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. Last Updated: 07/27/2016

VTB Announces Big Losses, Debts

VTB revealed a mound of bad debts on Tuesday and said its losses rose faster than expected in the first quarter, sending its shares sharply down.

The bank also began accepting bids for a new share issue, part of a 180 billion ruble ($60 billion) capital increase that analysts see as key to offset the effect of its rising bad loan provisions.

VTB’s shares closed down 2.94 percent after its results to international accounting standards were released, and analysts advised investors to take profits on the stock. Its peer Sberbank was up 0.56 percent for the day.

“The weak results provide, in our view, VTB’s justification for speeding up the additional share placement, which we believe is the main driver for the stock,” UralSib said in a report.

VTB rallied last week as investors bought shares before the launch of the placement. “We expect the bank to place the shares at a premium to the market in order that most will go in favor of the state,” UralSib said.