ICB intends to build a clearing infrastructure for international payments

Moscow Credit Bank (MCB; MOEX: CBOM) over the next years plans to create a global infrastructure for international payments of exporters and importers, follows from the bank’s development strategy until 2029. MKB also intends to concentrate its efforts on the development of corporate business and earn 100 billion rubles in 2029. net profit.

The key profit center, according to the MKB strategy, which I reviewed Frank Media, should become a corporate-investment block. MKB’s long-term goal is to become a reference bank for 100 of the 1000 largest Russian companies. As of 2023, the bank had 42 core clients. By 2029, MKB plans to transform from a “bank for money” into a “bank for business.”

Over the next years, the bank intends to build a global clearing infrastructure for new trade flows. The strategy envisages that MKB will become a reference bank for international settlements of exporters and importers and will create a payment infrastructure for cross-border transfers, as well as to maintain cheap balances in yuan, dirhams and lira.

The international network of the ICD is planned to be divided into hubs, which will be located in “friendly jurisdictions”. Among these, the strategy lists the jurisdictions of China, Turkey, India, Southeast Asia, Brazil, Ghana, Mauritius and the CIS countries.

By 2029, the credit and documentary portfolio of MKB should increase from 1.3 trillion rubles. up to 3.8 trillion rubles, liabilities – from 1.2 trillion rubles. up to 3.2 trillion rubles. It is expected that the bank’s investment portfolio (repo operations, bonds, structured financing) will grow from 383 billion rubles. up to 650 billion rubles.

ICB named 15% as the optimal share of individuals’ funds in the bank’s liabilities for the development strategy until 2029. It is noted that such an indicator will allow the development of corporate lending and compliance with Bank of Russia standards. In 2029, MKB expects to receive a net profit of 100 billion rubles. and double the base capital to RUB 500 billion, as well as increase assets to RUB 6.1 trillion.

At the end of 2022, the net profit of MKB was 7.5 billion rubles, basic capital – 216 billion rubles, assets – 4.1 trillion rubles. In the first six months of 2023, MKB received 30.4 billion rubles. net profit. The bank’s profit for the second quarter amounted to 17.4 billion rubles.