State-controlled VTB said in a statement that net profit was 5 billion roubles ($138 million) versus 27.6 billion roubles a year ago.
Bad loan provisions rose to 92.8 billion roubles from 50.7 billion in the same period last year, hurting performance.
Its return on equity slumped to 1.1 percent compared to 6.9 percent for the first half of 2013.