Vneshtorgbank chairman Andrey Kostin has recommended that 50 percent of the net profit be distributed as dividends.
Photo: Sergey Mikheev
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VTB Issues Its 2007 Annual Report
Vneshtorgbank released its financial results for 2007 yesterday. Then bank's net profit increased 28.4 percent over the previous year to $1.514 billion by unaudited international accounting standards, thanks to higher volumes of crediting. The bank's credit portfolio almost doubled, to $58.5 billion. The bank's assets grew by 76.7 percent over the year, to $92.61 billion. These results exceeded analysts' expectations. Nonetheless, the bank's stock continued to lose value yesterday, down 2.28 percent on MICEX and 0.77 percent on RTS at the end of the day. Observers note that the publication of a report is a common stimulus to sell a company's stock, regardless of the results in the account. VTB has also been influenced by the world financial crisis.
VTB took advantage of the reduction in crediting made by other banks in the fourth quarter of last year to take a larger share of that market. Experts note that the profitability of the bank's capital remains low, 12.3 percent at the end of the year, however. That indicator for Sberbank is 20 percent.
The 2007 annual report is the first financial report made by the bank since its IPO in May of last year. In that time, the bank's stock has lost 33.38 percent of its value. Bank executives have been claming shareholders with the promise of a large dividend. Bank chairman Andrey Kostin has recommended that 50 percent of the net profit be distributed as dividends. The final decision on the dividend will be made by the bank's supervisory board at the beginning of May.
www.kommersant.com
All the Article in Russian as of Apr. 11, 2008
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