MDM Financial Group
MDM Financial Group is the judges’ choice as the best bank in Russia again this year with its strong performance in 2002 and continued leadership in corporate governance, transparency and bond issuance.
MDM’s business model of genuine financial intermediation between non-related parties proved itself again last year. Despite a challenging environment, the bank’s net profit was steady and it achieved an impressive ROE of 29.4%. At the same time, its assets rose 106.2%, while Tier 1 capital grew 32.8%.
To improve transparency and corporate governance, the bank continued to streamline its legal structure. It was the only Russian bank to publish quarterly results in accordance with International Accounting Standards (IAS) and was singled out by US rating agency Standard & Poor’s for its excellence in corporate governance.
MDM displayed its leadership in bond issuance by successfully completing a $200m Eurobond issue – the largest ever for Russian banks. Its low international funding costs open the door to future bond issues.
In 2002, 10-year-old MDM completed the integration of recent acquisitions, including banks in St Petersburg and in the Urals, thereby further strengthening its balance sheet and achieving economies of scale.
The runner-up was Sberbank, whose profitability was exceptional in 2002.
Vladimir Rashevsky, CEO of MDM Financial Group, said: “To win this award for the second consecutive year is a great acknowledgement of the consistent implementation of our independent business model. We base our operations on financial intermediation between non-related parties, which allows us to maximise both the profitability and value of our operations. Looking ahead, we believe we are in pole position as the Russian banking sector continues to evolve.
“We will place particular emphasis on our corporate governance programme as an additional competitive advantage,” he said.
