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Credit Bank of Moscow is one of the largest private banks in Russia, with a strong tilt towards serving large corporate business. It does have a retail arm, but that arm trails the corporate one noticeably in its share of the balance sheet. The shares trade on the Moscow Exchange under the ticker CBOM.
The core of the business is lending to companies and money market operations. This model has an arithmetic of its own: the tickets are large and the cost of serving a client is low, but the risk is concentrated — the position of a handful of big borrowers moves the result noticeably.
Repo transactions and securities operations play a significant role: the bank is an active player on the money market, where the margin is thinner than in lending but turnover is higher. This makes its balance sheet look less like that of a classic retail bank.
Funding relies on the money of corporate clients and on market borrowing rather than on mass retail deposits. Such money costs more, but it can be raised faster and in larger volumes.
Loans to large businesses, trade finance, settlement services.
Repo transactions, securities operations and liquidity management.
Deposits, cards and loans to individuals — a complement to the corporate division.
Strengths and weaknesses describe the business itself. Opportunities and threats describe what may happen around it.
The bank lends to large companies, handles their settlements and is an active player on the money market. In parallel it is developing its retail arm: deposits, cards and loans to individuals.
In the structure of the balance sheet. A corporate bank has large loans to a few borrowers and expensive market funding; a retail bank has a multitude of small loans and cheap household deposits. The former is more cost-efficient, but more vulnerable to the problems of an individual client.
A repo is a sale of securities with an obligation to buy them back after an agreed period at a price known in advance. In essence it is a short-term loan secured by securities: this is how the bank manages liquidity and earns on the difference in rates.