NAVIGATION IN THE WORLD OF FINANCE - Expobank...2015–2017 Strategy. Standards The report has been...

PRAGUE

NAVIGATION IN THE WORLD OF FINANCE

LONDON

RIGA

MOSCOW

HONG KONG

ANNUAL REPORT

THE BEST RUSSIAN BANK 2ND YEAR RUNNINGExpobank has become the best Russian bank for the second year running, according to EMEA Finance Magazine. It received the EMEA Finance Europe Banking Award nominated as the Best Bank Operating in Russia based on its 2015 performance. Acquisition of the Royal Bank of Scotland Russia was also recognized as the best M&A deal in 2015.

EMEA Finance Magazine is an interna-tionally recognized financial publication telling of the most important events in the financial markets in Europe, the Middle East and Africa. Every year the magazine gives out ‘Europe Banking Awards’ to the best banks. When deciding on the winners, EMEA Finance experts rely on such criteria as the economic performance, increase in profits and international business expansion.

ANNUA L REPORT

CONTENTS

CORPORATE GOVERNANCESUMMARY

General information 2

Assets and partner banks 4

Briefing notes 5

Expo brand footprint globally and across Russia 6

General Information

Key TopicsThe report highlights performance indicators included in Expobank’s 2015–2017 Strategy.

Standards The report has been prepared based on Expobank 2015 IFRS Statements.

Ratings International Rating Agency Fitch Ratings upgraded the Bank’s International Long-Term IDR to “B+”, while its National Rating — to “A–(rus)”, with outlooks for both ratings as “Stable”.

Russian Rating Agency RusRating affirmed the Bank’s credit ratings at “BBB–” (International Scale) and “AA–” (National Scale), with outlooks “Improvement Possible”.

RAEX Expert Agency (Expert RA) assigned to the Bank a credit rating of “A+” “Very High Level of Creditworthiness”, First Sublevel, Outlook Positive.

Core BusinessOffering a full range of banking services to corporate clients and affluent private customers are among the Bank’s priorities, as well as acquisition and consolidation of banking assets. The Bank operates under General License for Banking Operations No. 2998 of 06 February 2012 (replace-ment of License No.2998 of 02 December 2008) issued by the Bank of Russia (CBR). The Bank participates in the government’s deposit insurance programme introduced by Federal Law No.177-FZ dated 23 December 2003 ‘On Insurance of Household Deposits with Russian Banks’.

Contact Details29 Kalanchevskaya Street, bldg.2, Moscow, 107078

Tel: +7 (495) 228 31 31Email: [email protected]/7 Information Centre:+ 7 (495) 231 11 11; + 7 (800) 500 07 70www.expobank.ru

Report has been prepared by Expobank Limited Liability Company (‘Expobank’). The consolidated data cover the period from 01 January to 31 December 2015.

2 3www.expobank.ru

ГОДОВОЙ ОТЧЕТ || 2015 Contents

Accountability and efficiency 41

Risk management 44

Information openness and transparency 45

Social policy and HR management 46

FINANCIAL STATEMENTS

Independent Auditor’s report 55

Statement of financial position 57

Statement of comprehensive income 59

Statement of changes in equity 61

Statement of cash flows 62

STARTEGIC REPORT

Address of the Chairman of the Board of Directors 11

Address of the Member of the Board of Directors 13

Address of the Chairman of the Management Board 15

Strategy, Mission, Values 19

Our activities 20

Key events in 2015 21

Overview of Russian economy in 2015 24

Strategic goals for 2015–2017 27

Private Banking / Expobank Premier 30

Treasury 31

Corporate Banking 33

M&A 35

Regional policy 38

Information Technologies 39

GENERAL

Addresses / Contacts 65

4 5www.expobank.ru

ANNUAL REPORT || 2015 SUMMARY1 Assets and Partner BanksBriefing Notes

MOSCOW‘MAKBANK’ LLC

SURGUTLLC ‘SIBBUSINESSBANK’

KRASNOYARSK‘STROMCOMBANK’

ASSETS AND PARTNER BANKS BRIEFING NOTES

Igor Kim is an international strategic investor who has successfully completed over 30 M&A deals both with Russian partners and global financial institutions.

Igor Kim

The following assets have been purchased in the

Russian sector recently:

LLC ‘Sibbusinessbank’ (Surgut) Commercial Bank ‘Stromcombank’

Limited (Krasnoyarsk) Commercial Bank ‘MAK-Bank’

LLC (Yakutsk)

THE PURCHASED FINANCIAL INSTITUTIONS WERE MERGED TO EXPOBANK LLC (RUSSIA)

AS EXPOBANK

is a private bank with a focus on products and services for corporate clients and affluent private customers. Having equity of EUR 74 mln. , Tier 1 capital adequacy ratio of 45% (as of 31 December 2015), high liquidity and an uninterrupted profitability for over 10 years, AS Expobank is a stable financial institution with a prevailing share of fee income in its income struc-ture. At the end of 2015 AS Expobank acquired Walbrook Capital Markets, licensed London based brokerage.

EXPOBANK CZ

operates in the Czech banking market since 1991. The bank is focused on provision of complex products and services. This covers corporate banking services including treasury services, real-estate financing and export and trade financing as well as a broad range of private and personal banking services. Expobank CZ takes pride in being able to offer custom-made solutions and in its great care to detail when providing its clients with smart products and services.

Expobank LLC

is a dynamically developing bank that has been operating in the Russian banking market since 1994.

Its priorities are offering a whole range of banking services to corporate clients and affluent private customers. The Bank focuses on providing banking services backed up by an extensive experience of successful deals involv-ing funds raising, M&A’s and business restructuring for Russian and interna-tional companies. About 7.5 thousand companies and over 100 thousand individuals are among the Bank’s customers and clients.

Kirill NifontovCEO, Russia1

Māris AvotiņšCEO, Czech Republic

Ilya MitelmanCEO, Latvia

Igor Kim successfully closed over 30 M&A

deals with global financial institutions:

Barclays (UK) Santander (Spain) Morgan Stanley (USA) West LB (Germany) VR Leasing (Germany) LBBW (Germany) Royal Bank of Scotland (UK)

Chairman of the Board of Directors, Expobank LLC (Russia)

Chairman of the Supervisory Board, Expobank CZ (Czech Republic)

Chairman of the Board of Directors, AS Expobank (Latvia)

1 As of 31 December 2015

6 7www.expobank.ru

SURGUT

KRASNOYARSKKEMEROVO

YEKATERINBURGPERM

SAINT PETERSBURG

R U S S I A

MOSCOWRIGALATVIA

CZECH REPUBLICPRAGUE

UNITED KINGDOMLONDON

HONG KONG

NOVOSIBIRSK

YAKUTSK

KALUGA UFA

KRASNODAR

NOVOKUZNETSK

EXPO BRAND FOOTPRINT GLOBALLY AND ACROSS RUSSIA

THE REPRESENTATIVE OFFICE WAS SET UP TO ASSIST OUR CLIENTS INTERESTED IN EXPANSION OF THEIR BUSINESS TO ASIA, PRIMARILY TO CHINA

LLC EXPOBANK (RUSSIA) ASSETS AS OF 2015 YEAR END

₷ 71.3 blnEQUITY

₷ 9 bln CAPITAL ADEQUACY RATIO

14.2%RETURN ON EQUITY

25.8 %

EXPOBANK CZ (CZECH REPUBLIC)

ASSETS AS OF 2015 YEAR END

€ 807 mlnEQUITY

€ 102 mln CAPITAL ADEQUACY RATIO

25.1 %

1 Based on management data as of 31 December 2015

WALBROOK CAPITAL MARKETS is a City-based company, authorized and regulated in the United Kingdom by the Financial Conduct Authority. It offers its clients an

opportunity to trade in a whole range of financial instruments in the world financial markets. The company is a member of London Stock Exchange (LSE) and ICE Europe.

Expo Brand Footprint Globally and Across Russia

SUMMARY1ANNUAL REPORT || 2015

AS EXPOBANK (LATVIA)

ASSETS AS OF 2015 YEAR END

€ 482 mlnEQUITY

€ 74 mln CAPITAL ADEQUACY RATIO

44.7 %

WALBROOK CAPITAL MARKETS1 (UK)

CAPITAL, GBP

₤ 5.9 mlnCLIENT ASSETS HELD

< ₤ 300 mln

STRATEGY RESISTANCE TO STRESSES IN ECONOMY, ASSET QUALITY AND OPERATING EFFICIENCY ARE THE BANK’S MAJOR PRIORITIES.

2015–2017 STRATEGY IS A CONTINUATION AND DEVELOPMENT OF THE IMPLEMENTED 2012–2014 STRATEGY.

The Bank develops its business through both organic growth and M&A’s with other financial institutions, the synergy effect from which enables the Bank to develop at the rate exceeding the market average

Geographical footprint expansion across the world, inter alia, through the partner projects in the Czech Republic, Latvia, Hong King and London

Skilled Management Team capable of ensuring maximum financial effect to the Bank’s clients and shareholders in any market environment

The Bank is focused on the relationships with corporate clients and affluent private customers operating in the sectors most resistant to economic crises

10 11www.expobank.ru

ANNUAL REPORT || 2015 STRATEGIC REPORT

2 Address of the Chairman of the Board of Directors

ADDRESS OF THE CHAIRMAN OF THE BOARD OF DIRECTORS

GLOBAL CHANGES IN THE WORLD AND IN THE BANKING SYSTEM, GEOPOLITICAL INSTABILITY HAVE SET A NEW DEVELOPMENT TREND FOR BOTH OUR BUSINESS AND THE SECTOR AS A WHOLE

The following matters have come to the fore: formation of business relation-ships, meeting standards of expertise and declared level of professionalism, ability to offer high-demand products and services to clients and partners.

Throughout recent years Expobank has worked out its own distinct and recognizable style of doing business. It defined for itself that implementa-tion of a conservative policy makes it feasible to achieve a significant growth in profits and to avoid losses, which is of key importance in the changing market environment. The Bank is competitive among other players, not in assets but in offering unique intellec-tual services at the right time and within a requested time frame.

In the time of changes standard and traditional solutions don’t work; speed, professionalism and new approaches are in high demand. Expobank’s team is unique in its competences and is able to use the synergy effect of coopera-tion with partner banks in the Czech Republic, Latvia, Hong Kong and London.

Last year, greater focus of the Management was made on one of the key operational priorities — on improv-ing corporate governance and strength-ening the team, which enabled us to deliver the planned results and form basis for new achievements.

On behalf of the Board of Directors I would like to thank all clients and partners of the Bank for their trust, our team members — for their high skills and achieving the global level.

Igor Kim

Chairman of the Board of Directors Expobank LLC

THE YEAR 2016 IS A YEAR OF OPPORTUNITIES AND NEW WORLD FINANCIAL MARKETPLACES



2 Address of the Member of the Board of Directors

ADDRESS OF THE MEMBER OF THE BOARD OF DIRECTORS

Dear shareholders, members of the Board of Directors, clients and partners,

Summing up the year 2015 I have to point out that Expobank’s team successfully coped with the tasks set. Return on the Bank’s equity exceeded 25%. The Bank again got EMEA Finance Europe Banking Award nominated as the Best Bank Operating in Russia based on its 2015 performance and we can be proud of the appraisal from international experts.

One of the most important elements of the year results was the income from M&A activities. In the current economic environment, the market is very active with regard to opportunities to con-solidate assets and close such deals. Both in Russia and abroad, new assets

and quality offers emerge. In February 2015 Expobank acquired 100% shares in MAK-Bank from ALROSA, Russian biggest diamond mining company. The successful deal closure resulted in merger of MAK-Bank to Expobank (Russia). In November 2015 the Bank signed a sale and purchase agreement on acquisition of 100% shares in the Royal Bank of Scotland ZAO from one of the biggest UK commercial banks, the Royal Bank of Scotland plc. A profitable business was bought, with a quality client base, which is fully in line with Expobank’s business interests. Upon obtaining all necessary approvals from the Bank of Russia and completion of all preliminary IT related technology mea-sures the deal was successfully closed in April 2016. As a result, Expobank gained over 1,000 active customers and clients whose funds held with the bank

as of the deal closure date equaled RUB 11.4 bln.

Development through M&A is an important part of Expobank’s strategy. Of key importance is that we are capable to implement such projects and we monitor markets both in Russia and in other regions on a regular basis. Strong financial position and high returns enable our Bank to be ready to such transactions any moment.

I would like to thank the whole team. We managed not only to exceed the previous year results in gross figures for volumes and profits but also to drastically increase efficiency of our operations, thus having laid a strong foundation for further development and growth.

WE FIND IT IMPORTANT TO REMAIN A RELIABLE PARTNER TO OUR CLIENTS AND TO CONTINUE ACHIEVING RESULTS — ONE OF THE BEST ACROSS THE SECTOR

Kirill Nifontov

Member of the Board of Directors Expobank LLC



2 Address of the Chairman of the Management Board

ADDRESS OF THE CHAIRMAN OF THE MANAGEMENT BOARD

Dear shareholders, members of the Board, clients and partners,

The Bank’s success lies in long-term partner relationships the cornerstones of which are reliability, stability and competent work of its team. Every year we set new tasks to ourselves and strive to open new horizons.

Expobank’s 2015 performance demon-strated growth in financials and high return on equity. In 2015, Expobank earned a comprehensive income of RUB 2.1 bln, which is a 21% increase on the 2014 results (1.7 bln.), with RoE making 25.8%. Income growth was achieved both through an increase in interest and fee incomes and closed M&A deals.

Throughout the year the Bank’s assets grew by 37% to RUB 71.3 bln, with the share of liquid assets in the balance

structure still high and making 41% (as compared to 44% the year earlier). The Bank’s equity, as of the 2015 year-end statements, stood at RUB 9 bln. Due to high customer confidence, liabilities from customers and clients grew by 41% to RUB 44.1 billion, with those from individuals growing by 58% to RUB 29.6 bln.

Expobank strives to maintain high assets quality and takes a conservative approach to credit risks assessment. NPLs share in the loan book dropped from 1.4% to 0.6%, in absolute figures NPLs (90+) reduced by RUB 167.4 mln, to RUB 238.9 mln, with provisions against NPLs making 235% as of the reporting date.

Today, the Bank is continuing to adhere to its strategy.

WE ARE COMPETITIVE THROUGH QUALITY SERVICE AND AN INDIVIDUAL APPROACH TO EVERY CUSTOMER AND CLIENT.

Remaining committed to our cause we grow, while preserving values and remaining a reliable partner.

I would like to thank the team of the Bank for their commitment to the common cause. Together, we navigate towards our goals, undertake challen-ging tasks and manage to complete them due to the professionalism and accumulated experience of our team.

Alexey Sannikov

Chairman of the Management Board Expobank LLC

SMART BANK FOR SMART BUSINESS

A debut issue of subordinated Eurobonds was placed and the size of equity exceeded 9 billion rubles

THE TEAM HAS QUALITY EXPERTISE AND COMPETENCES, WHICH ENSURES PROFESSIONAL CONSULTING SERVICES TO THE BANK’S CLIENTS.

RAPID DECISION MAKING, OPERATIONAL RESPONSIVENESS AND WIDE FOOTPRINT ACROSS THE WORLD ENABLE THE BANK TO SHARE A COMMON LANGUAGE WITH BUSINESS — THAT ONE OF PROFITABILITY AND EFFICIENCY

Fitch Ratings upgraded the Bank’s International Rating to “B+”, National Rating — to “A– (rus)”, with outlooks “Stable”

19www.expobank.ru

STRATEGIC REPORT

2 Strategy, Mission, Values

Mission of the Bank:

STRATEGY, MISSION, VALUES

TEAMWORK

Engagement of each team member, sincere interest in achieveing results through joint effort. Willingness of every person to make a valuable contribution maintaining confidential and respectful relations

EFFECTIVENESS, EFFICIENCY

Focus on the best result using the most suitable methods. Constant search for ways to achieve professional improvement and development

OPENNESS, READINESS TO CHANGE

Openness to changes and appropriate response to the need for possible changes. The ability to accept various points of view and adaptability to the new action plan approved

ETHICS, HONESTY AND INTEGRITY

Loyalty to ethical standards and principles. Demonstration of the firm intention to act in line with ethical principles, honestly and decently, abiding by professional code of conduct and social standards

WE BUILD A BANKING BUSINESS DESIGNED TO HELP CLIENTS TO GROW THEIR BUSINESS VALUE AND TO PROMOTE THEIR FINANCIAL SECURITY

Values of the Bank:

EXPOBANK OPENS FOR ITS CLIENTS THE WAY TO INTERNATIONAL FINANCIAL MARKETS AND IS READY TO BE THEIR NAVIGATOR IN THE WORLD OF FINANCE



2 Our activitiesFinancials

OUR ACTIVITIES FINANCIALS

Comprehensive income (RUB, bln)

2

1

0

1.2 1.7 2.1

2013 2014 2015

Liquid assets (RUB, bln)

302520151050

11.1 22.9 28.9

2013 2014 2015

Net loan portfolio less leasing (RUB, bln)

40

30

20

10

0

27.8 26.5 38.2

2013 2014 2015

Expobank LLC is a dynamically developing bank that has been operating in the Russian banking market since 1994.

RAEX Expert Agency (Expert RA) assigned to Expobank LLC a credit rating of A+ “Very High Level of Creditworthiness”, First Sublevel, Outlook Positive.

International Rating Agency Fitch Ratings upgraded the Bank’s International Long-Term IDR to “B+”, National Rating — to “A-(rus)”, with outlooks “Stable”.

About 7.5 thousand companies and over 100 thousand individuals are among the Bank’s customers and clients

Russian Rating Agency RusRating affirmed the Bank’s credit ratings at “BBB–” (International Scale) and “AA–” (National Scale), with outlooks “Improvement Possible”.

Priority areas are offering a whole range of banking services to corporate clients and affluent private customers.

The Bank focuses on providing banking services having an extensive experience of successful deals involving funds raising, M&A’s and business restructuring for Russian and international companies.

«РУС РЕЙТИНГ» ПОДТВЕРДИЛО РЕЙТИНГИ ПО

МЕЖДУНАРОДНОЙ ШКАЛЕ ДО Assets (RUB, bln)

80.0

60.0

40.0

20.0

0

48.0 51.9 71.3

2013 2014 2015

Clients’ funds (RUB, bln)

45.0

40.0

35.0

30.0

25.0

20.0

15.0

10.0

5.0

0

26.1 31.3 44.1

2013 2014 2015

EXPOBANK LLC HAS BEEN IN THE RUSSIAN

BANKING MARKET SINCE

1994

RAEX EXPERT AGENCY (EXPERT RA)

ASSIGNED TO THE BANK THE RATING OF

A+

FITCH RATINGS UPGRADED THE BANK’S

RATING TO

B+

7.5 ТHOUSAND COMPANIES ARE

AMONG THE BANK’S CLIENTS

100 ТHOUSAND INDIVIDUALS

RUSRATING AFFIRMED THE INTER-NATIONAL RATING AT

BBB–

Corporate Loan Book Structure, by Industry (%)

38.6%

17.6%11.3%

9.6%

4.1%

9.5%

2.0% 2.3%

1.5% 1.0%

2.4%

25%>

EXPOBANK DEMONSTRATES GROWTH IN FINANCIALS AND HIGH RETURN ON EQUITY EXCEEDING 25%

21%A COMPREHENSIVE INCOME OF RUB 2.1 BLN, WHICH IS A 21% INCREASE ON THE 2014 RESULTS

37%DURING THE YEAR THE BANK’S ASSETS GREW BY 37% TO RUB 71.3 BLN.

9bln

THE BANK’S EQUITY IN 2015 EXCEEDED RUB 9 BLN.

38.6% Finance

17.6% Residential construction 11.3% Manufacturing

9.6% Retail property

9.5% Wholesale trade

4.1% Services

2.4% Agricultural industry

2.0% Oil and gas

2.3% Infrastructure and transport

1.5% Office space and warehouses

1.0% Other

Ernst BekkerDeputy Chairman of the Management Board

Olga PugachevaDeputy Chairman of the Management Board

Dmitry GanushkinDeputy Chairman of the Management Board

Oleg NovolodskyDeputy Chairman of the Management Board

Alexey FedotkinDeputy Chairman of the Management Board

Alexey SannikovChairman of the Management Board of Expobank LLC

MANAGEMENT BOARD1

1 As of 31 March 2016



2

The above factors give grounds to believe oil prices in 2016 may stabi-lize, as (with the exception of the Iran production growth) the strength of the other two factors is likely to weaken. The Chinese economy will continue to slow down but growth will gradually restore in the developed countries. Oil supply is likely to get fixed as the current prices have a negative impact on the budgets of oil producing countries. The US, in its turn, is able to freeze shale oil deposits develop-ment, with its fast de-freezing when oil prices exceed production costs.

International sanctions against Russia and geopolitical environment as a whole had a great impact on the Russian economy in 2015. First place, the restrictions affected the cost of — and, generally, the mere possibility of attracting — external funding. High demand for foreign currency in Q1 2015 was closed through liquidity provided by the Central Bank. But funds are still insufficient to compensate for future foreign debt payments, due to which factor the CBR started, from the summer 2015, to gradually increase its FX reserves buying currency in the open market. These activities were suspended because of the drastic weak-ening of the Russian ruble but they are

likely to restart after the exchange rate stabilizes.

In 2015 the Bank of Russia continued to implement its monetary policy in the floating exchange rate environment. Unstable situation in the world oil market, capital outflow from Russia and persisting geopolitical tensions had major impact on the exchange rate volatility of the Russian national currency. Throughout 2015, the official USD exchange rate2 strengthened from 56.2 to 72.9 rubles per dollar, or by 30.0%. The euro exchange rate also grew though not so drastically — from 68.4 to 79.6 rubles per euro, or by 16.5%.

Overview of Russian Economy in 2015

In 2015 GDP of Russia reduced by 3.7%. The economic contraction resulted from continuation of the 2014 trends:

Drop in global oil prices;

Persistence of international sanctions and lack of access to the external capital markets;

Drastic devaluation of Ruble against major world currencies and, consequently, high inflation rate.

Average 2015 oil price was at USD 53.8 per barrel (Brent) as compared to USD 99.5 in 2014. By the year end it dropped to USD 37.3 per barrel. The key reasons for such a drastic reduction were:

Drop in global demand — primarily, due to the slowdown in China’s economy growth and also due to reorientation of the said growth from the manufacturing to services sector. Officially GDP of China1 in 2015 grew by 6.9% as compared to 7.3% in 2014. In 2016, this slowdown is likely to continue. Economy of the Eurozone also continued to yield yet limited success though budget savings measures in a number of countries and soft monetary policy of the currency union lead to some acceleration in GDP growth of the Eurozone up to 1.5% in 2015

as compared to 0.9% in 2014. However such moderate increase failed to maintain sufficient demand for power resources.

Excessive oil stocks and maintenance of oil production levels by the OPEC countries, Russia, USA. In 2015, the USA became a leader in production volumes among the other oil-producing countries. Topping it all, in December the US lifted its ban on exports of oil, thus having increased the size of potential offer in the world market.

Expectations of Iran re-emerging in the market after removal of sanctions. Sanctions were lifted already at the beginning of 2016, the country began to actively ramp up production as it strives to gain back the market share it lost.

OVERVIEW OF RUSSIAN ECONOMY IN 2015

GDP Growth in Russia (%)

6

5

4

3

2

1

0

–1

–2

–3

–4

4.5% 4.5% 3.3% 4.3% 4.3% 3.4% 1.0% 1.3% 0.6% 0.6%

–3.7%–3.5%

H1, 2010 2010 H1, 2011 2011 H1, 2012 2012 H1, 2013 H1, 2014 201420132015H1, 2015

INTERNATIONAL SANCTIONS AGAINST RUSSIA AND GEOPOLITICAL ENVIRONMENT AS A WHOLE HAD A GREAT IMPACT ON THE RUSSIAN ECONOMY IN 2015

IN 2015 GDP OF RUSSIA REDUCED BY 3.7%

3.7%<

US DOLLARS PER BARREL (BRENT) WAS AVERAGE OIL PRICE IN 201553.8

1 World Bank data

2 CBR exchange rate



2 Overview of Russian Economy in 2015Strategic Goals for 2015–2017

2015-2017 Strategy is a continu-ation and development of the implemented 2012–2014 Strategy

The major task for the said period is providing our Clients with first class financial services and gaining stable income in any market environment through the high professionalism of our team and financial advantages of the Bank.

The Bank consistently cuts down on the product-based business model in favour of the customer-focused model centered on building-up of long-term relationships with households and companies. The Bank is regarded as a ‘service company’ for its corporate clients and private customers.

The Bank is focused on the key regions of its presence that enable it to suc-cessfully implement the strategic goals. Moscow, Novosibirsk, Saint Petersburg, Yekaterinburg, Surgut, Krasnoyarsk, Kemerovo, and Perm are defined as priority regions for the Bank’s operation.

Focus on the complex servicing of corporate clients and affluent private customers through corporate sales channels enables the Bank, without increasing general and administrative expenses, to efficiently increase non-interest income and maintain the Bank’s resistance to external impacts through:

maintaining a flexible product line (development of niche products, transaction and fee services);

focus on cross-selling;

implementation of a service model targeted at the highest service quality, close integration with the investment and retail businesses;

The Bank is planning to concentrate on the relationships with corporate clients operating in the sectors most resistant to economic crises. Along with classical banking products, Expobank is planning to assist its clients in increas-ing their businesses value through offering complex individually structured products (M&A’s, MBO’s), restructur-ing and optimization of debt burden of companies, financial consulting, etc. .

Effort focused on private banking development enables the Bank to form a stable resource base for further development and creates a sustainable source of fee income.

The Bank has expertise and competence in acquisition of standardized retail portfolios and loan portfolios. Purchase of portfolios planned by the Bank enable it to form highly marginal loan portfolios with minimum loss.

The economic situation makes it possible for the Bank, in midterm, to make high-yield transactions in the financial markets. The Bank is plan-ning to convert its extensive liquidity cushion into top-up margin as funds are scarce in the market. Along with organic growth, the Bank strives to increase the volume of its business through M&A’s with other credit institutions, the synergy effect of which will enable the Bank to develop at the rate exceeding the market average. A combination of organic growth with M&A deals will enable Expobank to expand its geo-graphical footprint and offer its clients yet more financial opportunities.

STRATEGIC GOALS FOR 2015–2017

Significant weakening of the national currency led to accelerating inflation. Official figures for 2015 made 12.9% as compared to 11.4% in 2014. The Bank of Russia continues to set inflation targets, but it tries to balance the infla-tion rate against the economy growth rate. To launch this growth, the key interest rate in 2015 was consistently reduced from 17% to 11%. Nevertheless, high inflation uncertainty will not allow the Bank of Russia to go on with the rate reduction, which also affects the cost of funding for the economy.

Nonetheless, in H2 2015 Russian GDP reduction slowed down, while December data registered almost a complete stop in the economic downfall: GDP index less seasonality factor made 0.0% to the previous month as compared to –0.2 in November. The Bank does not expect growth renewal in 2016 as influence of the following factors remains:

people’s paying capacity (in 2015, real wages reduced by 9.5%1) and consumer demand reduce;

high cost of funds and reduction in investment volumes;

reductions in state expenditures;

reduction in export income due to low prices for energy resources.

The above factors have a direct influ-ence on the banking sector in Russia. The number of operating credit institu-tions in 2015 reduced from 834 to 740.

The total of loans extended to the economy grew by 7.6%. This increment was ensured by corporate lending that expanded by 12.7%. The share of this business in the banking sector assets grew from 38% to 40%. To the contrary, retail lending in 2015 dropped by 5.7%. At the same time both segments expe-rienced in 2015 some growth in non-performing debt: from 4.2% to 6.2% of the book in corporate lending and from 5.9% to 8.1% — in retail lending.

In 2016, the Bank expects continuation of the 2015 trends and, consequently, of restricted opportunities for organic growth of banks. An ability to preserve sustainability and reliability in the environment of external shocks and negative market tendencies will remain the most important quality to banks. In particular, the key success factors — like during previous years — are: high capital adequacy, excessive liquidity and top asset quality.

IN 2016, THE BANK EXPECTS CONTINUATION OF THE 2015 TRENDS AND, CONSEQUENTLY, OF RESTRICTED OPPORTUNITIES FOR ORGANIC GROWTH OF BANKS

1 According to the Russian Ministry for Economic Development data

7.6%>

THE TOTAL OF LOANS EXTENDED TO THE ECONOMY GREW BY 7.6%

GRANDMASTER SOLUTIONS FOR YOUR BUSINESS

Rapid decision making on transactions.

An opportunity for the Clients to comfortably interact with their foreign partners via AS Expobank (Latvia) and Expobank CZ (Czech Republic), broker services in London, ease of cross-border payments.

MAJOR COMPETITIVE ADVANTAGES OF THE BANK ARE RAPID DECISION MAKING, PROFESSIONALISM, AND GOOD BUSINESS STANDING OF THE SHAREHOLDERS AND MANAGEMENT

Quality competitive terms of and interest rates for banking products.



2 Private Banking / Expobank PremierTreasury

2015 was marked by new challenges to the Russian banking system in view of its financial sustainability and stability.

Along with the ongoing strengthening of prudential supervision on the part of the regulator in 2015, external mac-roeconomic factors started to produce an adverse impact both on the financial system of Russia as a whole and on the banking system in particular.

Due to the continuation of sector sanctions imposed by the USA and the EU countries, in 2015 external markets were actually closed for attracting liquidity, mass exit of foreign investors from securities issued by the Russian Federation and Russian companies continued. Against falling quotations for energy products, the Russian currency demonstrated high volatility and

devalued at least twenty-five percent. Like in 2014, the Russian government had to update its forecasts on the inflation rate several times throughout 2015, eventually setting it at 12.2–12.8% as expected by the year end.

Both these external and internal factors set forward the efficiency of liquidity management as the priority area for Treasury.

Throughout 2015 the Bank kept on with the strategy of maintaining liquid assets at a level exceeding 30% of the total assets. Compared to the beginning of 2015, the share of liquid assets as of 01 January 2016 made 40.5% in the Bank’s total assets, which enables us to comfortably pass through all manifestations of crisis. TOP 10 banks’ average is 21.8%, while TOP 30 bank’s average is 22.3%.

TREASURYPRIVATE BANKING / EXPOBANK PREMIER

Royal Service. We Have Common Goals with Our Clients

Over 2015 the amount of the funds placed in deposits grew from RUB 16 bln. to RUB 28 bln. A jump in liabilities is due to the following factors

A jump in liabilities is due to the following factors:

introduction of new deposits that enabled VIP clients to manage their funds more flexibly;

upgrade of the VIP deposit line.

In 2015, the major task related to VIP deposits was increasing an average deposit amount, which equaled RUB 20 mln. Implementation of this task enabled the Bank to develop a new approach to VIP client segmentation, to enhance opportunities to diversify both the existing VIP clients’ portfolio and the one just created.

Expansion of Expobank to the EU coun-tries made it possible for VIP clients to avail of unique offers of account opening in the Czech Republic.

Upgrade of Expobank’s international ratings in 2015 and its stable financial position enabled the Bank to augment the loyalty and confidence of the existing VIP clients and recruit the new ones. In 2015 the Bank successfully placed among its VIP clients Eurobonds to mature in 5.5 years at 8% per annum, with coupon income paid quarterly, which was an addition to the VIP product line.

Dynamics of liquid assets (%)

40

35

30

25

20

15

10

5

0

60%

50%

40%

30%

20%

10%

0%

44%

21,1

44,1%

22,9

40,1%

22,2

40,5%

30%

H1, 2014 H1, 20152014 2015

28,9Liquid assets, bln RUB

Share in total assets, %

LA targeted share, %

Compared to the beginning of 2015, the share of liquid assets as of 01 January 2016 made 40.5% in the Bank’s total assets

40.5%

2015 witnessed the launch of MC Elite premium card in GBP and CNY



2 TreasuryCorporate Banking

CORPORATE BANKING

Throughout 2015 the Bank continued to develop the corporate transac-tion model focused on generation of fee income from implementation of complex structured transactions for medium and large businesses. Specific features of this model made it possible for the Bank to preserve a conservative approach in risk assessment. A new product — syndicated loan — was developed and implemented, first trans-actions were successfully completed. Apart from that, the Bank actively increased its guarantees portfolio and switched its new client base to end-to-end banking servicing. Specific features of the selected model made it possible to have a good increment in the fee income without taking additional risks on the book.

The Bank also kept on with its consistent work on enhancement of its positions in such strategic sec-tors as residential development, oil and gas and agricultural industries. For the reporting period, financial relationships were built up with such major players in the real estate market as GK Klever, GK MonArch, GK Tekta, ZAO VektorStroyFinance; cooperation with GK Sminex and

GK Kvartstroy was broadened. In H2 2015 Expobank formed an extensive portfolio of guarantees and revolving tender loans consisting of the clients from infrastructural power industry such as GK Teplotsentrstroy, GK Petrokom, GK Meridian, GK Piterenergomash, etc. Recruiting companies from Slavneft Group (owned by GK Gazprom and GK Rosneft on a parity basis) and offering them a whole range of services and products was a high-profile event for the Bank.

The Bank develops relationships with major corporate clients on the basis of industry specialization. This gives an opportunity to carry out a detailed study of a particular sector’s structure, of leading players, industry trends and needs.

To expand its operations in the Eastern Europe, the Bank issued a bank guar-antee to the Czech company PSJ and launched the first Czech and Russian payroll project; a transaction on funding an acquisition of a Czech plant asset by a Russian beneficiary was organized.

In 2016 further growth of joint transac-tions in synergy with the Czech and Latvian partner banks is foreseen.

Apart from that, a strategic decision was adopted that in 2016 one of the goals for the Bank would be further development of complex structured and tailor-made products for corporate clients and further enhancement of customer service quality and devel-opment of unique solutions for the most demanding clients.

Key areas in Expobank corporate business development in 2015 were:

Client number growth;

Profits growth in an environment of minimum margin that has set in the market;

Non-interest income growth and development fee-based products;

Expansion of the loan book through relationships with sound borrowers;

The loan book quality monitored, measures taken to prevent non-performing debt occurrence.

One of the tools of efficient liquid-ity management in 2015 remained investment of funds in debt securities of the issuers of high credit quality and included into the Lombard List of the Bank of Russia. As of 01 January 2016, the volume of the issuable securities portfolio increased 2.34 times against the similar data of the previous period and made RUB 32.8 bln.

Changes in the issuable securities portfolio structure as split-up by issuer rating primarily are due to the downgrade of the sovereign rating of the Russian Federation made by international rating agencies, which consequently affected issuer ratings. Thus, with the same risk appetite, the Bank’s portfolio formally looks riskier but it is still composed of debt securi-ties of issuers having high credit quality and included in the Lombard List of the Bank of Russia. In December 2015 the Bank enlarged its pool of securities

rated not below BBB– by RUB 2.43 bln. (federal loan bonds)

Despite the adverse market environ-ment, in July 2015 Expobank success-fully passed the offer as part of its liquidity management framework and implementing its strategy on diversifica-tion of funding sources. Bonds worth of RUB 549 mln. were bought out under the offer, out of which a value of RUB 340 mln. was placed in the market in September-October 2015, with a rate of return of 13.09%. per annum.

In October 2015 the Bank increased its capital through placement of subor-dinated Eurobonds to mature in April 20121, worth of USD 20 mln. Coupon rate is 8% per annum, with quarterly interest payments.

Securities Portfolio Split-Up by Issuer Rating (%)

57.6%

30%

12.4%

In October 2015 the Bank increased its capital through placement of subordinated Eurobonds to mature in April 2021, worth of USD 20 mln

A strategic decision was adopted that in 2016 one of the goals for the Bank would be further development of complex structured and tailor-made products for corporate clients and further enhancement of customer service quality and development of unique solutions

BLN RUB, ISSUABLE SECURITIES PORTFOLIO 32.8

57.6% BB– to ВВ+

30% ВВВ– to ВВВ+

12.4% В– to В+



2

M&A

Corporate BankingM&A

The Bank’s strategy in Corporate Banking is focused on the develop-ment of long-term relationships with the clients that have an experience of cooperation throughout crises times and whose businesses are resistant to uncertainties and stresses. Key factors in recruiting new clients are individual approach, speed of decision-taking, partner relationships when resolving their financial tasks and a wide range of banking products meeting the clients’ needs.

Successful cooperation with the federal authorities and a number of large companies and state corporations is an evidence of trust to and reliability of the Bank.

The Bank won tenders held to make insurance payouts to former clients of CB Mezhregionbank (OOO), OAO Bank Russian Credit, ZAO M-Bank, CB ‘BMB’ (OOO), PAO NOTA-Bank. The total amount of payments made in accordance with 2015 tender results exceeded RUB 1.7 bln.

The Bank is accredited as a guarantor to the Federal Customs Service (with a limit of RUB 0.7 bln). Limits have also been opened to the Bank to issue bank guarantees to secure perfor-mance of counterparties’ obligations to Rosatom State Nuclear Corporation (a limit of RUB 1.3 bln), RusHydro PJSC (a limit of RUB 0.95 bln).

Successful cooperation with the federal authorities and a number of large companies and state corporations is an evidence of reliability of and trust to the Bank

DEVELOPMENT THROUGH M&A’S IS AN IMPORTANT PART OF OUR STRATEGY. EXPOBANK’S TEAM HAS AN EXTENSIVE EXPERIENCE AND IS EXCELLENT AT IMPLEMENTING SUCH PROJECTS AND MONITORS THE MARKET BOTH IN RUSSIA AND IN OTHER REGIONS

In November 2015 Expobank LLC signed a sale and purchase agreement on acquisition of 100% shares in the Royal Bank of Scotland ZAO from one of the biggest UK commercial banks, the Royal Bank of Scotland plc. Upon obtaining all necessary approvals from the Bank of Russia and completion of all preliminary IT related technol-ogy actions the deal was successfully closed in April 2016. As a result, Expobank gained over 1,000 active customers and clients whose funds held with the bank as of the deal closure date equaled RUB 11.4 bln.

Development through M&A’s is an important part of the Bank’s strategy. Expobank’s team is excellent at implementing such projects and monitors the market both in Russia and in other regions; while the Bank’s strong financial position and high profitability ensure its readiness to such transactions any time.

In February 2015 Expobank LLC suc-cessfully closed the deal on acqui-sition of 100% shares in MCB MAK-Bank LLC from AK ALROSA (PJSC), Russian biggest diamond mining company. The client base of MAK-Bank consists of companies from ALROSA Group, its counterpar-ties and independent clients — legal entities and individuals. In June 2015 MAK-Bank was reorganized and merged into Expobank LLC. As a result, Expobank got branches of former MAK-Bank in the cities of Yakutsk and Krasnodar.

BLN RUB, THE TOTAL AMOUNT OF INSURANCE PAYOUTS MADE IN 20151.7

OF ACTIVE CUSTOMERS AND CLIENTS GAINED BY EXPOBANK FROM THE DEAL WITH THE ROYAL BANK OF SCOTLAND PLC.

1000Corporate Loan Book Structure, by Industry (%)

20.7% Residential construction

14.5% Development

14.0% Construction

13.6% Wholesale trade 10.8% Processing industries

7.1% Production

4.4% Services

4.3% Finance

3.9% Food processing

2.2% Agricultural processing

4.3% Other

20.7%

14.5%

14.0%

13.6%

7.1%

10.8%

4.3%3.9%

2.2%

4.3%

4.4%

EXPOBANK SUCCESSFULLY IMPLEMENTS A COMPREHENSIVE APPROACH TO SERVICES ASSISTING ITS CLIENTS IN MANAGING THEIR PERSONAL FINANCE AND THEIR FAMILIES’ FUNDS

ROYAL SERVICE

Availability of top quality service at 22 offices in 14 cities in Russia.

Comfortable interaction of Clients with foreign partners (Czech Republic, Latvia, Hong Kong), broker services in London.

An experienced team focused on long-term relationships with Clients.



2 Regional PolicyInformation Technologies

The main line of the Bank’s information technologies development was further cooperation with a single major contrac-tor providing IT outsourcing services.

In 2012, Center of Financial tech-nologies Group (CFT Group) became a strategic partner of Expobank.

To provide IT outsourcing services, CFT has:

Two data processing centers — main and back-up,

Call Center with dedicated multichannel phone lines,

Broadband Internet with a secure channel,

Help Desk and Service Desk equipped with the systems to register, keep record of and to control Incident Management, to which the Bank specialists can get connected,

Internal independent services to ensure control and security

Coordinated work of the joint team of the Bank and CFT Group IT Outsourcing made it possible to successfully implement a number of major IT projects in the area of the automated banking system (ABS) development. This ensured performance of various business tasks set for the Bank:

Affiliation of Mirny Commercial Bank ‘MAK-Bank’ LLC;

Opening of branches in Yakutsk and Krasnodar;

Connection to the National System of Payment Cards

Automated payments in agreement with the Deposit Insurance Agency

Another important area of the Bank modernization includes IT Infrastructure projects contributing to the increase in efficiency of the Bank operations as a whole and to reduction of current expenses:

Transfer of workstations’ computer equipment to new operating systems was completed — reliability and speed of operation were improved;

Transfer of the corporate e-mail system to Exchange 2010 was completed;

New offices in Yakutsk, Krasnodar, Ufa and Kaluga were equipped;

An automated system for testing employees’ professional knowledge and their attestation was developed and implemented;

Large-scale testing of plans for business continuity management of the Bank’s IT systems was successfully carried out.

INFORMATION TECHNOLOGIES

In 2015, the Bank’s main task with regard to its implementation of the regional network development strategy was expansion of the territories where Expobank operates and enhancement of the branch network efficiency.

The Bank successfully develops within its strategic business model and cre-ates optimal conditions for its clients in response to the market challenges.

For example, there are ‘Expobank Premier’ format offices in Moscow and Novosibirsk focused on VIP-clients who can avail of premium services.

REGIONAL POLICY

TODAY, THE BANK IS REPRESENTED1:

Central FD, Siberian FD,Northwestern FD,Volga FD,Ural FDSouthern FDFar East FD

IN

7 FEDERAL

DISTRICTS

IN

14CITIES

AND TOWNS

BY

6BRANCHES AND

16OFFICES

Surgut

Ufa

Novokuznetsk

Krasnodar

Yakutsk

Kaluga

Kovrov

Moscow,

Saint Petersburg,

Novosibirsk,

Kemerovo,

Krasnoyarsk,

Perm,

Yekaterinburg

Universal Bank branches offer to pri-vate and corporate customers and clients a competitive product line that meets the needs of any client and is competitive in all regions where the Bank is present.

To provide IT outsourcing services, CFT has:

TWO DATA PROCESSING CENTERS:main and back-up

HELP-DESK, SERVICE-DESKequipped with the systems to register, keep record of and to control Incident Management, to which the Bank specialists can get connected

CALL-CENTERwith dedicated multichannel phone lines

INTERNAL INDEPENDENT SERVICESto ensure control and security

BROADBAND INTERNET with a secure channel

1 Based on management data as of 31 December 2015

41www.expobank.ru

CORPORATE GOVERNANCE

3 Accountability and Efficiency

One of the underlying principles of building an efficient corporate governance system is distinct allocation of competences among corporate governance bodies, with due control exercised.

ACCOUNTABILITY AND EFFICIENCY

The current corporate governance system of the Bank includes various elements and mechanisms used to have shareholders’ rights exercised, to perform efficient internal control, and carry out interaction among the Bank’s managers, shareholders, Board of Directors and other stakeholders.

The corporate governance system of the Bank includes: General Shareholders’ Meeting;

Board of Directors;

Collective executive body — Management Board;

Sole executive body — Chairman of the Management Board.

THE UNDERLYING PRINCIPLES AND PROCEDURES FOR CORPORATE GOVERNANCE ARE STIPULATED BY THE CHARTER AND CODE OF CORPORATE CONDUCT OF THE BANK

Shareholders of the Bank:

Igor Kim — 66.64%

German Tsoy — 17.63%

OJSC ‘Autobann’ RBC — 8.76%

Kirill Nifontov — 2.65%

Morelam Holdings Limited — 1.82%

Yuri Koropachinsky — 1.14%

Oleg Kirillov — 1.14%

Alexander Proshin — 0.20%

Dmitry Ganushkin — 0.02%


ANNUAL REPORT || 2015 CORPORATE GOVERNANCE

3

Committees of the Board of Directors

Accountability and Efficiency

Directors1:

Igor Kim Chairman of the Board of Directors

Alexey Andreev Member of the Board of Directors

John McNaughton Member of the Board of Directors

Kirill Nifontov Member of the Board of Directors

German Tsoy Member of the Board of Directors

Frank Wilhelm Schauff. Member of the Board of Directors

To ensure efficient performance of the tasks set for the Bank, the Board of Directors has, by its resolution, set up Audit Committee and Remuneration Committee of the Board of Directors.

THE BOARD OF DIRECTORS OF THE BANK CONSISTS OF 6 MEMBERS

Each member of the Board of Directors of the Bank has experience, knowledge, qualification and enjoys impeccable reputation required for performance of duties of a Board of Directors member and for organization of efficient operations of the whole Board of Directors to the benefit of the Bank and its shareholders.

Board of Directors

6

Audit Committee

Frank Wilhelm Schauff — Chairman of the Committee;

John McNaughtonThe Audit Committee assists the Board of Directors in carrying out its control function over the Bank’s financial and economic activities. The Committee analyses the financial statements preparation process, implements control over publication of transparent and authentic financial information. The Committee works out recommendations to the executive bodies regarding the improvement of principles and policies underlying the system and procedures of internal control. The Committee assesses efficiency of the internal and external audit functions, including sponsoring of candidates and evaluation of the external auditor’s work results, of the procedures controlling the Bank’s compliance with the legislative and regulatory requirements to financial statements, and those controlling compliance with the Code of Corporate Governance of the Bank.

Remuneration Committee

Igor Kim Chairman of the Committee

German TsoyThe Remuneration Committee assists the Board of Directors in carrying out its control function over organization of, monitoring and control over the remuneration system, assessment of whether it is in line with the Bank’s strategy, nature and scale of the performed transactions, its results, and the level and combinations of the risks accepted.

1 As of 31 December 2015


ANNUAL REPORT || 2015 CORPORATE GOVERNANCE

3 Risk ManagementInformation openness and transparency

Communication policy of the Bank is part and parcel of doing modern and successful business. This activity is aimed at creating a positive image of the Bank in the eyes of society. We are sure that the reputation of the Bank is — especially in contemporary environment — is a key intangible asset which is the linchpin of trust of our clients and partners.

Information OpennessCommitted to the principles of informa-tion transparency, the Bank is always open to active dialogue with mass media.

INFORMATION OPENNESS AND TRANSPARENCY

The Bank has its risk management processes organized in compliance with the requirements of the Bank of Russia and best international practices. Responsibility for risk management is allocated among the Board of Directors, Management Board, Risk Management and Business Units of the Bank.

The Board of Directors approves the risks management strategy, controls its implementation and also risks levels and the efficiency of the risks manage-ment system operation in the Bank.

The Management Board is responsible for the implementation of the risks management strategy, approval of risk appetite for the Bank and control over risks level.

Business Units are primarily account-able for managing risks on a daily basis: business processes owners also own the risks inherent to such business pro-cesses. Business Units identify, assess and control the risks for the operations they are involved in.

Risks Management develops the meth-odology for risk management, performs independent identification, assessment and control of risks on the level of indi-vidual transactions and on the book as a whole. Risks Management controls adherence to the Bank’s strategy and policies in risk management and prepares reports regarding risk levels for Business Units, the Management Board and Board of Directors.

2015 Results Ratings from Fitch Ratings were

upgraded: up to ‘A-(rus)’ National Scale, and to ‘B+’ International Scale. Outlook ‘Negative’ was upgraded to ‘Stable’.

Efficiency of non-performing corporate loans processing was improved: the process was reorganized, NPL’s volume1 was reduced by RUB 167 mln (from 1.4% to 0.6% of the loan book).

Due to growth of risks related to retail lending transactions the Bank took a decision to reduce the volume of acquired retail accounts receivable: in 2015 the book decreased from RUB 12.9 to 4.7 bln. Throughout the entire reporting period, the Bank managed to maintain the volume of NPL’s in the acquired portfolios at zero level via application of tools to mitigate the risks taken into account when structuring the deals on portfolio acquisition.

Liquidity risk was maintained by the Bank in 2015 at a low level: statutory liquidity requirements were met on a conservative basis (as of 01 January 2016, R2 = 113.6%, R3 = 236.0%, R4 = 37.6%), dependence on the financial markets was low

(as of 01 January 2016, the loan book to the total of client funds made 87%), liquidity reserves were sufficient to cover liquidity outflows with any of the assumed stress scenarios in place.

Equity size was preserved and high returns on transactions were ensured, with an adverse macroeconomic and geopolitical environment in place.

AUDIT PERFORMED BY THE CBR WAS SUCCESSFULLY COMPLETED: HIGH QUALITY OF THE BANK’S ASSETS AND BUSINESS PROCESSES WAS CONFIRMED

RISK MANAGEMENT

1 Non-performing loans are the loans with past due debt over 90 days

REPUTATION OF THE BANK IS — ESPECIALLY IN CONTEMPORARY ENVIRONMENT — A KEY INTANGIBLE ASSET WHICH IS THE LINCHPIN OF TRUST OF OUR CLIENTS AND PARTNERS

NPL’S VOLUME WAS REDUCED BY RUB 167 MLN

Throughout the year we promptly provided journalists with the most updated information about the Bank’s activities and answered questions posed to us. Speakers of the Bank covered the topics related to the banking market, shared their expert and analytical commentary, did their best in explain-ing to the audiences of newspapers, magazines, radio and TV programs all subtleties and specific features of the banking services market, and also the challenging environment in the financial markets and banking sector.

NPL

< 1%

INVESTMENT BANKING

Expobank offers a full range of investment banking services, from identification of investment opportunities, implementation of due diligence (for banks), negotiations, preparation of transaction documents (in cooperation with legal advisers) to the closing transaction settlement (escrow services)

What differs us from traditional investment banks is that apart from adviser services we are able to act as a source of funds for transactions implementation

INVESTMENT BANKING EXPERTS FROM EXPOBANK HAVE AN EXTENSIVE EXPERIENCE OF SUCCESSFUL DEALS INVOLVING FUNDS RAISING, M&A’S AND BUSINESS RESTRUCTURING FOR RUSSIAN AND INTERNATIONAL COMPANIES OF THE FINANCIAL AND NON-FINANCIAL SECTORS (REAL ESTATE, ORE MINING AND SMELTING, RETAIL TRADE, CONSUMER GOODS MANUFACTURING, TRANSPORT, etc.)


ANNUAL REPORT || 2015 Social policy and HR managementCORPORATE GOVERNANCE

3

SOCIAL POLICY AND HR MANAGEMENT

The backbone of the personnel manage-ment policy in Expobank is formation of a team of skilled professionals that ensure competitive strength of its business. Today, a challenging economic environment in Russia requires that senior managers use a comprehensive systemic approach to management of companies and business processes inside them. Management of the Bank believes that it is the Bank team mem-bers who create additional shareholder value for the Bank’s business by their efficient and creative work.

Employees’ high professional skills, opportunities for revealing their talents and capabilities, an ability to use them for the benefit of the Bank and the employees themselves — these are the key factors to the Bank’s success in social policy and human resources management.

An efficient and stable organizational structure has been in place in the Bank. The Bank is characterized by stability of its team composition while the attrition rate is low.

Personnel Selection and AssessmentWith a focus on the sustainable development in a crisis environment, the Bank applies modern methods and technologies in high skilled personnel sourcing and recruitment. Of specific importance is building up an interaction scheme between the recruitment team and the managers interested in filling in vacancies in their business units. It ensured clear requirements to the candidates and efficiency of the new employee selection and recruitment process improved. All this make it feasible to find the best talent in the market within a limited timeframe, not applying to HR agencies.

To attract young talent, Expobank, as well as in the previous years, contin-ued cooperation with leading Russian institutions of higher learning. The number of students who had a profes-sional placement in 2015 (as compared to 2014) increased by 41.7% and made 120 people.

Remuneration and Employee Incentives Today the Bank applies a competitive remuneration system.

The incentives system in the Bank is transparent and easily understandable to each employee. It stipulates clear and transparent principles for setting target amounts of bonuses and calculation of their actual values based on KPI’s, as well as assessment of personnel’s efficiency in the long term.

The Bank also employs a system of non-material incentives for individual and team performance results — a system of annual corporate competitions.

Thus, as this system stipulates, at the end of 2015, 90 most efficient employ-ees and 12 subdivisions were awarded for their high performance. Of them 36 employees and 3 subdivisions with the highest results received awards on the stage during the ceremony dedicated to the main corporate event of the year.

Training and DevelopmentIn 2015 47.5% of the Bank’s employees went through training.

Last year new training and development forms and tools were actively put into practice. For example, for the first time, internal coaches conducted internal webinars in the most topical and demanded subjects.

In 2015 personnel assessment was organized in the format of the on-line testing. The employees took 709 professional tests in 20 areas. In addition to on-line tests, face-to-face assessments were organized for 75 Ops support and cash-desk employees.

Vacancy Closure Structure (%)

62%

38%

62% Line positions

38% Key positions

TRAINED IN 2015: 47.5%

OF THE BANK’S EMPLOYEES

Social PolicySocial policy in Expobank is aimed at ensuring decent and employee-friendly working conditions and social well-being of the team. The Bank’s employees are provided with the social package including material aid in cases of landmark events in their lives or challenging life circumstances.

Besides material aid, the social package of the employees who have worked in the Bank for at least 1 year contains either a private health insurance policy or a compensation for a fitness center season pass.

Labor SafetyThe Bank carries out labor safety activities on a full scale in compliance with the effective law. In 2015 special assessment of working conditions of new offices was implemented, individual employee categories were provided with personal protective clothing and equipment, pre-hiring and periodic medical examinations were organized, as well as health and safety trainings and knowledge assessments for managers and employees.


ANNUAL REPORT || 2015 Social policy and HR managementCORPORATE GOVERNANCE

3

Charity Expobank provides charity support to one of the most socially insecure members of society — to children. In 2015 the Bank continued to assist the children’s home in the settlement of Baryshevo (Novosibirsk region) and support the children’s football team ‘Metallist’ (Korolev, Moscow region).

All dormitories where kids can find some private space were renovated in the children’s home, while little sportsmen were presented with new sportswear.

Corporate culture Teambuilding and boosting of team spirit are the major goals of the corporate events held in the Bank, which have grown into a good tradition.

23 February, 8 March, Victory Day, Children’s Day, the Birthday of the Bank and Corporate New Year Party are the events that, like common cause, bring people together, enable them to know better one another and to engage in more open communications.

Expobank’s Football Team in 2015 scored both the 1st and 2nd places in Division A and the 1st place in Division B of the Business Champions League.

1EXPOBANK’S FOOTBALL TEAM IN 2015 SCORED THE 1ST PLACE IN DIVISION B OF THE BUSINESS CHAMPIONS LEAGUE

561 PEOPLE WERE EMPLOYED IN THE BANK AS OF 31 DECEMBER 2015

561

PERSONNEL ATTRITION RATE OF 5% IN 2015

5%

47.5% OF THE BANK EMPLOYEES WERE TRAINED IN 2015

47.5%

Tasks for 2016Formation of favorable business envi-ronment, incentives to enhance perfor-mance, investment in people — these matters have always been of primary importance for the Bank. The year 2016 will see as the most important tasks those of team strengthening through regular employee training and develop-ment, personnel rotation within the Bank in order to ensure professional and career growth.

496236

17119155

658249

9710430

316239

10817658

266639

10619649

259745

10422664

Headcount Structure in 2015 (people)

450

400

350

300

250

200

150

100

50

0

2014 2015201320122011

45 y.o. and older

30–45 y.o.

Under 30 y.o.

WE WORKED OUT OUR OWN RECOGNIZABLE STYLE

BUSINESS STANDING AND EXPERIENCE OF THE MANAGEMENTAll Bank managers have vast experience in the banking sector, expertise and impeccable reputation.

TRUST FROM PARTNERSLargest government and private companies are among the Bank’s partners that accept our guarantees and place deposits with us.

TAILOR-MADE AND NON-STANDARD SOLUTIONSThe Bank is very flexible in offering customized products and tailored structuring of every transaction.

EXPOBANK’S TEAM POSSESSES PROFESSIONALISM AND UNIQUE COMPETENCES, WHICH MAKES OUR BANK A RECOGNIZABLE PLAYER IN THE RUSSIAN AND INTERNATIONAL MARKETS

55www.expobank.ru


4 Independent Auditors’ Report

86?? ??????? ????? ??????? ??????????????? ???????? ????????????

INDEPENDENT AUDITORS’ REPORT

Ernst & Young LLCSadovnicheskaya Nab. , 77, bld. 1Moscow, 115035, RussiaTel: +7 (495) 705 9700 +7 (495) 755 9700Fax: +7 (495) 755 9701www.ey.com/ru

Building a betterworking world

To the Shareholders and Board of Directors of Expobank LLC

Report on the consolidated financial statementsWe have audited the accompanying consolidated financial statements of Expobank LLC (hereinafter — “the Bank”) and its subsidiaries (hereinaf-ter — “the banking group headed by the Bank as its major credit institution”), which comprise the consolidated statement of financial position as at 31 December 2015, and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated cash flow statement for the year then ended, and a summary of significant account-ing policies and other explanatory information.

Management’s responsibility for the financial statementsThe Bank’s management is responsible for the preparation and fair presentation of these consolidated financial state-ments in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstate-ment, whether due to fraud or error.Ответственность аудитора

Auditors’ responsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We have conducted our audit in accordance with the Federal Standards on Auditing effec-tive in the Russian Federation and International Standards on Auditing. These standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing proce-dures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropri-ate to provide a basis for our audit opinion.

THE REPORT HAS BEEN PREPARED BASED ON THE CONSOLIDATED FINANCIAL STATEMENTS OF EXPOBANK FOR 2015 IN ACCORDANCE WITH THE INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

56

ANNUAL REPORT || 2015

57www.expobank.ru


4 Independent Auditor’s reportConsolidated statement of financial position

OpinionIn our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Bank as at 31 December 2015, and its financial performance and its cash flows for the year then ended in accor-dance with International Financial Reporting Standards.

About the audited entityName: Expobank LLC

An entry to Unified State Register of Legal Entities was made on 5 November 2002, with Principal. State Registration Number 1027739504760 assigned.

Located at: 29 Kalanchevskaya Street, bldg 2, Moscow, Russia 107078

About the auditorName: Ernst and Young LLC

An entry to Unified State Register of Legal Entities was made on 5 December 2002, with Principal. State Registration Number 1027739707203 assigned.

Located at: 77 Sadovnicheskaya Embankment, bldg 1, Moscow, Russia 115035

Ernst and Young LLC is a Member of Self-Regulated Auditors’ Organization Nonprofit Partnership ‘Auditors Chamber of Russia’ (SRO NP ACR).

Ernst and Young LLC is included in the check copy of the Auditors and Audit Organizations

Register under the entry main registration number 10201017420.

A member firm of Ernst & Young Global Limited.

A.V. SOROKIN

Partner Ernst and Young LLC28 April 2015

(IN THOUSANDS OF RUSSIAN RUBLES) NOTES 31 DECEMBER 2015

31 DECEMBER 2014

ASSETS

Cash and cash equivalents 7 6,846,810 8,173,843

Obligatory reserve with the CBR 296,002 320,511

Trading securities, including: 8 6,231,246 6,993,522

– non-pledged trading securities 5,443,730 4,702,545

– pledged trading securities sold under direct repurchase agreements

787,516 2,290,977

Amounts due from other banks 9 10,006,199 2,884,343

Loans to customers 10 38,166,638 26,472,193

Finance lease receivables 11 67,668 400,932

Investment securities available for sale, including: 12 2,536,898 1,070,779

– non-pledged securities available for sale 2,536,898 1,070,779

Investment securities held to maturity, including: 12 3,303,175 3,764,762

– non-pledged securities held to maturity 2,974,293 326,834

– pledged securities held to maturity sold under direct repurchase agreements

328,882 3,437,928

Prepayment for current income tax liabilities 266,495 2,435

Intangible assets 14 35,290 40,573

Property and equipment 13 2,128,160 1,618,220

Other assets 15 1,455,282 186,025

TOTAL ASSETS 71,339,863 51,928,138

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

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4 Отчет о финансовом положенииConsolidated statement of comprehensive income


31 DECEMBER 2014

Interest income 22 6,860,701 5,183,600

Interest expense 22 (3,707,277) (2,539,681)

NET INTEREST INCOME 3,153,424 2,643,919

Allowance for impairment of amounts due from other banks, loans to customers and finance lease receivables

9, 10, 11 (41,527) (66,871)

NET INTEREST INCOME AFTER ALLOWANCE FOR LOAN IMPAIRMENT

3,111,897 2,577,048

Fee and commission income 23 508,796 385,240

Fee and commission expense 23 (77,323) (84,056)

Losses net of gains from trading securities (196,253) (319,402)

Losses net of gains from derivative financial instruments

(1,045) (61,301)

Gains less losses from foreign currencies 110,057 734,033

Gains less losses / (losses net of gains) from foreign currency translation

17,732 (1,423,275)

(Losses net of gains) / gains less losses on sale of investment securities available for sale

(48,584) 1,302,886

Gains on sale of Eurobonds classified as amounts due from other banks and loans to customers

446,472 3,600

Other operating income 24 356,587 155,991

Other impairment and provisions 15, 18 (37,118) (39,613)

Administrative and other operating expenses 25 (2,361,520) (1,510,522)

Excess of acquirees' net assets over cost of investments

34 475,203 874,824

Disposal of subsidiaries 34 − (555,971)

PROFIT BEFORE TAX 2,304,901 2,039,482

(Income tax) / income tax benefit 26 (394,809) (435,044)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


31 DECEMBER 2014

LIABILITIES

Amounts due to other banks 16 13,052,611 11,780,109

Amounts due to customers 17 44,071,441 31,259,071

Debt securities issued 19 3,026,112 1,601,904

Deferred tax liabilities 26 435,113 19,172

Other liabilities 18 315,494 333,247

Subordinated Eurobonds issued 20 1,452,835 —

TOTAL LIABILITIES 62,353,606 44,993,503

EQUITY

Share capital 21 10,413,412 10,413,412

Share premium 548,256 548,256

Accumulated loss, including dividends paid 21 (2,683,005) (4,599,137)

Unrealized gains on revaluation of financial assets available for sale

338,106 117,805

Revaluation reserve for property and equipment 369,488 454,299

TOTAL EQUITY 8,986,257 6,934,635

TOTAL LIABILITIES AND EQUITY 71,339,863 51,928,138

Signed on behalf of the Management Board on 28 April 2016.

E.V. BEKKER O.N. KASATKINAActing Chairman Acting Chief of the Management Board Accountant

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4 Consolidated statement of comprehensive incomeConsolidated statement of changes in equity


31 DECEMBER 2014

NET PROFIT AFTER TAX 1,910,092 1,604,438

Loss on discontinued operations, net of income tax 34 — (49,487)

PROFIT FOR THE YEAR 1,910,092 1,554,951

THER COMPREHENSIVE (LOSS) / INCOME

Other comprehensive (loss)/income

Other comprehensive income to be reclassified to profit or loss in subsequent periods: Unrealized gains on investment securities available for sale, net of tax

220,301 117,805

Other comprehensive income not to be reclassified to profit or loss in subsequent periods:

Revaluation of property and equipment, net of tax 13 (78,771) 29,809

Other comprehensive income for the year 141,530 147,614

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,051,622 1,702,565

(IN THOUSANDS OF RUSSIAN RUBLES)

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BALANCE AT 1 JANUARY 2014 10,413,412 548,256 − 424,490 (3,204,088) 8,182,070

Profit for the yearOther comprehensive income for the year

− − − − 1,554,951 1,554,951


− − 117,805 29,809 1,554,951 1,702,565

Dividends to participants of the Group 21 − − − − (2,950,000) (2,950,000)

BALANCE AT 31 DECEMBER 2014 10,413,412 548,256 117,805 454,299 (4,599,137) 6,934,635

Profit for the yearOther comprehensive income for the year

− − − − 1,910,092 1,910,092

220,301 (78,771) − 141,530


− − 220,301 (78,771) 1,910,092 2,051,622

Disposal of the revalued property and equipment

− − − (6,040) 6,040 −

BALANCE AT 31 DECEMBER 2015 10,413,412 548,256 338,106 369,488 (2,683,005) 8,986,257

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

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4 Consolidated statement of cash flows


31 DECEMBER 2014

CASH FLOWS FROM OPERATING ACTIVITIES

Interest received 7,042,539 5,248,345

Interest paid (3,471,094) (2,594,084)

Fees and commissions received 508,796 385,240

Fees and commissions paid (77,323) (84,056)

Losses from trading securities (204,523) (319,402)

Gains from dealing in foreign currencies 110,057 734,033

Proceeds from sale of loans to customers and finance lease receivables

817,259 55,101

Other operating income received 743,451 96,500

Administrative and other operating expenses paid (2,132,993) (1,417,406)

Income tax paid (285,136) (15,533)

CASH FLOWS FROM OPERATING ACTIVITIES BEFORE CHANGES IN OPERATING ASSETS AND LIABILITIES

3,051,033 2,088,738

Net (increase)/decrease in operating assets

Obligatory reserve with central banks 115,281 (72,371)

Trading securities 823,428 1,099,346

Amounts due from other banks (5,553,151) 3,397,280

Loans to customers (8,074,566) 3,145,409

Other assets (1,282,483) (18,262)

Net increase/(decrease) in operating liabilities

Amounts due to other banks 25,065 (3,148,396)

Amounts due to customers 7,427,117 228,086

Debt securities issued 963,410 (1,388,624)

Other liabilities 22,803 (257,272)

NET CASH (USED IN) / FROM OPERATING ACTIVITIES

(2,482,063) 5,073,934


31 DECEMBER 2014

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of subsidiaries, net of cash acquired 34 212,600 3,553,798

Proceeds from disposal of a subsidiary, net of cash disposed

34 — (8,181,488)

Purchase of investment securities available for sale (1,551,889) (3,124,657)

Proceeds from sale of investment securities available for sale

34 124,839 4,001,788

Proceeds from redemption of investment securities available for sale

— 106,958

Proceeds from redemption of investment securities held to maturity

561,246 —

Purchase of property and equipment 13 (22,951) (30,483)

Proceeds from sale of property and equipment 87,549 17,370

Purchase of intangible assets 14 (8,494) (8,980)

NET CASH USED IN INVESTING ACTIVITIES (597,100) (3,665,694)

CASH FLOWS FROM FINANCING ACTIVITIES

Dividends paid to participants of the Group 21 — (2,950,000)

Bonds issued that were purchased by the Group for subsequent resale

(549,073) (223,095)

Proceeds from placement of previously purchased bonds

563,200 —

Issue of subordinated Eurobonds 20 1,252,618 —

NET CASH FROM / (USED IN) FINANCING ACTIVITIES

1,266,745 (3,173,095)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

485,385 3,130,628

NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS

(1,327,033) 1,365,773

Cash and cash equivalents, beginning 7 8,173,843 6,808,070

CASH AND CASH EQUIVALENTS, ENDING 7 6 846 810 8 173 843

CONSOLIDATED STATEMENT OF CASH FLOWS


ANNUAL REPORT || 2015 Addresses / ContactsGENERAL5

1. MOSCOW Business Center “Kalanchevsky” Subsidiary Office

Branch Manager: Elena Pokidysheva

Address: 29, Kalanchevskaya Str. , bldg. 2, Moscow, 107078

Working hours:

Individuals:Monday — Friday: 09:00 — 20:00Saturday, Sunday: closed

Legal entities:Monday — Thursday: 09:30 — 16:00Friday: 09:30 — 15:30Saturday, Sunday: closed

Cash service for Legal entities:Monday — Thursday: 09:30 — 17:00Friday: 09:30 — 16:00Saturday, Sunday: closed

Cash service for Individuals:Monday — Friday: 09:00 — 20:00Saturday, Sunday: closed

Telephones: Legal entities: +7(495)231-22-83Individuals: 8 (800) 500-07-70, 8 (495) 231-11-11 8 (495) 228-31-31, ext. 1010

2. MOSCOW Business Center “Malaya Dmitrovka” Subsidiary Office

Branch Manager: Vera Ermakova

Address: 20 Malaya Dmitrovka Str. , Moscow, 127006,

Working hours:

Private banking — Expobank Premier:Monday — Thursday: 09:30 — 19:00Friday: 9:30 — 18:00Saturday, Sunday: closed

Cash service for Individuals:Monday — Thursday: 10:00 — 19:00Break: 14:30 — 15:00Friday: 10:00 — 18:00Break: 13:30 — 14:00Saturday, Sunday: closed


Cash service for Legal entities:Monday — Thursday: 10:00 — 16:30Break: 14:30 — 15:00Friday: 10:00 — 15:30Break: 13:30 — 14:00Saturday, Sunday: closed

Telephone: +7(495)231-11-59

3. MOSCOW “Na Valovoy” Subsidiary Office

Branch Manager: Marina Pleshakova

Address:6 Valovaya Str. , Moscow, 115054

Working hours:


Legal entities:Monday — Friday: 09:00 — 18:00Saturday, Sunday: closed

Cash service for Individuals:Monday — Friday: 09:00 — 18:00Break: 14:15 — 15:00 Saturday, Sunday: closed

Cash service for Legal entities:Monday — Friday: 09:00 — 18:00Break: 14:15 — 15:00Saturday, Sunday: closed

Telephones: 8 (800) 500-07-70, +7 (495) 231-11-11 +7 (495) 228-31-31, ext. 1020

4. YEKATERINBURG BRANCH

Branch Manager: Vadim Golofast

Address: 49 Rozy Luxemburg Str. , Yekaterinburg, Sverdlovsk region, 620026

Working hours:

Individuals:Monday — Thursday: 09:00 — 18:00Friday: 09:00 — 16:45Saturday, Sunday: closed


Cash service:Monday — Thursday: 09:00 — 18:00Friday: 09:00 — 16:45Break: 12:45 — 13:30 Saturday, Sunday: closed

Telephones: 8 (800) 500-07-70, +7 (495) 231-11-11 +7 (495) 228-31-31, ext. 3010

5. SURGUT “Surgutsky” Operational Office

Branch Manager: Svetlana Ivanova

Address: 41, 30 Let Pobedy Str. , District 33, Surgut, Khanty-Mansiisk Autonomous District — Yugra, Tyumen region, 628403

Working hours:

Individuals:Monday — Thursday: 09:00 — 18:00Friday: 09:00 — 16:45 Saturday, Sunday: closed


Cash service:Monday — Thursday: 09:00 — 18:00Friday: 09:00 — 16:45Saturday, Sunday: closed

Telephones: 8 (800) 500-07-70, +7 (495) 231-11-11 +7 (495) 228-31-31, ext. 1080



Cash service:Monday — Friday: 09:00 — 18:00Saturday, Sunday: closed

Telephones: 8 (800) 500-07-70, +7 (495) 231-11-11 +7 (495) 228-31-31, ext. 2040

13. KRASNOYARSK “Na Svobodnom” Operational Office

Branch Manager: Natalia Khromova

Address: 48 Novosibirskaya Str. , Krasnoyarsk, 660028

Working hours:



Cash service:Monday — Friday: 09:00 — 18:00Bbreak: 13:00 — 13:30 Saturday, Sunday: closed

Telephones: 8 (800) 500-07-70, +7 (495) 231-11-11 +7 (495) 228-31-31, ext. 2070

14. KRASNOYARSK “Na Vzletke” Operational Office

Branch Manager: Kseniya Vekovenko

Address: 14, 78th Dobrovolcheskoy brigady Str. , bldg.A, Krasnoyarsk, 660077

Working hours:



Cash service:Monday — Friday: 09:00 — 18:00Break: 13:00 — 13:30 Saturday, Sunday: closed

Telephones: 8 (800) 500-07-70, +7 (495) 231-11-11 +7 (495) 228-31-31, ext. 2080

15. NOVOKUZNETSK “Novokuznetsk” Operational Office

Branch Manager: Lyudmila Chernyak

Address: 9-A N.S. Ermakova Av. , Central District, Novokuznetsk, Kemerovo region, 654007

Working hours:

Individuals:Monday — Thursday: 09:00 — 18:00Friday: 09:00 — 16:45Saturday, Sunday: closed


Cash service:Monday — Thursday: 09:00 — 17:30Friday: 09:00 — 16:15Break: 12:45 — 13:30 Saturday, Sunday: closed

Telephones: 8 (800) 500-07-70, +7 (495) 231-11-11 +7 (495) 228-31-31, ext. 2770

16. KRASNODAR BRANCH

Branch Manager: Alexander Igoshev

Address: 134/1 Shevchenko Str. , Karasunsky District, Krasnodar, 350001

Working hours:

Individuals:Monday — Thursday: 09:00 — 18:00Friday: 09:00-16:45Saturday, Sunday: closed

Legal entities:Monday — Thursday: 09:00 — 18:00Friday: 09:00-16:45Saturday, Sunday: closed

Cash service:Monday — Thursday: 09:00 — 17:30Friday: 09:00-16:15Break: 12:45 — 13:30 Saturday, Sunday: closed

Telephones: 8 (800) 500-07-70, +7 (495) 231-11-11 +7 (495) 228-31-31, ext. 1570

17. YAKUTSK BRANCH

Branch Manager: Evgeny Menyaylov

Address: 24 Lenina Av. , Yakutsk, Sakha (Yakutia) Republic, 677999

Working hours:

Individuals:Monday — Thursday: 09:00 — 17:00Friday: 09:00-16:45Saturday, Sunday: closed


Cash service for Individuals:Monday — Thursday: 09:15 — 17:00Friday: 09:00 — 16:45Saturday, Sunday: closed

Cash service for Legal entities:Monday — Friday: 09:00 — 16:00Saturday, Sunday: closed

Telephones: 8 (800) 500-07-70, +7 (495) 231-11-11 +7 (495) 228-31-31, ext. 2880

18. KALUGA Business Center “Kaluzhsky” Operational Office

Branch Manager: Marina Anopchenko

Address: 102A Lenina Str. , Office 12, Kaluga, Kaluga region, 248016

6. SURGUT “Na Lenina” Operational Office

Branch Manager: Elizaveta Nikolaeva

Address: 66 Lenina Av. , Surgut, Khanty-Mansiisk Autonomous District — Yugra, Tyumen region, 628426

Working hours:

Individuals:Monday — Thursday: 09:00 — 18:00Friday: 09:00 — 16:45Break: 13:00 — 13:45 Saturday, Sunday: closed

Telephones: 8 (800) 500-07-70, +7(495) 231-11-11 +7 (495) 228-31-31, ext. 1090

7. SAINT PETERSBURG BRANCH

Branch Manager: Irina Khabarova

Address: 74 Moskovsky Av. , bldg. A, office 3H, Saint Petersburg, 196084

Working hours:




Telephones: 8 (800) 500-07-70, +7 (495) 231-11-11 +7 (495) 228-31-31, ext. 1050

8. PERM BRANCH

Branch Manager: Natalia Melnik

Address: 84 Pushkin Str. , Office 1, Perm, 614000

Working hours:



Cash service:Monday — Friday: 09:00 — 18:00Break: 13:00 — 14:00Saturday, Sunday: closed

Telephones: 8 (800) 500-07-70, +7(495) 231-11-11 +7 (495) 228-31-31, ext. 2010

9. NOVOSIBIRSK BRANCH

Branch Manager: Anna Bogdanova

Address: 25 Krasny Prospect Av. , Novosibirsk, 630099

Working hours:




Telephones: 8 (800) 500-07-70, +7 (495) 231-11-11 +7 (495) 228-31-31, ext. 2030

10. NOVOSIBIRSK “Akademichesky” Subsidiary Office

Branch Manager: Larisa Deeva

Address: 15 Akademika Koptyuga Av. , Novosibirsk, 630090

Working hours:




Telephones: 8 (800) 500-07-70, +7 (495) 231-11-11 +7(495) 228-31-31, ext. 2020

11. KEMEROVO “Kuzbassky” Operational Office

Branch Manager: Andrey Morozov

Address: 4 Krasnaya Str. , Office 48, Central district, Kemerovo, 650000

Working hours:




Telephones: 8 (800) 500-07-70, +7 (495) 231-11-11 +7 (495) 228-31-31, ext. 1070

12. KRASNOYARSK “Tsentralny” Operational Office

Branch Manager: Ekaterina Vlasova

Address: 1 Perensona Str. , Krasnoyarsk, Krasnoyarsk Territory, 660049

Working hours:



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Working hours:




Telephones: 8 (800) 500-07-70, +7 (495) 231-11-11 +7 (495) 228-31-31, ext. 1590

19. UFA “Ufimsky” Operational Office

Branch Manager: Olga Dyblenko

Address: 16 Mustai Karim Str. , Leninsky district, Ufa, Republic of Bashkortostan, 450077

Working hours:




Telephones: 8 (800) 500-07-70, +7 (495) 231-11-11 +7 (495) 228-31-31, ext. 1610

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