Bank guarantees and letters of credit (L/Cs) have helped Credit Bank of Moscow (CBM) to report net income for the first 9 months of 2011 up by nearly one-third compared with the same period last year.

The Russian bank also reports big increases so far this year in its loan portfolio and equity.

Loans and equity

CBM's net income for the nine months to September 2011 rose to 2.356 billion rubles (R2.356 - US$81.9 million), an increase of 29.1 per cent.

The bank's loan portfolio expanded by 56.1 per cent to R162 billion while equity soared by 74.7 per cent to R24 billion in the first three quarters of 2011 compared with the same period last year.

Guarantees and L/Cs

CBM's fee income increased by 52.4 per cent in the first nine months of this year compared with the same period in 2010 to reach R1.864 billion.

Of this amount, 19.3 per cent was generated by issuance of guarantees and L/Cs while 28.4 per cent was generated by cash collection services and 28.4 per cent by payment business.

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