VTB Beats Forecasts as Net Rises 29%

BloombergA customer using a VTB cash machine in Moscow. Full-year profit will grow 10 percent to 15 percent, the bank said.
The country's second-largest bank, VTB, on Monday posted a 28.8 percent rise in net profit for the first nine months of 2007, beating analyst forecasts, and said profit for the full year would grow by 10 percent to 15 percent.

State-controlled VTB also planned to borrow $5 billion on foreign markets in 2008, finance director Nikolai Tsekhomsky told reporters.

"This plan could be adjusted upward if market conditions are favorable," Tsekhomsky said at a briefing.

VTB said in a statement that consolidated January-September net profit rose to $1.05 billion from $816 million in the same period last year. Profits were more than 25 percent higher than the average forecast by six analysts polled.

The bank's total assets had grown by 41.7 percent to $74.3 billion by the end of September, in line with the forecast, and Tsekhomsky said they would grow 55 to 60 percent in full-year 2007.

He also said net profit for full-year 2007 would be 10 to 15 percent higher than in the previous year.

In the first nine months of 2007, net interest income climbed 46.2 percent year on year to reach $1.73 billion, while net income from fees and commissions rose 56.8 percent to $414 million.

In May, VTB raised $8 billion in an initial public offering in London and Moscow, pricing the Russian shares at 13.6 kopeks and the Global Depository Receipts at $10.56.

"Having spent a huge amount of time and effort on the IPO process, our [third-quarter] numbers show that we have not taken our eye off the ball in terms of the core business," Tsekhomsky said in the statement.