Credit Bank of Moscow: H1 profit more than doubled, but the growth came entirely from interest income

Credit Bank of Moscow's H1 2026 results showed net profit of RUB 15,642 mn against RUB 6,943 mn a year earlier – growth of 125.3%. Net interest income added 31.8% to reach RUB 55,331 mn, with profit accounting for 28.3% of it versus 16.5% a year earlier. Over the trailing twelve months, profit stood at RUB 22,611 mn, while the market values the bank at RUB 296,354 mn on a P/E LTM of 13.1 and ROE of 8.2%. On the portal's model, the upside to fair value is +11%, and at the current price the share looks rather attractive than neutral.

Key takeaways

— H1 2026 net profit rose 125.3% to RUB 15,642 mn, but the entire increase came from interest income

— Net interest income added 31.8% year on year to RUB 55,331 mn – the main source of profit

— Profit as a share of net interest income rose to 28.3% from 16.5% a year earlier – this is not a margin but a share showing how much reaches the bottom line

— Over the trailing twelve months the bank earned RUB 22,611 mn – the valuation base, and it is lower than the half-year result doubled

— P/E LTM of 13.1 with ROE of 8.2% and a market cap of RUB 296,354 mn – the market values the bank above what its current return on equity allows

— On the portal's model the share has +11% upside to fair value, the only return benchmark available in the facts

Attractiveness

Key figures, RUB bn

H1 2026 net profit rose 125.3% to RUB 15,642 mn, but the entire increase came from interest income

H1 2026 net profit came in at RUB 15,642 mn versus RUB 6,943 mn in the same period a year earlier. The 125.3% increase looks impressive, but it rests on a single source – net interest income, which grew 31.8% to RUB 55,331 mn. The gap between profit growth and interest income growth shows the bank did not just earn more interest but also controlled costs and provisions much better.

Profit as a share of net interest income rose to 28.3% from 16.5% a year earlier. This is not a margin or a profitability measure but a ratio showing how much of interest income reaches net profit. The 11.8 percentage point increase in this share is the main positive shift in the report. It means the bank either cut costs, reduced provisions, or both.

Over the trailing twelve months, net profit stood at RUB 22,611 mn, noticeably below the half-year result doubled. This suggests the second half of 2025 was weaker than the first half of 2026. For valuing the share, it is this annual base that matters, not a single strong half-year report.

Net interest income added 31.8% year on year to RUB 55,331 mn – the main source of profit

Net interest income for H1 2026 reached RUB 55,331 mn, up 31.8% year on year. This is the key revenue line for a bank, and its growth indicates that the loan portfolio and/or lending rates grew faster than funding costs. Without this increase, profit could not have risen so much.

Interest income is the foundation from which profit is generated. If it grows 31.8% while profit grows 125.3%, other lines (fees, trading income, costs, provisions) contributed less. The bank may have cut provisions or administrative expenses, but the facts do not provide a breakdown, so the exact cause cannot be named. What matters is that profit growth was not driven by one-off non-interest income – its contribution is not visible.

The sustainability of such interest income growth depends on the bank's ability to maintain its margin. If the growth came from a one-off expansion of lending at high rates, it could slow. But for now, this indicator remains the main driver.

Profit as a share of net interest income rose to 28.3% from 16.5% a year earlier – this is not a margin but a share showing how much reaches the bottom line

The ratio of net profit to net interest income in H1 2026 was 28.3% versus 16.5% in the same period last year. This is not a net interest margin or a profitability measure but a share showing how much of interest income remains after all costs and provisions. The 11.8 percentage point increase in this share is the strongest shift in the report.

Such an increase could be explained by several factors: lower funding costs, reduced administrative expenses, smaller provisions, or one-off items. The facts do not provide a breakdown, so it is impossible to say exactly what happened. But the very fact that profit is growing faster than interest income means the bank has become more efficient at converting revenue into profit.

For a shareholder this is a positive signal, but it needs confirmation in subsequent reports. If the share holds at 28% or above, it would indicate a sustainable improvement. If it returns to 16.5%, the profit growth will prove one-off.

Over the trailing twelve months the bank earned RUB 22,611 mn – the valuation base, and it is lower than the half-year result doubled

Profit over the trailing twelve months was RUB 22,611 mn. This is an important valuation base because it smooths out seasonality and one-off factors. If H1 2026 alone produced RUB 15,642 mn, then H2 2025 and H1 2025 together produced only about RUB 7 bn. This means the recent profit growth is an improvement over a weak previous period.

The bank's market capitalisation is RUB 296,354 mn, and P/E LTM is 13.1. This means the market pays 13.1 years of earnings per share. With ROE at 8.2%, such a valuation looks stretched: if the bank earns 8.2% on equity while the market values it at 13.1 times earnings, the investor gets a yield of about 7.6% (the inverse of P/E), close to the risk-free rate but with equity risk.

On the portal's model, which compares ROE with P/B, the upside to fair value is estimated at +11%. This is not a consensus or a target price but our own estimate. It suggests that at current profitability the share is undervalued by 11%, but this undervaluation is modest and could disappear if results deteriorate.

P/E LTM of 13.1 with ROE of 8.2% and a market cap of RUB 296,354 mn – the market values the bank above what its current return on equity allows

The P/E LTM multiple is 13.1. This means the market is willing to pay 13.1 years of earnings per share. For a bank with ROE of 8.2%, this is fairly high: banks with return on equity below 10% typically trade at a P/E of around 8–10. Here the market is pricing in expectations of profit growth or improved profitability.

It is impossible to compare the current P/E with its own three-year history because the facts do not provide historical data. But it can be said that with ROE at 8.2% and P/E at 13.1, the investor receives an earnings yield of about 7.6%, only slightly above the risk-free rate. This leaves little risk premium.

The portal's model gives +11% upside to fair value. This means that even by our own model the share is only modestly undervalued. If trailing twelve-month profit rises, say, to RUB 25 bn, P/E would fall to 11.9 and the upside would increase. If profit stays at RUB 22.6 bn, the share will trade at fair value or even look expensive.

On the portal's model the share has +11% upside to fair value, the only return benchmark available in the facts

Our model, which compares ROE with P/B, estimates the upside to fair value at +11%. This is not a consensus forecast or a target price but our own estimate based on current profitability and book value. It suggests that with ROE at 8.2% and the current price, the share is undervalued by 11%.

This benchmark matters because there are no other sources of return in the facts. Dividends are not mentioned, so dividend yield cannot be assessed. The only remaining return is price appreciation, which the model puts at 11%. This is slightly above deposit rates, but given equity risk it does not look generous.

If the bank can sustain profit growth, the upside may increase. If profit returns to the 2025 level, the share could prove overvalued. Therefore the key question is the sustainability of interest income growth and the profit share within it.

Valuation on the latest reported figures

Bottom line

Bottom line: Credit Bank of Moscow delivered strong H1 2026 profit growth of 125.3% to RUB 15,642 mn, but this growth rests entirely on interest income, which rose 31.8%. Profit as a share of net interest income climbed to 28.3% from 16.5%, indicating better cost or provisioning control. However, trailing twelve-month profit is only RUB 22,611 mn, and P/E LTM of 13.1 with ROE of 8.2% leaves little cushion. On the portal's model the upside is +11%, and at the current price the share looks rather attractive than neutral, but only if interest income growth continues.