Annual report 2011 - VTB

VTB BankNotes to the Consolidated Financial Statements – 31 December 2011 and 2010(in billions of Russian Roubles)37. Analysis by Segment (continued)Segment information for the reportable segments of the Group at 31 December 2011 and results for the year ended 31 December 2011 is set out below:InvestmentbankingCorporate-Investment banking (CIB)Loans anddepositsTransactionbankingInter-CIBeliminations Total CIBRetailbankingCIS andGeorgia OtherTotal beforeIntersegmenteliminationsIntersegmenteliminations TotalFor the year ended 31 December 2011:Revenues from:External customers 45.2 311.5 15.6 – 372.3 140.0 2.8 18.0 533.1 – 533.1Other segments 51.0 41.2 15.9 (88.4) 19.7 34.8 – 2.4 56.9 (56.9) –Total revenues 96.2 352.7 31.5 (88.4) 392.0 174.8 2.8 20.4 590.0 (56.9) 533.1Segment income and expenseInterest income 62.5 303.8 15.8 (65.0) 317.1 146.3 2.3 1.1 466.8 (50.1) 416.7Interest expense (48.3) (177.8) (3.8) 65.0 (164.9) (67.1) (0.8) (6.7) (239.5) 49.8 (189.7)Net interest income 14.2 126.0 12.0 – 152.2 79.2 1.5 (5.6) 227.3 (0.3) 227.0(Provision charge) / reversal of provision for impairment ofdebt financial assets 0.1 (19.5) – – (19.4) (11.5) (0.3) (0.3) (31.5) (0.1) (31.6)Net interest income after provision for impairment 14.3 106.5 12.0 – 132.8 67.7 1.2 (5.9) 195.8 (0.4) 195.4(Losses net of gains) / gains less losses arising from otherfinancial instruments (19.6) (7.4) – 0.3 (26.7) (0.2) – (0.1) (27.0) 0.3 (26.7)Gains less losses arising from extinguishment of liability – (0.7) – – (0.7) – – – (0.7) – (0.7)Net recovery of losses / (losses) on initial recognition offinancial instruments, restructuring and other gains /(losses) on loans and advances to customers – 19.4 – – 19.4 0.8 – – 20.2 – 20.2Gains less losses / (losses net of gains) arising fromdealing in foreign currencies (7.0) 9.8 – – 2.8 2.8 0.2 0.3 6.1 – 6.1Foreign exchange translation (losses net of gains) / gainsless losses (0.4) (5.9) – – (6.3) (0.2) – – (6.5) – (6.5)Net fee and commission income / (expense) 5.4 3.9 14.0 (0.1) 23.2 18.3 0.2 (2.6) 39.1 0.1 39.2Share in income / (loss) of associates and joint ventures 0.3 7.5 – – 7.8 – – (0.3) 7.5 – 7.5(Provision charge) / reversal of provision for impairment ofother assets and credit related commitments – (1.3) – – (1.3) (0.1) (0.1) 0.1 (1.4) – (1.4)Other operating income / (expense) 23.4 (10.4) – (0.2) 12.8 1.3 0.1 8.6 22.8 (2.3) 20.5Operating income 16.4 121.4 26.0 – 163.8 90.4 1.6 0.1 255.9 (2.3) 253.6Staff costs and administrative expenses (16.7) (58.9) (6.8) 0.2 (82.2) (51.6) (1.4) (8.6) (143.8) 2.3 (141.5)- of which: depreciation / amortization charge (0.4) (7.3) (0.2) – (7.9) (3.0) (0.2) (1.4) (12.5) – (12.5)Profit from disposal of subsidiaries and associates 1.3 1.5 – – 2.8 – – 0.6 3.4 – 3.4Segment results: Profit before taxation 1.0 64.0 19.2 0.2 84.4 38.8 0.2 (7.9) 115.5 – 115.5Income tax expense (25.0)Net profit 90.5Capital expenditure 0.5 36.4 0.2 – 37.1 4.7 0.3 2.3 44.4 – 44.455