VTB posts 7.9 bln rubles profit to RAS for 9 mths
MOSCOW. Oct 6 (Interfax) - VTB closed the first nine months of 2009 with net profit of 7.924 billion rubles to Russian Accounting Standards (RAS), compared with losses of 16.58 billion rubles for the first eight months, the bank said in a statement.
This means the bank must have generated profit of 24.504 billion rubles in September.
VTB has not been in the black since the first quarter. It has posted net losses since then.
The bank said several factors contributed to the profit, including the dissolution of provisions for loan impairment, higher net interest income, securities trading gains and income from the payment of dividends by subsidiaries.
The bank said it had worked to claw back problem debt, transfer the assets of distressed borrowers to its balance sheet and work more closely with such borrowers via its CJSC VTB Debt Center.
Also, thanks to the Central Bank's rate reductions and a supplementary share issue by VTB, the bank was able to pay off its more costly borrowing prematurely and to boost net interest income 76% in September compared with August.
VTB received 4.494 billion rubles in dividends from its subsidiaries, chiefly VTB Northwest .
VTB's assets topped 2.696 trillion rubles on October 1, up 6% from 2.551 trillion rubles on January 1.
Funds on accounts and corporate deposits rose 51% during the nine months to 1.086 trillion rubles from 719 billion rubles.