Corporate business

The contribution of corporate businessIncluding MKB’s cash handling business to the bank’s key performance indicators:
Share in total assets 31%
Share in deposits 39%
Share in interest income 34%
Share in fee and commission income 61%
Share in comprehensive income 42%

Key Results of 2019:

  • CREDIT BANK OF MOSCOW is a leader in corporate banking, ranked No. 5 and No. 6 by corporate loans and corporate deposits respectively as of end-2019;
  • The corporate loan portfolio rose by 11.8% y-o-y (16.4% net of currency revaluation) to RUB 719.4 bln, mainly due to loans issued to large high-quality corporate customers.
  • Guarantees and letters of credit remain a strong source of fee income, contributing RUB 2.3 bln or 15% of the total fee and commission income as at 31 December 2019;
  • The strategy of developing services and offerings for SME customers is being actively pursued:
    • New products were introduced (updated range of cash management packages, instant corporate cards, online dashboard, loans secured upon commercial property, on-site account opening service and others).
    • The partner network is being intensively developed as one of the sale channels.
  • The bank is actively developing its investment banking franchise, which creates a synergistic effect with the corporate business and contributes to business growth;
  • A regional development strategy was adopted for corporate business; the bank entered the Saint Petersburg market;
  • MKB was one of the first Russian banks to adopt the new, project finance-styled, escrow account-based scheme to finance residential construction;
  • The portfolio of express guarantees expanded by more than 3 times to RUB 26 bln. They were issued to more than 2,000 customers;
  • High-tech cash management products were launched;
  • New factoring products were launched, unique to the Russian market: state-backed factoring and dual currency factoring;
  • Launch of a new product, “Public Contract Loan”.

MKB is a top-10 bank in Russia, largely due to the quality of customer service in the corporate business sector. The bank offers its customers an effective system of comprehensive banking services, including remote banking, meeting all basic needs of companies and sole proprietors.

Corporate banking is the bank’s main business area, accounting for 87% of its loan portfolio at the end of 2019. The bank has focused on controlling credit risks without undermining the corporate portfolio’s profitability by concentrating on the most stable sectoral segments and by tightening requirements to corporate customer quality and deal structures.

Key products include corporate lending, international finance and foreign trade support, trade finance and documentary operations, a full range of cash management and liquidity management services and products, e-commerce tools, factoring and deposits.