VTB gained on speculation

VTB Group, the parent structure, which is the second largest bank in Russia VTB net profit to International Financial Reporting Standards (IFRS) in the first quarter of 2010 of $ 15.3 billion rubles, according to the report of the group. While during the same period last year the group incurred a loss of 20.5 billion rubles. "The positive impact on the financial performance of VTB had improved the quality of loan portfolio in terms of economic recovery, as well as high operating performance of key business groups, to ensure a significant level of interest and fee income and higher result on financial instruments" - explains the VTB. Pretax profit of corporate business groups totaled 9.1 billion rubles, compared with a loss of 18.2 billion rubles in the first quarter of 2009. Pretax profit retail business reached 6.7 billion rubles, compared with last year's loss of 4.3 billion rubles. In the investment business, this figure rose to 6.1 billion rubles. Meanwhile, the volume of corporate loan portfolio has remained the same - 2.1 trillion rubles, according to IFRS. The volume of retail lending, in general, declined to 419.1 billion rubles from 435.3 billion rubles at the end of 2009. Non-performing loans (NPL) (ie, loans that back already practically impossible) amounted to 10,2% of total loans compared to 9.8% at the end of last year. In other words, the bank ignored all appeals of the Russian authorities, including Vladimir Putin, to actively develop lending, and is engaged in speculation in financial markets. And thus, earns its profit. Note that at the time of VTB was given tremendous support from the state were provided by the budget money. The bank itself belongs to the state.