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VTB has published an official statement which says that the bank's losses, from revaluation of its securities portfolio and securities transactions in 1Q 2008, amount to at least USD 400 mn. Of course, this loss would affect the bank's financial results for FY 2008 and may produce negative impact on VTB's stock valuations in the short-term. Nonetheless, given the stable development of VTB's core business, this loss is not likely to produce any significant impact on the bank's fundamental value.
On June 6, VTB released an official statement, which says that the bank's losses from securities portfolio revaluation and securities transactions in 1Q amount to at least USD 400 mn. This notwithstanding, the bank plans to receive positive net profit for 1Q, although expects it to be considerably below the level of 1Q 2007.
In 2007, the share of VTB's non-interest incomes equaled 45.6%, while the share of transitory incomes amounted to 30.7%. The bank receives a considerable part of its revenue from currency revaluations and securities transactions. In this respect, in spite of good performances of the bank's core business, the bank's net profit for 1Q 08 will be close to zero, in line with our estimates. Based on the securities portfolio value as of 31 December 2007, VTB has lost nearly 4% of the portfolio, which is too much, given the bank's risk management level.
This loss could affect the bank's financial results for FY 2008 and may produce negative impact on VTB's stock valuations in the short-term. Nonetheless, given the stable development of VTB's core business, the loss is not likely to produce any considerable impact on the bank's fundamental value. In line with our estimates, the fair value of VTB's shares is USD 0.0053 per share with a 39% upside potential. Vladimir Sergievskiy
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VTB
Capitalization: $8 068 966 210,82
Common shares:
Price: $0,0012
Delta week: -4,1%
Delta month: -27,0%
Delta year: -74,9%
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0.569
0.073
