VTB sees solid H2 profit, NPLs to peak in Q3

MOSCOW, Sept 2 (Reuters) - Russia's VTB (VTBR.MM) said on Thursday it expects bad loans to peak in the third quarter at no more than 12 percent and stuck by its full-year net profit target of around 50 billion roubles despite easing margins. "We expect that the share of non-performing loans will peak in the third quarter and will not exceed 10-12 percent," CFO Herbert Moos told reporters. Margins will fall to 5 percent by year-end, he said.

He added that Russia's second largest lender planned to borrow around $2 billion abroad before the end of the year and that it was currently not in talks over the possibility of selling a stake to Kuwait's sovereign wealth fund. (Reporting by Dmitry Sergeyev; writing by Toni Vorobyova, Editing by John Bowker)