VTB Capital to make $200 mln a year-analysts

MOSCOW, Nov 5 (Reuters) - VTB Capital, an investment arm of Russia's second largest lender VTB, expects to earn about $200 million before taxes in both 2009 and 2010, analysts at investment bank Troika Dialog said after a meeting with VTB's incoming chief financial officer.

'VTB Capital is aiming for EBT (earnings before taxes) of about $200 million in 2010, flat year-on-year, due to sizable planned investments in new offices in Dubai, Hong Kong and New York,' the analysts said on the back of their first meeting with Herbert Moos.

'Hong Kong is seen as a priority, with expectations of a decent pipeline of equity issuance there next year,' the Troika analysts added.

Russia's UC RUSAL, the world's top aluminium producer, plans an initial public share offering in Hong Kong as the debt-burdened company aims to raise about $2 billion through a dual listing in Hong Kong and Europe

VTB Capital was only founded in April 2008 and the core bank has invested just under $500 million in its arm, which now has 500 employees and capital of close to $1 billion.

State-controlled parent VTB will make a net loss this year due to mounting provisions for bad loans, although it has recently said the worst is over.

(Reporting by Dmitry Sergeyev; Editing by Greg Mahlich) Keywords: VTB INVESTMENTBANK/ ([e-mail]; [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.