Mission and values
CREDIT BANK OF MOSCOW is the largest regional privately owned commercial bank with international capital, operating and dynamically developing in Moscow and Moscow Region and providing a full range of services to corporate and retail customers. The Bank's activities are based on a transparent business model, effective management, and high level of corporate governance compatible with international standards. The Bank sees its mission in contributing to the economic development and social well-being in the Russian Federation by meeting public demand for high quality financial services, offering mass as well as exclusive bank products based on best international and Russian practice.
The Bank adheres to socially responsible business practices and ensures compliance with international standards of business efficiency and quality.
The Bank maintains the effectiveness of the work and coherence of the team as a whole and of each employee in particular through the provision of ethical and professional guidelines and values which allow for the creation of a unified professional team.
CREDIT BANK OF MOSCOW retains its positions as the largest regional bank in Russia operating exclusively in Moscow and the Moscow Region, the fastest growing and most important economic region in the country. The Bank is notable, above all, for its fast, but sustainable and quality growth, its unique business model developed over many years, its transparent ownership structure and corporate governance, and its sophisticated risk assessment and control system incorporating unique asset quality monitoring methods.
One of the Bank's objectives during recent years has been to maintain high business growth rates without compromising its efficiency. Its considerable experience of working with corporate customers who still have the largest share in its loan portfolio, and especially with companies in the wholesale and retail trading sector where growth has been most dynamic in recent years, enables the Bank to achieve above-market growth rates. In parallel with the corporate segment, the Bank has actively developed its retail business in last three years by creating attractive products, opening more branches, widening its payment terminal network and promoting brand awareness. In carrying out its growth strategy, the Bank has devoted and continues to devote considerable attention to its risk management system's efficiency and quality. The Bank's key strategic goals include:
- Maintaining sustainable growth rates. The Bank is determined to keep its position among the top 5 largest privately owned banks by concentrating on the balanced and diversified growth plan with a focus on the corporate segment but retaining the retail segment share at the current level. The Bank plans to remain highly competitive due to established close relationships with corporate customers, the efficient use of internal and external resources to attract retail customers, the improvement of products and raising service quality.
- Maintaining the quality of assets at a high level. The Bank continues to pay close attention to the quality of its loan portfolio. The Bank's awareness of trends in the earnings of customers to whom it provides cash handling services and the ability to apply collected revenues to repayment of any outstanding loans, allows it to manage its credit and liquidity risks with maximum efficiency. To maintain the credit quality of its portfolio, the Bank intends to keep focusing on sectors of the economy already well known to it such as the wholesale and retail trade which is advantageous for being less cyclical (compared to commodities, for example) and more resistant to adverse external factors, for short loan tenors, for the notable growth and development of the sector over the recent years, for the demand for a wide range of the Bank's products, for broad cross-selling opportunities and the possibility to control risks through the cash collection service. Furthermore, in pursuit of loan portfolio diversification, the Bank also plans to strengthen its relationships with large strategically important Russian companies. As for retail lending, the Bank has a conservative risk assessment approach and places maximum emphasis on lending to low risk segments: the Bank's existing customers, its corporate customers' and partners' employees, and customers with good credit history. Together with the efficient use of its sales channel platform and additional risk control via the payment terminal network, its selective approach to customer selection allows it to achieve its qualitative portfolio metrics. In addition, being concentrated in the most financially developed and fastest growing region of Russia also contributes significantly to the quality of the Bank’s assets. The portfolio's high quality is also achieved due to a robust loan recovery system.
- Cost control. Its ratio of operational expenses to operational income identifies the Bank as one of the most efficient in the Russian market. The Bank plans to keep its operational efficiency at a high level by optimising its operational expenses and increasing its operational income, and by further developing its management and control systems. The potential for maintaining high performance levels is ensured by the strategy of centralised operation and development within the region of activity, by focusing on remote customer service channels and the development of unique products designed to minimise the branches' workload, and by the fact that investment in the Bank's IT infrastructure development and enhancement and in the expansion of its branch network were made in previous years.
- Revenue maximisation. The Bank maximizes its revenues by cross selling and by making its existing sales channels more efficient through switching to remote channels of customer service and acquisition. Cross sales help increase interest income from the Bank's retail customers while maintaining its retail portfolio quality at a high level. In parallel with interest income, the Bank also plans gradually to expand the retail component in its fee and commission income structure. For its corporate customers, the Bank also maintains and develops a fee and commission income generating product range. All these steps are to enable the Bank, in the long term, to have a more balanced earnings structure and be more flexible in the changing economic environment.
- Ensuring information transparency and the highest corporate governance standards. The Bank undertakes on an ongoing basis improvements to its corporate governance system by reference to best domestic and global practices. This process started in 2008 and continues to date with substantial support from the international minority shareholders.
- Attracting and retaining top managers and employees. One of the key business objectives of the Bank is to maintain a leading position among Russian financial institutions in terms of the scale of business, quality and diversity of services offered as well as financial stability. To achieve this objective, a key element of the Bank's strategy is to create a top management and staff retention system in line with the best industry standards. The Bank plans to stay focused on the professional development and training of its staff within the Bank, rather than recruiting talent from elsewhere. However, whenever necessary, the Bank will recruit external labour resources with the necessary knowledge and skills required to reinforce the management team at all levels.
- Increasing brand awareness. The main objectives of the Bank are to ensure quality growth above the level of the market, to extend the retail segment in the loan portfolio and maintain its position among the Top-5 largest private banks. To achieve these objectives, the Bank must increase awareness of its brand. To strengthen the Bank's competitive position in retail lending, its brand positioning will focus on the quality of its services (speed, customer convenience), and not only on attractively priced offerings. The Bank has an action plan for the next 3-5 years to raise awareness of, and strengthen, its brand, which will require significant additional investment.