AK BARS Bank's Milestones

Joint Stock Commercial AK BARS Bank was acknowledged one of the major Russian banks in the final analysis of the year 2008. According to the data, published by RBC-Rating Agency, as per net assets the Bank takes the 20th place among 500 leading Russian banks. Net assets of AK BARS Bank made up 210 774 mln RUR as of 01.01.09, which is 37,37% more than the indicator of the previous year – 153 436 mln RUR. Moreover, the Bank is one of the major financial institutions pursuant to such indicators as branch network, deposit portfolio and credit portfolio.

«Finance» magazine assessed for the first time the financial stability of 100 leading Russian credit organizations. AK BARS took the 16th place.

Several indicators characterizing capital, liquidity, assets and liabilities were taken into account in compilation of the rating. The Bank was dynamically developing lately raising its market positions on basic indices. Having this advantage at its disposal AK BARS will keep on upholding the title of a reliable Russian bank.

All-Russia Banker Day was held in Moscow on November 24, 2008.

About 250 heads of major Russian banks, top representatives of Russian Federation authourities, heads of federal establishments, renowned public figures, scholars, managers of leading mass media took part in the evening party dedicated to 20th anniversary from the foundation day of the first Russian commercial banks. Presentation of awards of National Banking Premium became the central event of the celebtration. The Association of Russian banks and «National banking journal» are the founders of the premium.The award was granted in 10 nominations. According to the verdict of the expert council the Chairman of AK BARS Bank Management Board Robert Minnegaliev was declared the awardee of a nomination «For effective bank management»

An extraordinary meeting of AK BARS Bank Board of Directors took place on October 7, 2008. A decision to increase the number of members of AK BARS Bank Board of Directors up to 12 people was made there. Sorokin Valery Yurievitch — the representative of the minoritary shareholder «Svyazinvestneftekhim» open was included in the Board along with the members of the Board of Directors elected at the Annual meeting of shareholders of the Bank on June 18, 2008.

Central Bank of Russia declared a list of credit institutions which guarantees can be collateral under loans issued by CBR. According to the report placed on the official site of the bank, the list is presented by banks that meet all the requirements regarding levels of international rating.

Fitch Ratings-London/Moscow- 28 October 2008: Fitch Ratings has today assigned AK BARS Bank’s (Ak Bars) RUB5bn Series 4 and RUB3bn Series 3 senior unsecured notes final Long-term ‘AA-(minus)(rus)’ ratings. Ak Bars is rated Long-term Issuer Default (IDR) 'BB' with a Stable Outlook, Short-term IDR 'B', Individual 'D', Support '3' and National Long-term 'AA-(minus)(rus)' with a Stable Outlook

The RUB5bn five-year and RUB3bn three-year notes both have a put option in April 2010. The bank’s obligations under the notes are ranked at least equally with the claims of other senior unsecured creditors of Ak Bars. Under Russian law, the claims of retail depositors rank above those of other senior unsecured creditors. At end-2007, retail deposits accounted for 17% of Ak Bars’ total liabilities, according to the bank’s audited IFRS accounts.

On the 4th of September AK BARS Bank opened a new branch in Veliky Novgorod. According to the National Bank of the Republic of Tatarstan an entry was made to the Book of State Registration of credit institutions under number 2590/47. The branch’s Statute conforms to all requirements established by federal laws and regulations of the Bank of Russia as well as to the Statute of AK BARS Bank.
Thus, AK BARS Bank has 43 branches - 20 in the Republic of Tatarstan and 26 in the Russian Federation. .

There is now a new branch of AK BARS Bank on the Russian banking map. The new branch became effective on the date of it’s state registration and has identification number-2590/40. Within the  Republic of Tatarstan Bank`s branch net includes 19 branches in the largest cities of Russia: Moscow, Saint-Petersburg, Barnaul, Ekaterinburg, Izhevsk, Ioshkar Ola, Krasnoyarsk, Nizhniy Novgorod, Novosibirsk, Omsk, Perm, Samara, Tolyatti, Tyumen, Ulyanovsk, Cheboksary, Chellybinsk, Orenburg, Krasnodar.

Fitch Ratings has today upgraded AK BARS Bank’s (Ak Bars) Long-term Issuer Default rating (LT IDR) to ‘BB’ from ‘BB-’ (BB minus) and National Long-term rating to ‘AA-(AA minus)(rus)’ from ‘A+(rus)’. The Outlooks on the LT IDR and National Long-term rating remain Stable. At the same time Fitch has affirmed the bank’s other ratings at Short-term IDR 'B', Support '3' and Individual 'D'.

The upgrades follow the Republic of Tatarstan’s (RT) upgrade today to Long-term ratings ‘BBB- (BBB minus)’/Stable Outlook from ‘BB+’, and therefore the higher ability of RT to provide support to Ak Bars, in case of need. In Fitch’s opinion, RT would have a strong propensity to support Ak Bars in the light of the government’s control of the bank, the long-standing close relationship between the government and Ak Bars, the servicing by Ak Bars of RT accounts, the bank’s extensive retail franchise in the republic (1.4 million individual depositors) and its overall importance to RT’s banking system.

Ak Bars was founded by the Tatarstan government in 1993. It is the largest bank in the republic by assets and was among the 20 largest banks in Russia at end-2007. The RT indirectly controls a large majority of the bank’s shares. Ak Bars is diversifying its franchise into the retail market and rapidly expanding its loan portfolio outside the republic.

As of 25.04.2008 the Bank has 40 branches – 20 in the Republic of Tatarstan and 20 in the Russian Federation (Moscow, St. Petersburg, Nizhny Novgorod, Ulyanovsk, Yoshkar-Ola, Cheboksary, Izhevsk, Ekaterinburg, Togliatti, Samara, Omsk, Chelyabinsk, Krasnoyarsk, Barnaul, Tyumen, Perm, Novosibirsk, Orenburg, Krasnodar, Tomsk).

According to the Internet portal «RBC.Rating» AK BARS Bank was included in top ten of the most affiliated Russian banks as of 2007.It held number six among the 237 offices

The preliminary results of the Bank’s activity during 2007 are known at the moment. As of 1st January 2008 the Bank’s assets amounted 156,1 bln roubles, equity capital – 27,2 bln roubles. The total amount of the loans granted to individuals came to 19,5 bln roubles as of 1st January 2008 (annual growth amounted to 98,4%). The amount of the raised funds of individuals came to 24,9 bln roubles (annual growth amounted to 27,5%). As of 1st January 2008 the loan portfolio of the corporate customers amounted 93,1 bln roubles, the amount of the raised funds of corporate customers came to 66,3 bln roubles. The 2007 balance sheet profit reached 2,416 bln roubles.

Publishing house ‘Commersant’ has published almanac ‘Commersant – First rating’ with the results of Russian banking market analysis.
AK BARS Bank is ranked 15th among Russian banks in terms of own capital (27 027 571 thousand of roubles as of 1 October 2007).
The Bank’s net assets amounted to 145 845 331 thousand of roubles as of 1 October 2007.

Moody’s assigns a bank financial strength rating of D- to AK BARS Bank, which translates to a Baseline Credit Assessment of Ba3. The rating is underpinned by the bank’s strengthening franchise through its geographical and segment diversification.

Moody’s assigns a global local currency (GLC) deposit rating of Ba2 to AK BARS Bank. This rating is supported by AK BARS Bank’s Baseline Credit Assessment of Ba3 as well as by the Ba1 rating of the Republic of Tatarstan’s government – AK BARS Bank majority shareholder and its underlying support provider. Moody’s assesses the probability of  parental support from the Republic of Tatarstan’s government as being high, based on bank’s importance to Tatarstan’s economy. The bank’s GLC deposit rating thus receives a on-notch uplift from its baseline Credit Assessment.

As of 05.03.2007 the Bank's loan portfolio exceeded 10 billion roubles. From the beginning of the year the portfolio of mortage increased by 10% and amounted 2781 million roubles.

The international rating agency Fitch Ratings upgraded ratings of AK BARS Bank: national long-term rating from "A-(rus)" to "A+(rus)", long-term from "B+" to "BB-" and the rating of support from "4" to "3". The agency confirmed another bank's ratings: short-term "В", individual "D". A forecast for long-term rating is Stable.

At the end of January AK BARS Bank paid off coupon yield in amount of 61 710 000 roubles on a second issue of unconvertible documentary bearer bonds issue with obligatory centralized depositing. The bonds of AK BARS Bank with 3 year period of circulation were placed in January 2006, the amount of lending is 1 500 million roubles. The rate of second coupon is 8.25% per year.

The Central Bank of The Russian Federation (Bank of Russia) registered the report on the results of additional issue of shares of AK BARS Bank for the amount of 11 billion 200 million roubles. AK BARS Bank signed Syndicated Loan Agreement in amount of USD 140 million. The initially declared amount comprised USD 100 million. 21 bank from 12 countries participated in the Facility. ABN AMRO Bank N.V. and Deutsche Bank AG, London Branch performed as lead Managers of the Facility. The Loan is granted at rate LIBOR + 1.3% for a period of one year with possible prolongation. 11 billion 200 million nominal non-documentary chares of AK BARS Bank with nominal value of 1 rouble were placed. The shares were placed at nominal value. As a result of additional issue of shares AK BARS Bank's authorized capital will make up 19.215.396.326 Russian roubles.

AK BARS Bank and Gazprombank as lead managers placed issue of bonds of OO Promtractor-Finance with nominal value 3 billion roubles. According to information from Reuters, The Bank magazine is preparing the publication the list of Top 300 European Banks. AK BARS Bank is ranked 300 as per capital and 425 as per assets.

The Board of AK BARS Bank confirmed The Concept of Corporate Business Development for a period till 2010, which determined the main principles of products development, approach to clientele segmentation.

AK BARS Bank signed Syndicated Loan Agreement for a period of 18 months at rate LIBOR + 1,7. Bank Austria Creditanstalt AG and WestLB, London Branch perform as Lead Managers of the Facility.

On a map of AK BARS Bank's branch network one more city, Perm, was established. The information about the branch was recorded in the Book of state registration of credit organizations. The Perm branch was assigned serial number 2590/37. The information about Western-Siberian branch of AK BAR Bank (Tyumen) was recorded in the Book of state registration of credit organizations. AK BARS Bank provided a mandate to Bank Austria Creditanstalt AG (Austria) and London branch bank WestLB to attract the amount of 50,000.00 in syndicated credit over a period of 18 months. The credit funds will be used for financing trading contracts of the clients.

Since the beginning of the year the Bank's retail loan portfolio increased by more than 50% and as of June 01, 2006 amounted to 1 233 million roubles. The result is natural, as the Bank worked simultaneously in three mortgage programs: classic mortgage, own mortgage program and social mortgage. AK BARS Bank's retail portfolio exceeded USD 225 million since the year-begining (increase by 43% for 5 months). The amount of individual deposits reached USD 570 million as of 01.01.2006. (increase by 13% for 5 months). The new edition of the Charter and resolution "About the Board of Directors of AK BARS Bank" was authorized. The structure of the Board of Directors was determined to be 16 persons. Thus, for the first time the Baord of directors included 2 independent directors - Ruben Vardanyan (Strategy Adviser of JSC Troika Dialog, Chairman of the Board of Directors of JSC "Sykhoi") and Sarah Carey (senior partner Squire, Sanders and Dempsey L.L.P., Washington). Musin R.R. was elected as the Chairman of the Board of directors of AK BARS Bank.

АK BARS Bank is ranked number 1 by terms of loans issued to the small- and mid-sized businesses in the list of the Russian banks. In 2005, AK BARS Bank won the tender arranged by the Investment-Venture Fund of the Republic of Tatarstan for issuing 100 million roubles to the small- and mid-sized businesses and is actively developing this direction. The Bank issues loans for the period of three years applying preferential interest rates. The Bank retired its bonds of the first issue. The bonds issue to the amount of 500 million roubles was placed in MICEX in April 7, 2004. AK BARS Bank fulfilled all it commitments to the bonds holders. Total coupon income paid by the Bank amounted to more than 56 million roubles. Funds raised from the borrowing were directed to financing of the investment programs connected with housing construction. The Bank placed the second issue of its bonds to the amount of 1,5 billion roubles. in January 2006 with tenor of 3 years.

AK BARS Bank placed bonds to the amount of 1,5 billion roubles. The arranger and underwriter of the issue was AK BARS Bank. The syndicate of co-arrangers was presented by the Khanty-Mansiysky Bank, International Bank of Reconstruction and Development, NOMOS-BANK, Tatfondbank. FitchRatings assigned to the AK BARS Bank three-year bonds issue to be amount 1,5 billion roubles the national long-term rating A- (A minus) (rus). The Bank has the following ratings assigned by FitchRatings: long-term B+, short-term B, individual D, support 4 and national long-term A- (rus). Outlook is stable. АK BARS Bank and Commerzbank AG started realization of the loan agreement. According to this agreement Commerzbank AG will finance for 5 years export deliveries of the equipment from Germany for car assembling. The agreement was signed in November 2005 and was approved by HERMES.

АК BARS Bank, which has a status of VISA International Associate Member, begin to issue VISA cards for individuals.АК BARS Bank, which has a status of VISA International Associate Member, begin to issue VISA cards for individuals.

The framework agreement between AK BARS Bank and the largest bank of Switzerland - UBS AG, Zurich inured. With the framework commercial contracts of Russian enterprises on purchasing equipment from Switzerland and other countries of Economic Cooperation Organization will be financed, as well as the development under guarantees of export insurance agencies of these countries. Financing is granted on the amount of CHF 30 mln.

АК BARS Bank placed a debut eurobond issue on USD 175 million on Dublin stock exchange. The period of circulation is 3 years, rate - 8% annually. Deutsche Bank AG became a lid-manager of the loan. FitchRatings upgraded AK BARS ratings to Long-term "B+" from "B" and National Long-term to "A-(A minus)(rus)" from "BBB(rus)". The agency affirmed the Bank's other ratings: Short-term "B", Support "4" and Individual "D". Moody's Investors Service was the second agency which assigned international ratings to AK BARS Bank: Ba3 long-term and Not-Prime short-term foreign currency deposit ratings and an E+ (E plus) Financial Strength Rating (FSR). The outlook for all the ratings is stable.

The Bank signed a credit agreement with a syndicate of banks on raising USD 30 million. The arrangers - Commerzbank AG and Standard Bank. The syndication participants - 16 foreign and Russian banks. The amount raised exceeded the starting amount and reached US$ 45 million.

Bankgesellschaft Berlin AG (Germany) opened AK BARS Bank uncovered credit line for EUR 3 million. for 2 years for documentary operations.

AK BARS Bank became the arranger and underwriter of the bond loan of ООО Promtractor-Finance. During placing on auction were satisfied applications with total nominal value 1 500 million roubles. As a result of this auction the yield of bonds amounted 10,7 annually. Со-arrangers and со-underwritters became such large gamblers of Russian financial market as AKB ROSBANK, ОАО Bank of Moscow, ООО BK REGION, AB ОRGRESBANK (ОАО); ОАО IК RUSS-INVEST.

FitchRatings agency upgraded the Bank’s ratings: long-term from „В-“ up to „В“ national long-term from "ВВ+r(us)" up to "ВВВ(rus)". Rating of support was also upgraded from "5" up to "4".

AK BARS Bank got a status of VISA Associate Member. The decision was made at the session of the leaders of CEMEA region of VISA Int. Associate Member status gives the Bank the right to issue all types of VISA cards.

AK BARS Bank with another 11 banks (Vneshtorgbank, Alfa-Bank, Zenit, Petrokommerz, Gazprombank, DeltaBank, First Czech Russian Bank, Rosbank, Citibank, Yuniastrumbank, Impexbank) became a member of the National bureau of credit histories. The main strategic partner of the NBCH is an Amercan-Italian company TransUnion CRIF.

FitchRatings agency upgraded the Bank’s ratings: individual — from „D/E“ level up to "D" level and national long-term - from "ВВ(rus)" up to "ВВ+(rus)". At the same time, the agency affirmed the Bank's other ratings: long-term „В-“, short-term „В“ and rating of support "5".

The Central bank of Russian Federation registered interest unconvertible documentary bearer 02 series obligatory centralized depositing bond issue with nominal value 1 000 roubles. Total amount of issue aggregated 1.5 billion roubles.

In 2004, AK BARS Bank earned profit to the amount of 603,8 million roubles. Its equity amounted to 9 453 million roubles at year-end. The Bank’s assets increased by 16 909 million roubles and reached 38 305 million roubles by the end of the year.

The Bank of Russia adopted a decision on the Bank’s compliance with the requirements with regard to its participation in the deposit insurance system.

The report on the results of the additional issue of the ordinary nominal non-documentary shares of AK BARS Bank was registered. The issue amount was 8 015 396 326 roubles, additional share issue included.

AK BARS Bank and Komercni Bank signed a EUR 11,9 million interbank credit agreement for 5 years. The partnership is directed at financing of the equipment delivery for modernization of the outdoor lighting in Kazan.

AK BARS Bank presented the first line of its processing center. The system is intended for plastic card processing, has no analogue in Tatarstan by its technique and is highly competitive with processing centres of foreign banks. The processing potential enables the Bank to increase the issue volume up to 1 million, the number of ATM — up to a thousand and in future to realize the idea of the integral payment space in Tatarstan.

AK BARS Bank offered a new information system of the remote banking — „Telephone-Client“ for providing on-line twenty-four-hour information delivery about the client’s account on on-line basis.

AK BARS Bank was arranger and underwriter of the „Tattelekom“ bond issue. The amount - 600 million roubles, matiruty - 1081 days.

The Bank offered its bond issue for the total amount of 500 million roubles. The arranger and underwriter of the issue was Bank „ZENIT“.

AK BARS Bank celebrated its 10-th anniversary.

AK BARS Bank was co-underwriter of the bonded stock of the company JFC International. The arrangers of the bonds issue were OJSCB IBG „NIKoil“ and JSCB "Menatep St-Petersburg". Co-underwriters — OAO "Ural-Siberian Bank" and AK BARS Bank.

AK BARS Bank developed mortgage lending program. Among the products offered by the Bank are loans both of classical mortgage and non-traditional schemes of retail lending.

The Bank developed and started realization of the 3-year plan of branch net development.

The Bank’s branches in Moscow and St-Petersburg were registered.

Since year-beginning private deposits opened with AK BARS Bank increased by 2,3 times and their total volume exceeded 3 billion roubles.

AK BARS Bank became a member of the Russian Trade System.

AK BARS Bank received the second tranche of the syndicated loan facilities arranged by Raiffeisen Zentralbank Österreich AG (Vienna) and ZAO Raiffeisenbank Austria (Moscow). The loan facilities amounted to USD 14 million.

The Bank launched the „Client-Bank“ System for managing settlement accounts via Internet canals.

For the first time in its history AK BARS Bank received international ratings of the world rating agency. International rating agency FitchRatings assigned to AK BARS Bank the following ratings: short-term rating „В“, long-term rating „В-“, individual rating „D“ and support rating "4Т". The forecast of the long-term rating — stable. AK BARS Bank became the 24-th Russian bank which received the ratings of the prestige world agency.

15 million USD term loan facility agreement for AK BARS Bank was signed. Arrangers: Raiffeisen Zentralbank Österreich AG and ZAO „Raiffeisenbank Austria“. Credit resources were directed for financing of clients - companies of the real sector of economy.

The Bank received approvals on uncovered limits and signed agreements with export credit agencies HERMES (Germany), CECSE (Spain), OND (Belgium), EGAP (Czechia), ECGD (Great Britain) и Ex-Im Bank (USA). This allowed to attract foreign investments for financing of the Bank’s clients for the total amount of up to USD 70 million.

AK BARS Bank and Hypo-und Vereinsbank AG (Germany) signed an additional agreement on increasing of the financing limit of the Bank’s clients foreign contracts from EUR 5 million to EUR 20 million.

AK BARS Bank and Banco Bilbao Vizcaya Argentaria (Spain) concluded a framework agreement for financing of export contracts totalling EUR 25 million.

The documentary bonds of the first issue of OAO „Taif-Telkom“, placed in 1999 were redeemed. The Bank invested its funds and purchased 3% of the total amount of this issue.

AK BARS Bank participated in the 250 million roubles bond issue of OAO „Brewing company "Krasny Vostok“.

At the end of 2001, AK BARS BANK balance sheet profit amounted to 252,3 million roubles, indicating a 82% growth as compared to 2000 year-end results.

Regional branch of the Federal Commission on Securities in the Republic of Tatarstan registered the issue of OJSC „Holding company "Tatnefteprodukt“ bonds totalling 50 million roubles. AK BARS Bank was underwriter and financial consultant of that issue.

The framework agreement between Bayerische Hypo- und Vereinsbank AG (Germany) and AK BARS Bank for project financing to the amount up to EUR 5 million was signed.

In accordance with the Act of the President of the Republic of Tatarstan the Bank was included in the list of the 24 companies strategically important for the republican economy.

Since 2000 the total amount of loans issued by AK BARS Bank to small- and mid-sized companies exceeded 00 million roubles.

The Bank was accepted into the section of the futures market (standard contracts) of MICEX as an individual clearing member.

The Bank’s profit for 2000 amounted to 138,6 million roubles, it was by 35% more compared with the 1999 profit.

The Bank’s total corporate customers exceeded 14 thousand.

The Bank together with a number of the large trading companies of the city of Kazan started realization of the large-scale lending program for purchasing of consumer goods.

The Bank completed networking of the Bank’s outlets to the integrated accounting-information system.

According to the economic news agency by the results of the 1-st quarter of the year AK BARS Bank was among the most active and stable companies and banks.

Bank started issuing plastic cards of the „Union Card“ system.

AK BARS Bank introduced a new service to corporate and private clients — safe-deposit boxes.

AK BARS Bank started issuing international Eurocard/MasterCard and Cirrus/Maestro credit cards.

Information-dealing system „Reuters-3000“ was put into operation.

B.C.E.N.-EUROBANK (Paris, France) was the fist bank which established for AK BARS Bank an uncovered credit line.

Belgium Export Credit Agency (NDO) approved EUR 5 million export credit issued by the leading Belgium bank KBC Bank NV for financing of purchase of Case-New Holland harvestors for the Republic of Tatartsan.

The Bank received the license of the international association „Europay International“ for issuing international plastic cards MasterCard, Cirrus/Maestro.

The Bank became a member of the Association of Russian banks and entered the international money transfer system WESTERN UNION.

The Russian Federation State Custom Committee included the Bank in the list of banks having the right to act as guarantor to custom bodies.

The decision on merger of Interkamabank (Nizhnekamsk, Tatartsan) and AK BARS Bank was adopted.

The Bank’s branches in the cities Elabuga, Mendeleevsk, Nurlaty, Zainsk (Republic of Tatarstan) and in the industrial communities Aznakaevo and Arsk (Republic of Tatarstan) were registered.
The Bank entered the Association of participants of promissory notes market.

The Bank received the Central bank license for executing operations with precious metals.

The Tatarstan government ranked AK BARS Bank as a backbone bank of the republic.

The Central bank of Russia registered the 5-th issue of the Bank’s shares. The Bank's Share capital increased by 1,5 billion roubles and amounted to 2 billion roubles.

The Bank became a SWIFT-member.