FY 2012 IFRS ResultsSteady growth despite economy deceleration

Conference CallMarch 27, 2013

2

Assets and liabilities

RUB bln

RUB bln

Q4'11 Q1'12 Q2'12 Q3'12 Q4'1210 10 10 10 10

101 106 111 107 110

23 25 27 30 329 14 12 12 81.0 0.4 0.4 0.4 5.840 29 34 35 43

184 183194 195

209

Cash and equivalents

Due from banks

Securities

Retail loans

Corporate loans

Other assets

…Reliable assets structure

…Loan book growth

…supported by customer-based funding

…with retail outperforming

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 201218 19 20 20 21

4 4 4 5 68 7 7 8 87 8 8 8 720 22 24 25 2633 31 32 30 3620 18 19 18 2172 72 77 78

81

184 183 194 195209

Retail deposits

Retail accounts

Corp. accounts

Corp. deposits

Securities issued

Due to other banks

Other liabilities

Subordinated loans

Equity

RUB bln

Q4'12Q3'12Q2'12Q1'12Q4'11

7777787470

22333

4541434140

3331282624

SME Administrations Large corporates Individuals

3,2%+

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

15.4 17.0 18.520.8 22.3

6.86.8

7.68.4 8.52.2

2.2

Mortgages Consumer and auto loans Credit cards

,13+8% +348,%4,7%+

RUB bln

3

Risk management

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 28.02.13

11.9% 11.8% 11.6% 12.1% 12.3%

13.8% 13.4% 13.2%14.2%

14,9%

11.9%

Tier 1 Tier 1 + Tier 2

CAR (N1)under CBR rules

11%MIN

Capital position enhanced by subordination

FX structure

Maturity gap up to 5% of the balance

Interest rate risk

12,5%

Including RUB 1 bln of subord3rd tranche

Demand and less than 1 month

From 1 to 6 months

From 6 to 12 months

More than 1 year

0

10

20

30

40

50

60

70

80

AssetsLiabilities

RUB bln

Demand and less than 1 month

From 1 to 6 months

From 6 to 12 months

More than 1 year

0

10

20

30

40

50

60

70

80Interest-earning assetsInterest-bearing liabilities

RUB bln

82%

1420 1

Assets

Loans

Due from banks&Securities&Cash

81%

2843

Liabilities

DepositsDue to banks&SecuritiesOther liabilities

Roubles

FX

Roubles

FX

RUB bln

4

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 20121,980 3,400 3,400 5,445 5,445

8.7%8.9% 10.1% 12.2% 11.9%

4.9%8.3% 8.0%

13.2%12.2%

Large corporates

NPLs, RUB mln Provisions, % of total portfolioNPLs, % of total portfolio

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

827 827 777 965 892

4.4%4.3%

3.6% 3.5% 3.5%

3.4% 3.2% 2.7%3.1% 2.7%

Retail

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 20127,769 8,263 8,120 7,841 7,765

11.5% 11.1%10.4% 10.5% 10.5%

10.7% 10.8%

10.0%9.9% 9.8%

SMEs

Credit quality management

15

* NPL includes the whole principal of loans at least one day overdue either on principal or interest as well as not overdue loans with signs of impairment

Q4 2012Q3 2012 Q2 2012Q1 2012Q4 2011

1.17%

2.86%

2.24%

1.02%

1.92%1.83%

2.06%1.65%

1.02%1.77%

Charges to provisions to avg gross loans, QoQCharges to provisions to avg gross loans, YtD

+ Rub 275 mln new NPLs- Rub 351 mln recoveries

+ Rub 111 mln new NPLs- Rub 184 mln recoveries

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

10,576 12,490 12,297 14,251 14,102

9.44% 9.25% 9.09% 9.52% 9.40%

7.70%

8.68%

8.08%

9.41%9.02%

NPLs, RUB mlnProvisions, % of total portfo-lio

*

No changes

NPLs categorization: absolute improvement in SME and retail

Annualized cost of riskNPLs dynamics

5

Credit qualityas of 31.12.2012

Large corporates

SMEs Mortgages Other retail

Total

Gross loans, including 44 587 78 928 22 302 10 548 156 365

Current loans 87,8% 90,2% 98,3% 95,2% 91,0%

Past-due but not impaired, of them - 0,2% 1,1% 0,8% 0,3%

Less than 90 days - 0,2% 0,2% 0,7% 0,2%

Over 90 days - - 0,9% 0,1% 0,1%

Impaired, of them 12,2% 9,7% 0,6% 4,0% 8,7%

Less than 90 days - 0,1% - 0,3% 0,1%

Over 90 days 12,2% 9,6% 0,6% 3,6% 8,7%

Total NPLs 12,2% 9,8% 1,7% 4,8% 9,0%

Provisions -11,9% -10,5% -2,7% -5,2% -9,4%

Net Loans 39 296 70 671 21 691 10 004 141 662

Provisions to NPLs Ratio

NPL -

104%

Rescheduled Loans

5.6%

the whole amount of loans with principal overdue for more than 1 day as well as loans with any delay in interest payments.

Provisions to 90

days+ NPLs

107%

RUB mln

6

Geographical diversificationCorporate loans

Corporate deposits

Retail deposits (without debit card accounts)

Retail loans

15%

37%

21%

13%

14%

Moscow Oblast

Moscow Other regions

RUB123,515

mln

South regions

North-West regions

26%

34%8%

28%

4%

Moscow Oblast

MoscowOther regions

RUB25,896

mln

South regions

North-West regions

24%

56%

10%

6%

4%

Moscow Oblast

Moscow

Other regionsRUB

81,014mln

South regions

North-West regions

29%

48%

9%3%

11%

Moscow Oblast

Moscow

Other regionsRUB

32,850mln

South regions

North-West regions

7

Financial highlights

FY’12 FY’11 Q4’12 Q3’12

Net interest income 9 058 7 456 2 394 2 253

Net fee and commission income 5 061 4 822 1 324 1 320

Total operating income b.p. 14 793 12 889 3 743 3 875

Operating expenses (8 652) (8 353) (2 421) (2 051)

Charges to Provisions (2 722) (2 304) (451) (1 083)

Net profit 2 331 1 594 544 583

+21%

+5%

+15%

+4%

+18%

+46%

RUB mln

8

2011 2012

-6,503.0 -7,553.0

13,959.016,611.0

Interest ExpensesInterest Income

+4.6%

Revenues from core business

Q1 2012 Q2 2012 Q3 2012 Q4 2012

-1,620.0 -1,856.0 -2,010.0 -2,067.0

3,769.0 4,118.0 4,263.0 4,461.0

Q1 2012 Q2 2012 Q3 2012 Q4 2012

2,149.0 2,262.0 2,253.0 2,394.0

1,126.01,291.0 1,320.0 1,324.0

127.0220.0 302.0 0,03

…driven mostly by interest incomeOperating income up…

Net fee income breakdown Segment structure of core revenues

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

414326 377 391 408

337256

304 300 301

253

219250 265 224

364

325360 364 391

1,368

1,1261,291 1,320 1,324

Settlements Cash transactions Other Cards RUB mln

+0.3%-3.2%

71%

21%

3%5%

Cards

Other Corporate business

Retail business

Cards

Other

Corporate business

Retail business

Interest income Non-interest income

2011 2012

7,456.09,058.0

4,822.0

5,061.0

611.0

674.0

Net interest income Net feesOther income

+14.8%

52%

16%

27%

5%

RUB bln RUB bln

9

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

5.7% 6.3%7.2% 7.6%

6.7%

5.1% 5.3% 5.8% 6.1% 6.4%

0.2% 0.1% 0.1% 0.1% 0.1%

Corporate term depositsRetail term depositsCurrent accounts

NIM gains on repricing of loans and depositsLoan yields surged forward… …outpacing cost of deposits

NIM decompositionSpread dynamics

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

10.3% 10.3% 10.8% 10.9% 11.3%

15.7%14.8% 14.9% 14.9% 15.4%

3.4%5.3% 6.1% 5.3% 6.4%

Yields on corporate loansYields on retail loans

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

7.1% 6.9% 6.7% 6.7% 7.1%

10.7% 10,9% 11.2% 11.4% 11.7%

3.7% 4.0% 4.4% 4.7% 4.6%

Interest SpreadYield on earning assets (net)Cost of funds

2011 2012

4.3%

4.7%

Loans Deposits Other Base effect

+0,44%

-0,10%

-0,05%

-0,18%

Q1 2012 Q2 2012 Q3 2012 Q4 2012

4.68% 4.80% 4.64% 4.74%

+46 bps

10

Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

1,352 1,258 1,260 1,236 1,357

193 145 191 155209

440300 351 335

397

420339 336 325

458

Personnel expensesAdministrative expensesRent & Costs related to premises and equipmentOther

Cost efficiency in focus

RUB mln

+18%+0.7%

Staff expenses composition

Operating efficiency dynamics CIR on way to improvement

Operating expenses breakdown

2009 2010 2011 2012

48.7%

72.5%

64.8%

58.5%

50.0%

37%22%

38% 37% 40%

13% 51%49% 54% 50%

50%27%

14% 9% 10%

Salary Benefits Bonuses

Q4'11 Q1'12 Q2'12 Q3'12 Q4'12

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

-2.4-2.0

-2.1 -2.1 -2.4

3.8 3.4 3.8 3.9 3.7

64.0%60.0%

56.7%52.9%

64.7%

Operating expensesOperating income before provisionsCost/Income

Mid-term target

RUB bln

11

-2,304.0 -2,722.0

4,536.06,141.0

Operating profit before provisions and taxesProvisions

Q1'12 Q2'12 Q3'12 Q4'12

-358.0 -830.0-1,083.0

-451.0

1,360.01,635.01,824.0

1,322.0

Earnings generation capacity

2011 2012

2008 2009 2010 2011 2012

23.3%

7.8%

3.5%

9.1%

11.9%

2008 2009 2010 2011 2012

2.45%

0.88%

0.38%

0.91%1.21%

Net profit developmentOperating profit

ROA, %ROE, %

1,594.0

2,331.0

Q1'12 Q2'12 Q3'12 Q4'12

526.0678.0

583.0 544.0

2011 2012

+35% +46%RUB blnRUB bln

Mid-term target: back to 20% Mid-term target: 1.5% – 2%

12

Key takeaways of 2012 & 2013 plansLower market competition

Limited SME loan demand due to macro expectations

Strong growth in mortgages

Stable inflow of deposits with moderate interest rates policy

Tier 2 strengthening with subordinated deposit

Improvement of cost-to-income

Moderate growth 12 - 14%

Margin protection at 4,5%

Close monitoring of credit quality with adequate provisioning

Interest rates - slight growth on both IEA/IBL

Control over operating expenses & operating efficiency project going forward

2012 highlights

2013 expectations

Base case macro

scenario

GDP growth 3,5%

Oil price > $100.00

Inflation 6%

USD/RUB 32 EUR/RUB 42

13

Questions and answers

investor@voz.ru http://www.vbank.ru/en/investors

Elena Mironova

Deputy Head of IR

+7 495 620 90 71

E.Mironova@voz.ru

Andrey Shalimov

Deputy Chairman of

the Management Board

A.Shalimov@voz.ru

Julia Vinogradova

Advisor to the Chairman of

the Management Board

Yu.Vinogradova@voz.ru

14

DisclaimerSome of the information in this presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of Bank Vozrozhdenie (the Bank). Such forward-looking statements are based on numerous assumptions regarding the Bank’s present and future business strategies and the environment in which the Bank will operate in the future. The Bank cautions you that these statements are not guarantees of future performance and involve risks, uncertainties and other important factors that we cannot predict with certainty. Accordingly, our actual outcomes and results may differ materially from what we have expressed or forecasted in the forward-looking statements. These forward-looking statements speak only as at the date of this presentation and are subject to change without notice. We do not intend to update these statements to make them conform with actual results.

The Bank is not responsible for statements and forward-looking statements including the following information:- assessment of the Bank’s future operating and financial results as well as forecasts of the present value of future cash flows and

related factors;- economic outlook and industry trends;- the Bank’s anticipated capital expenditures and plans relating to expansion of the Bank’s network and development of the new

services;- the Bank’s expectations as to its position on the financial market and plans on development of the market segments within which the

Bank operates;- the Bank’s expectations as to regulatory changes and assessment of impact of regulatory initiatives on the Bank’s activity.

Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include:- risks relating to changes in political, economic and social conditions in Russia as well as changes in global economic conditions;- risks related to Russian legislation, regulation and taxation;- risks relating to the Bank’s activity, including the achievement of the anticipated results, levels of profitability and growth, ability to

create and meet demand for the Bank’s services including their promotion, and the ability of the Bank to remain competitive.Many of these factors are beyond the Bank’s ability to control and predict. Given these and other uncertainties the Bank cautions not to place undue reliance on any of the forward-looking statements contained herein or otherwise. The Bank does not undertake any obligations to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable laws.