The board of Russia’s second-largest bank state controlled VTB recommended paying out RUB275.8bn ($2.97bn) in total dividends for 2024, according to Interfax corporate disclosure portal.
As followed by bne IntelliNews, due to persistent capital pressures, VTB was not expected to pay dividends for 2024 IFRS profit of RUB551bn.
The surprise dividend announcement makes 50% of IFRS profit for 2024, implying RUB25.58 ($0.28) payout per ordinary share, equivalent to 26% of the current share price, Renaissance Capital analysts commented.
The decision contradicts prior consensus expectations that VTB would retain a larger share of earnings to support capital buffers. As of end-1Q25, VTB’s capital adequacy ratios stood at only 6.40% (N20.1) and 9.90% (N20.0), with a minor increase in regulatory minimums scheduled for July.
The dividend payout is expected to reduce capital adequacy by 1.1pp, but the bank plans to replenish buffers through retained earnings, moderate loan growth, asset sales, and possibly a new share issue, RenCap analysts commented.
As a reminder, in 2025 the bank’s management pledged to get rid of non-core assets. VTB has for years been called upon for bailing out troubled industrial majors, such as the United Shipbuilding Corporation (USC or OSK). However, in the first signs of a possible shift of policy, this year the bank called off a deal to acquire major shipyard Zvezda.
Most recently the bank contined to post strong profitability in 1Q25, but it was underpinned by one-off factors such as gains on financial instruments.
Don’t just follow the news—understand it.
The IntelliNews PRO service includes access to reports, exclusive market data, and more news that decision-makers care about. Stay ahead of the market with IntelliNews PRO.
Sign Up NowRelated Articles
Russia's Ozon swings to profit on EBITDA growth, fintech expansion in Q1 2026
Russia's Ozon Group (MOEX: OZON) reported a net profit of RUB4.5bn ($54.7mn) for the first quarter of 2026, against a net loss of RUB7.9bn in the same period last year, the e-commerce group said in ... more
Russia boosts Mali military support as Africa Corps replaces Wagner
Russia has delivered new shipments of heavy military equipment to Mali as the Kremlin replaces the Wagner Group’s semi-private model with the more tightly controlled Africa Corps, according to The ... more
BRICS+ city network voices solidarity with Tehran as tensions with US persist
Senior figures from the BRICS+ Association of Cities and Municipalities expressed “solidarity” with Tehran and voiced concern over developments in the Middle East in a message to the Iranian ... more