NVK AR08E 151009 - Новикомбанк · and the banking system in particular, will resume...

Annual

Report

2008

Our work is focused on providing services

and loans to Russian industrial enterprises.

We offer our customers cutting-edge financial

technologies that promote industrial growth

and the upgrading of the Russian economy.

The principal values we base our operations

on are reliability, quality, efficient growth and

responsible partnership in relations

with customers.

Annual

Report

2008







on are reliability, quality, efficient growth, and


with customers.

Annual Report

2008

Contents

Statement of the Chairman of the Board of Directors . . . . . . . . . . . . . . . . . . . . . . . 2

Statement of the President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Management Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Russian Economy in 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

The Bank’s Position in the Russian Financial Sector . . . . . . . . . . . . . . . . . . . . . . . . . 9

Financial Performance in 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Services to Corporate Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Lending Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Servicing Import and Export Transactions and Global Cooperation . . . . . . . . . . . 19

Services to Private Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Investment Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Financial Market Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Inter-Bank Cooperation and Correspondent Relations. . . . . . . . . . . . . . . . . . . . . . 24

Risk Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Internal Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Information Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Charity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Summarised Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Novikombank | Annual Report 20082

2008 was the 15th anniversary of Novikombank’s

operations in the Russian financial market. This may

be an unremarkable period of time in global terms,

but for Russia, where the banking system started its

development only in the early 1990s, a record of

operating stability this long is a proof of Novikom-

bank’s reliability as a partner for the companies and

individuals who have entrusted their money to it,

who make use of its services and rely on its invest-

ment solutions and service technologies.

Novikombank today is one of the pillars underpin-

ning Russian industry. Holding a position of respon-

sibility even during the slowdown months of 2008,

Novikombank continued to shore up Russia’s real

economy, providing loans to the engineering, car-

making and aircraft industries.

The Bank’s strategy is geared towards playing

a greater role in the provision of loans and services

to key industries. This will enable Novikombank to

become one of the most essential components of the

financial infrastructure of the Russian technology and

engineering industries, strengthening its positions

in the national economy and the banking sector.

The first moves towards implementing this strategy

have already been made. Since AVTOVAZ became

Statement of the Chairman of the Board of Directors

a shareholder of the Bank in late 2008, Novikom-

bank’s capital base has significantly increased.

A new Board of Directors comprising top-managers

of Russia’s leading industrial enterprises was

elected in early 2009.

I am confident that the experience gained from its

long-term relations with its customers will serve as

the basis for a qualitative and quantitative growth of

the Bank’s business. Together with all of its partners,

Novikombank will contribute to the consolidation of

Russia’s economy and the protection of the national

interests of this country.

Sergey Chemezov

3

In 2008, one of the most difficult years for both the

Russian and global economies, Novikombank con-

tinued to lend active financial support to the national

economy, and consistently expanded loans to major

Russian industrial enterprises.

Without successful and high-performing partners,

the business of any bank can neither be gainful nor

achieve stability. With this governing principle in

mind, Novikombank pursued a policy of improving

customer relations in the core lines of its business.

Progress was made in all sectors – corporate lending,

attracting customer deposits, retail banking, inter-

bank cooperation and investment banking services.

Statement of the President

The slowdown of global capital markets resulted in

a significant reduction of profitability and higher bank-

ing risks. Nonetheless, Novikombank showed growth

in most key financial indicators in 2008. Novikombank

now ranks No. 68 in equity and is among the top 15

most reliable banks in the country.

We expect not only to maintain but also to consolidate

our positions in the Russian banking system in 2009.

Signing a cooperation agreement with the Russian Tech-

nologies State Corporation early in 2009 was a crucial

event that has determined a substantial potential of

Novikombank’s development.

We expect that partnership with the Russian Technolo-

gies SC will serve as the basis for further qualitative and

quantitative growth of Novikombank’s business. Our in-

volvement in addressing the most critical tasks of fund-

ing innovations in the Russian economy will make the

Bank one of the most authoritative financial institutions

in such key industries of the national economy as the

engineering, car-making, high-tech and other industries.

Finally, I would like to cordially thank all of our share-

holders, customers and partners. On our part, we will do

our best to promote our cooperation in order to success-

fully achieve our increasingly larger-scale objectives year

after year.

Ilya Gubin


Board of Directors Management Board

Chairman

of the Board of Directors

Sergey Chemezov

Director General,

Russian Technologies State Corporation

Members

of the Board of Directors

Boris Aleshin

President, JSC AVTOVAZ

Yuriy Artyakov

Senior Vice President, Corporate Customer Relations

Department, JSCB NOVIKOMBANK

Ilya Gubin

President, JSCB NOVIKOMBANK

Igor Zavyalov

Deputy Director General,

Russian Technologies State Corporation

Igor Makarov

Chairman of the Board of Directors,

ITERA Oil and Gas Company Ltd

Nikolay Tokarev

President, JSC Transneft

Denis Ursulyak

Advisor to the Board of Directors,

JSCB NOVIKOMBANK

Chairman

of the Management Board

Ilya Gubin

President,

JSCB NOVIKOMBANK

Members

of the Management Board

Sergey Ablyaev

First Deputy President

Tatiana Ryskina

First Deputy President

Sergey Balagansky

Deputy President

Natalia Yudina

Deputy President

Tatiana Golodets

Senior Vice President

5

The balance of payments of the Russian Federation

exceeded USD 102 billion, having been boosted from

USD 77 billion in 2007. Exports, imports and the for-

eign trade surplus rose. However, these had a down-

ward trend in the second half of the year as well.

The global slowdown was the principal external

factor influencing the Russian economy and the

banking system in 2008. The financial squeeze

slashed liquidity and the investors’ appetite for risk,

and as a result foreign loans to Russian companies

dried up. So the Russian external debt, which had

been increasing till autumn 2008, primarily due

to corporate borrowings, started to shrink at the

year-end. Governmental debt accounts for less

than 10%, banks’ debts for 30–35%, and the

combined debts of other sectors for 55–60%

of its composition.

The economic slowdown dragged down the prices

for oil and other commodities exported by Russia.

They dropped from all-time highs to extreme lows

in a few months. A reduction in Russian compa-

nies’ foreign currency revenues, the impossibility

of refinancing loans, and the need to repay bor-

rowings raised on the global market earlier, pushed

up the cost of the Bank of Russia’s currency basket

in late 2008 – early 2009.

The development of the banking sector was also in

line with the general trends for the year. Over the

first 7 months of 2008, the aggregate assets of the

banking system and capital mounted

by almost 20%; the loans provided increased at an

The Russian economy and the banking system developed inconsistently in 2008. The start of the year was successful: against a background of soaring oil and fuel prices, Russia seemed a steadfast stronghold of stability, despite the global slowdown. But in the second half of the year, the steady growth in the Russian economy reversed to an ever-accelerating downfall.

01

/01

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07

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08

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01

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09

01

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09

Balance of payments of the Russian Federation in 2008 (USD billion)

Russian Economy in 2008

Change in Russia’s real GDP (%)0

1/2

00

8

02

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08

03

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11

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12

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08


even higher rate. But almost all quantitative param-

eters of our banking system started falling in the

second half of 2008. The focus shifted to the asset

quality in late 2008 – early 2009. Growing defaults

in the corporate sector and defaults on loans pro-

vided to individuals fuelled an avalanche of overdue

debts on banks’ balance sheets that had almost

doubled by the end of 2008 – from USD 7.5 billion

on January 1, 2008 to USD 14.4 billion on January 1,

2009. This, in turn, has led to a deterioration of prof-

itability and capital adequacy in the banking system,

and necessitated the use of public money to replen-

ish the equity of Russian banks to ensure continued

lending to the real economy.

The efforts taken by the Russian Government to

support the economy, in particular, “smooth” rouble

devaluation, the provision of funds to uphold the

money supply in the banking sector, the provision

of extra money to major banks and the refunding

of foreign loans that had been provided to Russian

companies with public money resulted in the shrink-

age of Russia’s gold and currency reserves. Their

amount, which was up by approximately USD120

billion over the first 7 months of 2008, fell by ap-

proximately USD 170 billion by the year-end and

by approximately USD 40 billion in January 2009.

However, Russia still has the third biggest gold and

currency reserves worldwide. This enables it to

pursue an efficient state economic support policy.

The efforts already implemented as part of this policy

are expected to bear fruit in H2 2009. Moreover, we

are seeing the first signs that the global economy is

overcoming the slowdown: since spring 2009, the

commodity markets and the key stock exchanges

have shown an upward trend. The economies of

a number of countries, particularly those of China

and India, displayed enviable strength. Therefore,

Russian foreign trade (USD billion)

Russian foreign debt (USD billion)

Price for the Bank of Russia’s currency basket and Brent oil

Bank of Russia’s currency basket

Russian Economy in 2008

Export Import Balance

Public debt

Banking sector

Corporate borrowings etc.

01

/01

/20

06

01

/07

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06

01

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07

01

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07

01

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08

01

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08

01

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09

01

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09

01/01/2008

01/04/2008

01/07/2008

01/10/2008

01/01/2009

01

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08

01

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08

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01

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7Russian Economy in 2008

despite the continued contraction of the Russian

economy in H1 20009, the forecast for its year-

end prospects is not gloomy. The anticipated

recovery of demand for Russia’s basic export com-

modities promises that the entire Russian economy,

and the banking system in particular, will resume

growth swiftly.

Russian banking system (USD billion)

Overdue loan indebtedness (USD billion)

Russian gold and currency reserves (USD billion)

Total assets Loans provided

01

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Reliability Technologies

In November 2008 the Expert RA rating agency

assigned the Bank an “A” rating that reflects its high

credit standing. Novikombank was among

Russia’s top 15 most reliable banks in Profile

magazine’s rating on January 1, 2009.

The raising of Vnesheconombank’s subordinated

loan testifies to the absolute stability of the Bank’s

business model.

9

The Bank ranks No. 68 in equity and No. 79 in

assets in the Russian banking system, according to

Kommersant Dengi magazine. It also ranks No. 63

in corporate loans and No. 54 in corporate deposits

in RBC’s rating.

In November 2008 the Expert RA rating agency

assig ned an “A” rating to the Bank that reflects its

high credit standing and its business stability.

Novikombank was among Russia’s top 15 most

reliable banks in Profile magazine’s rating

on January 1, 2009.

Novikombank is a member of key infrastructure

organisations in the financial market and plays an

active part in implementing strategic steps that are

geared towards continued accelerated development

of the Russian banking system. Novikombank’s top

managers are members of management bodies

and core committees of the Association of Russian

Banks, Association of the Regional Banks of Russia

(Association “Russia”), the Moscow Bank Union,

MICEX, the National Securities Market Associa-

tion, RTS Trading System (non-profit partnership),

Moscow International Currency Association (MICA).

Novikombank is actively developing relations with

The Bank’s Position in the Russian Financial Sector

In 2008, Novikombank consolidated its competitive standing in the Russian market by strengthening its image as a reliable financial institution.

enterprises in the key industries. In particular, the Bank

and its top managers are members of the Russian Union

of Industrialists and Entrepreneurs, the Moscow Chamber

of Commerce and the Russian Engineering Union, which

promotes expanded funding of the real economy and is

leading to an increase in Novikombank’s customer base.

Novikombank is an associate member of Visa Internati-

onal and a member of SWIFT. It has joined the deposit in-

surance system. In addition, the Russian Federal Customs

Service included it in the register of lending institutions

whose guarantees are accepted by the Russian customs

authorities.

In December 2008, Novikombank became a parti-

cipant in the governmental SME support programme.

A RUB 200 million loan was raised at the Russian Bank

for Development to help the Bank provide greater finan-

cial support to enterprises in this market segment.

The raising of Vnesheconombank’s RUB 480 million

subordinated loan is further evidence of the significance

of Novikombank’s role in the Russian financial system and

in the implementation of governmental economy support

programmes and the absolute reliability of its business

model.


The asset growth was accompanied by an increase

in the Bank’s capital: a RUB 1 billion subordinated

loan that matures in 2018 was raised from AvtoVAZ.

The car maker acquired 20% of the Bank’s share capi-

tal as part of an additional share issue in late 2008.

Novikombank’s equity was up by 42%, to RUB 6.6

billion in 2008. However, despite quantitative

growth, adverse market conditions in 2008 dragged

down its revenues. The Bank’s recorded a narrow loss

for 2008 — RUR 40.8 million.

Conventional banking is the core line of business

for Novikombank, as evidenced by its asset structure:

the banking segment accounts for 99% of the Bank’s

total assets.

Loans to customers are the most significant asset

group. The share of customer loans in the Bank’s total

assets stands steady at over 50%. In 2008, customer

loans accounted for 57% of total assets. Due to

increased market risks, the Bank reduced the share

of investments in securities in total assets by 39% as

compared to 2007.

The bulk of the Bank’s funds is represented by cus-

tomers’ funds. Total balances on corporate custom-

ers’ current accounts and deposits rose by 12% over

the year and reached RUB 20.1 billion by the end

of 2008, which testifies to the Bank’s possession

of a solid customer base. The interbank funds and

securities issued in the domestic market average 20%

of its resources.

Financial Performance in 2008

In 2008, the Bank’s total assets rose by 5.5% to RUB 32.0 billion.

30

25

20

15

10

5

0

7

6

5

4

3

2

1

0

Assets (RUB billion)

Equity (RUB billion)

Tier 1 capital

Subordinated loan (amortised)

11Financial Performance in 2008

65

10

2 1

1

4

8 61

18

2

2

12

6 20082007

Liabilities structure (%)

Asset structure (%)

57 Loans to customers

19 Securities

5 Assets with banks

0.3 Statutory provisions with the Bank of Russia

18 Cash and its equivalents

1 Other assets

52 Loans to customers

34 Securities

8 Assets with banks

2 Statutory provisions with the Bank of Russia

2 Cash and its equivalents

1 Other assets

2007 2008

52

1 2 2 8

34

57 1

1

8

0.3 5

1

9

61 Customers’ funds

18 Outstanding liabilities

2 Other borrowings

2 Other liabilities

12 Equity, including shareholders’ equity

and share premium

6 Banks’ funds

65 Customers’ funds

10 Outstanding liabilities

2 Other borrowings

1 Other liabilities

14 Equity, including shareholders’ equity

and share premium

8 Banks’ funds


Despite the unfavourable market environment,

the Bank’s operating income stood firm at

RUB 839 million in 2008. Devaluation of the

securities portfolio and recognised losses on

trading operations with these assets strongly

affected the Bank’s income. However, core

income (net interest and commission income)

rose from RUB 1.463 billion in 2007 to

RUB 1.730 billion in 2008, i. e. by 17%.

Financial Performance in 2008

1,800

1,200

600

0

–600

–1200

1,800

1,200

600

0

Operating income (RUB million)

Net interest income

Net commission income

Net profit on securities trading transactions

Net profit on foreign currency transactions

Other operating income

2007 2008

13

Provision of services and financial support to Russian

industrial enterprises are the core lines of the Bank’s

business. Novikombank is committed to establishing

long-term and mutually advantageous relations with

its partners. In implementing its customer relations

policy, the Bank makes the most of its competitive

advantages, including premium services, prompt

decision-making, customised approach, reason-

able pricing policy, in-depth knowledge of the real

economy, many years of successful partnership with

industrial enterprises, and a team of professionals

coming from the leading banks.

The steady growth in the Bank’s customer base in

recent years testifies to the successful implementa-

tion of its chosen development strategy with a focus

on industrial diversification of its corporate business.

In recent years, Novikombank has managed

to maintain a reasonable combination of fund-

ing sources, gradually extending their maturities.

The bulk of the Bank’s resources is represented

by corporate customers’ funds, in particular, current

accounts and time deposits which increased

by 6% y-o-y.

Services to Corporate Customers

Novikombank is a high-tech commercial bank that offers its corporate customers a wide range of banking products and services.

Number of corporate customers

2006 2007 2008 2009

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

18

16

14

12

10

8

6

4

2

0

Corporate customers’ accounts (RUB billion)


Partnership Technologies

The stable growth in the Bank’s customer

base over recent years testifies to a successful

implementation of the selected development

strategy focused on industrial diversification

of the corporate business. The Bank’s

customers include the leading heavy machinery,

car-making, oil and gas enterprises.

15Services to Corporate Customers

Novikombank’s current customers include many lead-

ers of the Russian industry, in particular:

� Russian Technologies State Corporation, Rosobo-

ronexport State Corporation, Oboronprom United

Industrial Corporation, MDB Compas, Beriev Aircraft

Company, A. S. Yakovlev Design Bureau, Federal

Scientific and Production Centre Pribor, Almaz-Antey,

Moscow Machine-building Plant Avangard, Izhevsk

Electromechanical Plant Kupol, the Central Aerohydro-

dynamic Institute (TsAGI);

� car-making and engineering enterprises, such as

AVTOVAZ, their suppliers and dealers;

� fuel and energy enterprises, such as the ITERA

Group of Companies, Transneft Joint-Stock Company,

and Zarubezhneft Open Joint-Stock Company;

� insurance companies, such as Military Insurance

Company, RESO-Garantiya, Independent Insurance

Group, ITERA-Garant, etc.

Novikombank has entered into cooperation agree-

ments with the Russian Technologies State Corpora-

tion, AVTOVAZ, and Konversiya Foundation, aimed

at improved interaction and increased financing of

industrial enterprises.

The Bank’s steady financial standing, its well-deserved

reputation as a reliable partner and the excellence

of its services are appreciated by its partners. As a

result, the Bank was selected by Transneft Joint-Stock

Company as a financial institution whose guarantees

of performance of contractual obligations are ac-

cepted by the company and its subsidiaries. More-

over, the Federal Customs Service has also included

Novikombank in the register of banks and other

lending institutions that may act as guarantors of

the customs authorities. All of these services are

not only in high demand among existing custom-

ers, but also help engage new customers.

Novikombank is committed to implementing an

individual approach to servicing corporate custom-

ers, with a personal manager assigned to each

customer.

Interacting with the customer’s representatives,

he arranges for the compilation of a customised

package of all the services offered by the Bank, co-

ordinates the customer’s relations with the Bank’s

business units and provides assistance in different

aspects, including:

� advice and assistance in drafting documents on

bank deals and transactions;

� creation of original patterns for transactions and

deals;

� prompt making of intra-bank decisions on cus-

tomer service issues;

� professional advice and information support on

different financial and legal issues and services of-

fered by the Bank.


It was expressed, first of all, in a more conservative

approach to the evaluation of borrowers’ financial

standing, industrial risks, loan repayment sources,

adequacy and liquidity of assets offered as security.

To mitigate a possible adverse impact of the depres-

sion on the Bank’s credit portfolio, an emphasis

was placed on financial support projects for top-

priority branches of the economy – heavy machinery,

high-tech and defence enterprises, including those

implemented as part of Novikombank’s partner-

ship with the leading vertically-integrated holdings,

such as Russian Technologies State Corporation,

Rosoboronexport State Corporation, Oboronprom

United Industrial Corporation, Almaz-Antey, the

United Shipbuilding Corporation, AVTOVAZ, and

some others.

A 16% increase in loans to corporate customers in

2008 was accompanied by further diversification of

the portfolio, with a greater share of loans to the real

economy enterprises.

The Bank’s loan book quality remains high. Nonethe-

less, Novikombank is maintaining its conservative

approach to loan provisioning. Impairment provision

accounted for 4.1% of the aggregate credit portfolio

at the end of 2008.

Lending Policy

In 2008, taking into account the overall economic environment, Novikombank adhered to the strategy aimed at a moderate increase in its credit portfolio, while improving its quality and streamlining the structure of its credit investments.

20

18

16

14

12

10

8

6

2

0

Loans to corporate customers (RUB billion)

4

3

2

1

0

Provision for loan impairment (as a percentage of the credit portfolio)

17Lending Policy

In 2008, most loans were provided for:

� the funding of prospective high-tech develop-

ments;

� projects that were part of the public defence con-

tract;

� participation in federal targeted programmes

implemented in key sectors of the Russian economy;

� support for the national export of machinery and

equipment;

� funding of mid-term projects aimed at refurbish-

ment of engineering enterprises, including financial

leasing arrangements.

A series of large-scale projects has been implemented

with Novikombank’s financial support in 2008. The

Bank was active in providing funds for scientific

research related to the development of national in-

novation technologies. In 2008, a number of credit

lines were issued to MDB Compas, a leading manu-

facturer of navigation systems, for the development

of prospective GLONASS instrumentation groups

to be introduced on railways, in various aircraft and

spacecraft.

Novikombank also invested in research aimed at

creating alternative fuels. In 2008, the Bank started

funding a pilot biobutanol plant project implemented

by Biotekhnologii Corporation, a subsidiary of

Oboronprom. In partnership with Rosoboronexport,

Novikombank provided mid-term loans to Kazan

Electronic Technical Plant to implement a production

programme for the manufacture of marine systems

and state identification facilities.

As part of public defence contracts and federal tar-

geted programmes, Novikombank provided loans for

public contracts implemented by Oboronprom, TsAGI,

the Central Research and Development Institute of

Economics, Informatics and Control Systems, 121 Air-

craft Repair Plant, and a number of other companies.

While providing funds for the national export of high-

tech products, Novikombank successfully developed

long-term partnership with Rosoboronexport, a pub-

lic intermediary and an exporter of special machinery

and equipment. In particular, Novikombank played

an active part in the execution of deals concluded as

part of military and technical cooperation with foreign

countries. Using the Bank’s loans, a number of large-

scale contracts involving Vympel State Engineering

Design Bureau, the Central Research and Develop-

ment Institute of Shipbuilding Technology, MDB Com-

pas, Prompostavka, the Research Institute of Steel (NII

Stali), and others began to be implemented in 2008.

Novikombank also continued to provide funding and

strengthen partner relations with car-making, oil

and gas, agricultural, food, and other light industry

enterprises, including the Amtel Group of Compa-

nies, BioFood (a Tula-based production company),

the Ostashkovo Tannery Group of Companies, and

AVTOVAZ’s suppliers and dealers, among others.

Shifting the focus of lending towards production

companies resulted in changes in the credit portfolio

and a reduction of the proportion of construction and

trade companies in its structure.


Besides conventional credit products, the Bank’s

customers requested other services: documen-

tary guarantee transactions were actively devel-

oped; patterns of funding process flows includ-

ing the principal contractor, the Bank’s customer,

and its allied enterprises, were elaborated for

customers with the use of the most appropriate

banking tools.

Heavy machinery and defence industries

Car-making industry

Trade

Food and light industries

Construction

Financial services

Other

Lending Policy

Credit Portfolio Structure (%)

19

Acting as a foreign currency control agent,

Novikombank issued some 700 new deal passports

under import and export transactions of the Bank’s

customers, loan agreements, and mixed deals.

The system of international settlements was evolved

in quantity and quality terms. Total customer pay-

ments through the Bank’s correspondent accounts

soared by almost 70% year-on-year.

The Bank continued cooperation with Raiffeisen

Zentralbank Osterreich AG, VTB Bank (Deutschland)

AG, VTB Bank (Austria) AG, Dexia Bank SA, and other

foreign banks in using documentary credit lines for

funding documentary and standby letters of credit

issued at the order of the Bank’s customers and guar-

antee operations.

Servicing Import and Export Transactions and Global Cooperation

In 2008, the Bank continued active development of foreign economic operations on behalf of its customers.

Novikombank’s programme of providing trade and

structured finance to its customers developed fur-

ther. As part of this programme, the Bank provides its

customers with the services of entering into short-

term (less than 1 year) deals of trade financing with

the participation of international banks and mid- and

long-term deals (6 to 7 years) with guarantees issued

by export credit agencies of the appropriate countries.


Quality Technologies

In implementing its customer policy, the Bank

makes the most of its competitive advantages,

including premium services, prompt decision-

making, customised approach, reasonable pricing

policy, in-depth knowledge of the real economy,

many years of successful partnership with in-

dustrial enterprises, and a team of professionals

coming from the leading Russian banks.

21

In 2008, the balances of private customers’ accounts

with Novikombank showed a steadily upward trend,

even in the depression months of November–De-

cember 2008.

In 2008, the focus was on auto-

mation and the development of

card technologies, introduction of

a wide range of deposit products,

use of diverse cash management

tools, electronic services for ac-

count management and drafting

special loyalty programmes for

individuals.

In addition, the Bank actively

continued to implement com-

prehensive banking projects in

cooperation with enterprises, in-

cluding employee salary payment

using global payment systems

bank cards issued by the Bank.

A core line of Novikombank’s

retail business is services to VIP

customers. Novikombank offers

Services to Private Customers

Novikombank specialises in providing banking services to employees of the Bank’s corporate customers, as well as in servicing large private capital, by offering its customers a wide range of products and services.

its high net worth customers a system of comprehen-

sive customised services which relies on individual

approach, promptness, and confidentiality.

A personal manager is assigned to each privileged cus-

tomer of the Bank. He/she helps identify investment

preferences, draft an individual asset management

plan with the view of the customer’s needs and assists

in any financial matters – from the issuing of payment

orders and arranging for meetings with the Bank’s

partner companies to the arrangement of major deals.

Taking into account the customers’ main wishes,

Novikombank offered a number of additional private

capital management and tax advice services as

a supplement to the existing classical banking

products, in 2008.

In 2009, as part of its development of private banking

services, Novikombank is going to implement its

elaborated ideas, while expanding the range of private

capital management and advisory services that will

enable the Bank to meet the best European tradi-

tions of private banking and strengthen its long-term

customer relations.

01

/02

/20

08

01

/03

/20

08

01

/04

/20

08

01

/05

/20

08

01

/06

/20

08

01

/07

/20

08

01

/08

/20

08

01

/09

/20

08

01

/10

/20

08

01

/11

/20

08

01

/12

/20

08

01

/01

/20

09

Increase in issued bank cards of global payment systems in 2008 (%)

50

45

40

35

30

25

20

15

10

5

0

4.5

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0

01

/01

/20

08

01

/11

/20

08

01

/12

/20

08

01

/01

/20

09

Balances on private customers’ accounts (RUB billion)

Beggining of crisis impact in Russia


In 2008, the core lines of Novikombank’s investment

business were as follows:

� provision of services to the Bank’s customers

in entering into deals with assets and operations

to raise finance;

� provision of services of investment project

drafting and reviewing to the Bank’s customers;

� financing of investment projects.

The professionalism of the Bank’s specialists, cou-

pled with extensive experience in corporate finance,

enable a broad range of investment products and

services to be offered to the Bank’s customers,

in particular:

Advice on financial strategy

and raising external financing

� Advice on M&As, restructuring, asset sales, and

creation of strategic alliances

� Development of the strategy of “explosive” busi-

ness growth funding, including the funding of M&As

� Provision of fairness opinions

� Advice on the issue and placement of shares and

bonds, with listing on Russian and global exchanges

� Advice and support during privatisation; protec-

tion against hostile takeovers

� Advice on the establishment and maintenance

of relations with investors

Investment Business

As part of the strategy aimed at expanding the range of services offered to Novikombank’s customers in different segments of the financial market, much attention was paid to the development of investment banking in 2008.

Raising of funds

� Provision of integrated financial solutions combining

different tools for raising finance

� Arrangement of private placements of shares among

Russian and foreign investors

� Arrangement and underwriting of debt securities

issues. In 2008, the Bank was involved, as arranger/un-

derwriter, in the offerings of bonds for Uralsvyazinform

8, Stroytransgaz 3, Northwestern Telecom 5,

AvtoVAZ BO-3, AvtoVAZ BO-4, MTS 03

� Arrangement and underwriting of issues of convert-

ible securities

� Provision of project finance; arrangement of syndi-

cated loans

Deals with assets

� Arrangement of M&As for Russian and multi-nati-

onal companies

� Arrangement of the restructuring of companies,

with split-off and asset purchase/sales deals

� Arrangement of LBOs/MBOs, including the provi-

sion of debt finance for the deal

� Provision of funds for successful entry into deals,

including intermediate funding

23

In entering into transactions on financial markets, the

Bank took into account the need to keep risk at an ac-

ceptable level and also to regulate the Bank’s current

liquidity and currency positions.

In 2008, the Bank actively teamed up with a great

number of counterparties, both in the placement and

raising of cash within established limits. Russia’s major

and most reliable companies remained the Bank’s

key partners on the inter-bank market. In H2 2008,

Novikombank reduced the scope of its inter-bank

transactions due to the credit crunch and increased

credit risks.

Novikombank made wide use of the pledge ar-

rangements for raising funds. It was active in signing

agreements with counterparty banks, which enabled

it to enter into transactions funding current positions

in securities and other pledge-related deals, including

inter-bank loans and conversion transactions.

The Bank was active in relations with the Bank of

Rus sia and was involved in “uncollateralized” lending

tenders, direct repurchase deals and lending against

pledges of non-marketable assets. There was also

a signi ficant increase in the Bank of Russia’s overdraft

line.

Financial Market Operations

In 2008, Novikombank entered into a broad range of transactions on financial markets, both on customer orders and as part of managing of its own positions.

In 2008, the USD 42 million international loan

provided by Barclays Bank PLC was repaid in full.

Novikombank also repaid a RUB 330 million syndi-

cated loan.

To maintain the necessary liquidity level and ensure

profitable placement of temporarily available funds,

the Bank aggressively dealt on the stock market, in-

vesting in the safest instruments, such as federal and

sub-federal securities of the Russian Federation, cor-

porate bonds of Russian and foreign issuers of the 1st

and 2nd level, promissory notes issued by the coun-

try’s major enterprises, as well as shares issued by

Russian companies. To minimise volatility of revenues,

Novikombank has consistently slashed its investments

in shares, which has resulted in the Bank’s securities

portfolio featuring only the most reliable fixed-income

financial instruments at the end of 2008.


In 2008, correspondent accounts were opened with

Europe’s leading banks for global settlements.

Novikombank started dealing with precious metals

and opened unallocated gold accounts with Russian

banks – VTB and NOMOS-BANK.

Novikombank also took part in implementing the na-

tionwide SME financial support programme, as part

of which a RUB 200 million loan was raised from the

Russian Bank for Development.

As of the start of 2009, Novikombank had 220 coun-

terparty banks on the interbank market, opened 45

loro accounts and 62 nostro accounts, and concluded

more than 250 agreements for transactions on the

inter-bank market.

Inter-Bank Cooperation and Correspondent Relations

For the benefit of its customers, Novikombank continued to increase the number of Russian and foreign counterparty banks in 2008.

25

In 2008, the risk management system evolved in ac-

cordance with the adopted Risk Management System

Development Concept which envisages a comprehen-

sive approach to the risk management objective and

centralisation of the risk management functions.

The risk management system now comprises the

appropriate organisational setup as well as the ag-

gregate of methods and procedures, the rules for rela-

tions between the Bank’s business units and collegial

authorities that perform managerial, control and

methodological functions.

Risk Management Department is the core inde-

pendent business unit that coordinates the entire

risk management process and is responsible for the

improvement of the Bank’s risk management system

and for elaboration of the appropriate assessment

and management methods. As part of the risk

management system, the Bank also has in place the

Credit Committee and the Asset and Liabilities Man-

agement Committee, which take risk management-

Risk Management

related decisions, develop and approve the procedures

for their supervision. The fact that the Committees com-

prise top managers of business-focused business units

and the Risk Management Department which is inde-

pendent of them ensures a well-balanced and unbiased

approach to the analysis of deals and decision-making.

Operational risk management is the responsibility of the

Bank’s managers at all levels and is ensured by a con-

stant renewal of the Bank’s organisational structure and

internal procedures.

Novikombank’s risk management system secures as-

sessment and monitoring of the key risks inherent in the

Bank’s operations, in particular, credit risks, liquidity risk,

interest rate/exchange rate fluctuation risk in open oper-

ating day mode.

Besides customer-tailored risk management, the Bank

monitors and actively manages credit risk at the aggre-

gated level, including overall quantitative risk assessment,

risk structure analysis, and the establishment of limits for

the different types of risk undertaken by the Bank.

Novikombank has in place a risk management system that enables it to identify, assess and limit risks undertaken by the Bank, to control their scope, structure and to detect the principal factors influencing the degree of risk.


Growth Technologies

As part of the strategy intended to expand the

range of services, much attention was paid to

the development of investment banking in 2008.

For instance, the Bank was involved, as arranger

and underwriter, in the offerings of debt securities

such as Uralsvyazinform 8, Stroytransgaz 3, North-

western Telecom 5, AvtoVAZ BO-3, AvtoVAZ BO-4,

MTS 03.

27

As part of the internal control system, comprehensive

monitoring of control authorities, the Audit Com-

mission, the Bank’s Internal Control Department was

arranged in the following main dimensions:

� to identify, assess, and take steps to mitigate

banking risks in good time;

� to allocate powers in entering into bank transac-

tions and other deals;

� to control information flow management and

ensure information security;

Internal Control

� to have the Bank’s employees comply with

the requirements of federal laws and regulations,

banking standards and professional ethics rules,

and internal documents that determine the

Bank’s policy and govern the Bank’s business;

� to settle the conflicts of interests arising from

the Bank’s business.

The internal control system ensures high protec-

tion of interests for the Bank’s customers, coun-

terparties, and shareholders, promoting the

Bank’s financial stability and business reliability.

Novikombank has established and maintains an efficient internal control system that covers all lines of business and business units of the Bank.


The Bank’s top managers regard information technol-

ogy investments as an important part of this policy.

2008 was, in this sense, no exception.

For instance, the Bank introduced unparalleled IT

products which secured the Bank’s technological edge

on the banking market and backed up the expansion

of the list of services offered to customers by launch-

ing new software products in 2008.

In particular, a retail module for product management

using plastic cards and the module of accounting for

trust management transactions were included in the

Diasoft automatic banking system used by Novikom-

bank. In addition, the stock exchange module of

Information Technologies

automation of stock market transactions was fully

commissioned, which allowed the quantity and qual-

ity of services offered to the Bank’s customers to be

expanded.

The implementation of the CRM system has been

finalised, which has enabled services provided to the

Bank’s customers to be upgraded.

To increase productivity and operational reliability of

the Bank’s information system, there were significant

investments in hardware and software purchases.

Moreover, new arrangements for booking server and

communications equipment have been elaborated

and introduced.

One of the top priorities in Novikombank’s policy is providing customers with the widest possible range of services and tools based on the best modern banking technologies.

29

In 2008, as part of Novikombank’s HR policy, the

focus was on streamlining the management structure

and strengthening the personnel composition of the

Bank, as well as on taking efforts to improve the em-

ployee incentive system, to develop professional skills

and to improve personnel qualifications.

To ensure the fulfilment of the business objectives

set, Novikombank recruited a highly professional

team of employees. The Bank’s top managers have

gained extensive professional experience in manage-

ment, in particular, in major Russian state-run banks,

and are reputable members of the banking commu-

nity. More than 90% of the Bank’s employees have

a higher financial education.

In 2008, Novikombank also placed much empha-

sis on arranging for additional professional training

aimed at improving employees’ qualifications and

their adaptation to modern banking conditions and

changes in the regulatory and legal fields. More than

Human Resources

20% of the Bank’s employees have been trained at

professional courses and have taken part in work-

shops and conferences.

As part of the programme entitled “Establishment

of the Personnel Reserve at JSCB NOVIKOMBANK”,

the Bank succeeded in recruiting young specialists

who graduated from the leading high schools to the

Bank in 2008.

In 2008, Novikombank implemented a series of steps

that were geared towards improving social protection

of the Bank’s personnel. In particular, it concluded a

health insurance contract for the Bank’s employees

with ROSNO.

The implementation of Novikombank’s HR policy

promotes fruitful teamwork between employees

and continued improvement of staff professionalism

as part of the Bank’s overall business development

strategy.

Novikombank’s consistent Human Resources policy ensures that the qualifications and experience of each of the Bank’s employees are efficiently used.


In the contemporary environment, many social

projects may only be successful if the public sector

and businesses join their efforts and if private and

public partnership is implemented. Being aware of

the importance of social investments and charitable

programmes, Novikombank regards this line of busi-

ness as an important component of the Bank’s overall

strategy which promotes efficient dialogue with the

community and improves the Bank’s image.

The corporate concept of Novikombank’s charitable

activities rests upon the principles of transparency,

maximum results and targeting. Support for chil-

dren’s education is one of the key directions. In this

field, Novikombank is committed to helping children

left without parental support to enter a profession

and become fully-fledged members of society by

creating normal conditions for their education and

development.

For many years, Novikombank has maintained stable

relations with St Alexei Ashram, an Orthodox cenacle.

The Bank provides funds to monastic communities, a

cadet corps, a kindergarten, and nurseries existing at

St Alexei Ashram.

For several years, Novikombank has sponsored the

Preobrazhensky Cadet Corps, a boarding school

that inculcates military patriotism and the traditions

of military honour of the Russian state upon young

cadets.

Charity

In 2008, Novikombank continued its involvement in

the First National Charitable Programme “Billion in

Petty Cash” implemented by the Union of Charitable

Organisations of Russia. The Bank has supplied cash

for adjuvant treatment and drugs for children suffer-

ing from cancers from disadvantaged families.

Novikombank took part in the “Books as Gifts” pro-

gramme that has been implemented by the “Illustrat-

ed Books for Small Blind Children“ charitable founda-

tion for the last 12 years.

In its charitable operations, Novikombank lays em-

phasis on Russian cultural development, the revival of

spirituality, and the preservation of national values.

Acting as a sponsor of Russian cathedrals and churches,

the Bank assists the Russian Orthodox Church in its

efforts to revive the centres of spiritual life of the

country, to restore Orthodox architectural monuments,

including:

� the parish in honour of the Reverend Seraphim

Sarovsky in the Samara Eparchy;

� the Life Giving Trinity Church in Ostankino;

� the Sacred Trinity Church in Kolomna;

� the Sanctifier Nicholas Cathedral in Golutvin;

and many others.

The Bank’s charitable activities in 2008 testify to the high demand for the Bank’s social initiatives in the Russian society.

31Charity

In 2008, Novikombank also supported the World

Russian People’s Council, Russia’s biggest public

forum where people from various political creeds who

care for Russia’s future meet.

Support for World War II veterans, veterans of military

service of the Russian Federation and operating units

of the Federal Frontier Service of the Russian Federa-

tion is another important line of Novikombank’s chari-

table work. In particular, in 2008 Novikombank took

part in funding the main events of the “Blagopoluchie”

(Well-Being) socially significant programme imple-

mented by the Inter-Agency Charitable Foundation

and intended to support the disabled World War II

soldiers and veterans, and families of law enforce-

ment officers who have been maimed or killed in the

line of their duties.

The Bank makes a significant contribution to cycling

development in Russia. It sponsors the “Katyusha”

professional cycling team, seven sportsmen from

which were capped for Russia in a team picked for the

World and European Championships in 2008, as well

as the Olympics.

In 2009, Novikombank will continue to play an active

part as the initiator of and participant in many chari-

table projects, upholding the priorities of a socially

responsible policy.


Summarised Financial Information

Summarised

Financial Information

Extracted From a Full Set

of Audited Financial

Statements

for the year ended

31 December 2008

33Summarised Financial Information

Independent Auditors’ Report

To the Shareholders of Joint-Stock Commercial Bank “NOVIKOMBANK”

We have audited the financial statements of Joint-Stock Commercial Bank

“NOVIKOMBANK” (the “Bank”) as at and for the year ended 31 December

2008, from which the accompanying summarised financial information

was derived, in accordance with International Standards on Auditing.

In our report dated 23 June 2009 we expressed an unqualified opinion on

the financial statements from which this summarised financial information

was derived.

In our opinion, the summarised financial information is consistent, in all

material respects, with the financial statements from which it was derived.

For a better understanding of the Bank’s financial position as at 31

December 2008 and its financial performance and its cash flows for the

year then ended and the scope of our audit, the summarised financial

information should be read in conjunction with the financial statements

from which the summarised financial information was derived, and our

audit report thereon.

ZAO KPMG

23 June 2009

ZAO KPMG

Naberezhnaya Tower Complex, Block C

18 Krasnopresnenskaya Naberezhnaya

Moscow 123317

Russia

Telephone +7 (495) 937 4477

Fax +7 (495) 937 4400/99

Internet www.kpmg.ru

ZAO KPMG, a company incorporated under the Laws of the Russian Federation and a

member firm of the KPMG network of independent member firms affiliated with KPMG

International, a Swiss cooperative.


Income Statement for the year

ended 31 December 2008

2008 2007

RUR’000 RUR’000

Interest income 3,212,090 2,529,957

Interest expense (1,652,544) (1,171,727)

Net interest income 1,559,546 1,358,230

Fee and commission income 181,831 165,070

Fee and commission expense (8,269) (2,186)

Net (loss)/gain on financial instruments at fair value through profit or loss (1,161,581) 32,813

Net foreign exchange income 238,182 42,369

Effect of the Bank’s group reorganisation — 105,402

Dividend income 18,012 18,406

Other income 11,169 13,889

Net non-interest (loss)/income (720,656) 375,763

Impairment losses (308,906) (163,906)

General administrative expenses (580,925) (497,226)

(Loss)/profit before taxes (50,941) 1,072,861

Income tax benefit/(expense) 10,077 (297,749)

Net (loss)/profit (40,864) 775,112

S. Ablyaev T. Sviridova

Acting president Chief Accountant

23 June 2009 23 June 2009

Moscow Moscow

This summarised financial information should be read in conjunction with the financial state-

ments from which it was derived.



Balance Sheet

as at 31 December 2008

2008 2007

RUB’000 RUB’000

ASSETS

Cash and cash equivalents 5,688,268 651,404

Obligatory reserves in the Central Bank of the Russian Federation 87,362 649,423

Placements with banks and other financial institutions 1,532,373 1,152,637

Financial instruments at fair value through profit or loss

Held by the Bank 954,332 10,111,336

Pledged under sale and repurchase agreements — 142,404

Amounts receivable under reverse repurchase agreements — 1,345,656

Loans to customers 18,222,482 15,904,823

Available-for-sale assets

Held by the Bank 2,717,032 24,080

Pledged under sale and repurchase agreements 160,350 —

Held-to-maturity investments 2,214,699 —

Investments in associated company 25,000 —

Property and equipment 287,478 273,003

Other assets 121,640 81,351

Total assets 32,011,016 30,336,117

LIABILITIES AND SHAREHOLDERS’ EQUITY

Financial instruments at fair value through profit or loss — 3,869

Deposits and balances from banks and other financial institutions 2,520,530 1,624,442

Amounts payable under repurchase agreements 115,435 130,286

Current accounts and deposits from customers 18,687,505 17,505,904

Promissory notes issued 3,178,152 5,358,744

Subordinated loans 2,060,822 1,063,926

Other borrowed funds 596,269 584,322

Other liabilities 79,076 45,345

Deferred tax liability 212,171 411,052

Total liabilities 27,449,960 26,727,890

SHAREHOLDERS’ EQUITY

Share capital 573,350 498,350

Share premium 2,173,964 648,839

Revaluation reserve for property and equipment 193,960 179,094

Revaluation reserve for available-for-sale assets (621,298) —

Retained earnings 2,241,080 2,281,944

Total shareholders’ equity 4,561,056 3,608,227

Total liabilities and shareholders’ equity 32,011,016 30,336,117




Statement of Cash Flows

for the year ended 31 December 2008

2008 2007

RUR’000 RUR’000

CASH FLOWS FROM OPERATING ACTIVITIES

Interest and fee and commission receipts 3,143,005 2,646,844

Interest and fee and commission payments (1,622,617) (1,132,983)

Net (payments)/receipts from financial instruments at fair value through profit or loss (1,127,477) 45,511

Net (payments)/receipts from foreign exchange (232,581) 93,037

Other income 11,169 13,889

General administrative expenses (626,663) (512,853)

Dividend income 18,012 18,406

(437,152) 1,171,851

(INCREASE)/DECREASE IN OPERATING ASSETS

Due from the Central Bank of the Russian Federation 562,061 (111,080)

Placements with banks and other financial institutions (246,777) 185,157

Amounts receivable under reverse repurchase agreements 1,344,161 (1,045,499)

Financial instruments at fair value through profit or loss 6,284,019 (2,773,423)

Loans to customers 336,420 (1,900,818)

Available-for-sale assets (2,039,641) (24,080)

Held-to-maturity investments (2,175,360) —

Other assets (50,205) 152,754

INCREASE/(DECREASE) IN OPERATING LIABILITIES

Deposits and balances from banks and other financial institutions 842,407 (303,845)

Amounts payable under repurchase agreements (15,028) (256,326)

Current accounts and deposits from customers 1,009,283 5,911,334

Promissory notes issued (2,347,586) (1,635,860)

Other liabilities (1,400) (145,902)

Net cash provided from/(used in) operating activities before taxes paid 3,065,202 (775,737)

Taxes paid (17,321) (141,659)

Net cash provided from/(used in) from operating activities 3,047,881 (917,396)





Statement of Cash Flows for the year

ended 31 December 2008 (Continued)

2008 2007

RUR’000 RUR’000

CASH FLOWS FROM INVESTING ACTIVITIES

Net purchases of associates (25,000) —

Net purchases of property and equipment (24,937) (6,279)

Net cash used in investing activities (49,937) (6,279)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issuance of share capital 1,600,125 —

Net cash provided from financing activities 1,600,125 —

Net increase/(decrease) in cash and cash equivalents 4,598,069 (923,675)

Effect of changes in exchange rates on cash and cash equivalents 438,795 (9,222)

Cash and cash equivalents at the beginning of the year 651,404 1,584,301

Cash and cash equivalents at the end of the year 5,688,268 651,404




Statement of Changes in Shareholders’ Equity

for the year ended 31 December 2008

Sh

are

ca

pit

al

Sh

are

pre

miu

m

Re

va

lua

tio

n r

e-

serv

e f

or

pro

pe

rty

a

nd

eq

uip

me

nt

Re

va

lua

tio

n r

e-

serv

e f

or

av

ail

ab

le-

for-

sale

ass

ets

Re

tain

ed

e

arn

ing

s

To

tal

RUR’000 RUR’000 RUR’000 RUR’000 RUR’000 RUR’000

Balance at 1 January 2007 498,350 648,839 — — 1,506,832 2,654,021

Net income for the period — — — — 775,112 775,112

Revaluation of property and equip-ment, net of deferred tax liability of RUR 56,556 thousand — — 179,094 — — 179,094

Total income and expenses for the year 954,206

Balance at 31 December 2007 498,350 648,839 179,094 – 2,281,944 3,608,227

Net loss for the period — — — — (40,864) (40,864)

Revaluation of property and equip-ment, net of deferred tax liability of RUR 1,360 thousand — — 5,440 — — 5,440

Net unrealized losses on available-for-sale assets, net of deferred tax asset of RUR 155,324 thousand — — — (621,298) — (621,298)

Effect of change in the income tax rate on deferred taxes — — 9,426 — — 9,426

Total income and expenses for the year (647,296)

Shares issued 75,000 1,525,125 — — — 1,600,125

Balance at 31 December 2008 573,350 2,173,964 193,960 (621,298) 2,241,080 4,561,056




39

Full name:

Joint-Stock Commercial Bank

“NOVIKOMBANK”

Brief name:

JSCB NOVIKOMBANK

Certificate of the bank’s inclusion

in the register of banks participat-

ing in the statutory deposit insur-

ance system of 2 December 2004,

under No. 254.

Licences:

General licence to conduct

banking operations

Licence place of issue: Moscow

Name of the licensing authority:

Central Bank of the Russian

Federation

Licence No.: 2546

Licence issue date and validity:

23 September 2002,

valid indefinitely

Licence for performing banking

activities with precious metals


Licensing authority: Central Bank

of the Russian Federation

Licence No.: 2546


3 October 2002, valid indefinitely

Licence of professional partici-

pant of the securities market for

brokerage activities


Licensing authority: Federal

Securities Market Commission

Licence No.: 177-06439-100000


25 February 2003,

valid indefinitely


pant of the securities market

for dealing activities




Licence No.: 077-06443-010000


25 February 2003,

valid indefinitely



for depository activities




Licence No.: 177-06450-000100


25 February 2003, valid indefinitely



for securities management



Financial Markets Service

Licence No.: 177-10203-001000


24 May 2007 to 24 May 2010

Licence of the stock exchange

intermediary for futures and

options transactions at stock

exchanges



Financial Markets Service

Licence Nos.: 1908, 1909,1910,

2138


7 October 2008, valid indefinitely

(Nos. 1908, 1909, and 1910),

10 June 2009, valid indefinitely

(No. 2138).

General Information


Licence for activities involving

state secrecy information


Licensing authority: Russian

Federal Security Service

Department for Moscow

and the Moscow Region

Registration No.: 7797


from 14 September 2005

to 14 September 2010

Licence to take measures

and/or provide services

to protect state secrecy

information

Licence place of issue:

Moscow


Federal Security Service

Department for Moscow

and the Moscow Region

Registration No.: 7798


from 21 September 2005

to 14 September 2010

Licence for distribution

of encoding devices



Federal Security Service Centre for

State Secret Licensing, Certification

and Protection

Registration No.: 3624 R


29 December 2006

to 29 December 2011

Licence to perform

technical maintenance

of encoding devices


Licensing authority:

Russian Federal Security Service

Centre for State Secret Licensing,

Certification and Protection

Registration No.: 3623 Х


29 December 2006

to 29 December 2011

Licence to render information

encoding services



Federal Security Service Centre

for State Secret Licensing,

Certification and Protection

Registration No.: 3625 U


29 December 2006

to 29 December 2011

General Information

Contact information:

JSCB NOVIKOMBANK

4/4 Yakimanskaya Emb., Bld. 2, Moscow, 119180

Tel.: (495) 974-71-87

(499) 230-33-43

Fax: (495) 969-20-65

www.novikom.ru

Annual

Report

2008







on are reliability, quality, efficient growth and


with customers.

NVK AR08E 151009 - Новикомбанк · and the banking system in particular, will resume...

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Transcript of NVK AR08E 151009 - Новикомбанк · and the banking system in particular, will resume...