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2009YE results: the most successful year for CREDIT BANK OF MOSCOW over its history. CBM’s income amounted to RUR 1.271bln.

01.03.2010

Unaudited financial statements for 2009 as of 01.01.2010

CREDIT BANK OF MOSCOW summed up its 2009YE financial results under Russian Accounting Standards (RAS). The total amount of the Bank’s assets as of 01.01.2010 ran up to RUR 90bln representing a 48% increase (RUR 29bln) for 2009. CBM’s balance profit at the year-end amounted to RUR 1.271bln having exceeded its level of the preceding financial year by 42%.

In 2009 the Bank’s share capital was increased due to the shareholders’ funds injection. As at the last accounting date CBM’s share capital level reached RUR 10.6bln (for comparison, its level as of 01.01.2009 was RUR 6.2bln).

CBM’s loan portfolio for 2009 increased by 51% and reached RUR 61bln by the end of the year. Corporate loan portfolio increased by 62% up to RUR 51bln. Particularly the volume of factoring assigned debt soared by 72% and came to the level of RUR 2bln. Retail loan portfolio demonstrated a 12% increase during the overall year and reached the level of RUR 10bln.

At the year-end the Bank’s investments in bonds portfolio reached the amount of RUR 16.6bln representing a year increase of 181%. The main investments were made in highly liquid securities which are included in the list of securities accepted as collateral under Lombard credits and REPO credits of CBR. The rest part of funds was invested in bonds of the Bank’s large corporate clients.

CBM also remained vigorous in trade finance segment. In 2009 the Bank facilitated 136 trade deals for the total amount of USD 200mln. The Bank’s solid position in trade finance market is evidenced by CBM’s limits increase from the large market players in 2009, namely EBRD (the limit was increased by USD 20mln up to USD 45mln) and IFC (the limit was increased from USD 60mln to USD 100mln). The Bank’s cooperation with EBRD and IFC under their trade finance programs began in 2005. CBM was also awarded IFC’s certificate as the most active issuing bank in Europe and Central Asia under its Global Trade Finance Program.

The aggregate amount of the Bank’s liabilities for 2009 soared by 41% and amounted to RUR 76.2bln. The volume of corporate accounts balances increased by 54% and reached the level of RUR 16.5bln. Along with this the amount of corporate clients’ deposits ran up to RUR 10.8bln showing by that a 140% increase. The volume of retail deposits also demonstrated an increase of 148% compared with the figures of the previous financial year and reached the level of RUR 29.9bln.

In 2009 the Bank successfully placed 2 domestic bond issues series 05 and 06 for the amount of RUR 2bln each with a 3-year maturity. Currently four CBM’s domestic bond issues series 03, 04, 05 and 06 are in circulation. All issues are included in the Lombard list and REPO list of CBR. Issues series 03, 04 and 05 are included in A1 quotation list at MICEX, issue series 06 is to be included in this list shortly.

During 2009 CBM was actively raising funds from the market by way of its promissory notes issue. The volume of issued promissory notes quadrupled for the period concerned and comprised RUR 5.3bln by the end of 2009. In 2009 CBM confirmed the stability of its market position and its reputation of the reliable borrower. The Bank fully repaid USD 30mln Syndicated loan raised in 2007, repaid first tranche in the amount of USD 40.5mln under A/B syndicated loan raised from EBRD in 2008, fully repaid USD 100mln Eurobonds placed in October 2006, as well as repaid a 5–year SME lending facility in the amount of USD 10mln granted by International Finance Corporation (IFC).

In 2009 the Bank and BLACK SEA TRADE AND DEVELOPMENT BANK (BSTDB) signed agreement on transformation of SME credit line opened in February 2008 into multi-purpose credit line facilitating any other types of on-lending. Apart from this, CBM was approved by the EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT (EBRD) to receive a new SME credit line for US$ 20 mln. The loan agreement is to be signed in the beginning of 2010. In 2009 the Bank paid out its bonds coupon yield for the total amount of RUR 778.9 mln in good time and exercised a put option of its 03- and 04-series bonds for the total amount of RUR 3.166 bln, RUR 2.983 bln of them having been sold to investors by the end of 2009. In June 2009 a 02-series bond issue for the amount of RUR 1 bln was duly repaid in full.

The Bank has access to auction borrowings provided by the Bank of Russia, including unsecured ones. The Bank keeps leadership positions in the cash collection segment. The number of points of cash collection increased by more than 300 points and reached 3146. For the previous year 11 new cash collection routes were introduced, having brought their total number to 80 routes. In 2009 the Bank started rendering cash collection services to other banks and their clients.

In 2009 the Bank was very active in plastic card business having increased their issue by 62% (from 145 ths to 234 ths cards). The volume of plastic card accounts balances was RUR 1.1bln. During 2009 five new branches were set up, the number of ATMs soared from 100 to 240 units, the payment terminals network enhanced from 150 to 820 units.

In 2009 the Bank’s client base was extended by 31%, the number of corporate clients exceeding 21 thousand of companies and number of individuals going beyond 179 thousand. Among new companies drawn during the last year are those engaged in food, metal, power industries and others included in the list of strategic companies of Russia.

Strong position of the Bank in both domestic and international markets is confirmed by the leading rating agencies. In 2009 Fitch Ratings affirmed the Bank’s ratings twice: the Long-term Issue Default Rating (LT IDR) at 'B', National Long-term rating at 'BBB-(BBB minus)(rus)', Short-term IDR at 'B', Individual at 'D'. Moody’s also affirmed international ratings of the Bank: ‘B1’ for foreign currency deposits, ‘E+’ Financial Strength Rating. Russian rating agency RusRating assigned initial credit rating of ‘BBB-’ to CBM. Rating agencies pointed out low level of problem and restructured loans, sufficient capital level and ample level of business development.

‘A year ago we challenged the crisis, having set very ambitious goals. And we turned out to be right as we made the crisis be on our side. We not only achieved our goals, but laid the groundwork for the future development as well. In 2010 we aim at accelerating the pace of development of all our business lines and increasing assets up to RUR 140 bln,’ – said Alexander Nikolashin, Chairman of the Management Board of CREDIT BANK OF MOSCOW.