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Promsvyazbank Net Down

Promsvyazbank on Wednesday cut its full-year net profit forecast by more than a third, the first bank to signal a slowdown after Russia's economy grew less than expected in the second quarter.

The bank kept its full-year loan book expansion forecast at 15 percent but said it cut 2011 net profit outlook to 5 billion rubles ($173 million) from 8 billion. "We were a little more optimistic on Russian economy prospects at the beginning of the year, betting … on an increase in demand for corporate lending," first vice president Alexandra Volchenko told reporters.

Promsvyazbank's first-half net profit doubled from a year ago to 1.2 billion rubles on increased lending and commission fees. The lender's bottom line was boosted by a 27 percent year-on-year increase in net fee and commission income to 3.5 billion rubles, as well as a 4 percent rise in overall loan portfolio.


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