H1 2012 IFRS ResultsBalanced growth across the board

Conference CallAugust 22, 2012

2

Net interest income was Rub 4,411 mln, up 37% from H1’11

Net fees grew to RUB 2,417 mln, up 10% from H1’11

NIM was up to 4.7% versus 3.7% in H1’11. In Q2’12 it reached 4.8%, up 12bps from Q1’12

ROE improved to 12.7% up from 8.3% in H1’11. In Q2’12 it was 14% - highest since 2008

H1 2012 Highlights

Assets up 5.9% for the quarter to RUB 193,908 mln

Corporate portfolio rose to RUB 124,002 mln, up 5.1% from Q1’12

Retail portfolio was RUB 28,274 mln, up 9.1% for the quarter

Client funds soared to RUB 151,827 mln, up 6.2% from Q1’12

NPL fell 60 bps to 8.08%; 1day+ overdues covered by 113%

Net income surged to RUB 1,204 mln, up 69,1%YoY

3

Balanced assets structure…

Assets

RUB bln

Q2'11 Q3'11 Q4'11 Q1'12 Q2'12133 137 137 144 152135 138 145 143 152

98% 99% 95% 101% 100%

Gross loans Customer fundsRUB bln

Liquid assets stood at 22% of total assets

5%

57%14%

6%0%

17%

LTD ratio at optimal levels

Corporate loan portfolio

Retail loan portfolio

Other assets

Due from other banks

Cash and equivalents

Securities

…contributes to higher yields on IEA

Q2'11 Q3'11 Q4'11 Q1'12 Q2'12

9 9 9 10 10

102 103 101 106 111

19 21 23 25 2714 17 9 14 1230 27 40 28 34

174 177184 183

194

0

Cash and equivalents

Due from banks

Securities

Retail loans

Corporate loans

Other assets

RUB bln

Q2'11 Q3'11 Q4'11 Q1'12 Q2'12

135 141 134 145 150

10.6% 10.4% 10.7% 10.8% 11.2%

Net interest-earning assets

4

26,115

63,062

63,099

Loans…consumer and mortgages – in retail

Balanced presence in all regions of interest

Moscow Oblast (41%)

Moscow (18%)

Other regions(41%)

*as of 30.06.2012

Breakdown by industry

SMEs are key growth driver in corporates…Rub bln

RUB152,276

mln

27%

19%2%

22%

1%

8%

6%4%

11%

*as of 30.06.2012

Construction Manufacturing

Agriculture

Wholesale &retail trade

Administrations

Other

Finance

Transport

Individuals

RUB152,276

mln

Q2'12Q1'12Q4'11Q3'11Q2'11

78.073.670.172.372.0

28.325.924.422.520.1

3.43.32.73.95.5

42.741.240.238.135.1

SME Individuals Administrations Large corporates

+14,7%+5,8%

Q2'11 Q3'11 Q4'11 Q1'12 Q2'12

12.1 13.6 15.4 17.0 18.5

5.86.5

6.86.8

7.6

2.22.3

2.22.2

Mortgages Consumer and auto loans Credit cards

+40,5%+9,1%

5

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

1,379 1,399

827 827 777

5.3%5.0%

4.4% 4.3%3.6%

6.9%6.2%

3.4% 3.2%2.7%

Retail

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

8,025 8,4647,769 8,263 8,120

11.0%11.3% 11.5%

11.1%10.4%

10.4%11.1%

10.7%10.8%

10.0%

SMEs

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

1,626 1,6251,980

3,400 3,400

7.0%7.6%

8.7% 8.9%

4.6%4.3%

4.9%

8.3% 8.0%

Large corporates

NPLs, RUB mln Provisions, % of total portfolio NPLs, % of total portfolio

Credit quality management

NPLs categorization: absolute improvement across all business segments

NPLs dynamics

15

Annualized cost of risk

* NPL includes the whole principal of loans at least one day overdue either on principal or interest as well as not overdue loans with signs of impairment

Q2 2012Q1 2012Q4 2011Q3 2011Q2 2011

2.24%

1.02%

1.92%2.14%

1.78%1.65%

1.02%

1.77%1.71%

1.48%

Charges to provi-sions to avg gross loans, QoQ

+ Rub 248 mln new NPLs- Rub 391 mln recoveries + Rub 138 mln new NPLs

- Rub 188 mln recoveries

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

11,030 11,48810,576 12,490 12,297

9.09%9.26% 9.44%

9.25% 9.09%

8.31%8.40%

7.70%8.68%

8.08%

NPLs, RUB mlnProvisions, % of total portfo-lio

*

RUB mln

No changes

6

Credit qualityas of 30.06.2012

Large corporate

SMEs Mortgages Other retail

Total % of total loans

Gross loans, including 42,673 81,329 18,542 9,732 152,276 100.0%

Current loans 39,273 73,209 18,268 9,229 139,979 91,9%

Past-due but not impaired, of them - 92 79 65 236 0.2%

Less than 90 days - 92 51 56 199 0.2%

Over 90 days - - 28 9 37 0.0%

Impaired, of them 3,400 8,028 195 438 12,061 7.9%

Less than 90 days 2,558 413 15 62 3,048 2.0%

Over 90 days 842 7,615 180 376 9,013 5.9%

Total NPLs 3,400 8,120 274 503 12,297 8.1%

Provisions (4,327) (8,488) (481) (548) (13,844) 9.1%

Net Loans 38,346 72,841 18,061 9,184 138,432 -

Provisions to NPLs Ratio

NPL -

113%

Rescheduled Loans

4.5%

the whole amount of loans with principal overdue for more than 1 day as well as loans with any delay in interest payments.

Provisions to 90

days+ NPLs

153%

7

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

20 19 20 22 24

69 71 72 72 7717 16 20 18 1930 32 33 31 32

Corporate deposits Retail deposits Retail accounts Corporate accounts

… driven mostly by client fundsFunding base grows in line with assets…

Liabilities and capital

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

18 18 18 19 204 4 4 4 48 9 8 7 78 6 7 8 820 19 20 22 2430 32 33 31 3217 16 20 18 1969 71 72 72 77

174 177 184 183 194

Retail deposits

Retail accounts

Corp. accounts

Corp. deposits

Securities issued

Due to other banks

Other Liabilities

Subordinated loans

Equity

RUB bln

FX structure remains matched Capital position exceeds the requirements

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 30.06.12

12.0% 11.8% 11.6% 11.9% 11.8% 11.6%

14.1% 13.6% 13.4% 13.8% 13.4% 13.2%11.4%

Tier 1 Tier 1 + Tier 2 CAR under CBR rules

(N1)

11%MIN

Assets Liabilities

Data as of June 30, 2012

RUB bln

+12.2%

+6.2%

34%

8

Financial highlights

H1’12 H1’11 Q2’12 Q1’12

Interest income 7 887 6 674 4 118 3 769

Interest expense (3 476) (3 453) (1 856) (1 620)

Fee and commission income 2 605 2 382 1 387 1 218

Fee and commission expense (188) (184) (96) (92)

Other operating income 347 285 220 127

Total operating income 7 175 5 704 3 773 3 402

Operating expenses (4 180) (3 889) (2 138) (2 042)

Provisions (1 188) (926) (830) (358)

Provisions on non-core assets (314) 2 (1) (313)

Tax (289) (179) (126) (163)

Net profit 1 204 712 678 526

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4.3% 4.6% 4.9% 4.7% 4.8%

NIM

-1,671.0 -1,569.0 -1,481.0 -1,620.0 -1,856.0

3,528.0 3,591.0 3,694.0 3,769.0 4,118.0

Interest ExpensesInterest Income

Q1’12Q2’11 Q3’11

+16.7%

Q4’11

+9.3%

+11.1%

Interest Income and

Interest Expenses, RUB bln

NIM evolution

+54 bps

Q1’12Q2’11 Q3’11 Q4’11

Q2’12

Q2’12

+14.6%

- Interest income added up 9.3% for the quarter

supported by higher rates on corporate loans

and healthy volumes of issuance. Yields on

interest-earning assets were up 35 bps QoQ to

11.2%, highest level since 2010.

- Interest expenses grew by 14.6% reflecting

higher rates across the deposit base filtering

through the P’n’L. However, pricing of retail

deposits remained stable since March 2012.

- After a moderate decline in Q1 2012 net

interest margin on total average assets picked

up 12 bps to 4.8% supported by strong

interest income. NIM for H1 2012 of 4.7%

significantly improved from 3.7% in H1 2011.

Solid interest income offsets funding costs pressure

+12bps

10

Q2'11 Q3'11 Q4'11 Q1'12 Q2'12

6.0% 5.7% 5.7%

6.3%7.2%

6.1% 5.6% 5.1%

5.3% 5.8%

0.2% 0.2% 0.2% 0.1% 0.1%

Corporate term depositsRetail term depositsCurrent accounts

4.68%

0.74%-0,46%

-0,05% -0,11%

4.80%

NIM gains on repricing of loans and depositsLoan yields surged forward… …outpacing cost of deposits

NIM decomposition

+12 bps

Spread dynamics

Q2'11 Q3'11 Q4'11 Q1'12 Q2'12

10.4% 10.2% 10.3% 10.3% 10.8%

15.8%15.7% 15.7%

14.8% 14.9%

4.1% 4.1% 3.4%5.3% 6.1%

Yields on corporate loansYields on retail loans

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

6.3% 6.4% 7.1% 6.9% 6.8%

10.6% 10.4% 10.7% 10.8% 11.2%

4.3% 4.0% 3.6%3.9% 4.3%

Interest SpreadYield on earning assets (net)Cost of funds

11

26% 24% 28% 23% 23%

40%36%

36%37% 34%

Personnel expensesOther expenses

Operating efficiency benefits from strong revenues and costs discipline

1,857.0 2,022.0 2,213.0 2,149.0 2,262.0

1,192.0 1,256.0 1,368.0 1,126.0 1,291.0116.0 148.0 178.0 127.0 220.0

-2,091.0 -2,059.0 -2,405.0 -2,042.0 -2,138.0

Net interest income Net fees Other incomeOperating Expenses

Q2’11 Q3’11 Q4’11 Q1’12

+2.2%

+19.2%+10.9%

Operating Income and Expenses, RUB bln

Cost to Income before

provisions,%

-9.4 pps

Q2’11 Q3’11 Q4’11 Q1’12

+4.7%

Q2’12

Q2’12

- All components of operating income

demonstrated positive dynamics with net

interest income up 5.3% and net fees up

14.7% on the back of strong business activity.- Conservative trading portfolio preserves the

bank from significant losses during financial

markets turmoil, while gains from trading in

foreign currency on the back of turbulent

exchange rate brought trading income up

25%.

- Development of operating expenses in Q2’12

(+4,7% compared to Q1’12) fully complies

with the bank’s focus on cost control in 2012

– personnel costs were almost flat QoQ. On a

YoY basis operating expenses in Q2’12

increased just 2.2% mostly driven by

expenses on IT infrastructure.

- Continued improvement of cost efficiency and

stronger revenues supported the recovery of

cost to income ratio to 56.7% in Q2 2012 from

66.1% for the same quarter of 2011.

60%64%60%

66%

57%

12

Share of non-interest income in total operating income b.p.

54%

17%

24%

5%Chart Title

53%

17%

26%

4%

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

340 353 414 326 377

291 310337

256304

226 245253

219250

335 348364

325360

1,192 1,2561,368

1,1261,291

Settlements Cash transactions Other Cards

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%

25%

19%20%

24%

39%vbank

peer 1

peer 2

peer 3

Net fee margin

Fees and commissions

Key points

Net fee income distributionRUB mln

Non-interest revenues were solid in Q2 2012, supported by positive trading gains despite turbulent market environment

Net fee income grew by 14,7% QoQ on the back of strong business activity. Income from settlements grew by 16%, cash transactions – by 19% and banking cards business – by 11%

54% of non-interest income 54% was delivered by corporate business, bank cards business contributed 24% and 17% came from the retail

Non-interest income breakdown by segments

Cards

Financial

Corporate business

Retail business

Strongest non-interest income among peers

Cards

Financial Corporate business

Retail business

Q2 2012 Q1 2011

* Vbank data as of 1Q’12, Peer1, Peer2, Peer 3, Peer 4 – FY2011

+14.7%+8.3%

13

Costs

2007 2008 2009 2010 2011 H1 2012

62.7%

52.7%48.7%

72.5%

64.8%58.3%

Operating expenses breakdownRUB mln

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

1,271 1,224 1,352 1,258 1,260

820 8351,053

784 878

Personnel expensesNon-personnel expenses

Earned fees fully cover personnel expenses

+4.7%

+2.2%

Costs summary

Operating expenses were under strict control in H1 2012, fully in line with the bank’s plans for the year

Long-term operating efficiency project is ongoing on the phase of building IT infrastructure to centralize back-office operations

Personnel expenses remained almost flat on a quarterly basis and are again fully covered by earned fees and commissions

Cost to income ratio for H1 2012 declined from 68.2% for H1 2011 to 58.3% closer to normalized levels

Cost-to-Income ratio

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

94%

103%101%

90%

102%Net fee income / Personnel expenses

14

395.000

411.000

471.000

526.000

678.000

Continued improvement of performance despite conservative provisioning

-576.0 -720.0 -658.0 -358.0 -830.0

1,074.0

1,367.0

1,354.0

1,360.0

1,635.0

Operating profit before provisionsProvisions

+52.2%

Q2’11 Q3’11 Q4’11 Q1’12

+28.9%+71.6%

Operating profit and

provisions, RUB bln

Net profit, RUB bln

+20.2%

Q2’11 Q3’11 Q4’11 Q1’12

Q2’12

Q2’12

- Operating profit before provisions

demonstrated visible improvements both on

the quarterly (+20.2%) and year-on-year basis

(+52.2%), driven by solid revenue base and

moderate controlled expansion of operating

costs.

- Net profit gains momentum for the 10th

consecutive quarter, bringing ROE to 14% in

Q2’12. Thus, the bottom line grew by 72% YoY

and 29% QoQ.

- Significant hike of provisioning in Q2’12 to Rub

830 mln on contrast to quite low charges of the

previous quarter brought cost of risk for H1

2012 to 1.65% - comfortable level in a view of

uncertain market conditions.

Net profit

15

ROE, % ROA, %

Earnings generation capability

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

9.1% 9.3%10.4%

11.2%

14.0%

Value generation* % of average assets

4.80%

3.21% 1.76%

2.67%

1.86%

0.27% 1.44%

Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012

0.91% 0.94%1.05%

1.15%

1.44%

Key points

Profitability is on track – strong cost efficiency and optimal structure of assets and liabilities contributed to further improvement of ROE – it reached 14% in Q2 2012

The bank is taking advantages on continued repricing on both sides of the balance sheet due to careful A&L management. Still conservative on provisioning, operating efficiency is to add up value going forward

16

Sharpened focus on profitable SME and retail supported by healthy loan demand

Strong liquidity position maintained

Conservative securities portfolio defends from significant losses

Positive NPLs dynamic

Key takeaways of Q2 2012

Visible NIM expansion

Higher yields on loan portfolio offset increased funding costs

Strong fees support revenue base

10 consecutive quarters of mounting net profit

Benefits from wide client base – ability to attract funding at reasonable rates

Retail deposits – main contributor of growth

High share of interest-free funds

Loans-to-Deposits at optimal 100%

Strong focus on efficiency improvement lead to decline of Cost-to-Income ratio

Strict control over operating expenses

Future benefits from operating efficiency project:

- centralization of back-office- focus on remote channels - shift to front-office operations

Wel l -managed assets s t ructure…

…suppor ted by robust funding…

…leads to revenues boost……to fur ther benef i t f rom operat ing e f f ic iency

17

Questions and answers

investor@voz.ru http://www.vbank.ru/en/investors

Elena Mironova

Deputy Head of IR

+7 495 620 90 71

E.Mironova@voz.ru

Andrey Shalimov

Deputy Chairman of the Management Board

A.Shalimov@voz.ru

18

DisclaimerSome of the information in this presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of Bank Vozrozhdenie (the Bank). Such forward-looking statements are based on numerous assumptions regarding the Bank’s present and future business strategies and the environment in which the Bank will operate in the future. The Bank cautions you that these statements are not guarantees of future performance and involve risks, uncertainties and other important factors that we cannot predict with certainty. Accordingly, our actual outcomes and results may differ materially from what we have expressed or forecasted in the forward-looking statements. These forward-looking statements speak only as at the date of this presentation and are subject to change without notice. We do not intend to update these statements to make them conform with actual results.

The Bank is not responsible for statements and forward-looking statements including the following information:- assessment of the Bank’s future operating and financial results as well as forecasts of the present value of future cash flows and

related factors;- economic outlook and industry trends;- the Bank’s anticipated capital expenditures and plans relating to expansion of the Bank’s network and development of the new

services;- the Bank’s expectations as to its position on the financial market and plans on development of the market segments within which the

Bank operates;- the Bank’s expectations as to regulatory changes and assessment of impact of regulatory initiatives on the Bank’s activity.

Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include:- risks relating to changes in political, economic and social conditions in Russia as well as changes in global economic conditions;- risks related to Russian legislation, regulation and taxation;- risks relating to the Bank’s activity, including the achievement of the anticipated results, levels of profitability and growth, ability to

create and meet demand for the Bank’s services including their promotion, and the ability of the Bank to remain competitive.Many of these factors are beyond the Bank’s ability to control and predict. Given these and other uncertainties the Bank cautions not to place undue reliance on any of the forward-looking statements contained herein or otherwise. The Bank does not undertake any obligations to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable laws.