The ‘A’ rating indicates that CJSC CB International Bank of Development is a highly reliable borrower. Risk of a delay in meeting liabilities is relatively low, restructuring risk for a loan / part of a loan is minimal.

The rating of CJSC CB International Bank of Development is essentially supported by the good capital adequacy of the Bank, the high margin and operating profitability, the high quality of the credit portfolio.

As of August 1, 2012, the Bank’s equity capital amounted to RUB 1,286,087 thousand including the authorized capital of RUB 870,000 thousand. The share of the Bank’s authorized capital in its equity capital is 67.6%, CAR being 14.2%. The Bank’s capital rose by RUB 198,220 thousand (or 18.2%) since the start of the year. The main driver for the equity capital growth is the Bank’s retained profit.

The Bank’s operating margin, ROA and ROE are high. In H1 2012, the Bank earned a pre-tax profit in the amount of RUB 209.015 thousand. As of July 1, 2012, return on equity and return on assets equaled 19.3% and 2.9%, respectively, both higher than the average values in Russia’s banking sector as of the same date (ROE was 17.7%, ROA was 2.3%).

Class 1 loans account for more than 50% of the Bank’s credit portfolio. The share of doubtful, problem and non-performing loans is approximately 14%. The relative weight of loans in arrears as of July 1, 2012 was 6.9%, which is above the average value in Russia’s banking sector (4.0% as of the same date). The bank has built sufficient provisions for possible loan losses (approximately 9.0% of the total loan portfolio as of July 1, 2012).

The rating of CJSC CB International Bank of Development is restricted by the high relative weight of investments in securities in total assets, the low share of loan interest incomes in the structure of incomes, the plateauing amount of funds placed by enterprises and organizations and their decreasing share in the Bank’s liabilities.

The relative weight of net investments in securities in the Bank’s assets as of July 1, 2012 was 61.8%, net lending receivables being the second largest asset (31.5%). The relative weight of other assets constituting the Bank’s asset portfolio is insignificant. The predominance of investments in securities in the Bank’s assets has been detected since mid-2011, with a conservative approach towards building the portfolio of securities.

The share of loan interest incomes in the Bank’s income structure is low. In the first half year 2012, incomes on the loans granted by the Bank accounted for 12.6% of the Bank’s combined earnings. During this period, income from debt investments (except for notes) accounted for 21.4%, income from the purchase and sale / revaluation of foreign currencies for 42.1%, income from recovery of provisions for possible losses for 16.3% of the Bank’s total incomes.

The amount of funds placed by legal entities in the first half year 2012 failed to rise. For six months, it increased by a mere 0.2% reaching RUB 2,308,392 thousand as of July 1, 2012: The monthly behavior of this indicator lacks stability, the balance sometimes on the rise, sometimes looking down. The share of funds placed by legal entities in the Bank’s total liabilities decreased by 5.4 percentage points year-to-date to 27.8%.

CJSC Commercial Bank ‘International Bank of Development’ has been active in the market of banking services since 1994. The Bank of Russia assigned it registration number 2704. The bank possesses general banking license as of April 3, 2012. The Bank participates in the compulsory insurance scheme, DIS registration certificate no. 750 as of March 03, 2005.

CJSC CB International Bank of Development headquartered in Moscow has a branch in Ufa and one additional outlet in Moscow. The Bank provides all kinds of banking services involving Russian rubles, lends to legal entities and individuals, and performs operations in the security market and the exchange market.

The Bank’s auditor is CJSC Intercom-Audit. Since December 28, 2009, it has been registered as a member of the self-regulatory auditor organization Audit Chamber of Russia (a non-profit partnership) under primary registration number 10201007608. Tax number: 7729111520, taxpayer record validity code / KPP 772901001, PSRN 1027700114639. Registered seat: Michurinsky avenue 27, bld. 2, 119607, Moscow, Russia. Location address: 3rd Yamskogo polya street 2, bld. 13, 125124, Moscow, Russia. Corporate website:

This press release is based on the statement of assigning a credit rating to CB International Bank of Development.

The credit rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Company's reliability and shall not be considered as advice on the purchase and sale of securities or the provision of loan facilities to the Bank.

AK&M Rating Agency will not incur any responsibility for any interpretations, inferences and consequences related to the application of results of the rating estimation procedure by any third parties.

AK&M Rating Agency is a leading independent national rating agency engaged in rating activities since 1993. AK&M Rating Agency is accredited by the Ministry of Finance of the Russian Federation (order no. 452 as of September 17, 2010).

AK&M Ratings are recognized by the Central Bank of Russia (for providing unsecured lending facilities – Provision 323-P), Vnesheconombank (for granting subordinated loans) and SME Bank (for its program of lending to SME businesses), RUSNANO (when selecting banks to provide business banking services to project and engineering companies implementing investment projects), the MICEX (as a prerequisite for including bonds in the Corporate Bond Index / MICEX CBI and Municipal Bond Index / MICEX MBI calculation base and for listing bonds). Pursuant to an order of Russia's Government AK&M Ratings count for approving the capitalization increase procedure for banks. Besides, AK&M Rating Agency is recognized by AHML and accredited by SRO National Securities Market Association.

CJSC AK&M Rating Agency
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Moscow, Russia
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Press release by: A.M. Krachkovskaya
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