OREANDA-NEWS. December 29, 2009. The Group of the Bank of Moscow is reporting the consolidated IFRS results for 9M 2009.

9M 2009 financial highlights:
- Total assets – RUB 814 bln;
- Capital adequacy ( Basel 1) – 18%;
- Net profit – RUB 498 mln.

Compared to 9M 2008:
- Provisioning for loan impairment increased 2.4 times;
- Operating income grew 25.4% ;
- Net interest income grew 4.3%;
- Сost/Income ratio decreased to 34.8%;
- Staff costs decreased 7.4%.

Operating and financial review

As of September 30, 2009 the Group’s gross profit was RUB 1.3 bln, net profit attributable to the shareholders of the Bank of Moscow – RUB 475.6 mln, ROE – 0.82%, ROA – 0.08%.

The Group’s assets grew 1.6% up to reach RUB 814 bln. As of September 30, the Bank’s gross loan portfolio amounted RUB 528.9 bln demonstrating a 0.1% decrease in 9M 2009. Gross corporate loan book as of September 30, 2009 amounted to RUB 434 bln, а 4.2% increase for 9M 2009. At the same time loans to individuals (gross) decreased to RUB 94.9 bln from RUB 113.1 bln as of January, 2009 due to reduction in demand for loan products on the part of retail customers.

The Group was increasing its loan loss provisions, which as of September 30, 2009 reached RUB 31.2 bln. The loan loss provisions to total loan portfolio was 5.9%. It has been the main factor that influenced net profit for the 9M 2009. The non-performing loans constituted 3.7% of the gross loan book with the loan loss provisions coverage ratio standing at 1.6.

Total customer accounts grew 11% to RUB 451.5 bln. The Bank of Moscow continued ranking number 3 in terms of the volume of retail deposits among the Russian banks. As of September 30, 2009 retail funds increased by 12% to RUB 169.4 bln from RUB 151.2 bln as at January 1, 2009.

As of September 30, 2009 the Bank’s capital position was sound: total equity amounted to RUB 112.1 bln with the capital adequacy ratio according to Basel 1 standing at the level of 18%. Tier 1 Capital ratio was 13.2%. In October 2009, the Bank of Moscow raised a subordinated loan from Vnesheconombank in the amount of RUB 11.1 bln. As of December 1, 2009 the Bank’s capital adequacy ratio (CBR N1) stood at 16.56%.

The Group’s operating income before provisioning for loan impairment for 9M 2009 increased to RUB 29.9 bln by 25.4% compared to 9M 2008 (RUB 22.3 bln). The growth in operating income was attributable to the increase of income from operations with securities.

Net interest income amounted to RUB 21 bln, a 4.3% growth year-on-year. The Group’s fee and commission income totaled RUB 5.2 bln.

General and administrative expenses of the Group decreased by 2.1% year-on-year, staff costs decreased by 7.4% for 9M 2009 compared to 9M 2008. The maintenance of tighter control over expenses coupled with the growth of operating income resulted in reduction of cost to income ratio to 34.8% compared to 48.5% for 9M 2008.

The Bank of Moscow possesses one of the largest branch networks among the Russian financial organizations. As of September 30, 2009 the Bank of Moscow operated 394 points-of-sale throughout the country. The Bank also delivered retail services in 471 Moscow based post offices.

As of September 30, 2009, the Group comprised 5 foreign banks: BM Bank ( Kiev, Republic of Ukraine), Bank Moscow-Minsk ( Minsk, Republic of Belarus), AS Latvijas Biznesa Banka ( Riga, Latvia), AS Eesti Krediidipank ( Tallinn, Estonia) and Bank of Moscow j.s.c. – Belgrade ( Belgrade, Republic of Serbia). The Bank of Moscow owns 2 Russian banks – Mosvodokanalbank and Bezhitsa-bank.

The strategic priorities of the Bank of Moscow include increase in business efficiency and operating income , client base diversification, optimization of business process and further maintenance of control over costs and expenses.

Overdue loans with payments past due 90 days and more.