OREANDA-NEWS. Bank of Moscow President A.F.Borodin and Chairman of the Board of Directors of the Bank of Moscow O.M.Tolkachev

The Annual General Meeting of Shareholders of ОАО Bank of Moscow was held to sum up the results of the Bank’s operations in 2006 and determine the main spheres of development for the current year.

The audit carried out by ZAO BDO Yunikon in accordance with the requirements of the Bank of Russia fully confirmed the correctness of the annual financial accounting for the previous year. The Meeting considered questions of assessing the financial results of the Bank’s operations, distribution of profit on the basis of the 2006 results, election of a new Board of Directors, President of the Bank and Auditing Commission, as well as issues connected with the Bank’s current operations. The Meeting noted the considerable contribution and role of President Andrei Borodin in the Bank’s development.

Andrei Borodin announced that, in 2006, the Bank demonstrated a stable growth of a number of indicators. For instance, in comparison with 2005, balance sheet profit for 2006 was 37.2% higher, amounting to 7.2 billion roubles, while assets, according to the published accounts, rose by 63.7%, exceeding 361 billion roubles. Noted among the most important events were the following: placement of a 10th share issue to the sum of 2.9 billion roubles, drawing of a subordinated credit in the amount of $100 million, and opening of 8 regional branches in Russia and a subsidiary bank (BM Bank) in the Ukraine.

In addition, according to last year’s results, UK Bank of Moscow took 4th place in terms of Unit Investment Trust net asset value. The aggregate net asset value of the Unit Investment Trusts of the Bank of Moscow increased more than 4.5-fold to reach 7.6 billion roubles. Among other achievements, the Bank has seen a rise in the number of bank cards issued (to 6.95 million), an increase in the credit portfolio by 47.8%, introduction of a CRM-system, a treasury securities operation accounting system, and a raising of the Bank’s ratings by international ratings agencies. The Fitch agency raised the Bank of Moscow long-term credit rating by 1 position (to BBB), while Moody’s Investors Service raising the rating of the Bank’s Eurobonds by two points — to А3.

At the end of 2006, market capitalisation of the Bank of Moscow exceeded 153 billion roubles and the quotation of the Bank’s shares on the MICEX has gone up 2.4-fold. The returns on average annual share capital stood at 31%. On the basis of its 2006 results, the Bank joined the top five in terms of size of capital and the top three in that of funds drawn from the population (84.8 billion roubles). In 2006, the Bank of Moscow took leading positions with respect to the size of total assets (4th place) and to the volume of corporate crediting (5th place).

The number of corporate clients increased by 17% to 92 thousand. The credit portfolio for legal entities expanded by 40%, to reach 205.6 billion roubles. As of the closing of 2006, Bank of Moscow’s clients included 156 companies among the country’s biggest 500 enterprises. The aggregate account balances of corporate clients increased by 87.2% and totalled 245.5 billion roubles.

In 2006, the number of individual clients rose by 26% (to 7 million). "Retail is one of the Bank’s priority spheres", Andrei Borodin stressed. "In 2006, the Bank launched large-scale projects for expanding retail in accordance with the highest international standards". The retail credit portfolio grew 2.4fold over 2006.

Dynamic development was demonstrated during 2006 by spheres connected with Bank of Moscow’s investment and international business. Last year, the Bank participated in 50 issue projects to an aggregate sum exceeding 117 billion roubles; 3 syndicated credits to a sum of 3.4 billion roubles were organised; the total volume of international borrowings in 2006 amounted to $2.8 billion; the Bank’s aggregate portfolio on trade financing operations increased by 233%. In 2006, the correspondent network was supplemented by 95 new credit institutions, including banks from Russia, the former Soviet Republic and further afield (a total of 750 financial institutions from 82 countries).

The Bank is active on the international market and is developing relations with foreign investors. IN 2006, many foreign investors showed an interest in participating in the Bank’s authorised capital, including J.P. Morgan International Finance Limited, ING Bank and Goldman Sachs.

In 2007, the Bank plans to increase its assets, capital and balance sheet profit by 40-50%. The Bank of Moscow will continue to develop its programme of international borrowings and introduce measures designed to raise the Bank’s investment appeal. In addition, by the end of the year it is planned to open about 80 new structural network divisions.