Credit Bank of Moscow (CBM) has reported strong growth in its letter of credit (L/C) and bank guarantee business according to the Russian bank's figures for the first nine months of 2013.

They show that CBM's net income grew 49.5 per cent compared with the same period in 2012 and amounted to 5.6 billion Russian rubles (RUB5.6 billion -US$173.9 million).

Strong growth

Bank guarantee and L/C business increased by 26.7 per cent and contributed to a 74.1 per cent increase in CBM's fees and commissions compared with the first nine months of 2012.

Fees and commissions during the first nine months of 2013 reached RUB5.1 billion, of which 15.4 per cent was attributable to bank guarantee and L/C business.

Asset growth

Loan insurance arrangement fees accounted for 34 per cent of fees and commissions in the first nine months of 2013, during which cash handling fees and settlement operation fees accounted respectively for 16.9 per cent and 16.4 per cent of similar income.

The Russian bank also reported return on equity of 17.3 per cent in the period, during which CBM's assets grew by 29.8 per cent to reach RUB400.8 billion.

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