The expert assessed VTB's dividend policy

VTB's high return on equity (19%) is an important indicator of maintaining significant dividend payments, said Konstantin Vorobyov, an economist and private investor.

He recalled that VTB paid dividends of 276 billion rubles last year (the yield was 24%), and if the profit plan for this year is fulfilled, we can expect high payout rates by the end of 2025, Vorobyov added.

The expert believes that the bank effectively manages its capital and maintains a comfortable level of capital adequacy standards. In addition, VTB has advantages that allow it to maintain and increase profitability. We are talking about comprehensive expertise in different segments of the financial market, the development of a network of client relationships and a large product line. "All this allows the group to react quickly to market changes and adapt to them, generate profits in various directions without failing at certain phases of the cycle," the economist stated.

He explained that due to diversification, the group can either increase interest income and support other areas in different periods, or, on the contrary, receive income from alternative areas during the credit slowdown.

Now, with the start of the key rate reduction cycle, VTB, like a number of other banks, is becoming a beneficiary of this process. Thus, reducing the rate by 1 percentage point, according to VTB estimates, increases the return on equity by 0.5 percentage points by reducing the cost of funding, which is replaced by new customer funds within a few months. "At the same time, there is a gradual repayment of the historical accumulated loan portfolio — medium— and long-term loans - at low rates and its replacement with new loans at market and floating rates. Reducing the level of credit risk and reserve charges will also have a positive impact on the overall risk level of assets and ultimately support margins," the economist concluded.

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