2

Mission

We are the major universal bank in the Urals Region.

We create and maintain the customer base and establish mutually beneficial relations with customers.

We feel committed to participate in spheres of activities of our customers providing them with the wide range of banking services meeting their requirements and complying with the international banking practice and standards.

We ensure absolute fulfillment of all obligations undertaken to our partners and gaining profit to our shareholders.

We conduct our business open for customers and shareholders in strict compliance with the Russian laws based on corporate management standards, fair competition, updated IT solutions and high professional level of the Bank executives and staff.

We reward our employees according to the contribution of each to the Bank results achieved.

We regard social demands with attention and together with local authorities aim at participating in promotion of social projects for the benefit of the society, growth and improvement of economy of the Chelyabinsk Region.

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“CHELINDBANK” at a Glance

Universal Bank Major directions of services: Cash and settlement services, corporate lending, SME and retail lending, retail savings and corporate deposits, securities market services, foreign exchange and foreign currency transactions, foreign economic activities operations, bank cards services, retail banking including money transfers and payments

One of the Largest Russian Regional Banks

As of 01 April, 2014 the Bank holds:• the 96-th position by the Bank capital (“Interfax-100. Banks of Russia”)• the 73-rd position by personal savings (“Interfax-100. Banks of Russia”)• the 73-rd position by the volume of retail credit portfolio (“BANKIR.RU)• the 101-st position by the profit after taxation (““Interfax-100. Banks of Russia”)

Customer Base Over 26 000 legal entities and entrepreneurs; over 1,100,000 accounts for individuals

Wide Customer Service Network

◦ Head Office in Chelyabinsk, Russia◦ 54 structural units in 26 towns of the Chelyabinsk Region,◦ a branch in Yekaterinburg, ◦ a representative office in Moscow, ◦ 186 ATMs,◦ 1,765 POS - terminals

Fitch RatingsOn May 28, 2013 Fitch Ratings assigned CHELINDBANK Long-term Issuer Default (IDR) «ВB-», outlooks “Stable”, National Long-term «A+(rus)». The financial stability of CHELINDBANK is regularly confirmed by the international scale ratings since October 2008.

Financial Statements IFRS – ZAO “KPMG”, Financial Statements RAI – ZAO “Ekaterinburg Audit-Center”

Licenses

The Bank is in the register of the banks participating in the Obligatory Savings Insurance System under No1.

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Licenses • The General Banking License №485 dated 13.08.2012 issued by the Central Bank of Russia• The License on Banking Operations with Precious Metals № 485 от 16.09.2002• The Licenses entitling the Bank to operate as a professional participant of the securities market as a

broker, dealer and depositary• Compliance Certificate PCI DSS• Licenses issued by FSS of Russia Department in the Chelyabinsk Region

Participation in

associations and

unions

• Regional Banks Association “Russia”• Russian Banks Association• Principal member of VISA International Association (since 1996); regional acquiring license of VISA

International (since 2003)• Affiliated member of “MasterCard” Payment System (since 2013)• Bills Market Members Association• South-Ural Trade and Commerce Chamber • Chelyabinsk Regional Office of Association of Employers “Union of Industrials and Entrepreneurs”• Chelyabinsk Regional Office of Public Organisation “Union of Industrials and Entrepreneurs”

Participation in Sock Exchanges

Member of Stock section and Foreign Currency section of Moscow Interbank Currency Exchange (Moscow)

Savings Insurance Agency

5

Branch Network

On the territory of the Chelyabinsk region CHELINDBANK has 28 branches, 22 outlets, 3 out-of-the-office cash counters and a branch in Yekaterinburg.

As on 01.04.2014: Share capital – 809 mln.rubles Capital – 6,6 billion rubles Assets – 37,0 billion rubles

Assets, Capital, Share Capital

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7

Customer Services

Services to corporate customers

Retail Banking Foreign exchange transactions and services

Bank cards services

•Cash and settlement services

• Deposit operations

• Lending

• Guarantee operations

• International settlements

• Service of customers’ foreign economic activity

• Salary projects

• Issue and discount of bills

• Collection

• Remote banking service systems: «Client+Bank», «Client+Bank Online», «Client+Bank iBank2»,

• Securities market services

• Operations with precious metals coins and bullions

• Safe custody

• Issue and service of corporate bank cards

• Leasing

•Deposits in rubles and foreign currency

• Lending

• Issue and service of VISA cards, MasterCards, Maestro

• Transfers in rubles and foreign currency (including Western Union, SWIFT operations, BLIZKO, “Zolotaya Korona”, “Contact”)

• Foreign exchange purchase and sale operations

• Individual payments to organizations for rendered services

•Remote banking service systems: “Internet-Bank”, “Internet-Trading”, “Mobile Bank”

• Operations with precious metals coins and bullions

• Safe custody

• Securities operations

• Issue and discount of bills

• Foreign settlements in all internationally accepted forms by SWIFT : transfer, letter of credit, collection

• Bank guarantees issue and confirmation of L/C by the first-class European banks with or without coverage

• Individuals foreign currency transfers without opening a current foreign currency account

• Foreign exchange transactions

• Purchase and sale of foreign currency

• Foreign exchange control

• Transactions with currency with restricted convertibility

•VISA Gold, VISA Classic, VISA Electron, VISA Business, VISA Platinum cards, MasterCard, Maestro cards issue and handling

• Acquiring in VISA and MasterCard systems

• Issue and servicing corporate local settlement system cards including “Bon Appetit” cards, co-branding cards

• Corporate cards issue and handling

• Regular payments through card accounts

• Loans to cardholders

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Corporate bankingCHELINDBANK renders services to corporate customers of different industries, patterns of ownership and scope of activity. The Bank corporate customers are defense enterprises, enterprises of ferrous and non-ferrous industry, chemical industry, machinery manufacturing, food industry, travel agencies, trading and educational companies, etc.

Our customers are: OJSC “Chelyabinsk Zinc Plant” OJSC “Sverdlovsk Suburban Company” OJSC “Ashinsky Metallurgical Plant” OJSC “Transenergo” CJSC “URALMOSTOSTROY” OJSC “Legion-C” CJSC “Unichel” Footwear company CJSC “MIASSMEBEL” Grains and Bread Products company n.a. Grigorovich “STROYCOM” Group of companies OJSC “Kopeysky Engineering Plant”

9 751

1 203

11 759

1194

12 288

1 179

12 719

1185

13 306

1111

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

mln

RU

R

01.01.11. 01.01.12. 01.01.13. 01.01.14. 01.04.14.

Corporate loans

Corporate loans including individual entrepreneurs

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Cooperation with the EBRD The Bank has been dealing with small and medium business lending under the EBRD program since 2002. Totally the EBRD has provided CHELINDBANK with a 20 mln USD and 760 mln Rubles loans for small business development for the period of 3-5 years including 500 mln Rubles provided in 2013. The Head office and 29 branches are taking part in the program.

As of April 01, 2014 the SME program loan porfolio of CHELINDBANK amounts 4,3 billion RUR for over 4,000 small and micro loan agreements.

Since 2002 CHELINDBANK has been participating in the EBRD Trade Finance Program enabling the Bank to work with more than 700 major world financial institutions having the relating agreements with the EBRD.

In September 2006, the Bank and the EBRD entered into a loan agreement for mortgage financing. According to the terms of the Agreement the EBRD has provided the Bank with the loan of 140 mln RUR for 7 years.

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Trade Financing

Since 2002 CHELINDBANK actively participates in the EBRD Trade Finance Program.

The credit institutions cooperating with CHELINDBANK in the framework of trade financing are Commerzbank AG, VTB Bank (Deutschland) AG, Germany, Raiffeisen Bank International AG, Austria.

The total volume of credit lines for trade finance operations established by the foreign banks for CHELINDBANK is about 37 mln. US Dollars (in equivalent). 

The principle

conditions

• Financing terms up to 3 years,• Involving Export Credit Agencies – up to 5 years,• Interest rates: - LC/ guarantees issuing: 2 - 6% p.a. - financing: 5 - 7% p.a. (depending on the contract term and amount) + LIBOR/

EURIBOR.

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Correspondent NetworkAs on April 01, 2014 the correspondent network of CHELINDBANK consists of 269 correspondent banks including 106 resident banks and 163 non-resident banks from 47 countries:• 28 correspondent banks with 50 NOSTRO-accounts,• 11 respondent banks with 16 LORO-accounts,• 67 partner banks cooperating within the framework of the signed General Agreements,• 12 banks with Cash Foreign Currencies Banknote Agreements signed,• 233 banks with no account relations

Main

Correspondent

Banks

• The Bank of New York Mellon, New York, USA• Deutsche Bank Trust Company Americas, New York, USA• Deutsche Bank AG, Frankfurt-am-Main, Germany• COMMERZBANK AG, Frankfurt-am-Main, Germany• VTB Bank (Deutschland) AG, Frankfurt-am-Main, Germany• CREDIT SUISSE (FIRST BOSTON), Zurich, Switzerland• RAIFFEISEN BANK International AG, Vienna, Austria

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Retail Banking

The Bank offers its customers consumer loans, auto loans, lending within the framework of salary projects, mortgage lending, credit cards lending.

As at 01.04.2014 total amount of rendered retail credits comprised 8,1 billion rubles.

Retail market services development is one of the Bank’s priorities.

The Bank offers a wide range of time deposits, that makes possible different variants of depositing and saving individual funds.

As at 01.04.2014 the total amount of attracted individual funds comprised approximately 19,7 billion rubles.

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

01.01.11. 01.01.12. 01.01.13. 01.01.14. 01.04.14.

4 354

5 244

6 504

8 072 8 072

mln

RU

R

Individual Loans Dynamics

Individual loans

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Bank Cards Operations

As at 01.04.2014 the amount of VISA cardholders issued by “CHELINDBANK” comprised 251 thousand.

In Chelyabinsk and other towns of the Region 186 ATMs and 1765 point-of-sale terminals have been installed.

More than 3,000 agreements for corporate service in the framework of salary projects with the use of bank cards have been signed.

14CHELINDBANK Assets Structure

CHELINDBANK Liabilities Structure

As on 01.04.2014 the Assets comprise 37 023,3 mln. RUR:

• Cash & due from Central Bank– 2 908,4 mln. RUR• Due from Banks – 1 669,1 mln. RUR• Securities – 4 142,7 mln. RUR• Customer loans – 24 259,3 mln. RUR• Fixed assets – 3 143,7 mln. RUR• Other assets– 900,1 mln. RUR

As on 01. 04.2014 the Liabilities are:• Due to Banks – 926,5 mln. RUR• Due to corporate customers – 6 387,1 mln. RUR• Due to individuals – 19 748,7 mln. RUR• Securities – 23,9 mln. RUR• Other liabilities – 244,5 mln. RUR• Equity – 6 655,1 mln. RUR• Loss provisions – 3 037,6 mln. RUR

as on January 01, 2012

Securities

13,4%

Fixed assets

10,0%

Customer loans

59,0%

Cash & due from

Central Bank

7,7%

Other assets

3,7%

Due from Banks

6,2%

Financial results RAI(published reports)

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Figures Quarter 1, 2014

(as on April 01, 2014)

in thous.RUR

Quarter 1, 2013

(as on April 01, 2013)

in thous.RUR

Total assets

Cash and due from Central Bank

Due from banks

Net lending receivables

Securities owned, net

Fixed Assets, intangible and tangible

Other assets

34 197 268

2 908 360

1 391 864

22 345 568

4 057 747

3 165 067

328 662

32 282 478

2 225 442

616 820

21 457 520

4 444 620

3 210 927

327 149

Total liabilities

Amounts owned to banks

Customer funds, total

Including individual deposits

Other liabilities

27 549 163

926 526

26 139 822

19 748 661

482 815

26 076 149

832 989

24 764 372

19 057 317

478 788

Equity 6 648 105 6 206 329

Net interest and similar income

Net fees and commissions received

Provisions change

Operating expenses

Profit after taxation

482 664

136 375

-123 003

374 964

132 350

472 646

166 417

-103 064

374 875

166 047

Requirements:

N1(min 10%)

N2 (min 15%)

N3 (min 50%)

N4 (max 120%)

ROA*

ROE*

18,2

73,8

98,8

87,7

2,5%

13,4%

16,8

51,0

87,4

75,3

2,7%

14,0%

* According to calculation methods of the Bank of Russia № 1379-U