VTB Bank Profit Hit Deepens as War Saps Lending Income

VTB Bank, Russia’s second-largest lender, reported a sharp decline in lending income, underscoring the financial strain the war in Ukraine is placing on the country’s banking sector. The bank blamed the drop on higher funding costs, reduced credit demand and ongoing international sanctions, factors that have eroded profitability and raised questions about its capital strength. The deterioration in VTB’s core earnings lands just days before President Vladimir Putin is due to meet U.S. President Donald Trump, adding fresh economic pressure to the geopolitical agenda.