VTB Bank, part of the three largest in Russia, disappointing market participants. Implement the ambitious goals set by the profit the bank failed. So he decided to move them next year.
Net profit VTB up to 2011 amounted to 90.5 billion rubles, an increase of 65.1% compared with 2010. VTB calls himself the profit level “record.” However, the whole of last year VTB said that he would be able to earn 100 billion failed. However, the bank expects to reach the stated bar in the current year.
In part, the negative result of net income offset by lower share of non-performing loans, which is an important trend of the bank, said the head of analytical department of the Civil Code “ALOR” Natalia Yassin.
At the end 2011 the number of bad loans was 5.4% (in 2010 this figure stood at 8.6%). “To reduce bad loans VTB managed by increasing the loan portfolio, helped and associated TCB and the Bank of Moscow” – explained Firstnews Polina Lazich. Learn more about jobs in gillingham!
Net interest margin was 5.0% in 2011. This is 0.1% less than the results in 2010. However. Margin VTB remains lower than that of industry leader – the Savings Bank, of which the corresponding figure is 6.4%.
It is also a positive factor is the strong growth in lending, which occurred despite the fact that at the end of last year had problems with liquidity. VTB’s loan portfolio for the year increased by 1.5 times or 50% to 4 590 100 000 000 rubles. Average loan growth of the market in 2011 amounted to 29.6%. That is, for a given parameter of VTB managed to outperform both the market and Savings Bank.
But the disturbing aspect is the reduction of bank capital adequacy of 9%. However, in 2012, VTB plans to correct the situation and pull rate to 9.5%. “The concern is the rise of operating costs and relatively low capital adequacy,” – adds an analyst with the department for analysis and risk management UFS Investment Company Ilya Balakirev.
The market took the publication of VTB neutral. To date, the bank’s stock prices show an increase of 0.42% (with an increase in the MICEX Index by 0.49%), and traded at a price of 6 cents per share.
According to bank management, the shares lost an important driver of growth – the privatization of state-owned VTB in 2012 is not going to happen. Recall, the bank planned to offer the market a 10% stake. However, as announced today during a conference call Bank Deputy Chairman Herbert Moos, this year’s sale of the package would be unlikely. The first 10% of VTB package sold in February last year, the gain for a 95.7 billion rubles.
Ambitious plans for VTB to achieve profits of 100 billion per year raise doubts among experts. Indeed, in 2012 to reflect the cost of purchase of the “people’s” IPO, which will worsen the performance of the bank. Recall that for repurchase of shares from shareholders of VTB to spend 11.3 billion rubles.