CREDIT BANK OF MOSCOW reports more than RUB 7 bln of net income before taxes for 9M2018


The Banks net income before taxes for the first nine months of 2018 grew by 12.0% yoy to RUB 7.1 bln. This growth was driven mainly by improving quality of the loan portfolio, which resulted in lowering of provisioning levels by 44.9% to RUB 6.6 bln, and decreasing operating expense by 22.9% to RUB 16.9 bln due to reduction in expenses from sale of receivables. The Bank’s net income after taxes for the first 9 months of 2018 was RUB 4.5 bln.

Net interest income (before provisions) for the first nine months of 2018 grew by 11.9% yoy to RUB 34.0 bln, in particular due to the growth of interest income from lending by 20.6% to RUB 94.5 bln in line with the general development of the Bank’s business.

Net fee income increased by 18.4% yoy to RUB 7.0 bln. It was driven mainly by reducing fee and commission expense by 43.9% to RUB 1.9 bln, in particular as a result of payment of a fee under a subordinated loan prepayment in 2017.

Operating income (before provisions) decreased by 11.4% yoy to RUB 36.6 bln, mainly due to increased derivative transactions expenses, which amounted RUB 5.7 bln in the reporting period.

The Bank’s total assets grew by 6.2% to RUB 1,943.3 bln. It was driven by the Bank’s securities portfolio composed of high-grade issuers’ bonds, which expanded by 79.3% or RUB 101.7 bln, and net loans, which increased by 2.5% or RUB 39.2 bln. The balance sheet grew on the back of the Bank’s business development accelerated in the second quarter.

Total retail and corporate loan portfolio, including repos, expanded by 4.9% to RUB 1,673.1 bln, of which 94.0% is attributable to corporate loans, and 6.0% to retail loans. The retail portfolio grew by 10.3% ytd to RUB 104.9 bln, and the corporate portfolio, including repos, by 4.6% to RUB 1,568.1 bln.

Corporate deposits, which represent 49.2% of the Bank’s total liabilities, increased by 19.9% to RUB 900.8 bln, mainly due to expansion of deposits from large corporates in the third quarter of 2018. Retail deposits rose by 21.0% ytd to RUB 344.9 bln. Thus, the Bank’s total deposit base expanded by 20.2% to RUB 1,245.6 bln.

Capital adequacy ratios calculated as of 1 October 2018 were as follows: N1.1 — 8.7%, N1.2 — 12.4%, N1.0 — 21.2%, while the minimum ratios set by the Bank of Russia were: N1.1 — 4.5%, N1.2 — 6.0%, N1.0 — 8.0%. Total capital calculated in accordance with Basel III grew by 2.6% ytd and amounted to RUB 258.7 bln as of 1 October 2018.