MOSCOW, October 24 (RIA Novosti) - Vneshtorgbank (VTB) expects to receive more than 30 billion rubles (about $1.1 billion) in net profit in 2006, the VTB chief executive said Tuesday.
"That is considerably higher than last year," Andrei Kostin said.
He also said the bank will increase its own capital by at least $3 billion in two years' time.
"We lack capital to implement our requirements given such a high rate of development," Kostin told a press conference. "In the next two years, we will need at least $3 billion."
VTB's own capital as of the end of the second half of 2006 was $5.8 billion.
Kostin said the bank intends to launch an initial public offering of its shares in the first half of 2007.
State-controlled foreign trade bank Vneshtorgbank and its subsidiaries (VTB Group) is a leading Russian commercial banking group, offering a large range of banking services and carrying out operations in the country and abroad. As of June 30, 2006, VTB Group included 151 branches.
International rating agency Standard & Poor's on Monday raised VTB's long-term counterparty credit rating to BBB+ (BBB plus) from BBB, and national scale rating to 'ruAAA' from 'ruAA+', affirming the A-2 short-term counterparty credit rating, the agency said in a statement.
The agency has attributed the upgrade to VTB's close government links, improved financial and business performance, and good growth prospects in an upbeat macroeconomic environment.
S&P also raised its long-term counterparty credit ratings on VTB'S core subsidiary, Vneshtorgbank Retail Financial Services (VTB24), to BBB+ (BBB plus) from BBB, and its Russia national scale rating to 'ruAAA', from 'ruAA+', affirming the A-2 short-term counterparty credit rating.
The outlook on both entities is stable, the agency said.
