EEMEA round up: VTB records loss

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EEMEA round up: VTB records loss

VTB, Russia’s second-biggest bank, announced worse-than-expected results for the third quarter after making a loss of $369 million following the doubling of its provisioning levels. Analysts at Nomura reckon that the biggest challenge facing VTB is that the equity capital of the bank declined by $1.5 billion in the third quarter alone. The bank’s chief financial officer has said that it needs to raise tier 1 capital and is hopeful that its minority shareholders will come to the rescue. In the third quarter, the bank’s capital adequacy ratio fell to 14% from 15.8%, although it’s still well above the Russian minimum level of 10%. The bank’s tier 1 ratio dropped to 12.7% from 14.4% in the second quarter.

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