CREDIT BANK OF MOSCOW (CBM, Bank) was established in 1992 (general license No. 1978 issued by the Bank of Russia). Currently CBM is 20th Russian bank by assets according to Top-500 RBC Rating. CBM is a universal privately owned bank offering a full range of banking services and operating in Moscow and Moscow region. CBM is remarkable for its good level of business development, stable position in many market segments, strong business diversification, efficient risk management system, good assets quality, long-term partnerships and loyalty of corporate clients. CBM has a good track record in private deposits market, corporate lending, cash collection services rendering and in the international markets. The Bank has been in trade finance business since 2001, in syndicated loan market since 2003 and in Eurobond market since 2006. The Bank’s sole shareholder is Rossium Concern. The main beneficial owner of the Bank is Mr. Roman I. Avdeev.

The Bank focuses on providing high-quality banking services to both corporate and private customers, achieving at the same time sustainable and efficient performance. CBM’s main business line is providing loans to companies and individuals.

The Bank provides a wide range of services to corporate clients such as overdraft facilities, loans against cash collection, trade finance, leasing and factoring, acquiring, cash and settlement services. For individuals the Bank offers mortgage and auto-loans, credit cards, general-purpose loans, Individual banking.

Business openness and solid position in the market enabled the Bank to enter State Deposit Insurance System in December 2004.

CBM has a long history of collaboration with such IFIs as European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC) and Black Sea Trade and Development Bank (BSTDB) under different-purpose projects (SME financing, mortgage financing, TF lines, subordinated loans). High level of the Bank’s credibility in the international markets allows CBM to attract foreign investments to develop projects aimed at expansion of business of the Bank’s clients.

CBM’s branch network includes 55 offices in Moscow and Moscow region. The number of ATMs increased from 402 (2010) to more than 460 (HY2011) and the number of payment terminals now exceeds 2500. CBM is very active in cash collection business and is ranked number 3 in Moscow and Moscow region by the volume of collected cash.

According to HY 2011 IFRS financial statements of CBM, financial results of the Bank were as follows:

·     CREDIT BANK OF MOSCOW’S 1H 2011 IFRS net income grew by 47.4% compared to 1H 2010 and amounted to RUB 1,859 mln ($66.2 mln).

·     The Bank’s assets rose by 23.2% by the mid-year reaching RUB 203,906 mln ($7,263 mln).

·     The loan portfolio expanded by 41.9% from the year start to RUB 147,390 mln ($5,250 mln).

·     NPL ratio (loans overdue by more than 90 days) was 0.9% against 1.5% as of the last year and loan loss provisions decreased from 2.6% to 2.3% of the total portfolio.

·     The equity soared by 71.8% from the year start up to RUB 23,653 mln ($842 mln).

·     The Bank shows strong efficiency with 19.9% return on equity and 2.0% return on assets.

·     The cost-to-income ratio remains steadily below 40% standing at 39.6% as of 1H 2011.

·     Capital calculated under the Basel Accord increased by 34.1% in the 1H reaching RUB 27,329 mln ($973 mln), the capital adequacy ratio being 15.2%. 

·     Corporate loan portfolio stated RUB 123.7 bn ($4.2 bn), retail loan portfolio made up RUB 23.6 bn ($787 mln).

·     Accounts and deposits to individuals as of HY 2011 made up RUB 68.8 bn ($2.3 mln), including term deposits – RUB 65 bn ($2.1 bn).

CBM is rated by the rating agencies as follows: Fitch Ratings: Long-term issuer default rating (IDR) — ‘B+’, Short-term IDR — ‘B’, Individual rating — ‘D’, Support rating —‘5’ and National long-term rating —‘A- (rus)’, outlook - ‘Stable’; Moody’s Investors Service: Strength rating (FSR) — ‘E+’, Long-term global & local currency deposit rating — ‘B1/NP’ and Long-term national scale credit rating — ‘A2.ru’, outlook – ‘Stable’; RusRating: ‘BBB’, outlook ‘Stable’.

In July 2011 CBM was included into TOP-1000 largest world banks according to Tier 1 capital published by The Banker magazine, being 822nd in the list.