OREANDA-NEWS. Net income for the 9 months of 2014 rose 13.2% yoy to RUB 6.4 bln. This was mostly due to the net interest income growing 49.1% to RUB 17.6 bln, and to the net fee and commission income increasing 11.5% to RUB 5.2 bln. In its turn, fee income grew considerably in the cards & payments segment actively developing in line with the Bank's strategy.

Operating expense increased 22.3% to RUB 6.8 bln on the back of the Bank's business expansion. In particular, staff costs grew 25.2% to RUB 4.1 bln and administrative costs 20.3% to RUB 2.4 bln. Operational efficiency continues to improve with CTI ratios decreasing to 31.1%.

Gross loan portfolio (before provisions) stands at RUB 371.7 bln, 16.9% more than at 2013YE. The corporate loan book grew by 12.7% to RUB 247.9 bln, and the retail loan book by 26.5% to RUB 123.8 bln. The share of retail loans in the gross loan portfolio kept expanding and reached 33.3% as at the reporting date. During the 9 months of 2014, the share of non-performing loans (90+ NPL) in the Bank's gross portfolio rose to 2.6% due to the expanding share of retail business and, corporate-wise, mainly due to the deteriorated financial condition of a large borrower from the metallurgic sector. Loan loss provisions also grew and reached 3.6% of the Bank's gross portfolio owing to the economic slow-down, worsening environment, and the Bank's conservative approach to provisioning.

Customer accounts and deposits increased by 9.0% ytd to RUB 299.7 bln accounting for 68.2% of total liabilities. Corporate deposits grew 7.5% to RUB 150.9 bln, while retail deposits grew 10.7% to RUB 148.8 bln. The ratio of net loans to deposits slightly grew from 112.4% as at 2013YE to 119.6% at the end of 3Q 2014.

Capital adequacy ratio calculated in accordance with Basel III was 14.8% as at the reporting date. Total capital according to Basel III standards increased by 7.7% to RUB 76.5 bln in 9M 2014. Tier I capital ratio increased in the reporting period from 10.2% to 10.8%.

Infrastructure development

At the end of 9M 2014, CREDIT BANK OF MOSCOW's network comprised 59 offices and 33 operational cash desks in Moscow and the Moscow Region. CREDIT BANK OF MOSCOW's branch network was recognised as the most efficient in the Russian banking sector in 2013 by Renaissance Credit.

As at the reporting date, the Bank had more than 800 ATMs compared to 710 ATMs as at 2013YE and more than 6,000 payment terminals (5,200 as at 2013YE).

Ratings

At the end of 3Q 2014 the international credit ratings of CREDIT BANK OF MOSCOW were maintained at:

Fitch Ratings - Issuer Default Rating of "ВB", Short-Term IDR of "B", Viability Rating of "bb", Support Rating of "5", National Long-Term Rating of "AA- (rus)", stable outlook;

Moody's - long-term global & local currency deposit rating of "В1/NP", financial strength rating of "E+", long-term national scale credit rating at of "A1.ru", stable outlook;

Standard & Poor's - long-term credit rating of "ВB-", short-term credit rating of "В", Russia national scale rating of "ruAA-", stable outlook.

Awards

In 2H 2014 the Bank received international recognition from leading industry experts:

In July CREDIT BANK OF MOSCOW was named the Best Bank in Russia for achievements in the financial sector at Euromoney's Awards for Excellence 2014 annual ceremony;

In November CREDIT BANK OF MOSCOW was named the "Bank of the Year in Russia" in 2014 at the annual ceremony "Bank of the Year Awards 2014" held by The Banker (Financial Times group) in London.