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The expert: Losses VTB in 2009 will exceed $1 billion

06 апреля 2009 г.

The expert: Losses VTB in 2009 will exceed $1 billion Moscow, on April, 6th. Bank VTB losses on MSFO in 2009 can exceed $1 billion, analysts IK «the Three Dialogue» predict.

In their opinion, the bank can have so essential losses in connection with increase in deductions in reserves. However, experts also do not exclude that the bank can receive the income of the repayment of the long-term promissory notes.

Let's remind that on Friday bank VTB has published not consolidated results of activity for March and for the first quarter 2009 on RSBU. According to the presented data, in March the bank has fixed the loss at a rate of 14,8 billion roubles and as a result its net profit for the first quarter has made only 2 billion roubles. Profit reduction has been caused by increase in reserves, and also negative revaluation of currency positions because of a course difference as the data on РСБУ reflects result of forward operations at closing of forward transactions. In the first quarter 2009 bank reserves have increased about 2 % to 2,9 % from a portfolio of credits. Thus, in the deduction first quarter in reserves have made about $500 million In March VTB the second month has fixed reduction of actives (on 5 % to level of February) and a portfolio of credits (on 3 % by last month) successively.

According to analysts, it is partly caused by rouble strengthening in March on 5 % (more than half of credits of bank are nominated in dollars), and also can be connected with repayment of a part of an external debt ($1,3 billion in eurobonds). According to the experts, in April ВТБ it is necessary to extinguish $0,8 more billion a debt under interbank credits.

Besides, on Friday head VTB Andrey Kostin has acted with comments before journalists. In particular, he has informed that the bank intends to involve means from допэмиссии actions in October and will not use the mechanism of federal loan bond for capital attraction. Also Kostin has declared that the share of the delayed credits of bank during the current year, predictably, will make 8 %. Thus for 9 months 2008 the delayed debts of bank made 1,6 %. Head VTB also has noticed that in bank sector as a whole the share of the delayed credits in 2009 will make 10-15 %.

The head of bank also has informed on the size of dividends for 2008. So, awards of payment in percentage of net profit will be reduced in comparison with 2007 when they have made 50 % from net profit on RSBU. Kostin has added that bonuses to bank management in 2009 will be limited according to recommendations of the president.

Open Society "Bank VTB" — one of the largest financial institutions in Russia, being a key link of group VTB. Group VTB — the first international financial group of the Russian origin which are representing Russia in the international markets and carrying out professional financial service.
 

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