Bloomberg News

Sberbank, VTB Group Price Estimates Reduced at Credit Suisse

January 29, 2009

OAO Sberbank, Russia’s biggest bank, and VTB Group, the second-largest bank, had their price estimates cut at Credit Suisse Group AG on concern credit quality will deteriorate.

Sberbank’s price estimate was cut to 90 cents from $1.70, while the price estimate for VTB’s global depositary receipts was cut to $1.25 from $2.90.

Sberbank said Jan. 26 that third-quarter profit rose 5.9 percent to 23.2 billion rubles ($666 million), missing analysts’ estimates after it reported a trading loss and put aside more money for bad loans.

VTB reported a third-quarter loss of $369 million on Jan. 22, compared with a profit of $555 million a year earlier, because the economic slowdown and declines in markets eroded earnings. The median estimate of seven analysts surveyed by Bloomberg News was for a loss of $137 million.

To contact the reporter on this story: William Mauldin in Moscow at wmauldin1@bloomberg.net.

To contact the editor responsible for this story: Gavin Serkin in London at gserkin@bloomberg.net.


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