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  • 1. Good Luck Guys! Today we will make a lot of money! Russian & Global Capital Markets Russian Banking System Great Growth Prospectives 11.12.2007 G Andrey Golubev Bad times have passed… Research Analyst Russian & Global Capital Markets Treasury The time has passed since two Russian banking slumps of 1998 and 2004. The confidence in Credit Europe Bank Ltd the Russian banking system is restored. The world has changed. The people have changed. T: +7 (495) 725 40 40 (ext. 7239) The country has changed. The banking system has changed. Now. Transparent. Flexible. F: +7 (495) 725 40 13 Integrated to the world economy. However, somewhat remained unchanged and these are andrey.golubev@crediteurope.ru flagships of the Russian banking system – Sberbank, Gazprombank, VTB. Sberbank is still perceived as the best safe heaven for the population. BLOOMBERG: Andrey Golubev Agolubev2@bloomberg.net Online WEB Research: Now supported by strong macroeconomic environment… http://www.crediteurope.ru/en/research/ It is expected that the Russian banking system will continue its strong growth. Russia possess Online Bloomberg Research: supportive macroeconomic environment to generate such high growth. The growth will be CEBM <GO> supported by increasing real disposable incomes and wealth levels of population. With retail & corporate lending to head the future… Currently the system has highest growth rates in retail loans. Russian mortgage market is at its infant development stage and is likely to show the strong growth in the future. Retail lending is the segment of highest margin & a preferred growth for most Russian banks. Here two types of banks could be distinguished. First are specialized consumer finance banks such as Home Credit and Finance Bank and Russian Standard Bank. Second stands for commercial banks which heavily invest in retail, such as VTB24. Corporate banking shifts the focus from largest to mid-size corporates because large corporate segment is extremely competitive. Russian banks strive (1) to expand as into regions with low level of competition and higher margins (ex., Absolut Bank), (2) to intensify their presence in regions being already there (ex. URSA Bank), (3) to expand into CIS (for example, VTB going to Kazakhstan and Ukraine, Alfa Bank). Retail banking overall remains underdeveloped and offers high further growth potential. In the corporate lending there is a noticeable increasing shift from FX to Russian Ruble denominated loans. www.crediteurope.ru/en/research/ _1_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 2. With mortgage market to accelerate and join the leaders… Rapidly developing Russian mortgage market is supported by the state which improves regulatory framework and gives guarantees for some mortgage programs. Thus, for example, since 2005 the property under construction is classified as real property. It is necessary to mention also that a lot was done to reduce administrative barriers for mortgage developers and, which is important, there appeared the ability to issue mortgage-backed securities. Banks increased loan terms from previously common 5 years to currently 25-30 years. Interest rates on mortgages are also decreasing. With these four major recent achievements… Among more or less latest achievements we would emphasize the most important following four: (1) The introduction of the unified system of deposits insurance when the State guarantees the safety of banking deposits up to certain amount . (2) The introduction of a mandatory disclosure of effective interest rate (3) The prohibition to change deposit interest rates unilaterally. (4) Noticeable is the trend of consolidation of banks to outgrow competition and gain scale (for example, Raiffeisen Bank - Impexbank). Having following trends and characteristics… (1) Banks are developing very fast branch networks over the whole territory of the country. (2) Spheres of corporate loans and and retail loans will show a considerable growth further. However, corporate loans are expected to grow less than retail loans. The market of mortgage loans will accelerate and join leaders soon. (3) The number of banks is decreasing. The State tightened the control over banks’ operations. (4) Large Russian companies increase funding from international banks and through international and Russian bond issues. (5) Debit cards are widely used in Russia but credit cards are still not widespread. 90 % of all card transaction volumes, both for debit and credit cards are cash withdrawals – the remaining 10% stand for payments for goods and services. Effectively withstood the recent liquidity crisis and became stronger… It is necessary to mention that during the recent liquidity crisis the Russian banking system performed quite well. The turmoil allowed the CBR to take measures to ensure the stability of the Russian banking system. The Central Bank of Russia and the Government improving the system and supporting liquidity… Let us give some credits to the CBR and the government because a lot was really done to improve the liquidity. (1) mandatory reserve requirements for credit institutions were decreased, (2) the Ruble rate for swap operations with the CBR was decreased from 10% to 8%, (3)Lombard/REPO list was extended and there are some bonds which satisfy the requirements of the CBR and will, most probably, soon be included in the list, (4) The CBR started accepting Eurobonds for collateral REPO. www.crediteurope.ru/en/research/ _2_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 3. The Finance Ministry also made some improving steps… (1) The Federal Budget expenditures increased at the end of this year but at a rate much lower that it was previously promised. But still… increased. (2) Economic statistics for 2007 is strong except for inflation which appeared to be higher than planned. With accelerated inflation triggered from overseas… Accelerated inflation was mostly generated by rising oil and food prices on world markets. And not only Russia faced such high inflation figures, but the US and many other countries as well. However, even such high inflation (and we continue to assume that it will most probably amount closer to 11.2% in 2007) corresponds to much higher than in many other countries growth rate of Russian economy. The CBR introducing new refinancing instruments… The CBR launched three new instruments of refinancing for banks: (1) one-day Lombard loans with the CBR. Previously the CBR had only one week Lombard loans (without auctions) and two-week auctions. The terms under which money could be borrowed correspond to the terms of overnight with the CBR which goes at 10%. Thus, the appearance of this new instrument could be viewed as actual decrease of the refinancing rate because 10%- overnight with the CBR could became needless, (2) one-day (8%) and (3) one-week REPO sessions (7%). Anyway having some weaknesses… (1) Russian banks still have limited experience in managing bad debts. Russian banks have low amount of overdue loans the main supportive reason of which is that strong volume growth mask underlying default rates. (2) The absence of the centralized credit bureau we would add to weak points of the Russian banking system. Well, the fact is that at least one credit bureau exists and banks are required to provide relevant information it, nevertheless large banks tend to protect their own interests and not strive to transparency. With rising costs … Cost / Income ratio is increasing moderately due to rising investments in opening new branches, regional expansion, rising cost of restructuring to improve the corporate structure and management to meet currently fast developing banking environment, increasing costs of qualified banking IT technologies and risk management systems, increasing costs of human resources. Increasing M&A interests… According to rumors four out of five M&A transactions fail in Russia. Despite the growing M&A interest in the banking sphere, there is a significant mismatch of the demand and the supply because Russian banks which are going to sell participation are looking for a minority investor to give him limited rights and get as much possible money from him as possible while selling a participation interest which is often overvalued. International investors and intelligent Russian investors are interested often in acquiring control and investing reasonable funds in transparent and well-managed bank better with already developed retail banking network. www.crediteurope.ru/en/research/ _3_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 4. With new banking IPOs … This year many talks were held about banking IPOs. Banks prefer to use private placements in order not to give away meaningful information. Banks also prefer to raise equity from several investors without giving away control rights. So, a lot of IPO intentions were announced since the very beginning of this year but little was actually done. IPO of Sberbank and VTB were the only real sparks. Segmented into three major groups … The Russia Banking system could be divided into three sub-segments: (1) Government / Quasi-government owned banks which continues to dominate the banking system and controls more than 50% of the Russian banking market. For example, Sberbank, VTB, Gazprombank, Bank of Moscow. This group can be characterized by having close ties to the government and their decision making is often influenced by political frameworks. (2) Privately owned banks, initially settled often as treasuries for large financial and industrial groups (holdings). For example, Alfa Bank (Alfa Group), Soyuz (Basic Element), MBRD (Sistema), also Rosbank. (3) Banks owned by foreigners. Actively use M&A deals to increase their presence in the Russian banking system. For example, Deutsche Bank, Commerzbank Russia, Reiffeisenbank Austria, Unicredit, Societe Generale, Citibank, etc. But everything is under strict control of regulators… Russian Banking system is under strict control of the CBR. The major law which regulates banking sector is “the Banking Law”. The CBR licenses banks and controls M&A in banking sector. Thus the CBR must be notified of acquisitions of more than 1% of the participation interest in a credit organization and also the CBR must approve the acquisition of more than 20% of the participation interest in a credit organization. The Federal Antimonopoly Service helps the CBR control banking sector. It controls acquisitions of more than 10% of the assets of a credit organization and acquisitions of more than 25% of voting stock in a credit organization. To keep the stability of the system, banks are obliged to meet mandatory reserve requirements and make provisions and loss allowances. Foreign banks are still limited in strengthening their presence in Russia because there are still no procedures for registration of foreign banks’ branches in Russia. Representative offices of foreign banks in Russia only represent interests of foreign banks and are limited to only assist banking operations. ggGggggggg fgfg www.crediteurope.ru/en/research/ _4_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 5. . Credit Europe Bank Treasury Research Russian Banking System Major Macroeconomic Indicators Macrodymanics Performance of Russian Financial Markets . www.crediteurope.ru/en/research/ _5_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 6. Russian Banking System - Macroeconomics gg RUSSIAN MAJOR ECONOMIC STATISTICS EUR/USD USD/RUB Date of last Net Ch to 27.0 1.50 Name Last Value Freq Prev % Ch to prev Showing prev 1.48 26.5 1.46 GDP GDP, Nominal Prices, bio USD QoQ 312.4 06/30/2007 Q 268.2 44.2 16.5 1.44 26.0 GDP, Nominal Prices, bio USD YoY 1244,4 1.42 QoQ % 16.5 06/30/2007 Q -13 29.5 1.40 YoY % 21 06/30/2007 Q 16 5.0 25.5 1.38 Real GDP YoY % 7.8 06/30/2007 Q 7.9 0.1 Households Consumption YoY % 12.2 06/30/2007 Q 11.9 0.3 25.0 1.36 Government Consumption YoY % 4.5 06/30/2007 Q 4.4 0.1 1.34 Net Exports YoY % -25.1 06/30/2007 Q -21.9 3.2 1.32 24.5 Exports YoY % 5.2 06/30/2007 Q 3.4 1.8 1.30 Imports YoY % 25.8 06/30/2007 Q 25.5 0.3 Unemployment 24.0 1.28 Unemployment Rate MoM % 1.4 10/31/2007 M 1.5 0.1 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Unemployment Rate YoY % -11.6 10/31/2007 M -12.3 0.7 Unemployed, mio people 4.4 10/31/2007 M 4.3 0.1 2.3 Total Population, mio people 141.4 12/31/2007 Y 142.1 0.7 0.5 USD/RUB vs. RTSI, since the beginning of 2007, last (green) is 16-Nov Wages and Income 27.0 27.0 Nominal Wages, USD 553.0 10/31/2007 M 558.6 5.6 1.0 y = 3E-13x6 - 2E-10x5 + 2E-08x4 - 6E-08x3 - 0.0002x2 + 0.0072x + 26.075 R2 = 0.7533 MoM % -1.0 10/31/2007 M 3.1 4.1 26.5 26.5 YoY % 23.3 10/31/2007 M 23.9 0.6 Real Wages, MoM % -2.6 10/31/2007 M 2.3 4.9 Real Wages YoY % 11.2 10/31/2007 M 13.3 2.1 26.0 26.0 Disposable income MoM % 0.2 10/31/2007 M 1 0.8 Desposable Income YoY % 14.6 10/31/2007 M 13.7 0.9 25.5 25.5 Retail Sales Nominal, bio USD 40.5 10/31/2007 M 38.4 2.1 5.4 25.0 25.0 Nominal MoM % 5.4 10/31/2007 M 1.2 4.2 Nominal YoY % 30.9 10/31/2007 M 24 6.9 Real MoM % 3.4 10/31/2007 M 0.3 3.1 24.5 24.5 24.4805 Real YoY % 14.6 10/31/2007 M 15.4 0.8 Wholesales 24.0 24.0 Total, bio USD 87.0 09/30/2007 M 85.0 2.0 2.4 1725 1809 1843 1867 1895 1912 1928 1964 2000 2072 2189 MoM % 2.4 09/30/2007 M 0.8 1.6 YoY % 22.7 09/30/2007 M 20.3 2.4 Car Sales Number of cars 138700 10/31/2007 M 125914 12786 10.2 MAJOR CURRENCIES vs. RUB, 1 MONTH, % CHANGE 6 6 Foreign Trade (Acc. to the CBR) Export, bio USD 29.9 09/30/2007 M 30.9 1.0 3.3 4 4 Import, bio USD 18.7 09/30/2007 M 19.9 1.2 5.9 Balance, bio USD 11.2 09/30/2007 M 11.1 0.1 1.2 2 2 Current Account, bio USD Current Account, Total 16.1 06/30/2007 Q 22.9 6.8 29.5 0 0 Trade Net 31.8 06/30/2007 Q 29.0 2.8 9.8 Export 84.3 06/30/2007 Q 72.1 12.2 16.9 2 2 Oil 29.0 06/30/2007 Q 23.4 5.6 23.9 Oil Products 11.9 06/30/2007 Q 10.0 1.9 19.2 4 4 Gas 9.9 06/30/2007 Q 10.5 0.7 6.6 Imports -52.4 06/30/2007 Q -43.1 9.3 21.6 6 6 Services Net -4.7 06/30/2007 Q -3.2 1.4 43.7 Export 9.2 06/30/2007 Q 7.6 1.6 21.7 8 8 Imports -13.9 06/30/2007 Q -10.8 3.1 28.3 EUR GBP JPY CHF USD AUD NZD CAD TRY MXN BRL MYR Capital&Finanacial Account, bio USD 45.9 06/30/2007 Q 15.3 30.6 200.5 Capital Account, bio USD 0.2 06/30/2007 Q -0.9 1.0 117.7 Financial Account, bio USD 45.7 06/30/2007 Q 16.2 29.6 183.2 RCBI Index MosPrime o/n MosPrime 1W MosPrime 2W Foreign Investment 12 MosPrime 1M Libor USD 1W Libor EUR 1W 102 Level, bio USD 87.9 09/30/2007 Q 60.3 27.6 45.7 YoY % 150 09/30/2007 Q 160 10 10 including: FDI, bio USD 19.6 09/30/2007 Q 15.8 3.8 24.0 8 101 YoY % 91.3 09/30/2007 Q 150 58.7 Portfolio Investment, bio USD 1.5 09/30/2007 Q 1.1 0.4 40.3 6 YoY % 130 09/30/2007 Q 120 10 including: 4 100 Shares, bio USD 1.5 09/30/2007 Q 1.1 0.4 36.0 YoY % 140 09/30/2007 Q 120 20.0 2 Bonds, bio USD 0.1 12/31/2005 Q 0.1 0.0 21.4 YoY % 400 12/31/2005 Q 550 150 0 99 Trade credits, bio USD 8.5 09/30/2007 Q 4.8 3.7 76.8 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 YoY % 21.9 09/30/2007 Q 8.6 13.3 Including: Short-term credits, bio USD 2.5 09/30/2007 Q 7.7 5.3 68.1 YoY % 30.9 09/30/2007 Q 350 319.1 Russia30 Brazil10 Turkey 09 Long-term credits, bio USD 55.2 09/30/2007 Q 30.6 24.7 80.8 8 Russia 10 Turkey 30 UST10 8 YoY % 260 09/30/2007 Q 200 60 Other loans, bio USD 0.5 09/30/2007 Q 0.3 0.2 83.1 7 7 YoY % 130 09/30/2007 Q 250 120 Money Supply M0, Level, bio USD 133.1 10/31/2007 M 131.6 1.6 1.2 6 6 MoM % 1.2 10/31/2007 M 1.6 0.4 YoY % 52.2 10/31/2007 M 54.6 2.4 M2, Level, bio USD 466.5 10/31/2007 M 469.5 3.0 0.6 5 5 MoM % -0.6 10/31/2007 M 3.0 3.6 YoY % 47.1 10/31/2007 M 48.3 1.2 MS, Narrow Def, Level, bio USD 155.0 12/03/2007 W 155.9 0.8 0.5 4 4 WoW % -0.5 12/03/2007 W 0.5 1.0 Reserves, weekly International Reserves, bio USD 463.5 11/30/2007 W 459.6 3.9 0.8 3 3 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 WoW % 0.8 11/30/2007 W 0.8 0.0 gg gg www.crediteurope.ru/en/research/ _6_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 7. Russian Macroeconomics - Macroeconomics RUSSIAN MAJOR ECONOMIC STATISTICS Date of last Net Ch to CBR REF RATE MosPrime 3M Name Last Value Freq Prev % Ch to prev Showing prev 7 FED FUNDS USD 3M Libor 12 Reserves, Monthly 6 10 International Reserves, bio USD 463.5 11/30/2007 M 447.0 16.6 3.7 MoM % 3.7 11/30/2007 M 5.1 1.4 5 8 Includ. Foreign Currency Reserves, bio USD 354.6 11/30/2007 M 325.4 29.1 9.0 MoM % 9.0 11/30/2007 M 5.0 4.0 4 SDRs, bio USD 0.0 11/30/2007 M 0.0 0.0 0.0 6 Reserve Position in IMF, bio USD 0.4 11/30/2007 M 0.4 0.0 1.1 3 MoM % 1.1 11/30/2007 M 1.1 0.0 4 Gold, bio USD 11.4 11/30/2007 M 11.0 0.4 3.8 2 MoM % 3.8 11/30/2007 M 8.3 4.6 2 Other Reserve Assets, bio USD 97.2 11/30/2007 M 110.2 13.0 11.8 1 MoM % -11.8 11/30/2007 M 5.0 16.8 Domestic Loans (CBR) 0 0 Jan-07 Feb-07Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Total, bio USD 20.9 09/30/2007 M 17.5 3.4 19.3 MoM % 19.3 09/30/2007 M 6.5 12.8 Individual, bio USD 4.0 09/30/2007 M 5.4 1.4 26.6 MoM % -26.5 09/30/2007 M 10.7 37.2 CEB SUB EM EQUITY INDEX, 12/01/2007=1000 Companies, bio USD 11.7 09/30/2007 M 12.7 1.0 7.9 2,000 RTS ADJUSTED SINCE YEAR BEGIN,12/01/2007=1000 2000 MoM % -7.9 09/30/2007 M 5.2 13.1 CEB COMPOSITE OIL INDEX, 12/01/2007=1000 1,900 1900 Stabilization Fund Level, bio USD 143.7 11/30/2007 M 149.1 5.4 3.6 1,800 1800 Federal Budget 1,700 1700 Cumulative Data Revenues, bio USD 252.7 10/31/2007 M 207.8 44.9 21.6 1,600 1600 Expenditures, bio USD 167.5 10/31/2007 M 141.5 26.0 18.4 1,500 1500 Balance, bio USD 85.2 10/31/2007 M 66.3 18.9 28.5 1,400 1400 Monthly Data Revenues, bio USD 44.9 10/31/2007 M 23.5 21.4 91.3 1,300 1300 Expenditures, bio USD 26.0 10/31/2007 M 17.5 8.5 48.5 1,200 1200 Balance, bio USD 18.9 10/31/2007 M 5.9 12.9 217.6 Budget Deficit/Surplus % of GDP 11.4 06/30/2005 Q 15 3.6 1,100 1100 Foreign Debt 1,000 1000 Central Bank Data, bio USD 384.8 06/30/2007 Q 341.1 43.7 12.8 Jan-07 Feb-07Mar-07Apr-07May-07Jun-07 Jul-07 Aug-07Sep-07 Oct-07Nov-07 Finance Ministry, bio USD 47.1 09/30/2007 Q 47.8 0.7 1.5 Inflation, Consumer Side Headline MoM % 1.2 11/30/2007 M 1.6 0.4 MICEX MICEX-10 RTS RTS-2 2,500 4000 YoY % 10.8 10/31/2007 M 9.4 1.4 Year-to-Date % 10.6 11/30/2007 M 9.3 1.3 3750 FOOD MoM % 1.9 11/30/2007 M 3.3 1.4 3500 NON-FOOD MoM % 0.9 11/30/2007 M 0.9 0.0 2,250 SERVICES MoM % 0.6 11/30/2007 M 0.1 0.5 3250 Core 3000 MoM % 1.1 11/30/2007 M 2.1 1.0 2,000 2750 Year-to-Date % 10.1 11/30/2007 M 8.9 1.2 Inflation, Producer Side, 2000=100 2500 MoM % -0.1 10/31/2007 M -0.6 0.5 2250 YoY % 14.2 10/31/2007 M 8.6 5.6 1,750 YTD % 9.9 10/31/2007 M 9.3 0.6 2000 Industrial Production, 2002=100 1750 MoM % 7.4 10/31/2007 M -0.2 7.6 1,500 1500 YoY % 6.1 10/31/2007 M 3.0 3.1 Jan-07 Feb-07Mar-07 Apr-07May-07 Jun-07 Jul-07 Aug-07Sep-07 Oct-07 Nov-07 YTD % 6.5 10/31/2007 M 6.6 0.1 Investments in Productive Capacity Level, bio USD 25.6 10/31/2007 M 25.0 0.6 2.5 MoM % 0.5 10/31/2007 M 2.9 2.4 YoY % 19.6 10/31/2007 M 16.0 3.6 MCX Oil&Gas MCX Retail&Mining MCX Power Agriculture Production 2,000 MCX Telecom MCX Manufacturing MICEX 4500 YoY % 4.6 08/31/2007 M 3.2 1.4 Housing Construction Property Prices Moscow, USD pr Sq m 4194 11/30/2007 M 4116 78 1.9 4000 1,750 Contracts Level, bio USD 12.6 07/31/2007 M 11.9 0.8 6.4 3500 MoM % 4.1 07/31/2007 M 19.4 15.3 YoY % 24.9 07/31/2007 M 26.4 1.5 1,500 Residential Construction 3000 mio of Sq m 4.1 10/31/2007 M 6.0 1.9 31.7 MoM % -31.4 10/31/2007 M 61.0 92.4 1,250 YoY % 19.3 10/31/2007 M 18.5 0.8 2500 Net Private Sector Capital Flow Total Outflow, bio USD 53.2 06/30/2007 Q 13.9 39.3 282.7 including: 1,000 2000 Banks, bio USD 37.1 06/30/2007 Q 0.0 37.1 0.0 Jan-07 Feb-07Mar-07 Apr-07May-07 Jun-07 Jul-07 Aug-07Sep-07 Oct-07 Nov-07 Households, non-finanacial enterprises, bio USD 16.1 06/30/2007 Q 13.8 2.3 16.7 gg gg www.crediteurope.ru/en/research/ _7_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 8. Macrodynamics Gg Andrey Golubev Industrial Production, Real, MoM, %, 2006 2007 2005, Real GDP, Y oY , % 2006 Research Analyst Russian & Global Capital Markets 2007 Nominal, bio USD, Y oY 15 15 Treasury Credit Europe Bank Ltd 10 1400 10 10 9 8 5 5 T: +7 (495) 725 40 40 (ext. 7239) 1300 7 F: +7 (495) 725 40 13 6 0 0 5 1200 andrey.golubev@crediteurope.ru 4 -5 -5 3 BLOOMBERG: 1100 -10 -10 2 Andrey Golubev 1 0 1000 -15 -15 Agolubev2@bloomberg.net Q1 Q2 Q3 Q4 J F M A M J J A S O N D Online WEB Research: http://www.crediteurope.ru/en/research/ Core CPI, MoM, %, 2006 2007 CPI, All Items, MoM, % PPI, MoM, % Online Bloomberg Research: 2,4 2,4 6 6 CEBM <GO> 5 5 2,0 2,0 4 4 3 3 1,6 1,6 1,1 2 2 1,2 1,2 1 1 0 0 0,8 0,8 1 1 0,4 0,4 2 2 3 3 0,0 0,0 4 4 J F M A M J J A S O N D Jan-05 Jun-05 Nov-05 Apr-06 Sep-06 Feb-07 Jul-07 Dec-07 2007 2006 Federal Budget Surplus, bio USD Unemployment, mio people Unemployment Rate, % from Total Labor Force 20 20 15 15 9 9 10 10 8 8 5 5 7 7 0 0 6 6 5 5 5 5 10 10 4 4 15 15 3 3 20 20 Jan-05 Jun-05 Nov-05 Apr-06 Sep-06 Feb-07 Jul-07 Dec-07 J F M A M J J A S O N D Stabilization Fund of Russia, bio USD Money Supply, bio USD 150 150 500 500 467 140 140 144,43 450 450 130 130 464 120 120 400 400 110 110 100 100 350 350 90 90 80 80 300 300 J F M A M J J A S O N D J F M A M J J A S O N Gold and Forex Reserves, bio USD Foreign Trade (CBR), $bio Imports, $bio Exports, $bio 480 480 35 35 460 460 30 30 440 440 420 420 25 25 400 400 20 20 380 380 360 360 15 15 340 340 320 320 10 10 300 300 5 5 280 280 D J F M A M J J A S O N 0 0 Jan-05 Jun-05 Nov-05 Apr-06 Sep-06 Feb-07 Jul-07 Dec-07 Sources: Bank of Russia, Finance Ministry, Economy Ministry, Rosstat, Bloomberg, Credit Europe Bank Treasury Research Gg * On Charts: J=January, F=February, M=March, etc. If not mentioned, the year is 2007. www.crediteurope.ru/en/research/ _8_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 9. Financial Markets Dynamics USD / RUB EUR / RUR 27,0 27,0 36,5 36,5 26,5 26,5 36,0 36,0 26,0 26,0 35,5 35,5 25,5 25,5 35,0 35,0 25,0 25,0 24,5 24,5 34,5 34,5 24,0 24,0 34,0 34,0 J F M A M J J A S O N J F M A M J J A S O N RUS30 Yield UST10 Yield MCX RCBI 6,5 6,5 102 102 102 102 6,0 6,0 101 101 5,5 5,5 101 101 5,0 5,0 100 100 100 100 4,5 4,5 99 99 4,0 4,0 99 99 3,5 3,5 98 98 J F M A M J J A S O N D J F M A M J J A S O N Deposits with CBR, bio RUB C/A with CBR O/N One week rates MosPrime O/N 1800 12 y = 4E-13x - 1E-07x + 0,01x4 - 524,69x3 + 2E+07x2 - 2E+11x + 6 5 1600 10 10 10 2E+15 1400 9 9 LIQUIDITY (bln. RUB) 1200 8 8 8 RATES % 1000 6 7 7 800 6 6 600 4 5 5 400 2 4 4 200 0 0 3 3 J F M A M J J A S O N 2 2 J F M A M J J A S O N Volume RTS Volume RTS-2 RTS RTS-2 MICEX COMP MICEX 10 200 2 500 180 2 400 1 950 3 600 160 2 300 3 500 VOLUME (mln. USD) 140 2 200 1 850 2 100 3 400 120 INDICES 2 000 100 1 750 3 300 1 900 80 1 800 60 1 650 3 200 1 700 40 1 600 3 100 20 1 500 1 550 3 000 0 1 400 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 1 450 2 900 J F M A M J J A S O N Sources: RTS, MICEX, Bloomberg, Credit Europe Bank Treasury Research Ggg Kl; fgfg www.crediteurope.ru/en/research/ _9_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 10. . Credit Europe Bank Treasury Research Russian Banking System Net Capital Inflow / Outflow, Russian Foreign Debt, Foreign Assets in Russian Financial Sector Total Number of Banks, Banking Authorized Capital, Foreign Presence in Banking Authorized Capital Total Number of Subsidiaries, Branches & Representative Office of Banks . www.crediteurope.ru/en/research/ _10_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 11. Russian Banking System – Net Capital Inflow / Outflow, Russian Foreign Debt, Foreign Assets in Russian Financial Sector Gggggg Andrey Golubev Net Capital Inflow / Outflow by Private Sector, bio USD Net Capital I/O by Banks, bio USD NC I/O by other sectors, bio USD Research Analyst Russian & Global Capital Markets 80 80 30 30 Treasury Credit Europe Bank Ltd 60 60 20 20 40 40 10 10 T: +7 (495) 725 40 40 (ext. 7239) F: +7 (495) 725 40 13 20 20 0 0 andrey.golubev@crediteurope.ru 0 0 10 10 BLOOMBERG: 20 20 20 20 Andrey Golubev Agolubev2@bloomberg.net 40 40 30 30 94 95 96 97 98 99 00 01 02 03 04 05 06 07E 97 98 99 00 01 02 03 04 05 06 07E Online WEB Research: http://www.crediteurope.ru/en/research/ Total Foreign Debt of Russia, bio USD Foreign Debt in foreign currency, bio USD Foreign Debt in Domestic currency Online Bloomberg Research: 400 400 400 400 CEBM <GO> 350 350 300 300 300 300 384,8 200 200 250 341,1 250 310,4 309,7 278,2 251,5 100 100 200 257,2 200 58,1 62,9 74,4 150 150 0 0 End of 2005 End of 2006 End of March 07 End of June 07 End of 2006 End of March 07 End of June 07 Net Foreign Assets in Russian Financial Sector (acc to banks, insurers, NPFs), CBR Refinancing Rate, %, Historical Snap bio USD 160 160 400 400 140 140 350 357,3 350 325,8 120 120 300 300 282,3 100 100 250 250 80 80 200 198,3 200 60 60 150 150 100 100 40 40 50 50 20 20 0 0 0 0 2005 2006 Q1 2007 Q2 2007 97 98 99 00 01 02 03 04 05 06 07 Obligatory Reserves for credit institutions on C/As in CBR (averaged), bio USD Money Base (M2), National Definition, bio USD 10 10 500 500 8 8 400 400 6 6 300 300 466,2 4 4 200 200 327,1 2 2 100 221,9 100 178,1 0 0 0 0 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 End of 2004 End of 2005 End of 2006 End of Oct07 Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research Ghj www.crediteurope.ru/en/research/ _11_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 12. ghj Russian Banking System – Total Number of Banks, Banking Authorized Capital, Foreign Presence in Banking Authorized Capital Gggggg Total Number of Banks in Russia, registered by CBR or by authorized entities Number of credit organizations with 100% share of foreign capital 1 340 1340 70 70 1 320 1320 60 60 1 300 1300 1 280 1280 1 329 50 50 61 1 260 1260 40 40 46 1258 1 240 1240 1 220 1220 30 30 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Total registered authorized capital of credit entities, bio USD The number of credit organizations in Russia with non-residents' share in authorized capital 35 35 200 200 30 30 175 175 25 25 150 150 29,3 20 20 23,0 125 125 15 15 100 100 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Credit organizations ranked by size of authorized capital, Credit organizations ranked by non-residents' share in 100% is the total number of credit organizations, 01/11/07 authorized capital, 100% is the total number of credit Less than 3mio organizations where foreigners participate in authorized 3 - 10 mio RUB capital, 01/10/07 RUB Greater than 5,8% 3,3% 300 mio RUB 25,9% 10 - 30 mio 50 - 99% share RUB in auth.capital 10,8% 100% share in 12,1% auth.capital 31,6% 30 - 60 mio 20 -50% share RUB Less than 1% in auth.capital 14,2% share in 11,6% auth.capital 1 - 20% share in 22,1% auth.capital 60 - 150 mio 150 - 300 mio 22,6% RUB RUB 17,8% 22,2% Sources: Bank of Russia, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research www.crediteurope.ru/en/research/ _12_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 13. R Russian Banking System – Total Number of Subsidiaries, Branches & Representative Offices of Banks Gggggg Number of credit organizations having licenses to collect household deposits Number of credit organizations having licenses on operations in foreign currencies 940 940 840 840 935 935 820 820 930 930 925 925 800 800 920 920 780 780 833 936 915 915 910 910 760 760 905 905 764 911 740 740 900 900 895 895 720 720 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Total number of subsidiaries of credit entities in Russia Total number of subsidiaries of Sberbank in Russia 3 450 3450 960 960 940 940 3 400 3400 920 920 3 350 3350 900 900 3 300 3300 880 880 3431 860 860 940 3 250 3250 840 840 3 200 3200 820 820 3 256 800 800 829 3 150 3150 780 780 3 100 3100 760 760 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Total number of subsidiaries of credit entities with 100% share of foreign capital in Representative Offices of Russian credit entities in Russia Russia 760 760 180 180 740 740 160 160 720 720 140 140 120 120 700 700 100 100 680 680 747 155 80 80 660 660 60 60 640 640 40 40 657 20 20 620 620 34 0 0 600 600 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Total number of branches of credit entities in Russia Number of branches of Sberbank in Russia 20 000 20000 8 600 8600 8 400 8400 8 200 8200 18 000 18000 8 000 8000 7 800 7800 16 000 16000 7 600 7600 8369 18091 7 400 7400 7 200 7200 14 000 14000 15007 7282 7 000 7000 6 800 6800 12 000 12000 6 600 6600 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Sources: Bank of Russia, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research Note: * Branch – additional offices, aimed to bring banking services closer to population, doesn’t demand to register separate legal entity * Representative Offices – only represent the mother entity, inform, explain, and assist. * Subsidiary - legal entity affiliated with mother entity, officially registered on the territory of Russia, doing business according to Russian local laws (currently, foreign banks can) fgfg www.crediteurope.ru/en/research/ _13_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 14. . Credit Europe Bank Treasury Research Russian Banking System Loans to Companies, Individuals, Banks and Overdue debts, Contribution of Banks by assets size in Total Banking Assets and Collected Household Deposits Deposits Collected from Households and Companies in Rubles and FC, The Volume of Bonds issued by Banks Loans in Rubles & Foreign Currency to Individuals, Banks, and Companies, Number of Loan Issuers Russian Payment System & Banking Cards Structure of Household Deposits, Contribution of Borrowers ranked by type of Economic Activity Loans to Non-financial organizations and Individuals, Securities bought by Banking Sector Household Deposits Corporate Deposits . www.crediteurope.ru/en/research/ _14_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 15. Jhj Russian Banking System – Loans to Companies, Individuals, Banks and Overdue debts, Contribution of Banks by assets size in Total Banking Assets and Collected Household Deposits Gggggg Andrey Golubev Loan groups issued to Companies, Individuals, Banks and Total volume of loans issued to individuals, companies and Research Analyst overdue debts per each group, bio USD banks and overdue debt from them, bio USD Russian & Global Capital Markets Treasury Loans issued to From them Credit Europe Bank Ltd Banks Overdue debt 30,04 7,20 Overdue debts T: +7 (495) 725 40 40 (ext. 7239) from Loans F: +7 (495) 725 40 13 issued to andrey.golubev@crediteurope.ru individuals 3,95 Total volume of BLOOMBERG: Loans issued to loans issued to Loans issued Companies Andrey Golubev individuals, to Individuals 320,88 Agolubev2@bloomberg.net 118,28 companies and banks Online WEB Research: 487,70 Overdue debts http://www.crediteurope.ru/en/research/ from Loans issued to companies Online Bloomberg Research: 3,17 CEBM <GO> Contribution of banks grouped by assets size in total banking Contribution of banks grouped by asset size in the total assets, bio USD volume of attracted household deposits (=184.65 bio USD) 201-1 000 1 001-1 174 201-1 000 1 001-1 174 60,55 0,65 Top 5 banks by 14,77 0,09 assets size 51-200 325,31 23,21 51-200 111,82 Top 5 banks by 21-50 assets size 15,11 110,15 21-50 92,56 6-20 6-20 24,55 150,23 Investments of banking assets in securities, bio USD Total profit received by credit organizations, Quaterly, bio USD 16 16 Banking funds invested in stocks 11,83 and resident unit 12 12 investment funds Banking funds 8 8 9,74 invested in bills Banking funds 4 4 invested in 28,83 domestic sovereign bonds 0 0 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 0 10 20 30 40 Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research www.crediteurope.ru/en/research/ _15_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 16. Russian Banking System –Deposits Collected from Households and Companies in Rubles and FC, The Volume of Bonds issued by Banks Gggggg The volume of deposits collected from households, bio USD Ruble deposits collected from households, bio USD Deposits in foreign currencies collected from households, bio USD 200 200 200 200 175 175 150 150 150 150 100 100 125 125 50 50 100 100 0 0 Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07 Jan-06 Jul-06 Jan-07 Jul-07 The volume of deposits collected from companies, bio USD Ruble deposits collected from companies, bio USD Deposits in foreign currencies collected from companies, bio USD 100 100 100 100 75 75 75 75 50 50 50 50 25 25 25 25 0 0 0 0 Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07 Jan-06 Jul-06 Jan-07 Jul-07 The volume of bonds issued by banks, par values taken, bio USD 12 12 8 8 9,6 4 4 2,7 0 0 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research www.crediteurope.ru/en/research/ _16_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 17. Russian Banking System – Loans in Rubles & Foreign Currency to Individuals, Banks, and Companies, Number of Loan Issuers Gggggg Total v olume of loans issued in rubles, 01/10/2007, bio USD To indiv iduals, bio USD To companies To banks 400 400 350 350 300 250 300 200 250 150 100 200 50 0 150 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Total v olume of loans issued in f oreign currencies, bio USD To indiv iduals, bio USD To legal entities To banks 120 110 100 110 90 80 100 70 60 90 50 80 40 30 70 20 10 60 0 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Total Ruble Debt of Households, bio USD In foreign currency 16 Total Number of credit organizations issued loans both in RUB&FCs 900 14 800 12 773 756 700 735 730 720 712 702 10 673 658 600 648 606 581 8 500 526 478 6 400 4 300 2 200 0 100 Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- 0 05 05 05 05 06 06 06 06 07 07 07 Jul-04 Apr-05 Jan-06 Oct-06 Jul-07 Inv estments of credit entities into bonds, bio USD Inv estments into stocks 120 100 80 60 40 20 0 1-Jan-06 1-May -06 1-Sep-06 1-Jan-07 1-May -07 1-Sep-07 Sources: Bank of Russia, Economy Ministry, Finance Ministry, RTS, MICEX, Bloomberg, Credit Europe Bank Treasury Research Gg www.crediteurope.ru/en/research/ _17_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 18. Banking System – Russian Payment System & Banking Cards Gggggg Total volume of payments realized through Russian payment systems, trio USD Total volume of payments realized through Russian payment systems, trio USD 20 20 10 10 8 8 15 15 6 6 10 10 4 4 5 5 2 2 0 0 0 0 2004 2005 2006 Q1-04 Q1-05 Q1-06 Q1-07 Total volume of transactions realized through banking cards, bio USD Total volume of transactions realized through banking cards, bio USD 200 200 80 80 150 150 60 60 100 100 40 40 50 50 20 20 0 0 0 0 2004 2005 2006 Q1-04 Q1-05 Q1-06 Q1-07 Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research www.crediteurope.ru/en/research/ _18_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 19. Banking System –Structure of Household Deposits, Contribution of Borrowers ranked by type of Economic Activity Gggggg Contribution of borrowers ranked by type of economic activity in total Contribution of borrowers ranked by type of economic activity in total ruble loans issued by credit organizations. Total debt equals 100% . foreign currency loans issued by credit organizations. Total debt equals 100% . Indiv idual Indiv idual Indiv iduals businessmen businessmen 19,20% Indiv iduals 2,92% 0,40% 28,21% Mineral Others 16,17% extraction, Others 22,82% production and Mineral distribution of extraction, energy , gas production and and water distribution of 7,28% Wholesale and energy , gas retail trade and water 4,58% Wholesale and 19,87% retail trade Manuf acturing Manuf acturing 17,55% 21,54% 13,22% Transport and Agriculture and Agriculture and Transport and Telecom f orestry 4,88% f orestry 0,70% Construction Telecom Construction 3,79% 6,35% 3,44% 7,08% Structure of household deposits, total volume of deposits = 100% 100% more that 3 y ears; 7,69% more that 3 y ears; 7,94% 90% 80% 70% 1 y ear - 3 y ears; 54,41% 1 y ear - 3 y ears; 55,96% 60% 50% 40% 30% 181 day s - 1 y ear; 14,14% 181 day s - 1 y ear; 13,64% 20% 91 - 180 day s; 4,98% 91 - 180 day s; 3,70% 10% Demand deposits; 17,28% Demand deposits; 17,52% 0% 2006 2007 Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research G www.crediteurope.ru/en/research/ _19_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 20. Banking System – Loans to Non-financial organizations and Individuals, Securities bought by Banking Sector Gggggg Gross Loans to non-financial organizations and individuals, bio USD 500 500 463,8 450 450 400 400 350 350 326,5 300 300 250 250 200 200 150 150 100 100 50 53,8 50 0 0 2001 2002 2003 2004 2005 2006 01.11.07 Gross Loans to non-financial organizations and individuals, % to GDP Gross Loans to non-financial organizations and individuals, % to total assets of banking sector 50 50 100 100 40 40 37,3 80 80 30 30 30 60 60 20 20 40 40 14,8 57,2 62,4 10 10 20 41,9 20 0 0 0 0 2001 2002 2003 2004 2005 2006 01.11.07 2001 2002 2003 2004 2005 2006 01.11.07 Securities bought by banking sector, bio USD 100 100 87,2 80 79,7 80 60 60 40 40 22,8 20 20 0 0 2001 2002 2003 2004 2005 2006 01.11.07 Securities bought by banking sector, % to GDP Securities bought by banking sector, % to total assets of banking sector 20 20 20 20 15 15 15 15 10 10 10 10 17,8 7,3 7,0 14 6,3 11,7 5 5 5 5 0 0 0 0 2001 2002 2003 2004 2005 2006 01.11.07 2001 2002 2003 2004 2005 2006 01.11.07 Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research Gg www.crediteurope.ru/en/research/ _20_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 21. Russian Banking System – Household Deposits Gggggg Household deposits, bio USD 200 200 189,9 180 180 160 160 154,2 140 140 120 120 100 100 80 80 60 60 40 40 27,6 20 20 0 0 2001 2002 2003 2004 2005 2006 01.11.07 Household deposits, % to population's income 30 30 25 25 22,5 20 20 15 15 12,7 10 10 5 5 0 0 2001 2002 2003 2004 2005 2006 Household deposits, % to GDP Household deposits, % to liabilities of banking sector 20 20 30 30 25 25 15 15,3 15 14,3 20 20 10 10 15 15 27 25,6 7,6 21,5 10 10 5 5 5 5 0 0 0 0 2001 2002 2003 2004 2005 2006 01.11.07 2001 2002 2003 2004 2005 2006 01.11.07 Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research Ggg www.crediteurope.ru/en/research/ _21_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 22. Banking System – Corporate Deposits Gggggg Corporate Deposits, bio USD 300 300 250 246,8 250 200 200 185,8 150 150 100 100 50 50 0 3,8 0 2001 2002 2003 2004 2005 2006 01.11.07 Corporate Deposits, % to GDP Corporate Deposits, % to liabilities of banking sector 35 35 35 35 30 30 30 30 25 25 25 25 20 19,8 20 20 20 17,1 32,5 33,2 15 15 15 28,6 15 10 10,1 10 10 10 5 5 5 5 0 0 0 0 2001 2002 2003 2004 2005 2006 01.11.07 2001 2002 2003 2004 2005 2006 01.11.07 Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research Gg www.crediteurope.ru/en/research/ _22_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 23. . Credit Europe Bank Treasury Research Russian Banking System Total Assets, Owned Capital Private Banks, Banks controlled by the State, and Banks controlled by foreigners Banks versus Non-banking Financial Institutions, Share of Financial Institutions on Major Financial Markets . www.crediteurope.ru/en/research/ _23_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 24. Russian Banking System – Total Assets, Owned Capital Gggggg Andrey Golubev Assets of banking sector, bio USD Research Analyst Russian & Global Capital Markets 900 900 Treasury Credit Europe Bank Ltd 800 800 700 700 T: +7 (495) 725 40 40 (ext. 7239) F: +7 (495) 725 40 13 600 600 andrey.golubev@crediteurope.ru 500 500 BLOOMBERG: Andrey Golubev 400 400 743,0 Agolubev2@bloomberg.net 300 571,0 300 Online WEB Research: http://www.crediteurope.ru/en/research/ 200 200 100 100 Online Bloomberg Research: 128,4 CEBM <GO> 0 0 2001 2002 2003 2004 2005 2006 01.11.07 Assets of banking sector, % to GDP 100 100 80 80 60 59,7 60 52,4 40 40 35,3 20 20 0 0 2001 2002 2003 2004 2005 2006 01.11.07 Owned Capital of banking sector, bio USD 100 120 100 80 80 60 60 105,7 40 40 68,8 20 20 18,5 0 0 2001 2002 2003 2004 2005 2006 01.11.07 Owned Capital of banking sector, % to GDP Average Capital Adequacy Ratio of Banking Sector 20 20 20 20 15 15 15 15 10 10 10 10 14,4 12,1 5 5 5 5 8,5 5,1 6,3 0 0 0 0 2001 2002 2003 2004 2005 2006 01.11.07 2001 2002 2003 2004 2005 2006 Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research gg www.crediteurope.ru/en/research/ _24_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 25. Russian Banking System – Private Banks, Banks controlled by the State, and Banks controlled by foreigners Gggggg Number of banks controlled by the State Number of banks controlled by foreigners 32 32 70 70 32 32 60 60 32 32 50 50 32 32 31 31 40 40 31 31 30 30 31 31 20 20 31 31 31 31 10 10 30 30 0 0 2005 2006 2005 2006 Large private banks Share of banks controlled by the State as % from total assets of Russian banking sector, % 159 159 158 158 50 50 157 157 156 156 45 45 155 155 154 154 40 40,7 40 153 153 152 152 37,8 151 151 35 35 150 150 149 149 30 30 2005 2006 2005 2006 Share of banks controlled by foreigners as % from total assets of Russian banking Share of Large private banks as % from total assets of Russian banking sector, % sector, % 50 50 20 20 45 45 15 15 12,1 40 40,9 41 40 10 10 8,3 5 5 35 35 0 0 30 30 2005 2006 2005 2006 Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research Notes: Banks controlled by the State - more than 50% of capital is under State's control Banks controlled by foreigners - more than 50% of capital is under non-residents' control Large private banks - 200 largest banks by assets taken from X, where X = (Total number of banks) minus (Banks controlled by the State) minus (Banks controlled by foreigners) minus (Non-banking Financial Institutions) Gg www.crediteurope.ru/en/research/ _25_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 26. Russian Banking System – Banks versus Non-banking Financial Institutions, Share of Financial Institutions on Major Financial Markets Gggggg Number of subsidiaries of credit organizations in Russia Banking sector, Total Assets, bio RUB Number of subsidiaries of Sberbank Non-banking financial institutions, Total Assets, bio RUB Number of Credit organizations 16000 14045,6 16000 4000 1350 1300 12000 12000 9750,3 3000 1250 8000 8000 2000 1200 1150 1000 4000 4000 1100 1076,7 1549,3 0 1050 0 0 2000 2001 2002 2003 2004 2005 2006 01.11.2007 2005 2006 Non-banking financial institutions, bio RUB Unit Investment Funds (Net Asset Value) General funds of banking management (Net Asset Value) Non-state pension funds (owned capital) Insurance companies (premiums) 700 700 602,1 600 600 509,9 490,6 500 500 420,5 400 344,3 400 300 300 234 200 200 100 100 7,8 16,8 0 0 2005 2006 Share of financial institutions on major markets at the end of 2006 (% from total volume of markets) Banks Non-banking financial institutions Other Investors 100% 100 80% 80 60% 60 40% 40 20% 20 0% 0 Sovereign Ruble Bonds Sovereign Eurobonds Regional Bonds Corporate Ruble Bonds Corporate Eurobonds Stocks Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research Gg gg www.crediteurope.ru/en/research/ _26_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 27. . Credit Europe Bank Treasury Research Russian Banking System Structure of Assets of the Banking Sector Aggregated Balance Sheet Structure of Liabilities Aggregated Balance Sheet, Money attracted from Interbank Markets . www.crediteurope.ru/en/research/ _27_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 28. Russian Banking System –Structure of Assets of the Banking Sector Aggregated Balance Sheet Gggggg Andrey Golubev Research Analyst Russian & Global Capital Markets Treasury Credit Europe Bank Ltd The Structure of Assets of Banking Sector (% from total assets) as of 01.01.2006 T: +7 (495) 725 40 40 (ext. 7239) Loans to individuals (residents + F: +7 (495) 725 40 13 non-residents) Loans to non-resident legal andrey.golubev@crediteurope.ru 12,1% entities excluding banks Loans to resident non-financial 1,7% BLOOMBERG: organizations Andrey Golubev 42,2% Agolubev2@bloomberg.net Loans to resident financial Loans and deposits to non- organizations excluding banks Online WEB Research: resident banks; 3,6% 0,9% http://www.crediteurope.ru/en/research/ Online Bloomberg Research: CEBM <GO> Loans and deposits to resident Fixed assets and intangible banks assets 3,2% 2,9% Other assets Securities bought by banks 4,7% 15,8% Correspondent accounts in Cash, precious metals & stones credit organizations 2,7% 2,6% Accounts in the CBR 7,0% The Structure of Assets of Banking Sector (% from total assets) as of 01.01.2007 Loans to individuals (residents + non-residents) Loans to non-resident legal 14,7% entities excluding banks 2,1% Loans to resident non-financial organizations 40,3% Loans to resident financial organizations excluding banks Loans and deposits to non- 1,1% resident banks; 4,7% Fixed assets and intangible assets Loans and deposits to resident banks 2,9% 2,6% Other assets 4,6% Securities bought by banks 14,0% Cash, precious metals & stones Correspondent accounts in 2,6% credit organizations 2,8% Accounts in the CBR 6,8% Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research www.crediteurope.ru/en/research/ _28_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 29. Russian Banking System –Structure of Assets of the Banking Sector Aggregated Balance Sheet Gggggg The Structure of Assets of Banking Sector (% from total assets) as of 01.11.2007 Loans to non-resident legal entities excluding banks 2,1% Loans to individuals (residents + Loans to resident non-financial non-residents) organizations 16,5% 43,8% Loans to resident financial organizations excluding banks 1,0% Loans and deposits to non- resident banks; 5,7% Fixed assets and intangible assets 2,8% Loans and deposits to resident banks Other assets 2,3% 4,6% Cash, precious metals & stones 1,9% Securities bought by banks 11,7% Correspondent accounts in Accounts in the CBR credit organizations 4,8% 1,8% Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research www.crediteurope.ru/en/research/ _29_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 30. Banking System –Structure of Liabilities Aggregated Balance Sheet, Money attracted from Interbank Markets Gggggg The Structure of Liabilities of Banking Sector (% from total The Structure of Liabilities of Banking Sector (% from total liabilities) as of 01.01.2006 liabilities) as of 01.01.2006 Other liabilities Other liabilities Funds and Funds and 9,1% Issued bonds 8,2% profits of banks profits of banks Issued bonds 7,2% 13,5% 12,7% 7,7% Loans and Loans and Money collected deposits from deposits from from non- Money collected resident credit resident credit resident from non- organizations organizations companies; resident 3,1% 2,6% 6,1% companies; 4,4% Money collected Household Money collected Household Loans and Loans and from resident Deposits from resident Deposits deposits from deposits from companies (residents + non- (residents + non- non-resident non-resident companies 25,9% residents) 26,5% residents) credit credit 28,3% 27,0% organizations organizations 9,7% 8,0% The Structure of Liabilities of Banking Sector (% from total liabilities) as of 01.01.2006 Funds and profits of banks 14,7% Issued bonds; 5,4% Others 13,6% Credits and deposits from other banks Money of 12,7% companies on diff.banking accounts Household 15,2% Deposits Corporate (residents + non- Deposits residents) 12,4% 25,6% Loans and deposits from interbank markets (as % from total 100% )) From resident credit organizations in rubles From non-resident credit organizations in foreign currency From non- resident banks in rubles From non- resident banks in foreign currency 100% 100 80% 80 60% 60 40% 40 20% 20 0% 0 2005 2006 Sources: Bank of Russia, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research gg www.crediteurope.ru/en/research/ _30_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 31. . Credit Europe Bank Treasury Research Russian Banking System Investment into Securities Quality of Loan Portfolio and Liquidity of Banking Sector . www.crediteurope.ru/en/research/ _31_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 32. Russian Banking System –Investment into Securities Gggggg Andrey Golubev Net % change in Structure of investment of credit Structure of investment of credit organizations in securities, Research Analyst % as of 01.01.2007 organizations in securities, 2006 vs. 2005 Russian & Global Capital Markets Treasury Debts of non- Credit Europe Bank Ltd residents Discounted Bills including banks Stocks 5,3% Other debts T: +7 (495) 725 40 40 (ext. 7239) 12,7% Other debts F: +7 (495) 725 40 13 Debts of resident credit Debts of non- andrey.golubev@crediteurope.ru Stocks; 19,9% residents organizations Debts of resident 2,5% including banks credit BLOOMBERG: organizations Corporate debt Andrey Golubev Discounted Bills Corporate debt 20,5% Agolubev2@bloomberg.net 11,7% Sovereign debt Online WEB Research: Sovereign debt http://www.crediteurope.ru/en/research/ 27,4% -6% -4% -2% 0% 2% 4% 6% 8% Online Bloomberg Research: CEBM <GO> Total investment of credit organizations into securities, bio USD 100 100 90 90 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 2004 2005 2006 01.11.2007 Investment of Credit Organizations into Securities Investment of credit organizations into debt, bio USD Investment into Sovereign Debt, bio USD Investments of credit organizations into Stocks, bio USD Investments into Contol share, bio USD Investment into Bills, bio USD 60 54,5 60,0 53,9 50 50,0 42,1 40 40,0 30,6 30 24,2 30,0 20,0 21,8 19,4 17,7 20 15,9 20,0 11,9 7,9 8,5 9,3 9,2 10 5,7 5,1 10,0 2,6 3,2 0,8 0 0,0 2004 2005 2006 01.11.2007 Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research www.crediteurope.ru/en/research/ _32_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 33. Banking System – Quality of Loan Portfolio and Liquidity of Banking Sector Gggggg W eights of overdue debts by sectors as of 01.01.2007 In Rubles In Foreign Currency 3,5% 4,0 2,98% 3,0% 3,5 2,56% 3,0 2,5% 2,5 2,0% 1,56% 1,59% 2,0 1,5% 1,32% 1,10% 1,12% 1,5 1,0% 0,76% 1,0 0,45% 0,54% 0,42% 0,5% 0,5 0,04% 0,0% 0,0 Agriculture, hunting and Construction Retail and wholesale trade, Transport and telecom Other sectors For individuals forestry car repairing services Quick liquidity of banking sector Current liquidity Long-term liquidity 90% 1 80% 1 70% 60% 1 50% 1 76,6% 75,6% 74,3% 40% 66,1% 52,6% 50,3% 30% 0 20% 0 10% 0% 0 2005 2006 Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research gg www.crediteurope.ru/en/research/ _33_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 34. . Credit Europe Bank Treasury Research Russian Banking System Scale of Banking Coverage by Regions Changes in scale of Banking Coverage by Regions Assets Distribution by Regions, Assets in Rubles versus Assets in FC by Regions . www.crediteurope.ru/en/research/ _34_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 35. Russian Banking System – Scale of Banking Coverage by Regions Gggggg Andrey Golubev Data as of 01.01.2007 Research Analyst Number of Credit Organizations, their subsidiaries and Banking Assets by Regions, % from total banking assets Russian & Global Capital Markets branches by regions, % from total number of credit Treasury organizations Privolzhsky Urals Federal Credit Europe Bank Ltd Federal District District Siberia Federal Urals Federal South Federal 9,1% 5,8% District; 5,3% District District T: +7 (495) 725 40 40 (ext. 7239) 9,0% 3,7% Privolzhsky F: +7 (495) 725 40 13 Far East Federal District andrey.golubev@crediteurope.ru South Federal 16,4% Siberia Federal Federal District District District; 12,6% North-West 1,9% 14,8% Federal District BLOOMBERG: 7,4% Andrey Golubev Agolubev2@bloomberg.net Online WEB Research: Central Federal http://www.crediteurope.ru/en/research/ Central Federal District District North-West Far East 30,2% 66,8% Federal District Federal District Online Bloomberg Research: 11,4% 5,5% CEBM <GO> Loans issued to resident companies and resident individuals Household deposits by regions as % from total household by regions, % from total loans issued deposits Privolzhsky Urals Federal Urals Federal Federal District District District 14,8% South Federal 8,2% 8,0% District Privolzhsky South Federal Siberia Federal Siberia Federal 6,8% Federal District District District; 9,6% District; 7,5% 13,7% 7,0% Far East Far East Federal Federal District District 3,1% 3,8% North-West North-West Federal District Central Federal 11,2% Central Federal Federal District District District 10,2% 47,2% 49,0% GRP by sectors as % from total GDP Population by Regions as % from total population Urals Federal Urals Federal Privolzhsky Federal District District District 18,0% 8,6% 16,6% South Federal District 16,0% Privolzhsky South Federal Federal District 21,3% Siberia Federal District Siberia Federal District; 13,8% 7,5% District; 11,6% Far East Federal Central Federal Central Federal District District District 4,7% North-West Far East Federal North-West 26,2% 31,5% Federal District District Federal District 9,5% 4,6% 10,1% Average monthly personal income per capita by regions, USD 600 600 500 500 400 400 300 562,4 300 434,3 479,7 200 423,2 200 314,1 327,2 263,4 100 100 0 0 Central North- South Privolzhsky Urals Siberia Far East West Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research www.crediteurope.ru/en/research/ _35_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 36. Banking System – Changes in scale of Banking Coverage by Regions Gggggg Growth rate of the number of Credit Organizations, their Growth rate of Banking Assets by Regions, subsidiaries and branches by regions, % 01/01/07 vs. 01/01/06 % 01.01.2007 vs. 01.01.2006 Far East F.D. Far East F.D. Siberia F.D. Siberia F.D. Urals F.D. Urals F.D. Privolzhsky F.D. Privolzhsky F.D. South F.D. South F.D. North-West F.D. North-West F.D. Central F.D. Central F.D. 0% 10% 20% 30% 40% 50% 0% 20% 40% 60% 80% Growth rate of Loans issued to resident companies and Growth rate of Household deposits by regions, resident households by regions, % 01.01.2007 vs. 01.01.2006 % 01.01.2007 vs. 01.01.2006 Far East F.D. Far East F.D. Siberia F.D. Siberia F.D. Urals F.D. Urals F.D. Privolzhsky F.D. Privolzhsky F.D. South F.D. South F.D. North-West F.D. North-West F.D. Central F.D. Central F.D. 0% 20% 40% 60% 80% 0% 10% 20% 30% 40% 50% Growth rate of GRP by regions, Growth rate of population by regions, % 01.01.2007 vs. 01.01.2006 % 01.01.2007 vs. 01.01.2006 Far East F.D. Far East F.D. Siberia F.D. Siberia F.D. Urals F.D. Urals F.D. Privolzhsky F.D. Privolzhsky F.D. South F.D. South F.D. North-West F.D. North-West F.D. Central F.D. Central F.D. 23,10% 23,12% 23,14% 23,16% 23,18% 23,20% -0,8% -0,6% -0,4% -0,2% 0,0% Growth rate of verage monthly personal income per capita by regions, % 01.01.2007 vs. 01.01.2006 Far East F.D. Siberia F.D. Urals F.D. Privolzhsky F.D. South F.D. North-West F.D. Central F.D. 0% 10% 20% 30% 40% Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research пп www.crediteurope.ru/en/research/ _36_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 37. пп Banking System – Assets Distribution by Regions, Assets in Rubles versus Assets in FC by Regions Gggggg Data as of 01.11.2007 Assets Distribution by regions, % from total banking assets Total ruble loans by regions, % from total ruble loans Privolzhsky F.D. Urals F.D. Urals F.D. Siberia F.D.; South F.D. 9,4% 5,6% Siberia F.D.; 7,9% 9,3% 3,9% 5,7% Privolzhsky F.D. North-West F.D. Far East F.D. Far East F.D. 14,9% 7,5% 2,7% 2,1% South F.D. 6,1% Central F.D. Central F.D. 65,8% 50,6% North-West F.D. 8,5% Assets in Rubles versus Foreign Currency by regions, % from total assets of each region Assets in RUB Assets in Foreign Currency 100% 100 80% 80 60% 60 40% 40 20% 20 0% 0 Central F.D. North-West F.D. South F.D. Privolzhsky F.D. Urals F.D. Siberia F.D. Far East F.D. Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research www.crediteurope.ru/en/research/ _37_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 38. . Credit Europe Bank Treasury Research Russian Banking System Russia versus the World, International Comparison Assets & International Reserves / Growth Rate . www.crediteurope.ru/en/research/ _38_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 39. Russian Banking System – Russia versus the World, International Comparison Assets & International Reserves / Growth Rate Gggggg Andrey Golubev Total Banking Assets, International Comparison, bio USD, end of 2006 Research Analyst Russian & Global Capital Markets 10 000 9431 10000 Treasury 9 000 9000 Credit Europe Bank Ltd 8 000 8000 T: +7 (495) 725 40 40 (ext. 7239) F: +7 (495) 725 40 13 7 000 7000 andrey.golubev@crediteurope.ru 6 000 6000 5134 BLOOMBERG: 5 000 5000 4327 Andrey Golubev Agolubev2@bloomberg.net 4 000 4000 3 000 3000 Online WEB Research: http://www.crediteurope.ru/en/research/ 2 000 2000 1 000 501 562 659 1000 Online Bloomberg Research: 316 CEBM <GO> 0 0 USA United Kingdom China Russia Turkey Brazil India Comparative growth rate. Russia versus USA and China, bio USD +14.6% End of 2006 Current 12000 12000 10810 10000 9431 10000 +58.5% 8000 8000 6856 6000 5134 6000 4327 4000 4000 +48.3% 2000 743 2000 501 562 659 316 0 0 USA United Kingdom China Russia Turkey Brazil India GDP growth rate, 2006 vs. 2005, % annual 2005 2006 35 33 35 30 30 25 25 20,9 20 20 15 15 10,4 11,1 9,3 8,7 10 7,4 10 6,4 6,7 6,1 5,2 4,2 5 3,1 2,9 5 0 0 USA United Kingdom China Russia Turkey Brazil India Sources: Web-sites of Central Banks and Ministers of taken countries, Bloomberg, Credit Europe Bank Treasury Research www.crediteurope.ru/en/research/ _39_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 40. . Credit Europe Bank Treasury Research Russian Banking System Changes in Top 10 by assets size by Quarters Assets, Capital, and Profits Top-10 by Size of Households Deposits . www.crediteurope.ru/en/research/ _40_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 41. Russian Banking System – Changes in Top 10 by assets size by Quarters Gggggg Andrey Golubev Quarter I 2007 Research Analyst Russian & Global Capital Markets (aggregated figures) Treasury bio USD Credit Europe Bank Ltd Name Assets Capital Profit before tax T: +7 (495) 725 40 40 (ext. 7239) Sberbank 160,4 23,7 1,29 F: +7 (495) 725 40 13 Gazprombank 44,2 3,6 0,62 andrey.golubev@crediteurope.ru VTB 35,0 5,6 0,17 Alfa-Bank 16,2 1,6 0,09 BLOOMBERG: Bank of Moscow 15,8 1,3 0,15 Andrey Golubev Bank Uralsib 12,7 1,6 0,09 Agolubev2@bloomberg.net Raiffeisen Bank 11,1 1,1 0,07 Rosselkhozbank 10,9 0,8 0,07 Online WEB Research: IMB 10,8 0,9 0,10 http://www.crediteurope.ru/en/research/ Rosbank 10,5 0,9 0,01 Total for Top 10 327,5 41,1 2,7 Online Bloomberg Research: CEBM <GO> Gg Quarter II 2007 (aggregated figures) bio USD Name Assets Capital Profit before tax Sberbank 174,3 24,3 2,67 Gazprombank 48,1 3,5 0,73 VTB 42,5 13,9 0,32 Bank of Moscow 17,5 1,6 0,19 Alfa-Bank 16,3 1,6 0,05 Rosselkhozbank 14,5 0,8 0,12 Bank Uralsib 12,8 1,4 0,02 Raiffeisen Bank 11,6 1,2 0,17 IMB 10,9 1,0 0,17 MDM-Bank 10,1 1,1 0,28 Total for Top 10 358,6 50,2 4,7 Gg Quarter III 2007 (aggregated figures) bio USD Name Assets Capital Profit before tax Sberbank 177,6 25,3 4,18 Gazprombank 47,7 3,5 0,93 VTB 45,8 14,1 0,56 Bank of Moscow 19,0 1,6 0,26 Alfa-Bank 16,8 2,1 0,25 Rosselkhozbank 16,5 0,9 0,20 Raiffeisen Bank 12,7 1,4 0,40 IMB 12,7 1,3 0,24 Bank Uralsib 12,7 1,4 0,08 Rosbank 10,8 1,3 0,11 Total for Top 10 372,2 52,9 7,2 Gg Assets and Capital of Top-10 banks by assets size as of Q3 2007 Assets, bio USD Capital, bio USD 200 200 177,6 150 150 100 100 47,7 45,8 50 50 25,3 14,1 19,0 16,8 16,5 12,7 12,7 12,7 10,8 3,5 1,6 2,1 0,9 1,4 1,3 1,4 1,3 0 0 Sberbank Gazprombank VTB Bank of Moscow Alfa-Bank Rosselkhozbank Raiffeisen Bank IMB Bank Uralsib Rosbank Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research www.crediteurope.ru/en/research/ _41_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 42. Russian Banking System –Assets, Capital, and Profits Gggggg Market share of each of Top-10 banks as % from total assets of the banking sector, end of Q3 Gazprombank 6,4% VTB 6,2% Bank of Moscow 2,6% Sberbank Alfa-Bank 24,0% 2,3% Rosselkhozbank; 2,2% Raiffeisen Bank 1,7% Others 49,8% IMB 1,7% Bank Uralsib Rosbank 1,7% 1,5% Top-10 banks with the highest Profit before tax as of Q3 2007 (Top-10 is chosen among top-200 by assets size, profit before tax is calculated from the beginning of 2007 to the end of Q3) Name Assets, bio USD Capital, bio USD Profit before tax, bio USD Sberbank 177,6 25,3 4,18 Gazprombank 47,7 3,5 0,93 Bank VTB 45,8 14,1 0,56 Russian Standard Bank 7,2 0,9 0,43 Reiffeisen Bank Austria 12,7 1,4 0,40 MDM-Bank 10,6 1,3 0,37 KIT-Finance IB 3,8 0,6 0,32 Bank of Moscow 19,0 1,6 0,26 Alfa-Bank 16,8 2,1 0,25 Nomos-Bank 5,6 0,5 0,25 Total for Top-10 banks 346,8 51,3 7,9 Gg Top-10 banks by assets size growth rate as of Q3 2007 (Top-10 is chosen among top-200 by assets size, the growth rate is calculated from the beginning of 2007 to the end of Q3) Assets Growth Rate, Capital, Profit before tax, Name Assets, mio USD since year begin % mio USD mio USD GorodskoiIpotechniyBank 429,7 216 50,2 8,0 Bank Vostochniy Express 817,0 140 55,9 37,6 Sovkombank 415,7 120 70,6 3,9 GE Money Bank 455,1 105 96,7 65,2 Deutsche Bank 3229,1 105 201,3 12,3 Bank RenaissanceCapital 1087,5 104 150,0 94,7 Bank VEFK 1575,6 99 98,7 44,7 ICICI Bank Eurasia 667,0 96 46,7 4,5 Orgresbank 1785,2 91 176,8 57,4 KIT-Finance IB 3751,5 89 573,1 324,3 Total for Top-10 banks 14213,6 1520,0 652,6 Gg Top-10 banks by capital size growth rate as of Q3 2007 (Top-10 is chosen among top-200 by assets size, the growth rate is calculated from the beginning of 2007 to the end of Q3) Capital Growth Profit before tax, mio Name Assets, mio USD Capital, mio USD Rate since year USD begin % Sovkombank 415,7 70,6 309 3,9 PerviyObiedinenniyBank 845,4 107,5 188 15,2 Credit Europe Bank 1919,6 253,4 175 30,6 Bank VTB 45813,9 14122,7 172 555,0 GPB-Ipoteka 446,0 94,5 170 8,4 Kalion-Rusbank 1071,7 164,9 155 4,6 VTB-24 10296,2 1709,6 141 20,4 Gazenergoprombank 1207,1 112,5 137 33,4 KubanCredit Bank 378,5 58,9 135 35,2 Rus-Bank 2052,8 239,8 132 17,7 Total for Top-10 banks 64446,8 16934,5 724,4 gg Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research Gg www.crediteurope.ru/en/research/ _42_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 43. gg Banking System – Top-10 by Size of Households Deposits Gggggg Market share of each of Top-10 banks by size of household deposits as % from total household deposits of the banking sector, end of Q3 2007 Bank of Moscow VTB-24 2,4% 3,0% Gazprombank 1,6% Sberbank Bank Uralsib 51,9% 1,4% Raiffeisenbank Austria; 1,3% Rosbank Other Banks 1,3% 34,1% Alfa-Bank 1,2% Bank VTB 0,9% Vozrozhdenie 0,9% Top-10 banks by size of households deposits as of Q3 2007 (aggregated figures) Divided by terms, % from total household deposits Household Less than More than Name 91d-180d 180d-1year 1year-3years deposits, bio USD 90 days 2-tears Sberbank 98,6 10,2 2,5 7,8 68,1 11,3 VTB-24 5,7 13,7 0,3 5,0 80,8 0,1 Bank of Moscow 4,5 18,0 0,8 33,2 41,2 6,9 Gazprombank 3,0 41,3 2,3 6,1 50,3 0,1 Bank Uralsib 2,7 33,4 5,8 19,5 41,2 0,0 Raiffeisenbank Austria 2,4 67,6 4,9 11,9 12,3 3,3 Rosbank 2,4 21,6 0,6 13,8 59,7 4,4 Alfa-Bank 2,2 64,4 4,8 26,6 4,3 0,0 Bank VTB 1,8 42,4 0,8 5,0 51,8 0,0 Vozrozhdenie 1,8 25,2 3,9 10,6 59,8 0,6 Total for Top 10 125,2 Gggg Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research gg www.crediteurope.ru/en/research/ _43_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 44. . Credit Europe Bank Treasury Research Russian Banking System Ownership Structure of Top-10 banks by assets size as of Q3 2007 . www.crediteurope.ru/en/research/ _44_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 45. Banking System – Ownership Structure of Top-10 banks by assets size as of Q3 2007 Gggggg Andrey Golubev Research Analyst Russian & Global Capital Markets Treasury Credit Europe Bank Ltd 01. Sberbank 02. Gazprombank Name Type Share, % Name Type Share, % T: +7 (495) 725 40 40 (ext. 7239) F: +7 (495) 725 40 13 Bank of Russia Owner 60.57 ОАО “Gazprom” Owner 87.49 ZAO ”Depositarno-Kliringovaya OOO “Gazexport” Owner 6.64 andrey.golubev@crediteurope.ru Nominal Holder 9.2 Kompaniya” OOO “Novfintech” Owner 2.17 Non-commercial partnership BLOOMBERG: Nominal Holder 5.2 “National Depository Center” Andrey Golubev ZAO “ING Bank (Eurasia)” Nominal Holder 5.1 Agolubev2@bloomberg.net gg Online WEB Research: http://www.crediteurope.ru/en/research/ Online Bloomberg Research: 03. Bank VTB 04. Bank of Moscow CEBM <GO> Name Type Share, % Name Type Share, % Federal Property Management Moscow Property Department Owner 48.654 Owner 99.953 Agency “Russian Fund of Federal * Among owners are also: OOO “Gazexport”, Sberbank, ZAO Property” (specialized state’s Owner 0.217 “Energomashexport”, OAO “Ingosstrakh”, Chamber of Commerce and entity under state’s government) Industry OAO “Moscow Insurance Owner 13.477 Company” gg 05. Alfa-Bank 06. Rosselkhozbank Name Type Share, % Name Type Share, % OAO “AB Holding” Owner 99.74 “Russian Fund of Federal Owner 100 * 100% of stocks are under control of ABH Financial Limited Property” gg 07. Raiffeisenbank Austria 08. IMB Name Type Share, % Name Type Share, % Raiffeisen International Bank- Bayerische Hypo- und Owner 99.5 Owner 46.84 Holding AG Vereinsbank Aktiengesellschaft Raiffeisen-Invest-Gesellschaft Nordea Bank Finland PLC Owner 23.42 Owner 0.5 M.B.H. Eurobank, commercial bank for Owner 19.77 North-Europe European Bank for Reconstruction Owner 9.97 and Development gg 09. Bank Uralsib 10. Rosbank Name Type Share, % Name Type Share, % OOO “Aktiv-Holding” Owner 32.32 ZAO “Interros Estate” Owner 95.79 OOO “Innovative Technologies” Owner 24.51 Federal Property Management Owner 0.26 OOO “Invest-Consulting” Owner 19.59 Agency Ministry of Property Relationship Owner 7.41 of Republic Bashkortostan OAO “Managing Company NIkoil- Owner 5.06 Sberezheniya” gg Sources: Bank of Russia, Economy Ministry, Finance Ministry, Bloomberg, Credit Europe Bank Treasury Research Gfg fg www.crediteurope.ru/en/research/ _45_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 46. . Credit Europe Bank Treasury Research Russian Banking System Chronology of Large M&A Deals . www.crediteurope.ru/en/research/ _46_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 47. Russian Banking System – Chronology of Large M&A Deals Gggggg Andrey Golubev Research Analyst Russian & Global Capital Markets Treasury Gg Credit Europe Bank Ltd Date of a deal Buy Side Sell Side Stake, % T: +7 (495) 725 40 40 (ext. 7239) F: +7 (495) 725 40 13 andrey.golubev@crediteurope.ru August 2004 EBRD URSA 25% BLOOMBERG: April 2005 Intesa Banca KMB 75% Andrey Golubev Agolubev2@bloomberg.net August 2005 Societe Generale DeltaCredit 100% Online WEB Research: December 2005 Deutsche Bank United Financial Group 60% http://www.crediteurope.ru/en/research/ February 2006 Reiffeisen International Impexbank 100% Online Bloomberg Research: March 2006 Societe Generale SKT 100% CEBM <GO> November 2006 Nordea Orgresbank 75% September 2006 Commerzbank Promsvyazbank 15.3% December 2006 Bank Austria CA Aton 100% January 2007 EBRD Transcapitalbank 25% April 2007 KBC Absolut Bank 92.5% July 2007 Societe Generale Rosbank 30% gg Sources: Credit Europe Bank Treasury Research fg www.crediteurope.ru/en/research/ _47_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 48. . Credit Europe Bank Treasury Research Russian Banking System Most Recent Major Trends, 2007 versus 2006 . www.crediteurope.ru/en/research/ _48_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 49. Russian Banking System – Most Recent Major Trends, 2007 versus 2006 Gggggg Andrey Golubev Assets, % MoM, 2006 2007 Capital, % MoM, 2006 2007 Research Analyst Russian & Global Capital Markets 10 10 20 20 Treasury Credit Europe Bank Ltd 8 8 16 16 T: +7 (495) 725 40 40 (ext. 7239) 6 6 12 12 F: +7 (495) 725 40 13 andrey.golubev@crediteurope.ru 4 4 8 8 BLOOMBERG: 2 2 4 4 Andrey Golubev 0 0 0 0 Agolubev2@bloomberg.net J F M A M J J A S O N D J F M A M J J A S O N D Online WEB Research: http://www.crediteurope.ru/en/research/ Corporate Loans, % MoM, 2006 2007 Loans to households, % MoM, 2006 2007 Online Bloomberg Research: 10 10 10 10 CEBM <GO> 8 8 8 8 6 6 6 6 4 4 4 4 2 2 2 2 0 0 0 0 J F M A M J J A S O N D J F M A M J J A S O N D Household Deposits, % MoM, 2006 2007 Corporate Deposits, % MoM, 2006 2007 10 10 15 15 8 8 10 10 6 6 5 5 4 4 0 0 2 2 0 0 5 5 J F M A M J J A S O N D J F M A M J J A S O N D Sources: Bank of Russia, Credit Europe Bank Treasury Research www.crediteurope.ru/en/research/ _49_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 50. . Credit Europe Bank Treasury Research Russian Banking System Banking Financials SBERBANK GAZPROMBANK . www.crediteurope.ru/en/research/ _50_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 51. Russian Banking System – SBERBANK Gggggg gg EMERGING MARKETS Consolidated P&L accounts, mio USD RUSSIA 2005 2006 Growth Rate, % BANKING SECTOR Interest Income 9282,5 12009,3 29,4 SBERBANK Interest Expense 3370,5 4613,6 36,9 Net Interest Income 5912,0 7395,7 25,1 Company Description Provisions for loan impairment 741,1 523,7 29,3 Sberbank, also known as the Savings Bank of the Net interest income after provision for loan Russian Federation, attracts deposits and offers impairment 5170,9 6872,0 32,9 commercial banking services. The Bank offers time Gains less losses arising from trading securities and deposits, corporate banking, securities brokerage, other securities at fair value through profit or loss 610,4 423,8 30,6 credit, and foreign exchange services, and Gains less losses arising from investment securities sponsors credit cards. available for sale Gains arising from investment securities held to Company web-site: www.sbrf.ru maturity Net gains / (losses arising from trading in foreign Reuters Code: SBER.RTS currencies) 27,6 320,0 1 257,9 Bloomberg Code: SBER RU Foreign exchange translation net (losses) / gains 223,8 182,8 181,7 Fee and commission income 1396,2 1954,3 40,0 Ownership Structure Fee and commission expense 43,4 61,1 40,8 Dfhg Gain on settlement of a receivable Shareholders Share, % Other operating income 148,2 156,3 5,4 The Central Bank of Russia 57.6 Operating profit 7636,9 9609,1 25,8 Institutional Investors 36.8 Administrative and other operating expenses 4324,1 5487,3 26,9 Non-institutional investors 0.8 Private investors 4.8 Profit before tax 3312,7 4121,7 24,4 Income tax expense 824,7 991,2 20,2 gg Profit for the year 2488,0 3130,6 25,8 Earnings per ordinary share, basic and diluted (expressed in RR per share) 130,6 164,2 25,7 Consolidated Balance Sheets, mio USD 2005 2006 Growth Rate, % Assets Cash and cash equivalents 4664,2 6419,8 37,6 Mandatory cash balances with the Bank of Russia 2147,8 2945,7 37,2 Trading securities 4983,6 7963,7 59,8 Other securities at fair value through profit or loss 8592,9 8992,3 4,6 Due from other banks 980,4 1560,5 59,2 Loans and advances to customers 67572,3 96091,4 42,2 Repurchase receivable Investment securities held to maturity 1073,7 990,5 7,8 Premises and equipment 4039,7 4734,1 17,2 Other assets 897,0 1367,0 52,4 Total assets 95014,3 131065,1 37,9 Liabilities Due to other banks 941,9 1695,1 80,0 Deposits from individuals 57251,5 77354,8 35,1 Customer accounts 20673,2 29595,0 43,2 Debt securities in issue 3285,1 4677,8 42,4 Other borrowed funds 2380,5 4057,9 70,5 Deferred income tax liabilitiy 88,1 136,3 54,7 Other liabilities 546,8 867,4 58,7 Subordinated debt 1111,3 1016,3 8,5 Total Liabilities 86278,2 119400,7 38,4 Equity Share Capital 793,2 3023,9 281,2 Share premium 378,7 378,7 0,0 Revaluation reserve for premises 600,1 580,1 3,3 Retained earnings 6964,0 7681,8 10,3 Total equity 8736,1 11664,4 33,5 Total Liabilities and Equity 95014,3 131065,1 37,9 gg Sources: Bank’s Annual Reports, Bloomberg, Credit Europe Bank Treasury Research Gg www.crediteurope.ru/en/research/ _51_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 52. gg Banking System – GAZPROMBANK Gggggg gg EMERGING MARKETS Consolidated P&L accounts, mio USD RUSSIA 2005 2006 Growth Rate, % BANKING SECTOR Interest Income 739,5 1260,4 70,4 GAZPROMBANK Interest Expense 458,6 812,0 77,1 Net Interest Income 280,9 448,4 59,6 0,0 0,0 Company Description Provisions for impairment of interest-earning assets 30,4 128,2 321,8 Net interest income after provision for impairment Gazprombank provides a broad range of banking of interest-earning assets 250,5 320,2 27,8 services to corporations and government entities, Petrochemical business operating revenues particularly Gazprom and Gazprom Group. The Media business operating revenues 359,6 883,2 145,6 Bank’s principal activities include commercial Dealing profits, net 503,3 494,6 1,7 lending, trade finance, deposit taking, settlement, Fees and commissions income 168,1 278,7 65,8 depository and custodian services, project finance, Profit from available-for-sale investments, net 93,7 205,3 119,0 private equity activities, capital market services, Profit from poreign exchange, net 49,0 162,4 231,4 foreign exchange, and securities trading. Dividend Income 39,0 21,4 45,0 Other operating income 30,8 70,6 129,4 Non interest income 1243,5 6609,8 431,6 Company web-site: www.gazprombank.ru Reuters Code: Profit from operations 711,4 2013,7 183,1 Bloomberg Code: GAZP RU Income from associates 11,8 61,0 416,3 Ownership Structure Profit before income tax and minority interests 723,2 2074,7 186,9 Dfhg Income tax expense 174,8 517,0 195,8 Shareholders / 30 June 2007 Share, % Net profit 548,4 1557,7 184,0 OAO “Gazprom” 41.73 Attributable to: Non-State Pension Fund “Gazfond” 7.11 Group's shareholders 457,3 1330,8 191,0 ZAO “Leader” (on behalf of NPF 42.89 Minority interest 91,0 226,9 149,2 “Gazfond”) 548,4 1557,7 184,0 OOO “Novye Finansovye 8.27 Technologii” (treasury stock) Basic earnings per share (USD) 35,2 111,5 Diluted earnings per share (USD) - 111,4 gg Consolidated Balance Sheets, mio USD 2005 2006 Growth Rate, % Assets Cash and due from the Central Bank of the RF 1069,8 2907,5 171,8 Due from credit institutions, net 2882,8 7237,7 151,1 Securities at fair value through profit or loss 1637,7 2346,4 43,3 Loans to customers, net 7401,1 11584,0 56,5 Available-for-sale, net and investments in associates 1090,5 2496,6 128,9 Trade receivables, net 463,6 540,8 16,7 Inventories, net 450,2 672,9 49,5 Property, equipment and intangibles, net 1971,4 2447,4 24,1 Goodwill 552,7 619,3 12,1 Other assets, net 534,9 815,9 52,5 Total assets 18054,5 31668,5 75,4 Liabilities Amounts owed to credit institutions 2140,3 2979,7 39,2 Amounts owed to customers 7217,0 11447,1 58,6 Subordinated deposits 607,5 688,8 13,4 Certificated debts 1566,4 5454,5 248,2 Eurobond issued 2065,8 2613,7 26,5 Income tax liabilities 258,6 345,4 33,5 Other liabilities 1281,8 1489,1 16,2 Total liabilities 15137,5 25018,3 65,3 Equity Share capital 907,1 1160,9 Share premium Treasury stock 84,3 84,3 0,0 Foreign currency translation reserve 32,3 297,3 1020,4 Fair value reserve 162,6 549,4 237,9 Retained earnings 1368,6 2930,0 114,1 Total equity attribuable to Group' shareholders 2321,6 5915,1 154,8 minority interest 595,3 735,0 23,5 Total equity attribuable to Group' shareholders 2916,9 6650,1 128,0 0,0 0,0 Total liabilities and equity 18054,5 31668,5 75,4 gg Sources: Bank’s Annual Reports, Bloomberg, Credit Europe Bank Treasury Research Gg G www.crediteurope.ru/en/research/ _52_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 53. gg Russian Banking System – VTB Gggggg gg EMERGING MARKETS Consolidated P&L accounts, mio USD RUSSIA BANKING SECTOR 2005 2006 Growth Rate, % Interest Income 1830 3637 98,7% VTB Interest Expense -920 -1892 105,7% Net Interest Income 910 1745 91,8% Company Description Provisions for loan impairment -103 -442 329,1% VTB Bank attracts deposits and offers corporate, Net interest income after provision for loan retail, and investment banking services. The Bank impairment 807 1303 61,5% offers debt origination, trade financing and Gains less losses arising from financial assets at fair custody services, and trades in derivatives, value through profit or loss 261 187 -28,4% commodities, money markets, Russian and Gains less losses arising from available-for-sale international currency, equities, bonds, and repos. financial assets - 348 Gains less losses arising from dealing in foreign Company web-site: www.vtb.ru currencies 8 73 812,5% Foreign exchange translation gains less losses -8 265 -3412,5% Reuters Code: VTB.RTS Fee and commission income 190 401 111,1% Bloomberg Code: VTBR RU Fee and commission expense -22 -50 127,3% Extinguishment of liability 14 - Ownership Structure Share in income of associates 24 15 -37,5% Dfhg Income arising from non-banking activities 155 111 -28,4% Shareholders’ Structure Share, % Other operating income 94 157 67,0% Federal Property Management 77.5 Net non-interest income 716 1507 110,5% Agency Institutional Investors 17.7 Operating Income 1523 2810 84,5% Private Investors 4.8 Staff costs and administrative expenses -739 -1370 85,4% Expenses arising from non-banking activities -111 -90 -18,9% Excess of fair value of acquired net assets over cost 30 - gg Profit from disposal of subsidiaries - 54 Profit before taxation 703 1404 99,7% Income tax expense -195 -232 19,0% Profit after taxation from continued operations 508 1172 130,7% Profit from discontinued operations 3 7 133,3% Net profit 511 1179 130,7% Net profit attributable to: Shareholders of the parent 499 1137 127,9% Minority Interest 12 42 250,0% Basic and diluted earnings per share (USD per share) 0,000118 0,000218 84,7% gg Consolidated Balance Sheets, mio USD 2005 2006 Growth Rate, % Assets Cash and short-term funds 2692 3581 33,0% Mandatory cash balances with central banks 404 648 60,4% Financial assets at fair value through profit or loss 5051 5120 1,4% Financial assets pledged under repurchase agreements and loaned financial assets 1252 2938 134,7% Due from other banks 4141 6813 64,5% Loans and advances to customers 19925 29262 46,9% ssets of disposal group held for sale 337 - Financial assets available-for-sale 881 888 0,8% Investments in associates 118 200 69,5% Investment securitites held-to-maturity 7 11 57,1% premises and equipment 832 1422 70,9% Investment property 198 178 -10,1% Intangible assets 451 455 0,9% Deferred tax assets 82 93 13,4% Other assets 252 794 215,1% Total assets 36723 52403 42,7% Liabilities Due to other banks 6629 7587 14,5% Customer deposits 12767 19988 56,6% Liabilities of disposal group held for sale 199 - Other borrowed funds 2937 4468 52,1% Debt securities issued 7241 11565 59,7% Deferred tax liability 162 125 -22,8% Other liabilities 358 509 42,2% Total liabilities before subordinated debt 30293 44242 46,0% Subordinated debt 1161 1169 0,7% Total liabilities 31454 45411 44,4% Equity Share capital 2500 2500 0,0% Share premium 1513 1513 0,0% Unrealized gain on financial assets available-for-sale 89 154 73,0% Currency translation difference 86 352 309,3% Fixed assets revaluation reserve 72 341 373,6% Retained earnings 660 1744 164,2% Equity attributable to shareholders of the parent 4920 6604 34,2% Minority interest 349 388 11,2% Total equity 5269 6992 32,7% Total liabilities and equity 36723 52403 42,7% gggg Sources: Bank’s Annual Reports, Bloomberg, Credit Europe Bank Treasury Research www.crediteurope.ru/en/research/ _53_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001
  • 54. gg CREDIT EUROPE BANK LTD DISCLAIMER: This report is not an offer to buy or sell any security or financial instruments or to participate in any trading strategy. The information and 115054, Moscow, opinions contained within this analytical report are based upon information publicly available at the time of preparation and publication. The value of and Paveletskaya Square, 2/2. income from your investments may vary because of changes in interest rates, tax rates or foreign exchange rates, securities prices or market indexes, P: +7 (495) 725 40 40 operational or financial conditions of companies or other factors. Past performance is not necessarily a guide to future performance. Estimates of future performance are based on assumptions that may not be realized. The value of any investment or income may go down as well as up and you may not get back the full amount invested. This report does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The securities and financial instruments discussed in this report may not be suitable for all investors. Credit Europe Bank recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of the financial adviser. Gggg www.crediteurope.ru/en/research/ _54_ Credit Europe Bank Ltd. All rights reserved. See terms of Use/Disclaimer on the last page. 50RBKS01 | 0001