* CFO says net profit will rise significantly in 2011
* Q3 profit 13.7 bln roubles, vs forecast 13.4 bln
* Says Russian economic growth remains fragile
* Investment banking pretax profit up 55 pct for 9 months
* Shares rise 0.9 percent
(Adds CEO, CFO comment, detail, updates shares)
By John Bowker and Oksana Kobzeva
MOSCOW, Dec 2 - Russian bank VTB is expecting a major rise in 2011 earnings after it swung to a third quarter profit that beat forecasts, citing strong growth in its corporate, retail and investment banking units.
'We forecast a significant increase in profit next year,' Chief Financial Officer Herbert Moos said on Thursday.
Russia's second largest lender said it made a 13.7 billion roubles ($434.9 million) net profit for the three months July-September, compared to a 14-billion rouble loss a year ago.
Analysts polled by Reuters had forecast profit of 13.4 billion roubles, while the full year figure is expected to be 50 billion roubles.
Chief Executive Andrei Kostin said VTB was on track to deliver on its corporate goals outlined in May despite a still fragile economy. The plans include raising the share price by 50 percent to 15 kopeks by 2013.
'We are well on track to achieving the goals ... as we continue to develop an unrivalled corporate and investment banking franchise and to build on strong earnings momentum in the retail business,' he said in a statement.
VTB's shares were up 0.85 percent in London and 0.88 percent in Moscow at 1148 GMT, underperforming a 1.4 percent gain on the wider MICEX index.
The group floated shares at 13.6 kopeks during its 2007 IPO, but the price collapsed during the financial crisis as the company spiralled to a $2 billion 2009 loss.
PRIVATISATION
Bad loan provision -- the chief cause of the 2009 slump into the red -- came in at 40.3 billion roubles for the nine months to end September, compared to a 126.4 billion during the same period in 2009.
VTB, 85 percent controlled by the government, is top of a list of assets to be privatised further as Russia looks to raise 1 trillion roubles ($31.75 billion) form state asset sales over the next three years.
U.S private equity group TPG is leading a consortium keen to buy a 10 percent stake, although talks remain stuck on exact pricing, according to a source close to the discussions.
VTB Capital, the investment banking division that dominates Moscow deal-making, made a pretax profit of 16 billion roubles during the nine-month period, up 55 percent.
The group worked as a bookrunner on Russia's two biggest IPOs of the year, as aluminium giant UC RUSAL and internet group Mail.ru raised a combined $3.25 billion in Hong Kong and London respectively.
CFO Herbert Moos said the bank plans to borrow $2.5 billion on the domestic market in 2011 and may issue Eurobonds in Brazilian real or Chinese yuan.
(Reporting by John Bowker; Editing by Dan Lalor and Hans Peters)
($1 = 31.50 roubles) Keywords: VTB/ (john.bowker@reuters.com;+7 495 775 1242 Reuters Messaging: john.bowker.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Q3 profit 13.7 bln roubles, vs forecast 13.4 bln
* Says Russian economic growth remains fragile
* Investment banking pretax profit up 55 pct for 9 months
* Shares rise 0.9 percent
(Adds CEO, CFO comment, detail, updates shares)
By John Bowker and Oksana Kobzeva
MOSCOW, Dec 2 - Russian bank VTB is expecting a major rise in 2011 earnings after it swung to a third quarter profit that beat forecasts, citing strong growth in its corporate, retail and investment banking units.
'We forecast a significant increase in profit next year,' Chief Financial Officer Herbert Moos said on Thursday.
Russia's second largest lender said it made a 13.7 billion roubles ($434.9 million) net profit for the three months July-September, compared to a 14-billion rouble loss a year ago.
Analysts polled by Reuters had forecast profit of 13.4 billion roubles, while the full year figure is expected to be 50 billion roubles.
Chief Executive Andrei Kostin said VTB was on track to deliver on its corporate goals outlined in May despite a still fragile economy. The plans include raising the share price by 50 percent to 15 kopeks by 2013.
'We are well on track to achieving the goals ... as we continue to develop an unrivalled corporate and investment banking franchise and to build on strong earnings momentum in the retail business,' he said in a statement.
VTB's shares were up 0.85 percent in London and 0.88 percent in Moscow at 1148 GMT, underperforming a 1.4 percent gain on the wider MICEX index.
The group floated shares at 13.6 kopeks during its 2007 IPO, but the price collapsed during the financial crisis as the company spiralled to a $2 billion 2009 loss.
PRIVATISATION
Bad loan provision -- the chief cause of the 2009 slump into the red -- came in at 40.3 billion roubles for the nine months to end September, compared to a 126.4 billion during the same period in 2009.
VTB, 85 percent controlled by the government, is top of a list of assets to be privatised further as Russia looks to raise 1 trillion roubles ($31.75 billion) form state asset sales over the next three years.
U.S private equity group TPG is leading a consortium keen to buy a 10 percent stake, although talks remain stuck on exact pricing, according to a source close to the discussions.
VTB Capital, the investment banking division that dominates Moscow deal-making, made a pretax profit of 16 billion roubles during the nine-month period, up 55 percent.
The group worked as a bookrunner on Russia's two biggest IPOs of the year, as aluminium giant UC RUSAL and internet group Mail.ru raised a combined $3.25 billion in Hong Kong and London respectively.
CFO Herbert Moos said the bank plans to borrow $2.5 billion on the domestic market in 2011 and may issue Eurobonds in Brazilian real or Chinese yuan.
(Reporting by John Bowker; Editing by Dan Lalor and Hans Peters)
($1 = 31.50 roubles) Keywords: VTB/ (john.bowker@reuters.com;+7 495 775 1242 Reuters Messaging: john.bowker.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.