Overview
Commercial Bank “Moskommertsbank” LLC (hereinafter “MosKB”) is a universal bank oriented on SME and Retail businesses and actively working in Private Banking area.
MosKB was established in 2001 as a strategic partner of JSC Kazkommertsbank (hereinafter “KKB”), one of the largest private financial institutions in CIS with total assets exceeding USD 24.9 billion according to consolidated financial statements as of the year ended December 31, 2007. At present day KKB owns 100 per cent of shares in MosKB.
The bank’s strategy is underlined by KKB’s competitive positions in terms of cost and maturity of funds if compared to most other Russian banks.
Who we are today?
- MosKB is an integrated universal bank having full typical banking structure with a centralized approach in decision-making with total assets of RUR 47,575 million (IFRS) and capital of RUR 4,894 million (Basel I) as of the year ended December 31, 2007
- The Bank is focused on an organic development. That is why its network doesn’t extensive, but high-performance and allows to satisfy clients’ needs. Today the bank is presented in all main regions of Russia; its network comprises currently 11 branches: St. Petersburg, Volgograd, Kaliningrad, Novosibirsk, Chelyabinsk, Nizhniy Novgorod, Omsk, Perm, Tyumen, Rostov-on-Don, Samara and 7 subsidiary offices: Moscow – five offices and St. Petersburg – two offices
- MosKB has adopted KKB unique business model based on a centralized approach and lean management structure. Risk management procedures in MosKB are in line with the KKB’s risk management system. MosKB requires credit approval from KKB for all the credit deals valued more than USD 10 million
- Similar to many Russian banks, MosKB relies on short-term domestic funding sources with deposits and interbank (excluding KKB) accounting for over 41 % of its funding in December 2007. Loans from KKB, which have maturities of over one year represent a long-term funding source for the Bank. KKB has an established track record of supporting the growth of MosKB via equity and non-equity funding
- MosKB has average value ROAE, ROAA and CTI in Russian banking sector: 2007 ROAE= 14.9, 2007 ROAA = 1.2 and 2007 CTI = 39.5
- MosKB is focused on high margined segments of banking: SME crediting and retail market (mortgages, car loans and consumer loans, credit cards). It is conductive to increase profitability of the Bank
- The debut placement of RUB1bn bond in December 2005 allowed MosKB to refinance promissory notes and introduce publicly traded debt securities to its funding mix. In December 2006 MosKB has issued a second RUB bond (RUB3bn, 4 years with 1.5-year put). A third bond (RUB5bn., 6 years, 2 years put) has been issued in June 2007
- In order to further diversify its funding, the Bank also seeks longer term funding from international markets. As a “natural” extension, MosKB further diversifies it’s funding structure with a residential mortgage securitisation platform “Moscow Stars” and “Moscow Stars 2”
- The bank has a conservative approach towards liquidity management purposes
For more information please see our Investor’s Presentation