Dividends VTB will not grow

VTB will increase profits to its shareholders primarily moral satisfaction: to increase the dividend the bank is not going to. Money he needed to maintain adequate capital for purchases of Bank of Moscow and Transkreditbank. About this newspaper "Vedomosti" on Tuesday, April 12. Strategy Committee and Corporate Governance Committee of the Supervisory Board of VTB recommends dividend for 2010 of 10-20 percent net profit of IFRS (international accounting standards finansovoyf), told a committee member, Deputy Finance Minister Alexei Savatyugin. The Committee decided to recommend to the Board of dividends from 10 percent to 20 percent net profit according to IFRS on the results for 2010-2013, explained the press service of the State Bank. It was such a great life explains the wide range representative of VTB. Final recommendations to the Supervisory Board meeting of shareholders by size and order of payment of dividends for 2010 will be formulated at the end of April, the bank said. While Council has not made a decision on the matter, said a bank representative. In its dividend policy VTB considers the prospects for further development of the group and, therefore, need funds for it, underlines the representative of VTB. VTB plans to leave the dividend unchanged from last year - about 6 billion rubles, a 11 percent profit under IFRS. VTB managers briefed the Council on plans to keep dividends unchanged compared with last year, confirms another source close to the board. By RAS (Russian Accounting Standards) VTB last year was 47.2 billion rubles of net profit, based on that dividends may be made 6,6 billion rubles. VTB's net profit under IFRS, as predicted by a senior analyst Uralsib Leonid Slipchenko to be about 56 billion rubles. Thus, dividends can be directed 5,6-6,6 billion. The dividend yield at current share prices of the bank amount to 1.1 percent (if the dividends will amount to 20 per cent of earnings), estimated Slipchenko. For Russian banks, this figure is traditionally low, are rare exceptions previously observed on preferred shares of banks MDM and St. Petersburg. " Given the growth, including through acquisitions, and that the dividend yield VTB is within 1 percent, much sense to pay high dividends are not, says Unicredit Securities analyst Rustam Botashev. VTB has become a shareholder of the Bank of Moscow and Transkreditbank and plans to increase its share. Due to the purchase of 46.5 per cent stake in Bank of Moscow in February, his capital fell by 167 billion rubles. It cost him 92.8 billion rubles, while investments in shares of other banks' credit institutions must deduct from equity.