OREANDA-NEWS. May 25, 2009. The Bank of Moscow has publicized consolidated IFRS results in 2008.

2008 financial highlights

- Total assets up 52% to RUR801.4 bln;
- ROAE — 11.6%, ROAA — 1.0%, CIR — 49.3%;
- loan portfolio soared 47% up to RUR516.6 bln, with a balanced growth of both retail and corporate segments;
- net profit — RUR6.76 bln.;
- capital adequacy — 11.9% (RAS), 13.9% (IFRS).

Operating and financial review

In 2008, the Group’s net profit attributable to the shareholders was RUR6.76 bln. The decrease of the Bank’s net profit is attributed to additional loan-loss provisions and revaluation of securities portfolio. In 2008, the Bank’s net loan-loss provisions were RUR9 bln. As of 31 December loan-loss provisions exceeded non-performing loans 160%. Yet, operation income (before making loan-loss provisions) grew 22%. Despite the financial markets turmoil the Bank plans to make profit this year.

In 2008, the Bank’s assets grew 52% up to RUR801.4 bln. In late 2008, 64.5% of assets were taken up by loans — in comparison to 66.6% in late 2007, which was caused by the Bank’s decision to increase liquid assets level in the face of financial markets turmoil in the second half of the year.

Total loan portfolio grew 47% to RUR516.6 bln, with corporate business portfolio increasing 48% to RUR410 bln. As of 31 December, corporate loans portfolio took 78% of the total credit portfolio. In spite of the market turbulence, the Bank went on providing real sector enterprises with loans in Q4 —  ex. the Bank’s corporate loans portfolio grew RUR46.5 bln in the last three months of 2008.

Retail portfolio soared 43% up to RUR106.6 bln. During 2008 the share of loans for individual customers in the Bank’s credit portfolio decreased from 26% to 22%.

The Bank has a b and a stable funding basis  — accounts of corporate and retail customers, funds drawn from state corporations, federal and municipal foundations and from capital markets. Given its sound financial position and a good reputation the Bank is deputed to attract funds via auctions organized by the Ministry of Finance, the Bank of Russia, Finance Department of the City of Moscow and state corporations.

In 2008, total volume of customers’ deposits grew 15.9% to RUR406.5 bln from RUR350.6 bln in late 2007. The volume of individual entrepreneurs’ and corporate clients’ deposits increased 28.4% to RUR161.1 bln, with the volume of retail deposits soaring 19.4% to RUR151.2 bln.

The Bank of Moscow ranks #3 in terms of the volume of individual clients deposits. Due to b market positions, high reliability and competitive interest rates the Bank enjoyed an increase of private deposits in Q4 2008.

In 2008, the Bank’s capital grew 42.6%. As of the end of 2008, the Bank’s capital adequacy according to IFRS was 13.9%, ROAE  — 11.6%, ROAA  — 1.0%. The Bank issued additional shares worth RUR8.3 bln, which resulted in equity growth up to RUR67.7 bln in the end of the year. In 2009, the Bank plans to complete the 13th issue of shares worth RUR20 bln.

The Bank of Moscow possesses one of the biggest networks of offices among Russian financial organizations. In 2008, the Bank opened 33 points-of-sale in Russia. As of 31 December, the Bank had offices in 54 regions of Russia. On the whole the Bank of Moscow operated 395 points-of-sale along the country. The Bank also delivered retail services in 471 metropolitan area based postal offices. Network development policy is focused on office efficiency growth and clientele diversification.

As of 31 December 2008, the Group of the Bank of Moscow comprised 5 foreign banks: BM Bank (Kiev, Republic of Ukraine — 31 offices), Bank Moscow-Minsk (Minsk, Republic of Belarus — 5 branches and 26 sub-offices), AS Latvijas Biznesa Banka (Riga, Latvia), AS Eesti Krediidipank (Tallinn, Estonia — 10 branches and 13 sub-offices) and Bank of Moscow j.s.c. — Belgrade (Belgrade, Republic of Serbia). Also, the Bank owns 2 Russian banks — Mosvodokanalbank and Bezhitsa-bank.

Major priorities of the Bank of Moscow include business efficiency, clientele and funding basis diversification, balanced development, retaining high standards of risk-management and leading positions in the financial sector.