June 9, 2012 / 6:40 AM / 5 years ago

Bank of Moscow back in profit in 2011 after previous loss

MOSCOW, June 9 (Reuters) - Bank of Moscow, bought last year by Russia’s No.2 lender VTB, posted a net profit of 24.6 billion roubles ($752.93 million) in 2011 after making a loss a year earlier, the lender said on Saturday.

In 2010, Bank of Moscow, once Russia’s No.5 by assets, incurred 69.7 billion roubles of net losses under international reporting standards due to provisions for bad loans, it said.

After establishing a control over its rival last year, VTB discovered a gaping hole on its loan book, which triggered a central bank-led bailout of $13 billion to prevent a possible bankruptcy.

Bank of Moscow said on Saturday it had set aside 120.7 billion roubles as last year’s bad loan provisions, up from 105.5 billion roubles in 2010.

On Friday, VTB Chief Executive Andrei Kostin said Bank of Moscow was expected to post at least 20 billion roubles net profit in 2012, rising to 35-40 billion roubles in the coming years. ($1 = 32.6725 Russian roubles) (Reporting by Katya Golubkova; Editing by Daniel Magnowski)

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