OREANDA-NEWS. CREDIT BANK OF MOSCOW reports its 9m2015 IFRS financial results.

Net income reached RUB 1,535 mln after a slight growth in 3Q. It dropped by 75.9% year-on-year mainly due to provisions having grown by 2.1 times to RUB 14,585 mln as the Bank has adopted a conservative provisioning policy in response to negative macroeconomic trends. Additional pressure on the net income was put by increased interest expense as the market-average cost of funding rose in 2015 compared to 2014.

Operating income (excl. provisions) grew by 7.2%, while operating expense (excl. provisions) slightly shrank by 2.9% allowing the cost-to-income ratio (CTI) to remain at a good level of 28.1%.

The Bank's total assets increased by 71.0% ytd surpassing RUB 1 trln. This growth was mainly driven by interbank loans granted under repo transactions against securities of first class issuers. Accounts and deposits in banks amounted RUB 148,431 mln. A substantial growth was demonstrated by the Bank's securities portfolio: from RUB 60,976 mln as at 2014YE to RUB 103,692 mln as of 9M15. The portfolio is largely composed of securities included in the CBR's Lombard List.

Gross loan portfolio expanded by 33.3% ytd to RUB 525,382 mln, while the corporate book grew by 50.3% to RUB 399,772 mln and the retail book shrank by insignificant 2.1% to RUB 125,611 mln as requirements to customers became stricter and demand for retail loans generally weakened. The share of corporate loans in the total loan portfolio grew from 67% as at 2014YE to 76% as of 9M15. The share of non-performing loans (NPL 90+) matched the level of 1H2015, i.e. 4.9%. Loan loss provisions grew to RUB 27,186 mln and stood at 5.2% of the gross loan portfolio with the NPL coverage ratio of 106%.

Customer accounts and deposits increased by 85.5% ytd to RUB 621,170 mln mostly because of time deposits placed by large corporate customers, while retail deposits demonstrated a more moderate growth of 15.7% to RUB 189,043 mln. The share of corporate accounts in the total portfolio grew from 51% as at 2014YE to 69% as of 3Q15.

Capital adequacy ratio calculated in accordance with Basel III did not change materially ytd and stood at 16.0%, while the Bank's total capital according to Basel III standards grew by 38.2% to RUB 124,840 mln. Tier I capital ratio was 9.6%. The capital grew upon successful closing of two deals in 2Q2015: a RUB 20.2 bln subordinated loan provided by the Deposit Insurance Agency under the Russian banking system recapitalisation programme and the Bank's IPO attracting RUB 13.2 bln on the Moscow Exchange.

As of 30 September 2015, CREDIT BANK OF MOSCOW had 57 offices, 21 stand-alone cash desks, 887 ATMs and 5,220 payment terminals (as of 31 December 2014, these figures were 58, 31, 841 and 5,683 respectively).