1 June 2008. 2 VAB Bank. Overview Short name VAB Bank (formerly known as VABank) Established2nd July...

1June 2008

2

VAB Bank. Overview

Short name VAB Bank (formerly known as VABank)

Established 2nd July 1992, Kyiv

Member of VAB Group

Auditor Ernst&Young

Ratings

□ Moody’s Local Currency Deposits: B2Foreign Currency Deposits:

B2Outlook Stable

□ Fitch Foreign Currency:Long-Term Issuer Default

Rating: B– Short-Term Rating: B

Outlook Stable

3

Kardan N.V.

90.4%

60%

48,8%

40%

Shareholders

MAKSIMOV FAMILY

48,8%

Kardan Financial Services B.V.

11%

TBIH Financial Services Group N.V.

80%

50/50 strategic partnership between international institutional investor and local business

Kardan N.V. (part of Kardan Group) is an international investment company based in the Netherlands with total assets of US$6.65 bn as of 2007YE and listing on Euronext Amsterdam and Tel-Aviv Stock Exchange

In December 2007 Israel Discount Bank purchased 11% of Kardan Financial Services B.V. It is envisaged that Discount Bank will provide KFS with over USD 300 million of credit facilities.

TBIF Financial Services is a subsidiary of Kardan N.V. focusing on retail and SME banking, consumer finance, leasing, mortgages and asset management.

Vienna Insurance Group (Wiener Stadtische) is the #1 insurer in Austria and #1foreign insurer in the CEE region as of YE2007

Currently operating in 20 countries, incl. in Ukraine where it is a partner in VAB insurance and pension business through TBIH Financial Services Group N.V.

Mr. Sergey Maksimov is a local entrepreneur and the main shareholder of the Bank since 1995 with excellent local market knowledge and proven track record

4

VAB Asset Management

VAB Re

VAB Life

VAB Insurance

VAB Pension

VAB Leasing

VAB Capital

VABExpress

VAB Bank

POWERFUL UMBRELLA BRANDCROSS-SELLING

ECONOMIES OF SCALE

VAB Group

VAB Express.Provision of consumer loans (est. 2006)

VAB Leasing.Provision of leasing services (est. 2005)

VAB Pension.Administration of private pension funds (est. 2004)

VAB Insurance.Provision of insurance services (est.2002)

VAB Life.Provision of life insurance services (est. 2004)

VAB Re.Provision of reinsurance services to insurance companies (est. 2004)

VAB Asset Management.Provision of asset management services (est. 2006)

VAB Capital.Professional activities in the capital market, including brokerage, dealing, underwriting and portfolio management services (est. 2006)

5

VAB Bank. Strategic Goals

To develop VAB as a full-service bank with strong franchise in retail and SME

To have strong distribution:

□ to strengthen front office (sales)

□ to grow the network to 250 branches and outlets by YE2010

□ to diversify sales channels

To continue to develop both the Bank's human resources and information technology systems

| in US$ millions | 2005 2006 2007 2008P

Assets 453 731 1 211 1 800

Loans to customers 244 515 911 1 450

Capital 64 101 142 200

Net profit 2.8 2.1 1.8 5

Key Financial Targets

P - planned

6

Sal

es P

oin

ts

| Number |Branches and ATMs

Distribution Network

Network coverage in all regional centers of Ukraine

Rebranding and new sales orientated concept introduced in 2006 ensuring competitive benefits for VAB Bank

□Facilitates cross-selling

□Cost and capital effectiveness

□Higher sales per square meter

1191

2000

7

Assets and Capital Dynamics

2007 capital growth was fueled by shareholders’ injection of almost US$20m and US$20m subordinated loan from FMO (The Netherlands)

Basel Total Capital Adequacy Ratio stood at 15% as of 31 Dec 2007

Registration of additional US$50m to the shareholders’ equity planned by the end of 1H2008

The shareholders are committed to maintain CAR at the level of minimum 12% and to participate in increases of capital up to US$300m by YE2009

Gro

wth

Dyn

amic

s

| in US$ millions |Assets, YE

Gro

wth

Dyn

amic

s

| in US$ millions |Total Capital, YE

+61%YoY +66%YoY +51%YoY +58%YoY

+40%YoY +41%YoY

P - planned

8

Gro

wth

Dyn

amic

s

| in US$ millions |Loan Portfolio, YE

Small and medium enterprises dominate in the loan portfolio and account for 60% of the total loans

VAB Bank’s share in the lending market stood at 1.2% as of YE2007

Share of loans to individuals grew from 20% as of YE2006 to 27% as of YE2007

Lending policy: conservative risk assessment, but fast decision making

Loan Portfolio

To

tal L

oan

Po

rtfo

lio

| YE 2007 |Breakdown by Customer Segments

+111%YoY +77%YoY +59%YoY

To

tal L

oan

Po

rtfo

lio

| YE 2007 |Portfolio by Industries

P – planned

SME 60%

9

Loan PortfolioL

oa

n L

os

s R

eser

ves

vs Im

pai

red

Lo

an

s | in US$ million |Asset Quality, YE

Co

nce

ntr

atio

n

|percent |Share of Top 10 Borrowers High quality of loan portfolio: share of impaired loans remains modest at 1.7% as of YE2007

Impaired loans are covered by loan loss reserves in the amount of USD 17.9 million

Corporate loans are 100% collateralized by property, equipment, raw materials, semi-finished or finished products, contractual rights, securities, deposit accounts or precious metals

Continuously decreasing concentration

Ove

rdu

e L

oan

s

|percent |Breakdown of Overdue Loans

11

Over 3 years52%

1-3 years37%

Other89%

1 year11%

2008 Gross Borrowings

Domestic Bonds 50

Syndicated Loans/ Bilateral Loans 60

Loans from IFIs 40

Funding from TBIF 100

Others 20

TOTAL 270

To

tal F

un

din

g

| percent |Funding Composition

2008

No

n-D

epo

sit

Fu

nd

ing

| percent |Maturity Composition

| in US$ millions |

Fu

nd

ing

| in US$ millions |Customer Deposit Portfolio

264

492

738

1030

+50%YoY +40%YoY +86%YoY

Funding

12

Amount: US$30,000,000

Tenor: 7 years

Facility Date: Dec 2006

Lenders

Bila

tera

l Lo

an

Funding. Capital Market Loans

Amount: US$51,000,000

Tenor: 1year

Facility Date: Apr 2007

Mandated Lead Arrangers

Syn

dic

ated

Lo

an

Amount: US$15,000,000

Tenor: 14 months

Facility Date: Feb 2006

Mandated Lead Arranger

Syn

dic

ated

Lo

an

Amount: US$10,000,000

Tenor: 11 months

Facility Date: Jun 2006

Mandated Lead Arranger

Syn

dic

ated

Lo

an Amount: US$20,000,000

Tenor: 10 years

Margin: LIBOR + 4.5%

Facility Date: Oct 2007

Lender

Su

bo

rdin

ated

Lo

an

13

Amount: US$125,000,000

Tenor: 3 years ▲

Coupon: 10.125%

Format: Reg S

Issue Date: June 2007

Lead Managers

Eu

rob

on

ds

Issu

e

“…Bookrunners’ comment: …In all the time I’ve been doing emerging markets bonds, I’ve not seen a book like this for a credit of this type…”

“…Reactions had been very positive, with investors impressed by both strong management team and the bank’s strategy…”

“…Spencer Maclean (Deutsche Bank) stressed the high participation rate of investment grade and crossover accounts in the book, in addition to the traditional high-yield and dedicated EM funds...”

Funding. Eurobonds Debut Issue

Inve

sto

r B

ase

| percent |Breakdown by Geography

Inve

sto

r B

ase

| percent |Breakdown by Investor Type

14

Current Ratings Rating Outlook

Long-Term IDR B- Stable

Short-Term B Stable

Individual D/E

Support 5

National Long-Term BBB- (ukr) Stable

VAB Bank cooperates with Moody’s and Fitch since 2003 and 2006 respectively

In May 2007 Fitch affirmed VAB Bank’s rating and outlook at B- (stable)

In June 2008 Moody's confirmed the bank’s B2 long-term local and foreign currency deposit and debt ratings and assigned the stable outlook

Current Ratings Rating Outlook

Bank Deposit Foreign Currency B2/NP Stable

Bank Deposit Local Currency B2/NP Stable

BFSR E+ Stable

National A1.ua

Credit Ratings

“…The bank’s further franchise expansion, accompanied by declining business concentrations, may put upward pressure on the ratings. Funding base diversification and a strengthening of liquidity should be also positive for the bank’s financial standing…“

“…The rating derives from the bank’s current market standing, relatively advanced for Ukrainian bank corporate governance and risk management practices and the expected strengthening of the

bank’s retail franchise following the execution of the strategy, supported by expansion of the branch network together with

enhancing the infrastructure and IT systems...”

15

Strong, supportive, long-term strategic investor with sufficient financial resources and experience to ensure success

Top quality senior management team with extensive international experience

Strong and expanding branch network coverage

Unique customer service approach and well-developed brand. Brand awareness increased from18% in 2006 to 47% in 2007

High capitalization level with 15% Basel Capital Adequacy Ratio as of 31 Dec 2007 and shareholders’ commitment to increase capital further

International standard risk management systems with proven capability to manage rapid growth

High standards of corporate governance and transparency: ranking among Top-5 most transparent banks in Ukraine according to Standard & Poor's survey for the second consecutive year (recent survey in Dec 2007)

Summary

1604/19/23

5 Zoolohichna Street, Kyiv 04119, Ukraine

Tel.: (38 044) 481-33-48

Fax: (38 044) 481-33-49

e-mail: [email protected]

http://www.vab.ua

http://www.vabbank.com.ua

Telex: 631048 VABNK UX

S.W.I.F.T. BIC: VABA UA UK

REUTERS: VABK

Contact Details

Mr. Lukas Tursa Deputy Chairman of the Management Board

Head of Treasury and Financial InstitutionsTel.: +38 044 492 39 80e-mail: [email protected]

Correspondent Banking & International Borrowings

Mr. Viktor DumaHead of Financial Institutions & International FinancingTel.: +38 044 481 33 48e-mail: [email protected]

Ms. Natalia BastunCorrespondent BankingTel.: +38 044 481 33 47e-mail: [email protected]

Money & FX Market

Ms. Natalia ShishatskaHead of Money & Forex MarketsTel.: +38 044 490 06 36e-mail: [email protected]

Mr. Oleksiy TihiyHead of DealingTel.: +38 044 481 33 53e-mail: [email protected]

Documentary Business

Ms. Tetyana Synitsyna Head of Documentary BusinessTel.: +38 044 490 06 34e-mail: [email protected]

Ms. Iryna DrygaloDeputy Head of Documentary BusinessTel.: +38 044 490 06 34e-mail: [email protected]

Investment Banking

Ms. Dorina ZilbermintsInvestment BusinessTel: +38 044 481 33 55E-mail: [email protected]

1 June 2008. 2 VAB Bank. Overview Short name VAB Bank (formerly known as VABank) Established2nd July...

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