One of Russia's largest banks has reported a surge in letter of credit (L/C) and bank guarantee business in the first quarter of this year.

Central Bank of Moscow (CBM) is the country's twenty-first largest bank and focuses on Moscow and the surrounding region.

Income growth

According to CBM, its fee income soared by 46.3 per cent in the first quarter of 2012 compared with the same quarter in the previous year to reach 756 million roubles.

Of that amount, 24.0 per cent was attributable to issuance of L/Cs and guarantees.

Cash collection

The increase in fee income was also 27.6 per cent attributable to cash collection services and 23.6 per cent to settlement services.

Apart from servicing its own network and clients, CBM also provides cash collection services to other financial institutions and their clients.

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