* This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine
MOSCOW, May 27 (Reuters) - Russia's second-largest bank VTB expects to make a record annual profit close to 500 billion roubles ($5.58 billion) this year, CEO Andrei Kostin said, but a decision on paying dividends will ultimately be up to the central bank.
VTB plunged to a hefty sanctions-induced loss in 2022 as Western nations imposed sweeping restrictions on Russia's financial sector over its actions in Ukraine. The state-owned bank rebounded to profit in 2023.
"We need to set aside around 1 trillion roubles just to restore capital to the required level," Kostin said in an interview, published on Monday, with the Fontanka news publisher.
"We are interested in paying dividends," Kostin said. "But we have to get approval from the central bank, which strictly monitors the replenishment of our capital." ($1 = 89.5955 roubles) (Reporting by Elena Fabrichnaya; Writing by Alexander Marrow; editing by David Evans)
