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MOSCOW, May 15 (Reuters) - Russia’s second-largest bank VTB beat analysts’ forecasts in the first quarter with net profit of 27.6 billion roubles ($488.37 million) and said it was on track to deliver a doubling of its net profit this year.
VTB, like several other large Russian state lenders, is under Western sanctions over Moscow’s role in the Ukraine conflict.
It has seen its financial performance recover in recent quarters as the Russian economy is gradually emerging from a deep slump linked to weak oil prices.
Analysts had predicted VTB would earn 23.3 billion roubles in the first three months of the year, versus profit of just 0.6 billion roubles in the first quarter of last year.
Net interest income rose 15 percent from the first quarter of 2016 to 113 billion roubles, while costs grew 1.7 percent to 61.6 billion roubles.
The bank’s provision charge was at 45.9 billion roubles in the first quarter, versus 40.6 billion roubles a year earlier.
Andrey Kostin, VTB CEO, said in a statement: “We are firmly on track to deliver our full-year targets and to achieve the goals stipulated in the 2017-2019 strategy”.
One of the key points of that strategy is to achieve net profit of 100 billion roubles this year, after profit of around 52 billion roubles in 2016.
VTB’s shares had risen 0.7 percent by 0803 GMT, outperforming the broader MICEX index which was flat. ($1 = 56.5140 roubles) (Reporting by Alexander Winning; Editing by Christian Lowe)