DGAP-News

CREDIT BANK OF MOSCOW announced its 2014 annual IFRS financials on 28 April, 2015 - Seite 2

bln, and the retail loan book by 31.1% to RUB 128.3 bln. The share of
retail loans in the gross loan portfolio reached 32.5% compared to 30.8% as
of 2013YE. Owing to the difficult macroeconomic situation, non-performing
loans (NPL 90+) increased to 2.3%, whereas loan loss provisions amounted to
4.1% of the Bank's gross portfolio.

Customer accounts and deposits increased by 21.8% in 2014 to RUB 334.9 bln
accounting for 63.8% of total liabilities. Corporate deposits grew by 22.1%
to RUB 171.5 bln in 2014. Retail deposits increased by 21.5% to RUB 163.4
bln in the reporting period. The ratio of net loans to deposits remained at
112.9%, the same level as in 2013.

In December 2014, the Bank's total capital was increased by two
subordinated loans totalling RUB 10 bln. A RUB 5 bln subordinated loan
borrowed from the majority shareholder was subsequently converted into
shareholders' equity in February 2015 and thus was factored into 2014YE
tier 1 capital calculations.

The second 10.5-year RUB 5 bln subordinated loan was raised through the
placement by CBOM Finance p.l.c., an Irish special purpose vehicle, of RUB
5 bln 16.5% subordinated Eurobond callable in 5.5 years.

Capital adequacy ratio calculated in accordance with Basel III grew from
14.8% to 15.8%. The Bank's total capital according to Basel III standards
increased by 27.1% to RUB 90.3 bln. Tier I capital ratio rose in the
reporting period from 10.2% to 10.5%.

Net income for 2014 fell to RUB 5.6 bln, a 37.3% drop compared to 2013.
This decline was mainly due to the increase in loan loss provisions to RUB
11.6 bln resulting from the Bank's conservative approach to loan loss
provisioning in the prevailing market conditions, and to the negative
revaluation of the securities portfolio and losses from foreign exchange
operations. On the other hand, the Bank demonstrated growth of net interest
income to RUB 25.8 bln and of net interest margin to 5.8% on the back of a
24.0% gross loan portfolio expansion and effective assets and liabilities
management actions such as timely adjustment of loan pricing, firstly for
corporate borrowers, following the repeated increases in the Bank of
Russia's key rate during the year. As a result, the annual net interest
income accounted for 91% of the operating income before provisions.

Fee and commission income increased by 26.3% compared to 2013 and reached
RUB 9.1 bln. The key growth drivers included plastic card fees that soared