VEB’s net profit in Jan-June 2011 shrinks two times to RUB 12-1/2 bln

MOSCOW, August 15 (Itar-Tass) —— The net profit of state-owned Vnesheconombank (VEB) in the first half of 2011 decreased almost twofold to 12.5 billion roubles, according to the Russian accounting standards.

In January-July 2010, VEB’s net profit was 24.8 billion roubles.

The bank’s own assets in the first half of this year increased by 14.8 percent to 282.1 billion roubles. Return on assets declined two times to 1.3 percent and return on equity to 6.4 percent, a decrease of more than two times.

The amount of borrowed funds in the first six months of 2011 had reached 1,279,9 million roubles, an increase of 5 percent from the same period of 2010.

Vnesheconombank was created in 2007 as a development institution. It seeks to overcome infrastructure restraints on growth, promote modernisation and development of non-resource sector of the economy and high-tech industry, encourage innovations and the export of high-tech products, carry out project sin special economic zones and environmental protection programmes, and to support small and medium-sized business.


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