Portrait of the Bank

Annual report 2010

# Portrait of the Bank

Offering an individual service for corporate clients and individuals, Bank Vozrozhdenie provides financial services across the whole of Russia. With a history dating back to 1991, the Bank is one of the largest financial institutions in Russia today and has been among the country’s top 30 banks for 18 years in a row.

Bank Vozrozhdenie’s network consists of 173 branches and 730 ATMs in 21 Russian regions, primarily those in the European part of the country: Moscow Region and the Southern and North-West areas of the country.

The Bank serves around 60,000 corporate clients and 1.5 million retail clients, offering a varied range of services that include deposits, cash management, business financing, mortgage and consumer lending, and bank cards. One particularly noteworthy feature is the loyalty of clients, many of whom have been with the Bank for 20 years.

Bank Vozrozhdenie’s strategy is based on developing its competitive advantages, a business that generates stable fees and commission income and its small and medium-sized enterprise (SME) programs, using a solid funding base, customer funds. The Bank adheres to a conservative risk-management policy, which has enabled it to emerge from all of the financial crises in modern Russian history without losses.

In December 2010, authoritative UK magazine The Banker (a Financial Times publication) named Bank Vozrozhdenie as Bank of the Year in Russia.

Bank Vozrozhdenie is one of the few financial institutions in Russia whose shares are traded on local and international stock exchanges. Over 9,000 individuals and legal entities are among its shareholders, and many have been investors for over 15 years. The Bank shows an unwavering commitment to observing the rights and interests of its shareholders, and year after year it is acknowledged as one of the leaders on Russia’s financial market in terms of corporate governance.

Bank Vozrozhdenie has published financial statements according to Russian Accounting Standards and International Financial Reporting Standards since 1991. Its external auditor is PricewaterhouseCoopers Audit. The Bank has long-term credit ratings of ‘Ba3’ from Moody’s and ‘B+’ from Standard & Poor’s.

## Market positions 1

- 3rd by loans to the SME sector
- 6th by volume of mortgages originated
- 11th by bank cards issued
- 13th by individual deposits
- 18th by number of ATMs
- 20th by loans to legal entities
- 20th by volume of loan portfolio
- 497th worldwide by brand value 2

Key business results | 2010 | 2009 | Change
--- | --- | --- | ---
Assets, RUB billion | 166,2 | 145,6 | 14,1%
Loan portfolio (excluding provisions), RUB billion | 104,0 | 85,2 | 22,1%
Retail client funds, RUB billion | 85,2 | 68,6 | 24,2%
Income, RUB billion | 0,6 | 1,2 | -50,0%
Capital adequacy | 15,2% | 19,0% | -3,8 ï.ï.
ROE | 3,5% | 7,8% | -4,3 ï.ï.
Number of retail clients, ‘000 | 1 546 | 1 503 | 2,9%
Number of corporate clients, ‘000 | 60 | 56 | 7,1%

#### Credit ratings

Agency | Type | Rating | Outlook
--- | --- | --- | ---
Moody’s Investors Service | Foreign-currency deposit rating | Ba3/NP | Stable
| Local-currency deposit rating | Ba3/NP | Stable
| Financial stability | D- | Stable
Standard & Poor’s | Financial stability | B+ | Positive
| Short-term counterparty credit rating | B | Positive
| National-scale rating | ruA+ | Positive
Moody’s Interfax | Long-term national-scale credit rating | Aa3.ru | Stable

The financial results in the table “Key business results” are according to IFRS, as are all other figures in this report.

#### Dynamics and structure of assets, RUB million

#### Dynamics and structure of liabilities, RUB million

Download XLS |  | Download XLS

#### Structure of assets

#### Structure of liabilities

Download XLS |  | * Operating income excluding provisions for loan write-offs. Download XLS

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© 2011 Bank «Vozrozhdenie»