Daily analyst comments
VTB posts net RAS income of RUB 27.2 bn for 1H2010
07.07.10 10:41
The 1H 2010 net income reported by VTB may not be quite telling, as historically, the gap between the bank’s net income under RAS and IFRS has been significant. However, we expect the bank to reap a record net income of RUB 50.8 bn in 2010, due to business efficiency growth and marked cuts in provision charges.
On July 6, VTB reported a net income of RUB 27.2 bn for 1H2010. We estimate the news as neutral. Historically, the gap between the bank’s net income under RAS and IFRS has been considerable. For 2009, for instance, the bank reported a net income of RUB 28 bn under RAS, while posting a net loss of RUB 59.6 bn under IFRS. For all that, we expect the bank to reap a record net income of RUB 50.8 bn in FY2010, due to business efficiency growth and marked cuts in provision charges.
We assign a BUY rating to VTB shares, with a 12-month target price of USD 0.00362.