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VTB Could Get Boost

The release of provisions made to cover problems at recently acquired Bank of Moscow could boost earnings at VTB by up to 15 percent a year, Troika Dialog analysts said Tuesday.

"Bank of Moscow provision releases are the potential earnings wildcard, with $2 billion or so possible in the next two to three years, which could add 10 percent to 15 percent to annual earnings," analyst Andrew Keeley said in a research note.

After ousting the bank's management last year, VTB discovered nearly half of its loan book was doubtful, leading the Central Bank to approve a $13 billion bailout scheme.

(Reuters)

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