Reported about 15 hours ago
VTB Bank's CFO Dmitry Pyanov stated that a 1% reduction in Russia's central bank interest rates could yield an additional 20 billion roubles ($250 million) in net profit for the bank. This would greatly benefit the state-owned lender, which aims to distribute half of its profits as dividends to the government. Currently facing high interest rates at 20%, VTB has a significant proportion of loans tied to floating rates, making it vulnerable to defaults as borrowing costs surge. Pyanov emphasized that the bank stands to gain substantially from any rate cuts, especially given the pressures from the government and business leaders to mitigate recession risks.
Source: YAHOO