VTB is now facing a prospect of having to ensure the anticipated growth of its stocks while the market is volatile and its own financial performance is mediocre, experts from Antanta Capital say.
Photo: Vasily Shaposhnikov
| Other Photos |
 |
|
 |
VTB Profits Down 16 Percent
VTB has posted a 16 percent drop in net profit this year in its first financial report since going public last month. Analysts believe that Russia’s second-largest bank may find it hard to show good results at the end of the year, which will ultimately weight down its stocks.
VTB’s net profit fell by 16 percent to 4 billion rubles in January-May, 2007, from 4.76 billion rubles in the same period in 2006, the bank said in a report on Tuesday. Meanwhile, other major banks have boosted their earnings. The Bank of Russia reported Tuesday that 30 largest banks increased their profits by an average 31.8 percent in the first four months of the year.
VTB accounted the decline for changing prices of Russian stocks in the bank’s portfolio. “Our indicators fell down after the stock market slumped in April and May, so we had to revaluate out securities portfolio,” says VTB member of the board Vasily Titov.
Experts note that VTB’s performance this year seems feeble in contrast to artificially high indicators last year. In 2006, the bank received $89 million in net profits from the sale of a share in KamAZ alone, says Maxim Osadchy, an analyst at Anatanta Capital. $150 million that the bank spent on its initial public offering could have taken its toll as well.
VTB is now facing a prospect of having to ensure the anticipated growth of its stocks while the market is volatile and its own financial performance is mediocre.
www.kommersant.com
All the Article in Russian as of June 06, 2007
|
|
|
