FACTORS
The Stable outlook assumes that the rating will highly likely stay unchanged within the 12 to 18-month horizon.
A negative rating action may be prompted by:
- Loss of control by the majority shareholder accompanied by a significant decline in standalone creditworthiness.
RATING COMPONENTS
SCA: а+.
Adjustments: none.
Support: on par with the Russian Federation.
ISSUE RATINGS
No outstanding issues have been rated.
REGULATORY DISCLOSURE
The credit rating has been assigned under the national scale for the Russian Federation based on the Methodology for Assigning Credit Ratings to Banks and Bank Groups under the National Scale for the Russian Federation, Methodology for Assigning Credit Ratings with External Support, and the Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities.
The credit rating of VTB Bank (PJSC) was published by ACRA for the first time on September 16, 2021. The credit rating and its outlook are expected to be revised within one year following the publication date of this press release.
The credit rating was assigned based on data provided by VTB Bank (PJSC), information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the IFRS statements of VTB Bank (PJSC) and the financial statements of VTB Bank (PJSC) drawn up in compliance with the requirements of the Bank of Russia. The credit rating is solicited and VTB Bank (PJSC) participated in its assignment.
In assigning the credit rating, ACRA used only information, the quality and reliability of which were, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.
ACRA provided additional services to VTB Bank (PJSC). No conflicts of interest were discovered in the course of credit rating assignment.
