Russian banking picks up. - State bank VTB, Russia's second biggest bank in terms of assets, has announced record net profits of more than 25 billion roubles in the first half of 2010. In the same period of last year, VTB made a loss of 34 billion. Sberbank also did well, making net profits of nearly 65 billion roubles in the first half of the year, ten times more than in the same period last year. Recovery remains fragile when it comes to bad debt, however, with bad debt at Sberbank accounting for nearly 10% of the total portfolio and nearly 12% at VTB this autumn. The improved profit levels have led the Russian government to consider selling off some of the banks, adding them to its privatisation programme to fill the budget deficit by selling off up to €18 billion of assets across the board over three years. The government hopes to sell a 10% stake in VTB, followed by a further 25% within the next three years. VTB is 85% controlled by the state and the government, which injected €4.5 billion in public funding, has warned that it will retain a majority stake. Sberbank is also expected to be part privatised. (I.L./transl.fl)