Russia's second largest bank VTB Bank's net interest income fell by 49 percent during the first half of 2025.
According to the Russian major bank, the falling net interest income is due to the central bank's interest rate hike, from 7.5 percent to 21 percent, being "so significant and so prolonged that it affected the net interest income so substantially", writes Bloomberg. The net interest income is the difference between the bank's interest expenses and its interest income.
Problem loans are growing
Earlier in the summer, Bloomberg reported that at least three of the major banks in Russia are considering seeking state support in the coming year to get to grips with their growing problem loans.
According to VTB Bank's interim report, the proportion of problem loans increased in 2025, but according to the bank's own information, the proportion is still lower than during previous crisis periods.
Confirms the picture
According to anonymous sources to Bloomberg, several senior executives within the bank have signaled that the report does not reflect the true severity of the situation.
In a written comment, Sweden's Minister of Finance Elisabeth Svantesson writes that the information confirms the picture that Russia's economy is being heavily pressured by the sanctions and that the country is finding it increasingly difficult to finance the war.
"The Russian economy is now being pressured from all sides, with sky-high inflation, lower oil prices and an emerging credit crisis", writes Minister of Finance Elisabeth Svantesson and adds:
"The sanctions are working and now we must take it even harder. It is really not the time to make concessions to Putin at the negotiating table".
