INVESTMENT HIGHLIGHTS

AK BARS Bank No. 1 in Tatarstan¹, with extensive local and federal network. (‘BBB’ Long-term foreign and local currency international-scale ratings of the Republic of Tatarstan. Outlook: Negative²).

Operating in one of the most economically developed regions in Russia:

Gross regional product (GRP) growth rate of 2% in 2013 vs. 1,3% (GDP) in Russia as a whole.
‘Tatarstan leads Top-30 list of best regions for doing business in Russia’. Forbes Magazine, May 2011.

Strong relationship with Tatarstan Government:

As at 30 June 2014, the Republic of Tatarstan, a constituent of the Russian Federation, ultimately controlled the Bank through Ministries, Government Agencies and related Companies.
AK BARS Bank is an official agent of the Government of the Republic of Tatarstan.

Dominant market position in the Republic of Tatarstan:

According to the Central Bank of Russia (July, 2014), AK BARS Bank represents 37.0% of total assets and 45% of total capital in the Republic’s Bank sector.
Top-20 bank in Russia; 18th by assets and 16th by equity. Profile Magazine, 1st November, 2014.

Extensive branch network in Tatarstan and across Russia:

Broad geographic footprint in 31 regions in Russia.
Ranked 11th largest distribution network in Russia with 44 branches and 352 other offices. (Central Bank of Russian Federation, as of 1st July, 2014 excluding Sberbank network).

Tailor-made clientele approach.

Effective infrastructure for asset investments and properties (Asset Management and Unit Funds).

Strong and experienced Management Team.

According to the ‘Bank Bulletin’, published by the National Bank of the Republic of Tatarstan, as at 1st July, 2014, AK BARS Bank ranked 1st in the Republic of Tatarstan by assets.
By ‘Fitch Ratings’ – 25 July, 2014

AK BARS Bank: RECENT DEVELOPMENTS:

December, 2014:
- AK BARS Bank successfully issues BО-04 series 5 bln. ruble bonds maturing in 3 years with allocation at Moscow Exchange
- AK BARS Bank successfully closes its mortgage portfolio securitization deal within the issue of mortgage-backed bonds in the amount of RUB $2.5 bln. under the Programme of Vnesheconombank - Investment in Affordable Housing Construction Projects and Mortgage Lending in 2010-2013
April, 2014: AK BARS is one of the first Russian banks to receive the status of a Participating Financial Institution in accordance with the U.S. Foreign Account Tax Compliance Act (FATCA), and an individual identification number ZDFUFB.00000.LE.643 (GIIN)
December, 2013: AK BARS Bank raises US$ 100,000,000 within Murabaha facility (Bloomberg <BF1230254>) Corp Go). The deal was awarded by special honorable prize as Europe’s Best Deal of the Year.
August, 2013: AK BARS Bank issues 5 bln. BO-03 series ruble bonds.
June, 2013:MICEX has authorized the trading of three-year bonds issued by AK BARS Bank worth a total of 13 bn. rubles
March, 2013: AK BARS Bank issues 5 bln. BO-02 series ruble bonds.
November 2012: AK BARS Bank issues US$ 500 million 8.75 per cent. Eurobonds due 2015 in the form of LPN under its US$ 1.5 billion EMTN Programme.
October 2012: AK BARS Bank issues 5 bln. BO-01 series ruble bonds.
July 2012: AK BARS Bank raises US$ 600 million within the US. $1.5 billion EMTN programme, for the issuance of 8 per cent. Loan Participation Notes due 2022.
14 July 2012: According to RAS, AK BARS Bank’s total capital increased to RUB 54,437 billion and its capital adequacy ratio to 16.08 per cent
Bank’s Murabaha Islamic Financing facility (Bloomberg <BL0179715>) awarded ‘Deal of the Year 2011’ by the Islamic Finance News Awards.

AK BARS Bank: KEY RATIOS:

Key ratios	FY2009	FY2010	FY2011	FY2012	FY2013	1H2014
Net loans / deposits	164.5%	112.4%	107.6%	116.5%	110.1%	121.8%
Provisions / gross loans	11.7%	12.5%	9.4%	9.3%	8.6%	8.1%
Deposits / assets	43.3%	54.8%	57.0%	55.2%	58.5%	55.1%
Equity / assets	12.8%	12.8%	9.3%	9.0%	8.9%	8.5%
Tier 1 capital ratio	14.1%	13.2%	9.4%	9.1%	9.7%	8.8%
Total capital ratio	17.6%	16.2%	11.8%	13.6%	14.5%	13.2%

Key ratios	1H2009	1H2010	1H2011	1H2012	1H2013	1H2014
Net interest margin	3.2%	4.1%	2.2%	3.2%	2.8%	2.9%
RoAA	0.7%	(0.5%)	0.0%	0.2%	1.0%	0.0%
RoAE	7.4%	(4,4%)	0.1%	2.2%	11.5%	0.5%

AK BARS Bank: FINANCIAL HIGHLIGHTS:

(USD in millions, at constant RUB/USD exchange rate¹)

Balance sheet	2009	2010	2011	2012	2013	1H2014	GROWTH 09-1H2014
Cash and equivalents	600	497	563	1,071	1,170	981	163.5%
Securities portfolio (including direct repo)	478	924	1,407	901	1,585	1,630	341.2%
Due from other banks	107	90	102	116	28	21	19.5%
Gross loans	5,124	4,830	5,775	6,694	7,277	7,872	153.6%
Provisions	(600)	(603)	(543)	(622)	(623)	(636)	105.9%
Net loans	4,524	4,228	5,232	6,072	6,654	7,237	160.0%
Investment properties	259	682	764	787	353	352	135.6%
Other assets	384	442	464	493	532	558	145.3%
Total assets	6,352	6,863	8,532	9,439	10,322	10,779	169.7%

Due to other banks	634	323	1,201	1,114	821	1,186	187.0%
Customer accounts	2,751	3,762	4,863	5,213	6,043	5,940	215.9%
Securities issued	1,219	1,126	1,103	1,190	1,410	1,476	121.2%
Murabaha facility and Eurobonds	675	524	311	453	490	601	89.0%
Subordinated debt	202	201	200	560	603	620	306.8%
Other liabilities	60	50	57	64	38	37	62.3%
Total liabilities	5,541	5,987	7,735	8,594	9,406	9,860	178.0%
Equity	811	876	797	845	916	918	113.2%
Total liabilities and equity	6,352	6,863	8,532	9,439	10,322	10,779	169.7%

Profit and Loss Statement	1H2009	1H2010	1H2011	1H2012	1H2013	1H2014
Net Interest Income	79	110	57	103	104	122
Net fee and Commission income	15	13	15	20	20	8
Other Income	67	10	41	48	85	57
Operating profit	161	132	114	171	210	187
Operating expenses	(56)	(86)	(86)	(101)	(120)	(117)
Total profit before Provisions and Taxes	105	46	27	70	90	70
Provision for loan impairment	(123)	(45)	(16)	(36)	(30)	(68)
Profit before tax	(18)	1	11	34	60	3
Income tax	4	0	(2)	(6)	(10)	0,5
Net profit	(15)	1	9	27	50	2

1 Note: Exchange rate used: RUB/USD = 33.6306 as of 30 June, 2014.