Sitting of AK BARS Bank Board of Directors took place on April 21

Chairman of AK BARS Bank Management Board Robert Minnegaliev made a report for the members of the Board of Directors covering key development directions of financial activity of the Bank in 2008. The Bank increased the scales of its activity, consequently the assets grew by 59,9 bln RUR or by 38.1% and reached by the end of the year the size of 217,1 bln RUR. The capital including the subordinated credit made up 28,2 bln RUR. The deposits attracted grew up by 17,3% and totaled 109,6 bln RUR.

The balance sheet profit in 2008 reached the amount of 2,2 bln RUR. Net profit by the end of 2008 made up 2,1 bln RUR.

The main acceleration of the assets was provided by increase of net loan indebtedness. By 40,8 bln RUR or 34,3%. Net investments in securities increased by 12,7 bln RUR and made up 21,9 bln RUR. The growth of the portfolio arose from short-term investments into corporate indebtedness.

The Bank fulfilled in the accounting 2008 year all the obligatory standards of the activity established by the Bank of Russia for banks. No claims or penalties were received from the side of supervision and tax bodies.

The members of the Board of Directors preliminarily approved the Annual Report of AK BARS Bank for 2008, as well as recommendations for distribution of profit according to the results of the year 2008. Taking into account the current economic situation and consequences of tough economic crisis leading to rise of credit risks, effecting the decrease of the Bank’s capital, according to the clause 3.8 of the Provision «About dividend policy of Joint Stock Commercial Bank AK BARS» the Board of Directors recommended to the Annual Meeting of the Shareholders not to pay the dividends of ordinary shares of Joint Stock Commercial Bank AK BARS according to the financial results of 2008.

Moreover, the following issues were examined: the Auditor’s Report and financial statements accord to IAS, the Report on usage of the Bank’s Funds, the Report on efficiency of investments into development of territorial subdivisions of Joint Stock Commercial Bank AK BARS for 12 months of 2008 and the Report of the Controller of Joint Stock Commercial Bank AK BARS for the 1st quarter of 2009.

The members of the Board of Directors approved the Provision «About the Management Board of Joint Stock Commercial Bank AK BARS» in the new edition (concerning the specification of qualification requirements for the members of the Board), and the amendments to the Provision «About annual meeting of the shareholders of Joint Stock Commercial Bank AK BARS».

Decision was adopted about the introduction of amendments into the Statute of AK BARS Bank due to introduction of amendments in the Book of state registration of banks concerning the information about the Saransk branch.

The members of Board adopted decision to call the Annual meeting of the shareholders of Joint Stock Commercial Bank AK BARS on May 27, 2009.

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