Management

2009 was an extremely complicated year for the entire banking system due to development of crisis trends in the economy.  In this difficult time AK BARS Bank took timely measures to minimize the impact of negative market tendencies upon the development of its activity and as a result successfully achieved the majority of the prognostic figures, stipulated by the annual financial plan and the plan of strategical anti-crisis steps. Top priority steps of the Bank were aimed at liquidity and liability base support, diversification of loan portfolio, optimization of bad loans. The Bank attached particular importance to the question of capital security. In 2009 the Bank issued additional shares having increased its authorized capital by 9 billion rubles. As a result the authorized capital of the Bank amounted to more than 28 billion rubles.

In the reporting year the Bank also paid particular attention to the improvement of the internal control system and the development of banking risk management, focusing its efforts on determining risk profiles, evaluation of the effectiveness of control and risk management system, as well as to the preparation and conduct of stress-testing of AK BARS Bank and its banking group.

During 2009 the Bank systematically worked to change the general system of staff motivation, taking into consideration the labor remuneration system corresponding to the current market situation as an important anti-crisis management tool.

AK BARS Bank preserved its commitment to strategic objectives having changed some directions of its development. We believe that customer-oriented approach to banking business will be especially effective towards restoration of the world economy as it will provide the opportunity for the further successful development of both our clients and the Bank.
 
In conclusion, on behalf of the Board of Directors, I would like to express special gratitude to the shareholders of the Bank for their support and to thank all the staff for their professionalism and invaluable contribution to the Bank’s development. I would also like to thank clients and partners of AK BARS Bank for their trust and to wish them success in 2010.

Yours sincerely,
Chairman of the Board of Directors
Of AK BARS Bank
Robert Musin

Dear customers and partners of AK BARS Bank!

One more year, the sixteenth year of AK BARS Bank activity finished. Sixteen years for a person as well as for a bank is the complicated age; transition from childhood into adult life, formation of one’s own style and moral values. During these years the Bank has turned into a recognizable and a respectable brand in the Republic of Tatarstan as well as outside it. Responsibility and reliability became the distinctive features of AK BARS Bank brand. Client-centered approach and high corporate standards of quality deserved trust on the clients’ part and won respect of the colleagues. We can assert that AK BARS Bank rightfully occupied the leading positions on the market of financial services and gained reputation of a reliable business partner.
2009 was a rough year for Russia. Deterioration of foreign trade environment became a serious challenge for the economy, aroused export downfall, withdrawal of capital, and, in the long run, led to a significant decrease in industrial production, trade and investment sphere. The consequences of the world crisis influenced the figures of credit institutions activity: asset growth of the banks slowed down, the growth rate of legal and physical persons funds dropped, loans to population declined significantly.
At the same time, the system of anti-crisis measures taken in the republic allowed to achieve a positive tendency, to show a better dynamics if compared to all-Russian figures. The downtrend was reversed almost in all sectors of economy of the Republic of Tatarstan. Owing to active state policy the leadership of the republic managed to solve the most important task – to preserve the life quality level reached before 2009. 
AK BARS Bank maintained its profitability according to the results of 2009. The capital of our Bank increased by 28,8% for the past year and made up 36,4 billion rubles. Total assets of the Bank increased by 4,4% and reached 226,6 billion rubles in value terms. Deposits of legal entities increased by 6,5 billion rubles to 89,8 billion rubles, whereas the growth rate of deposits of legal entities made up 7,8%. Deposits of population increased by 32,7%  and amounted to 31,4 billion rubles. In addition, AK BARS Bank successfully placed eurobond issue in the amount of USD 280 million for 3 years, which will further allow to develop the business more dynamically.
The trust of our customers became an important factor of our success; focus on their interests has always been the main principle of the bank’s activity. Dear friends! I want to thank you – our customers, investors and partners for the trust and long-term fruitful cooperation with AK BARS Bank, which, I am sure, will in prospect be as effective and mutually beneficial as before. Indeed, the choice of our customers is a reasonable time-tested decision and harmony of interests.


Yours faithfully,
Robert Minnegaliev
Chairman of the Management Board of AK BARS Bank