Morgan Stanley has expanded its mortgage business into Russia just as the bank plans to cut 14% of the staff in its newly acquired US mortgage unit.

Morgan Stanley has bought CityMortgage Bank, a Moscow-based lender, for an undisclosed amount. CityMortgage, which has originated over $300m (€228m) in Russian residential mortgage, was founded in 2004 with the backing of Russian insurer Rosgosstrakh, Morgan Stanley said.