The retail loan portfolio of MDM Bank exceeds USD 1 bln. as of today

21.02.2007

Retail Results

The retail loan portfolio of MDM Bank exceeds USD 1 bln. as of today. The Bank’s retail loan portfolio mostly consists of autoloans, where MDM Bank is retaining the leadership position.

In 2006 the Bank managed to double its auto loan portfolio that reached USD 841 mln by the end of the year. Such result was based both on the market growth and on the systematic development of the sales channels (regional network increased from 180 to 451 points of sales, and the Moscow network - from 35 to 62) and on the improving of the lending conditions (the maximum loan amount and the lending period were increased).

In 2006 a number of new auto lending products were launched:

• loan for purchase of a used car from an individual without involvement of a car dealer;
• loan for purchase of  a new car on repurchase conditions;
• interest-free payment by installments; 
• loan for purchase of a new foreign-made motor bike; 
• loan for purchase of a small size vessel.

Mortgage lending is another strategic priority of the retail business of MDM Bank. In 2006 the Bankmanaged to increase the mortgage loan portfolio by three times, up to USD 94.4 mln. At present MDM Bank offers programs for lending to individuals for purchase of residential real estate in the primary and secondary markets, as well as for purchase of detached residential houses and townhouses. Last year the Banksoftened significantly the conditions of mortgage lending, having increased the lending period up to 25 years and reduced the initial installment down to 10%.

In 2006 MDM Bank worked a lot to improve the deposit terms and conditions. The Bank regularly offers to its clients seasonal deposits on special terms and in 2006 the Bankoffered “New Year’s Eve” (Novogodny) and “Spring Feeling” deposits (Vesennee Nastroenie). Having placed funds on these deposits the clients received gifts from the Bankin addition to higher interest rates.

Commenting on the results of the retail business the Chairman of the Management Board of MDM Bank Mr. Michel Perhirin stressed that “our most important tasks are creation of a powerful and appealing brand, development of an extensive product line, expansion in the growing regional markets. We set ourselves the objective to increase the retail business by 50% annually, on average. The excellent results of 2006 prove the feasibility of our strategy.”

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