VTB forecasts reserves at 9% at year-end 2009; 10% in 2010
MOSCOW. Dec 18 (Interfax) - VTB expects loan loss reserves will amount to no more than 9% of the loan portfolio at the end of 2009, Deputy CEO Gerbert Moos said.
"The reserves will be 8%-9% by the end of 2009, and up to 10% in 2010," he said during a conference call with analysts on Thursday.
VTB boosted the reserves to 7.9% as of the end of September, up from 3.6% at the end of 2008. However, the reserve increase was just 4.3% of the loan portfolio in the third quarter on an annualized basis, compared with 7.1% in the first quarter and 6.6% in the second. Moos expects the reserving expense to decline further. "We have seen the reserve expense decline in the last two quarters. We will continue to do that," he said.