2020 GAZPROMBANK GROUP ANNUAL REPORT BASED ...

2020 GAZPROMBANK GROUPANNUAL REPORTBASED ON IFRSSUMMARY CONSOLIDATED FINANCIAL STATEMENTS

Gazprombank Group

Annual ReportBased on IFRSSummary Consolidated Financial Statements

Statement of the Chairman of the Board of Directors �� 4Statement of the Chairman of the Management Board �� 6Key Performance Indicators �� 9MAIN RESULTS FOR THE YEAR AND BUSINESS DEVELOPMENT OBJECTIVES �� 10External Environment in 2020 �� 12Financial Performance �� 15Positioning �� 19Ratings �� 20Overview of the Strategic Tasks and Main Business Activity of the Bank �� 21Technological Transformation. Development of IT and Digital Technologies �� 23Corporate Business

Customer Base �� 25Commercial Lending �� 30Trade, Structured and Syndicated Finance �� 32

Retail BusinessKey Results in 2020 �� 33Gazprombank Private Banking: Customer Focus �� 35

Investment BankingProject and Structured Finance �� 38Main Project Finance Deals in 2020 �� 41Capital Market Operations �� 45Asset Management �� 52Engineering Assets: Core Business Operations and Key Projects �� 53

Sustainable DevelopmentSustainable Development �� 55HR Policy and Employee Incentives �� 58Social Responsibility �� 62

Resource Base Development �� 64Depository Operations, Specialized Depository Services �� 65Risk Management �� 66Information Security �� 75Regional Network Map �� 76Branch Network Operating Results �� 78Marketing and Communication �� 79CORPORATE GOVERNANCE �� 82Bank GPB (JSC) Shareholders �� 84Bank GPB (JSC) Board of Directors �� 85Bank GPB (JSC) Management Board �� 88Corporate Governance in the Bank �� 95Bank GPB (JSC) Management Organizational Flowchart �� 96Internal Control System �� 98FINANCIAL STATEMENTS �� 100REFERENCE INFORMATION �� 118Branches of Bank GPB (JSC) �� 120Representative Offices of Bank GPB (JSC) in Other Countries �� 122Subsidiary Banks and Credit Institutions with an Ownership of More Than 5 % �� 123Bank GPB (JSC) Licenses, Permits and Certificates �� 125Contact Information and Bank Details �� 128

Table of ContentsA N N U A L R E P O R T 2 0 2 0 3

Statement of the Chairman of the Board of Directors

4 G A Z P R O M B A N K

Dear Shareholders,

Alexey B. MillerChairman of the Board of Directors, Bank GPB (JSC), Chairman of the Management Committee, Gazprom

Despite the pandemic, in 2020, Gazprombank kept the key financial indicators stable, gained a competitive edge and continued the steady implementation of the development strategy approved by the Board of Directors.The Bank’s strategic priorities include participating in important state programs, providing a full range of financial services to Russia’s biggest companies, and working toward achieving sustainable development goals. The Bank was one of the first to start implementing state business support measures during the pandemic, including those aimed at retaining workplaces. Systemic companies and more than 200 small and medium-sized businesses received support from the Bank. In 2021, it continued implementing mortgage programs subsidized by the state.The Bank’s biggest corporate partners traditionally include the Gazprom Group companies. Active cooperation continued in the reporting year, including that in the sphere of banking services, new

high-technology products and services, and implementation of major investment projects. For example, Gazprombank took part in financing the construction of the Amur gas processing plant, one of the largest gas processing plants in the world.The Bank was able to strengthen its retail positions through further development of online customer communication channels. The number of customers using the Bank’s mobile app doubled to 2.6 million people in the reporting year, and the share of payments made online grew from 60% to 90%.Gazprombank is actively implementing the principles of sustainable development and social and environmental responsibility together with the state authorities and business representatives. The Board of Directors appreciates the work done by Gazprombank and believes that the experience of solving the most challenging tasks accumulated over the 30 years of its operation will help the Bank and the Group develop successfully in the near future.

A N N U A L R E P O R T 2 0 2 0 5

Statement of the Chairman of the Management Board


The key event of 2020 was the COVID-19 pandemic that stopped the usual flow of life in a blink of an eye. It was the greatest operational risk event for Gazprombank, and we managed to minimize its consequences due to our team’s dedication, success in the implementation of the planned strategy of the Bank’s technological transformation, and the advanced level of its software and hardware. Our team managed not only to keep Gazprombank’s business safe, but also to add a new quality dimension to many business aspects keeping pace with the most advanced standards. I would like to draw your attention to some of the key results in the reporting period.In 2020, the Gazprombank Group generated RUB 56.0 billion of net profit. Compared to 2019, it grew by 26 %, the net interest income increased by 19 %, while the commission income grew by 24 %. This can be called a decent result for the unusual and often stressful conditions that we had to face. The Bank was ready to handle the pandemic mostly due to the high level of digital transformation reached in recent years. Gazprombank was always committed to implementing new ideas and the latest technologies, and the pandemic only reassured us that our digitalization course is right. Prompt implementation of a special program, which built the most up-to-date IT infrastructure in the country’s banking sector practically from scratch, helped us shift the whole Bank’s operations to remote work model and organize effective communication with our partners and customers under those circumstances. Online servicing was organized on the basis of an omni-channel platform with a high level of security and protection. The number of service integration points grew by six times during the reporting period. Customers gained remote access to credit and debit cards, blocking and unblocking cards, consumer and car loans, limit management, debt restructuring and prepayment services.

When faced with a sudden external shock, counterparties’ ability to adapt to new conditions and change standard processes to suit the new tasks is of crucial importance. It is especially relevant when working with big corporate customers and implementing large-scale, long-term projects. I am happy to note that Gazprombank could provide this cooperation flexibility in its priority sphere — work with corporate customers — and that it was done without deteriorating the traditionally high quality of our services. One of the leaders in project finance and financial consulting, Gazprombank kept its benchmark at the same level and managed to strengthen its market positions despite adverse circumstances. Milestone transactions were concluded for the financing of construction and modernization of various industrial enterprises, including the Amur gas chemical complex, EuroChem chemical complex, and many others with financing amounting to hundreds of billion rubles. Thanks to timely financing from Gazprombank, several major Russian strategic infrastructure facilities were completed and launched in 2020. The most important of them include the launch of three sections of the Central Ring Road (TsKAD) in the Moscow Region and the opening of a bridge across the Pur River in the Yamal-Nenets Autonomous Area. The successful implementation of these projects is yet another step on the road to better transport infrastructure in central Russia and in one of the leading oil and gas producing regions of the Far North. It is important to note Gazprombank’s substantial contribution to the development of project financing of real estate developers with escrow accounts. The credit risk limit for developers went over RUB 250 billion, while the loan agreements concluded amounted to about RUB 170 billion.The pandemic also led to highly volatile global financial markets. And yet, 2020 was successful for Gazprombank in terms of transactions in fixed income instrument markets. The bank arranged 111 bond issues for 65 issuers, surpassing its previous record of 100 issues for 50 issuers in the local Russian

Dear Shareholders, Customers, and Partners!

A N N U A L R E P O R T 2 0 2 0 7

market in 2019. Gazprombank has repeatedly defended its leading positions in this business segment in Russia in the last six years (starting from 2015): our issuing market share grew from 26 % to 38 %, and the absolute values of transactions involving the Bank rose from RUB 0.4 trillion to RUB 1.3 trillion, a record number for Gazprombank. The Bank is No. 1 arranger of placement of Eurobonds from Russia in international debt markets and No. 2 from the CIS countries, and is one of the biggest federal loan bonds and corporate bonds dealers in the Russian market. In 2020, the Bank received the “Best Bond Market Sales Team” award, winning this key Cbonds Awards nomination for the fourth time in a row.Retail is another strategic area for us. Thanks to the digitalization and quick transition to the online service model, secure and convenient for the customer, the Bank’s retail business not only retained the dynamic growth rates in several key areas during the year of the pandemic but also increased the market share. The financial result of the retail business in the reporting year amounted to RUB 4.7 billion, which is lower than in the remarkably successful 2019, but a lot higher than the pessimistic mid-pandemic forecasts.The consumer loans issued in 2020 amounted to RUB 205 billion (+37 % YoY), and the Bank’s loan portfolio amounted to RUB 259 billion (+46 % YoY). This enabled Gazprombank to be the first among key market players in terms of consumer loans portfolio growth, making it into the TOP 5 Russian banks in terms of consumer loans portfolio volume. The total credit portfolio of individuals in the retail segment (excluding Private Banking) amounted to RUB 663 billion, which is a 17 % growth YoY.Gazprombank continued to actively develop its card business by focusing on digital services and a personalized approach to cardholders while also offering unique products in the reporting period. The customers’ interest in card products increased in comparison with 2019, with the average card balance of cardholder

individuals growing by 22 % and the total spend by 18 %.Last year’s popular products include the Manage Percentage savings account where the interest rate depends on monthly replenishment. This is a new concept in the market, which is attractive and transparent for the customer. Another innovation was the Convenient Card with a flexible grace period that is set automatically depending on monthly spending. In 2020, Gazprombank won the “Consumer Loan of the Year” nomination of the “Bank of the Year” award arranged by Banki.ru portal. Our cash loan was deemed the best out of more than 700 offerings presented on the portal. Focusing on online servicing, Gazprombank is not abandoning customers who want personal communication and specialist consultation in its offices, which is why, even amid the COVID restrictions, we still opened new ones in compliance with all sanitary norms and rules. Gazprombank has been actively working in the small and medium-sized business segments. We started preparing a service package for it before the pandemic happened, and even COVID-19 could not prevent us from entering the market with new offers. On the contrary, they were even more relevant and in demand with the forced days off and quarantine. The Bank’s services for small and medium-sized businesses also provide a wide range of online services, which makes cooperation significantly easier and saves time for all participants. The financing of “green” power projects, which is part of the global environmental agenda, was also an important area for the Bank in 2020. Gazprombank’s share in the Russian market of renewable energy project financing reached 62 %. The Bank initiated a unique Russian project for the first renewable energy syndicate for the 7th Wind Farm of the Wind Energy Development Fund (WEDF), a joint project of Fortum and Rusnano. In addition to the environmental agenda, Gazprombank pays special attention to social issues and corporate governance

as part of the environmental, social, and governance (ESG) factors of responsible investment. In 2020, we created the Council for Sustainable Development and the position of the Chief Sustainability Officer. The Bank is releasing the Sustainable Development Report for the first time together with this Report to cover the measures taken by it in 2020 to transition to a sustainable business model.Summing up the tough and unusual year of 2020, we can gladly note that the Bank and the Group as a whole managed to overcome all challenges and not only retain their positions but also grow in the areas that define the future. Gazprombank met its thirtieth anniversary full of vigor, youthful energy, and ready to deal with any hardship. Although we could not celebrate fully, we marked the anniversary with our great results. And this is really the most important thing. We have a lot of success and celebrations moving forward!

Andrey I. Akimov,Chairman of the Management Board


Key Performance Indicators

Assets, RUB billion

Amounts owed to corporate customers, RUB billion

Net profit / (loss), RUB billion

Tier 1 capital adequacy (Basel I, II), %

Equity (capital), RUB billion

Retail loans before deducting loan loss provisions, RUB billion

Core banking income, RUB billion

Ratio of non-performing loans to loan portfolio, %

Loans provided to corporate customers before deducting loan loss provisions, RUB billion

Amounts owed to individuals, RUB billion

Capital adequacy (Basel I, II), %

Ratio of loan loss provisions to loan portfolio, %

18

18

18

18 18 18

18 18

18 18

18 1817

17

17

17 17 17

17 17

17 17

17 1719

19

19

19 19 19

19 19

19 19

19 1920

20

20

20 20 20

20 20

20 20

20 2016

16

16

16 16 16

16 16

16 16

16 16

4,879 5,534 6,532 6,582 7,531

2,653 3,073 3,823 3,748 4,305

29 34 40 45 56

10.0 10.3 10.5 11.9 11.8 3.0 2.5 2.4 2.2 2.1 7.3 5.1 5.0 4.4 4.2

137 147 157 177 212 13.5 13.1 12.4 13.1 12.7

329 389 507 608 739 678 843 991 1,220 1,524

495 577 617 722 739 3,175 3,384 3,733 3,985 4,515

A N N U A L R E P O R T 2 0 2 0 9

Cape Dragon on the Ogoy Island. Lake Baikal

1 Main Results for the Year and Business Development ObjectivesCHANGING THE WORLD. STAYING TRUE TO OURSELVES

A N N U A L R E P O R T 2 0 2 0 11

External Environment in 2020

According to preliminary assessment, the world economy in 2020 dropped by 3.3 % due to the pandemic. The service segment took it the hardest. The other industries, such as IT and telecommunications, e-commerce, and pharmaceutics, lived through the COVID crisis with small losses. The drop was especially dramatic in developed countries whose economy is highly dependent on services, and it was those regions that introduced the strictest measures. Developing countries were affected less because of shorter quarantine periods and the lesser share of trade and services in the GDP structure.The USA’s GDP decreased by 3.5 % in 2020. Other developed countries experienced even more pronounced reductions in their economic growth rate. Great Britain was greatly affected as the government did not react to the pandemic right away and then introduced very strict countermeasures. As a result, its GDP dropped by 9.8 % in 2020. The entire euro area experienced a slower economic activity as these countries introduced long quarantines and were also slow to cancel them, and its GDP reduced by 6.6 % in 2020. The GDP of Japan decreased by 4.7 % in 2020 because of the quarantine in the first half of the year, registering the first drop since 2009. The government of China, which faced the new virus first, was quite quick to introduce strict measures. As a result, despite the drop in Q1 2020, the Chinese economy quickly recovered, and its GDP grew by 2.3 %.

Quarantine and recession in various countries lead to reduced demand for traded goods. According to the International Monetary Fund¹ (IMF), the world trade volume in 2020 dropped by 8.5 %. Developed countries quickly eased their monetary policies and started purchasing assets to support economies affected by the quarantine. The Federal Reserve System (USA) reduced the interest rate to 0.25 % and purchases assets for about USD 120 billion monthly. The European Central Bank retained the deposit rate of –0.5 % and launched the Pandemic Emergency Purchase Programme, which provides for asset purchase of EUR 1.85 trillion by March 2022. The central banks of developing countries also eased financing conditions with minor exceptions (for example, Turkey sharply increased rates at the end of the year to combat the currency crisis). Monetary policy easements in the major countries resulted in declining yields on their treasury bonds, causing money market rates to drop. For example, the year average yield on 10-year US Treasuries dropped from 2.14 % in 2019 to 0.89 % in 2020. 10-year Eurobond yields fell from –0.21 % to –0.47 % on average over the year. In China, the year average money market rate SHIBOR declined to 2.51 % from 2.9 %.Financial markets remained highly volatile due to the drop in March and April because of quarantine affecting major economies. As a result, the volatility index (VIX) grew to 29.3 p as compared to 2019 (about 15.3 p). The MSCI Global Index grew by 14 % in 2020, while MSCI Emerging Markets gained 15.8 %.¹ IMF World economic outlook IMF April 2021, table 1.1.

Last year was marked by a significant drop in the global economy due to the anti-COVID-19 quarantine. The governments and central banks of various countries increased their incentive measures. The market volatility also grew significantly.


–0.1

1817 19 2016

Banking system assets and capital, as % of GDP■ Assets■ Capital

11.0 10.2 9.8 10.0 10.7

93.5 92.8 90.2 88.3 105.5

Contributions to GDP dynamics by sectors, p. p.

■ 2019 ■ 2020 ■ Change

Growth of corporate and retail loans and deposits volumes (excl. currency revaluation, YoY)

■ Corporate loans■ Retail loans■ Non-credit institutions’ funds■ Retail customers' funds

17 18 19 20 21–10 %

10 %

0

20 %

30 %

GDP Minerals extraction Other services

Trade

Construction

Manufacturing Energy, transport OtherAgribusiness

Real estate, finance

0�1

0�0 0�0 0�0

–0.1–0.1

–0.10�1

–0.4

–0.8–0.4

–0.4

0�0

–0.8

–0.9

0�1

0�7

0�4 0�4

2.0

–3.0

–5.0 –1.7

–2.1

0�4–0.4

–0.3

0�4

0�0

A N N U A L R E P O R T 2 0 2 0 13

The COVID-19 pandemic was the main factor determining the economic development in Russia last year

The reduction in consumer and investment activity due to the quarantine led to Russia’s GDP dropping by 3% in 2020. The consequences of the crisis were mitigated by the state expenses on anti-crisis measures to support business and the public. As a result of falling oil prices and increased economic uncertainty, there was an outflow of investor funds from emerging markets, which led to a lower average ruble exchange rate in 2020 of RUB 72.3 per USD (RUB 64.7 per USD in 2019). The outflow of foreign funds was one of the drivers of both a decreasing RTS Index (–2.2 %) and slower growth of the MICEX index (+6.9 %).

The average annual inflation in 2020 amounted to 3.4 %. The price growth accelerated sharply in Q4 2020, which resulted in inflation exceeding the target set by the Bank of Russia and reached 4.9% YoY. With the domestic demand dwindling, the Bank of Russia reduced the key rate by 2 p.p. to 4.25 %.As for industries, the pandemic affected the service sector more than production. In 2020, paid services provided to the public reduced by 17.1% YoY in real terms, and retail by 3.2 % YoY. According to revised data, industrial production reduced by 2.6 % YoY. The mining industry made the most contribution to this dynamic (–6.9 %), while the rates of the processing industry growth were positive (+0.6 % YoY).The decline in business activity in the economy was coupled with a growing unemployment rate and a slower wage growth in almost all industries. In December 2020, the unemployment rate reached 5.9 %,

and the number of unemployed people grew by 0.9 million. Even with additional transfers (RUB 0.8–1 trillion in 2020), the decline in real disposable income was 3 % YoY.Due to increased budget expenditures because of anti-crisis measures and decreased revenues amid falling oil prices, the federal budget deficit in 2020 exceeded 4 % of GDP. The budget deficit was financed with the issue of debt securities; the state debt grew from 12.3 % of GDP at the end of 2019 to 19.1 % of GDP in 2020. By the end of the year, the volume of the Russian National Wealth Fund reached RUB 13.5 trillion or 11.7% of GDP (RUB 7.7 trillion in 2019), exceeding the level of 7% of GDP, after which a part of its funds can be used to implement infrastructure projects and support economic growth.

Notwithstanding the slowdown in consumer lending, banking sector earnings continued on their upward course

The nominal assets of the banking system with reserves in 2020 grew to RUB 112.5 trillion (+16.5 % YoY). With foreign currency revaluation, the asset growth was 13 % YoY. The main contribution to the asset growth was made with investments into debt securities, and corporate and retail lending. The Russian Ministry of Finance increased borrowing to finance the state budget deficit, which led to an increase in credit institutions’ investments into federal loan bonds (OFZ). More than 80 % of public bonds were purchased by banks in 2020. The portfolio of loans issued to companies grew faster than in the previous year, with +7.2 % YoY. It was largely facilitated by measures for concessional lending as part of the government’s anti-crisis plan. The growth rate of lending to individuals

slowed down in comparison with 2019 but still stayed high (+13.5 % YoY). In 2020, the volume of mortgage loans increased to RUB 4.3 trillion, which is 50 % more than in the previous year. The reason for a faster mortgage lending growth was the decrease of the weighted average interest rate for mortgage loans to 7.36 %. At the beginning of 2020, it was 9 %. Mortgage loan rates decreased in 2020 both due to the changes of the key interest rate and the anti-crisis preferential mortgage program introduced in April with an annual rate of up to 6.5%. In 2020, the net profit of the banking sector decreased by 6.2 % compared to 2019, amounting to RUB 1.6 trillion.Throughout 2020, the surplus liquidity of the banking system was declining to be replaced with a deficit at the end of Q4 2020; by the end of 2020, the deficit amounted to RUB 0.2 trillion. The banking system liquidity deficit was caused by an increased demand of the public and businesses for cash as well as the government’s fund reduction in bank accounts to finance seasonally high state expenditures at the end of December. The Bank of Russia persisted with its efforts to make the banking system more stable. The number of banks was reduced (from 442 to 406) through license revocations and voluntary surrender of licenses.

The fall of the Russian economy in 2020 is due to quarantine in and outside the country.


Gazprombank (Joint Stock Company) published its consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS) for 2020 and as at 31 December 2020.

“This result rests on extensive and patient work of the Bank’s and the Group’s entire team of employees, including organization of remote work and implementation of all required measures for the prevention of COVID-19 spread, which ensured continuous, reliable and successful performance of our functions in the existing difficult circumstances. Commencing transformation and digitalization processes at the Bank in 2018 focusing on the retail business development, we stood ready for the challenges we faced in the beginning of 2020. Double-digit annual increment of retail business in the Bank’s assets and liabilities, retaining of net interest margin at “pre-pandemic” levels, growth of net commission income, which increased by 24 % in 2020 year-on-year — this is a well-deserved result of the ongoing transformation process in the Bank.We are optimistic about our future as we see prospects for the development of the Bank this year and maintain the focus on the tight control over credit risk, further strengthening of the Group’s retail business and preserving operating income margin,” Mr. Alexander Sobol, Deputy Chairman of the Management Board of Bank GPB (JSC), said.

Key financial indicators of the Gazprombank Group (hereinafter, “the Group”) for 2020 / as at 31 December 2020

• Net profit totaled RUB 56.0 billion compared to RUB 44.6 billion in 2019.

• Net commission income reached RUB 42.4 billion compared to RUB 34.2 billion in 2019.

• Net interest margin was 2.8 %, remaining the same as in 2019.

• Cost of risk was 0.2 %, with due regard to the adjustment of loans accounted at fair value, compared to –0.1 % in 2019.

• ROE and ROA were 7.7 % and 0.8 %, respec-tively, compared to 6.3 % and 0.7 % in 2019.

• Cost-to-income ratio was 56.3 % compared to 65.1 % at year-end 2019.

• Assets amounted to RUB 7,530.7 billion (against RUB 6,582.2 billion as at 31 December 2019).

• Total loan portfolio¹ was RUB 5,254.1 billion (against RUB 4,593.3 billion as at 31 December 2019).

• Non-performing loans (NPL) (over 90 days past due and defaulted loans) in the total loan portfolio were 2.1 % compared to 2.2 % as at 31 December 2019.

• Provisioning ratio amounted to 4.2 % compared to 4.4 % as at 31 December 2019.

• Customer accounts comprised RUB 5,829.2 billion compared to RUB 4,968.5 billion at year-end 2019, while the loan-to-deposit ratio was 90.1 % as at 31 December 2020, compared to 92.4 % as at 31 December 2019.

• Basel I total capital reached RUB 790.8 billion compared to RUB 758.1 billion as at 31 December 2019, the total capital adequacy ratio was 12.7 % as at the reporting date, and the Tier 1 capital adequacy ratio stood at 11.8 %.

Financial Performance

¹ Includes gross corporate and retail loans accounted at amortized cost before loan provisioning and also loans accounted at fair value.

A N N U A L R E P O R T 2 0 2 0 15

Overview of key financial indicators (RUB billion)

31.12.2020 31.12.2019 Change

Assets 7,530.7 6,582.2 +14.4 %

Shareholders’ equity (capital) 739.3 722.2 +2.4 %

Cash and cash equivalents 943.4 739.0 +27.7 %

Loans to corporate customers 4,515.3 3,985.0 +13.3 %

Retail loans 738.8 608.0 +21.5 %

Securities and investments in associates² 776�5 647�7 +19.9 %

Corporate customer accounts 4,305.4 3,748.5 +14.9 %

Retail customer accounts 1,523.7 1,220.0 +24.9 %

Capital market borrowings³ 285.1 267.6 +6.5 %

Subordinated debt 69�7 74�6 –6.6 %

12M2020 12M2019 Change

Net profit 56�0 44�6 +25.6 %

Comprehensive income 69.2 39.0 +77.4 %

31.12.2020/12M2020

31.12.2019/12M2019

Change

Total Capital Adequacy Ratio⁴ 12.7 % 13.1 % –0.4 p. p.

Tier 1 Capital Adequacy Ratio 11.8 % 11.9 % –0.1 p. p.

Ratio of non-performing loans⁵ (NPL) to gross loans 2.1 % 2.2 % –0.1 p. p.

Ratio of loan loss provisions to gross loans accounted at amortized cost 4.2 % 4.4 % –0.2 p. p.

ROE 7.7 % 6.3 % +1.4 p. p.

ROA 0.8 % 0.7 % +0.1 p. p.

Net interest margin⁶ 2.8 % 2.8 % 0.0 p. p.

Cost of credit risk⁷ 0.2 % –0.1 % +0.3 p. p.

Cost-to-income ratio⁸ 56.3 % 65.1 % –8.8 p. p.

2 Including trading securities, investment securities, and investments in associates.

³ Including bonds issued both on the domestic and inter-national markets.

⁴ In accordance with Basel I Framework.⁵ Loans are deemed “non-performing” if their principal

or interest is 90+ days past due, as well as in the event of counterparty default.

⁶ The ratio of net interest income for the reporting period to the chronological average of quarter-end interest-bearing assets for the year. Interest-bearing assets include those due from financial institutions, loans to customers and debt securities (all before loan loss provisions).

⁷ Loan loss provision charges and profit/loss on loans accounted at fair value as of the reporting period to the chronological mean of quarter-end interest earning assets for the reporting period.

⁸ Operating expenses include salaries, other personnel compensations and administrative expenses. Oper-ating income includes net interest income, non-interest income and non-banking operating profits. Operating income does not include provisions and profit/loss on loans accounted at fair value.

⁹ Combined income from transactions with securities includes both realized and unrealized gain from securities transactions and a change in the Group’s investments value, as well as net derivatives results, loss on financial liabilities designated as at fair value through profit or loss, as well as gain from subsidiaries’ disposal.


Financial resultsThe Group ended 12M2020 with recorded net profit of RUB 56.0 billion and comprehensive income of RUB 69.2 billion, including inter alia currency revaluations of the Group’s foreign investments. By comparison, year-on-year, the Group’s net income and its comprehensive income amounted to RUB 44.6 billion and RUB 39.0 billion, respectively. The Group’s ROE grew by 1.4 p. p. to 7.7 % in 12M2020 against that at year-end 2019. ROA was 0.8% in 12M2020 — an increase of 0.1 p. p. against 0.7 % at year-end 2019. The Group’s net interest income was RUB 169.5 billion in 12M2020, which is 18.7 % higher than that in 12M2019 (RUB 142.8 billion), with interest income down 0.5 % to RUB 407.4 billion and interest expenses down 10.8 % to RUB 237.9 billion. The net interest margin in 12M2020 remained unchanged year-on-year at 2.8 %.The Group’s recurring core banking income, including net interest income before loan loss provisions and net commission income, was up 19.7 % to RUB 211.9 billion in 12M2020 compared to RUB 177.0 billion year-on-year. At the same time, net commission income for the same period (RUB 42.4 billion) was 1.2 times higher than in 12M2019 (RUB 34.2 billion). Higher commission income resulted from continued active development of retail business, which had started in 2019 (sales of packaged offers, insurance and service ones, both on lending and investment products for individuals).

Recurring income in the Group’s operating income accounted for 86.5 % against 95.4 % in 12M2019. Combined income from transactions in securities⁹ in 12M2020 totaled RUB 8.5 billion compared to the income of RUB 35.5 billion in 12M2019 — mostly due to negative revaluation of securities and lower income from the disposal of subsidiaries.Non-banking segments ended 12M2020 with the operating loss of RUB 1.1 billion compared to the loss of RUB 13.0 billion in 2019. Impacted by the above factors, the Group’s operating income (before provisions for loan loss and impairment of assets) reached RUB 245.0 billion in 2020 compared to RUB 185.5 billion in 2019. Operating expenses amounted to RUB 137.8 billion in 12M2020 compared to RUB 120.8 billion in 12M2019. Higher expenses were driven by the continued implementation of projects for the business technology transformation, including transformation of the retail business. At the same time, the cost-to-income ratio was down 8.8 p. p. to 56.3 % compared to 65.1 % at year-end 2019.

Asset qualityLoan loss provisions totaled RUB 5.4 billion in 12M2020 compared to RUB 10.5 billion in 12M2019. Negative adjustments of loans and receivables accounted at fair value were RUB 9.1 billion in 12M2020 against the positive adjustment of RUB 14.5 billion in 12M2019.The Group’s cost of risk (including valuation adjustment of loans and receivables accounted at fair value) grew to 0.2 %

in 12M2020 compared to –0.1 % at year-end 2019. NPLs (non-performing loans) in the gross loan book accounted for 2.1 % as at 31 December 2020 — down 0.1 p. p. against 31 December 2019. The provisioning ratio (total loan loss provisions to the portfolio of loans accounted at amortized cost) was 4.2 % as at 31 December 2020 compared to 4.4 % as at 31 December 2019. At the same time, loan loss provisions created as at the reporting date exceeded NPLs 2.0 times, showing exactly the same level as at year-end 2019.

Business volumes The Group’s total assets reached RUB 7,530.7 billion as at 31 December 2020 — up 14.4 % against RUB 6,582.2 billion as at 31 December 2019. In particular, cash and cash equivalents reached RUB 943.4 billion as at 31 December 2020 compared to RUB 739.0 billion as at 31 December 2019. The gross loan book before loan loss provisions was at RUB 5,254.1 billion as at 31 December 2020 — up 14.4 % against RUB 4,593.3 billion as at 31 December 2019. The gross loan book (net of provisions for loan loss and loan adjustments accounted at fair value) in the Group’s total assets was 66.9 % compared to 66.8% as at the end of December 2019.In 12M2020, corporate loans were up 13.3 % to RUB 4,515.3 billion as at 31 December 2020 against RUB 3,985.3 billion at year-end 2019. Retail loans also showed significant growth, with their volume up 21.5 % over the

Gazprombank published its financial results for 2020, with net profit at RUB 56 billion in accordance with International Financial Reporting Standards (IFRS).

¹⁰ Including car loans, credit cards and overdrafts.

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year — from RUB 608.0 billion to RUB 738.8 billion as at 31 December 2020. Mortgage loans form the bulk of the Group’s retail loans, accounting for RUB 409.9 billion as at 31 December 2020 — up 4.3 % compared to 31 December 2019. Mortgage loans share in the retail loan book was down 9.1 p. p. in 12M2020 — from 64.6 % to 55.5 %. Consumer loans to retail customers¹⁰ grew in 12M2020 from RUB 215.0 billion to RUB 328.9 billion (up 53.0 %). Retail business benefited from the development of remote service channels ensuring online provision of core products and services. By the end of Q42020, the total number of active Internet Bank users reached 2.5 million people, up 1 million people year-on-year. At the same time, the number of active users was up 70 %. As at the end of December 2020, 81 % of the bank’s customers possessing card products used remote service channels of Gazprombank — up 20 p. p. compared to the previous year. Corporate loan book grew strongly in 12M2020, resulting in a rise of retail loans share in the gross loan book profile as at 31 December 2020 (up 0.9 p. p. to 14.1 %).The portfolio of securities and investments in Group associates was RUB 776.5 billion as at 31 December 2020, up 19.9% (as at 31 December 2019: RUB 647.7 billion).Securities and investments in associates share in the Group’s assets were up 0.5 p. p. in 12M2020 to 10.3 % as at the reporting date against 9.8 % at year-end 2019. The profile of the Group’s securities portfolio mostly consists of fixed income instruments such as investments in Russian government debt

and bonds of Russian issuers, with debt securities up 4.5 p. p. — from 80.6 % to 85.1 % in 12M2020. Amounts owed to financial institutions were up 0.6 % in 12M2020 to RUB 321.4 billion (against RUB 319.4 billion at year-end 2019). The share of amounts owed to financial institutions in the liabilities was 4.7 % as at 31 December 2020 compared to 5.5 % as at 31 December 2019. Corporate and retail accounts grew to RUB 5,829.2 billion as at 31 December 2020 against RUB 4,968.5 billion as at 31 December 2019 (total growth of 17.3 %). At the same time, corporate accounts were up 14.9 % to RUB 4,305.4 billion as at 31 December 2020 compared to that at year-end 2019 (RUB 3,748.5 billion), with retail accounts also up 24.9 % in 12M2020 — from RUB 1,220.0 billion to RUB 1,523.7 billion. Retail accounts in the customer accounts profile edged up (by 1.5 p. p. — from 24.6 % at year-end 2019 to 26.1 % as at 31 December 2020).Customer accounts in the Group liabilities were 85.8 % as at 31 December 2020 — up 1.0 p. p. (against 84.8 % at year-end 2019).Capital market borrowings as at 31 December 2020 were up to RUB 285.1 billion against RUB 267.6 billion at year-end 2019 (up 6.5 %). At the same time, capital borrowings share in the resource base declined by 0.4 p. p. to 4.2 %.

Capital adequacyThe Group’s Basel I total capital based on consolidated IFRS financial statements amounted to RUB 790.8 billion as at 31 December 2020 — up 4.3 %

compared to RUB 758.1 billion at year-end 2019. Early in 2020, the Group obtained funding from the Gazprom Group in subordinated interest-free demand deposits totaling RUB 40,000 million (in 2019 — RUB 90,000 million). Since these deposits do not have any maturity date and are interest-free, the Group classified them into the capital in the consolidated statement of financial position, and also as part of Tier 1 capital for the purposes of calculating the capital adequacy ratio. The Central Bank of Russia approved the inclusion of demand and interest-free deposits in the additional capital when calculating capital adequacy in accordance with the national rules. In July 2020, the bank placed USD 250.25 million subordinated bonds. The Central Bank of Russia approved the inclusion of the above subordinated bonds in Tier 2 capital when calculating capital adequacy in accordance with the national rules. At the same time, April 2020 saw the early redemption of USD 1 billion perpetual Eurobonds. July 2020 witnessed the redemption of USD 400 million subordinated Eurobonds on their maturity date.The Group’s risk weighted assets were up 8.2 % to RUB 6,245.3 billion in 12M2020. Hence, the Group’s capital adequacy indicators as at 31 December 2020 were as follows: the Group’s total capital adequacy ratio at 12.7 % (compared to 13.1 % at year-end 2019 — a drop of 0.4 p. p. for 12M2020); Tier 1 capital adequacy ratio at 11.8% (compared to 11.9 % at year-end 2019 — a drop of 0.1 p. p. for 12M2020).


Positioning

¹ Regulatory capital (‘Total Capital (Equity)’ metric in the Capital Adequacy Report (Form 808)).² According to INTERFAX-100. Russian Banks, www.finmarket.ru/database/rankings

Domestically, Bank GPB (JSC) remains in the lead, reaffirming its position as one of the top three banks in terms of key volume indicators².

Share of Bank GPB (JSC) in the key indicators of the Russian banking system (RAS), %

Assets Capital¹ Corporate loans Retail loans Amounts owed to corporate customers

Amounts owed to individuals

As at 1 January 2020 7�1 6.8 10�9 3.3 11�9 3.8

As at 1 January 2021 7�0 6�7 11�1 3.5 10.8 4�4

Growth rates in 2020: Bank GPB (JSC) vs. the Russian banking system (RAS), %

Assets Capital¹ Corporate loans Retail loans Amounts owed to corporate customers

Amounts owed to individuals

Banking system 16�9 3.7 11�7 15�7 21.0 8.0

Bank GPB (JSC) 14�4 2.0 14.2 21.6 10.2 23.3

A N N U A L R E P O R T 2 0 2 0 19

Fitch Ratings• BBB– (long-term foreign-currency issuer

default rating) — stable outlookS&P Global Ratings• ВВ+ (long-term foreign-currency issuer

rating) — stable outlookMoody’s Investors Service• Ва1 (long-term bank deposit rating) —

stable outlookСCXI• ААА (national scale credit rating) —

stable outlookExpert RA• ruAA+ (national scale creditworthiness

rating) — stable outlook¹ACRA• АA+(RU) (credit rating) — stable outlook

Gazprombank’s long-term foreign currency credit ratings were one step lower than Russia’s rating assigned by S&P Global Ratings, Moody’s Investors Service and Fitch Ratings.On 8 February 2019, Moody’s Investors Service upgraded the sovereign rating of the Russian Federation to Baa3 with a stable outlook. Following this rating action, on 12 February 2019, Moody’s Investors Service upgraded Gazprombank’s rating to Ва1 and changed the outlook from positive to stable. On 18 June 2020, Expert RA affirmed Gazprombank’s creditworthiness rating at ruAA+ with a stable outlook.On 17 July 2020, Chinese rating agency CCXI assigned Gazprombank with an AAA national scale credit rating with a stable outlook. On 29 July 2020, S&P Global Ratings affirmed Gazprombank’s rating at ВВ+ with a stable outlook.On 3 November 2020, Fitch Ratings affirmed Gazprombank’s rating at ВВВ– with a stable outlook.On 23 November 2020, ACRA affirmed Gazprombank’s rating at АА+(RU) with a stable outlook.The Bank’s current ratings are traditionally underpinned by its strong position in the lending market, specifically due to loans to large corporations, the systemic importance of the Bank, high probability of receiving government support when necessary, low share of distressed assets compared to banking sector in general, adequate risk management system, and comfortable liquidity level adequate for debt servicing.

The Bank`s current ratings are underpinned by its strong market position and systemic importance.

Ratings

As of 31 December 2020, the following credit ratings were assigned to Gazprombank:

¹ On 16 June 2021, Expert RA affirmed Gazprombank’s creditworthiness rating at ruAA+ with a stable outlook.


In an era of rapidly developing technology and changing consumer behaviors, the Gazprombank strategy defines the key areas of the Bank’s operations based on current market prospects and capabilities, building upon existing competitive advantages and accumulated competencies. Bank GPB (JSC) channels its efforts towards achieving its key strategic objectives, which include:• maintaining its status as a systemically

important bank, participating in government initiatives aimed at assuring sustainable economic development;

• developing strategic partnerships with, and providing the full range of financial services to, major Russian companies;

• diversifying the business and maintaining its key positions in the banking services market, with performance improvements across all GPB Group entities.

Corporate customers will remain a priority for the Bank. Retaining its status as a systemically important bank, Gazprombank will:• actively participate in government

programs aimed at the recovery and subsequent sustainable growth of the Russian economy;

• provide Russian companies with project and structured financing, focusing on industries with growth potential in which the Bank has considerable experience (oil and gas production and refining, agriculture, mining and metals, infrastructure, and transport);

• retain leadership in the financing of, and advising on, PPP projects, in particular in the regions.

Overview of the Strategic Tasks and Main Business Activity of the Bank

The strategic priorities of the GPB Group were formulated with reference to the development goals and current objectives outlined by the President and the Government of the Russian Federation. Special attention is given to the strategic goal of the Bank’s technological transformation and digitization in an environment characterized by the growing importance of remote customer service and employees working from home.

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The Bank continuously monitors the status and outlook of those sectors of the Russian economy where the Bank has developed servicing competences: infrastructure and PPP projects, electricity generation, export-oriented industries, technical and technological refurbishment projects, and petroleum and gas chemistry. Development of cross sales, particularly in relation to complex products, will support the generation of returns by the Bank’s corporate business.Gazprombank, jointly with government authorities and the business community, is actively involved in the integration of sustainable development principles into operating practices and is committed to the environmental responsibility concept.Gazprombank is endeavoring to actively develop its retail business as one of its most important strategic business areas, through:• attracting new customers

and implementing loyalty programs;• expanding the range of banking products

and services offered, in particular, via remote channels;

• expanding and upgrading its service network.

The key objectives are as follows:• set up an efficient sales function, improve

the functionality and user-friendliness of remote banking;

• expand the commission-based products line (packaged offerings, partner loan insurance products, investment insurance instruments);

• stimulate cardholder transaction activity;• optimize footprint and upgrade office

layouts.Achieving the Bank’s strategic goals in the development of the retail business will require a rigorous transformation and ambitious technological advancement of its operations, including:• integration of existing service channels into

an all-encompassing system of continuous communication with the customer;

• enhancement of mobile and Internet banking;

• improved service channel accessibility;• faster banking service and improved

reliability of IT infrastructure.

Going forward, Gazprombank will further enhance its regional network, taking into account the needs of its key customers and their partners. Technological transformation of the business, process improvements and migration of operations to remote channels will contribute to achieving strategic goals and targets.Despite the challenging macroeconomic environment, the majority of the above-mentioned goals and objectives remain on the agenda, while their level of priority and the sequence in which they are addressed may be adapted to the current situation in the mid-term.

The Gazprombank strategy defines the key areas of the Bank’s operations based on current market prospects and capabilities, building upon existing competitive advantages and accumulated competencies.


Transferring the Bank’s automated systems to private cloud storage allowed it to significantly increase their efficiency and reliability. Work from home was ensured with the VDI (Virtual Desktop Infrastructure) technology for 11,000 users (18,500 users in total). The Bank also introduced Accellion, a secure file sharing solution that provides safe transfer of data to and from the Bank’s customers, outside systems (for some automated systems) and the creation

of virtual data rooms for complex transactions with customers.In 2020, the Bank also launched two mobile applications: GPB Broker for VIP customers of Gazprombank’s brokerage services with the possibility to trade in securities and currencies, and GPB Investments for retail business customers. The applications were highly appreciated by users, who especially noted the wide range of functions, user-friendly interface, as well as quick and high-quality support.Moreover, the Bank continued implementing machine learning in the decision-making process and the creation of product offers for customers. More accurate final loss forecasts for each customer allowed the Bank to save RUB 3.8 billion in reserves. The customer income forecast model made

it possible to launch a product to calculate the possibility of lending up to RUB 1 million without requiring proof of income, which increased the number of loans issued and customer response to the Bank’s pre-approved offers.As for decision-making, for the first time, the Bank implemented a fraud detection model based on customers’ connections to persons on the Bank’s blacklists. The model of customer bankruptcy probability

was also implemented for the first time in Russia. The Omni-Channel Platform was fully launched in 2020. The number of omni-channel service integration points grew by six times, making available credit and debit cards, limit management services, blocking and unblocking cards, consumer and car loans, debt restructuring and prepayment services. All these changes allowed us to support the online sales and customer service, staying with our customers in the challenging external conditions, and ensured a high safety and security level due to the high efficiency of our platform.In 2020, a huge technological step toward the integration into the unified Russian technological environment was made as the OpenAPI specification was completed.

Technological Transformation. Development of IT and Digital Technologies

In March 2020, the Bank’s information and digital technology units on the forefront of a global challenge were able to quickly rebuild operations in the face of the pandemic. Within mere two weeks, half of the employees were working from home, and the Bank’s normal operation was organized in accordance with the information security rules.

Work from home was ensured with the VDI technology for 11,000 users.

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Together with the omni-channel services, it became the basis for Gazprombank’s ecosystem.The demand for online bank communication rose dramatically by the end of 2020: the number of Telecard 2.0 online banking customers almost doubled to 2.6 million people, the average income of an active user grew by 1.5 times, and the penetration into the active card base was 81% (also 1.5 times more than in 2019).The year of the pandemic called for both emergency digitalization of key functions and the development of new ones. Gazprombank was the first to implement the unique service for issuing a virtual credit card in a mobile application. At the beginning of 2020, full and partial loan prepayments were also made online. By the end of the year, the share of loans repaid through online channels reached 92 % of all repayments, 56 % of which were early repayments. 95 % of all loans were issued using the no-visit technology in the mobile application. In comparison with the start of the year, the number of payments made online grew from 60 % to 90 %.Online channels brought three times more revenue in 2020 than in 2019. Income from online channels exceeded RUB 12 billion, including over RUB 7.2 billion from online banking channels for retail customers. Gazprombank’s official website also added demanded functions, and sales through it provided for an income of RUB 4.9 billion. The audience of the website and the number of unique site visits doubled.

The processing center was upgraded with a new distributed computing infrastructure and a full-fledged backup data center. An Interregional Service Center for Terminal Devices was formed in Yekaterinburg. The service for sending customer text messages was optimized, which made it possible to reduce expenses by RUB 500 million. The Payment for Goods and Services via QR Code in Stores C2B technology of the Central Bank was also implemented. The processing of payments and settlements under acquiring agreements for 13 of the Bank’s branches was moved to the centralized Payment Hub system. As part of the organization of IT production, the performance of key systems of the retail business was optimized: the performance of the retail loan conveyor increased by 3–4 times, and the performance of Telecard 2.0 increased by eight times. API tests development and application practices were introduced, making it possible to speed up testing. The DevOps development has resulted in more than 120 systems and over 400 new users being connected to DevOps services. The volume of integration releases increased by 30 %, and the quality of implementation also grew.2020 showed that quick technology implementation, as well as the ability to restructure work based on any circumstances and being guided by the principle of stable change, are one of the important strategic advantages of the Bank.

Gazprombank was the first to implement the unique service for issuing a virtual credit card in a mobile application.


The financial sector customers could see the result of the Bank’s digital transformation for themselves. At the end of Q1 2020, the banking market’s first technology for transferring data on the movement of funds in trust management accounts to two addresses — to the customer and the specialized depository controlling it — was launched. This significantly cut the customer’s expenses on exporting, modifying, and resending statements on trust management accounts to specialized depositories. The technology eliminated the human factor from data processing, which reduced the risk of errors. Bank GPB (JSC) is discussing and preparing for the introduction of this technology with all major market players: managing companies and specialized depositories.2020 saw the active promotion of a new product: acceptance of QR code payments in favor of legal entities within the framework of the Fast Payment System of the Central Bank of the Russian Federation. This service significantly impacted trade companies: for them, the ability to receive non-cash revenue to the current account online and reduce the cost of accepting non-cash payments are the main advantages of the Fast Payment System. This banking service has been successfully tested with major industry players, and its replication has begun in the food and non-food retail segments.Of course, the pandemic made the entire country face challenging tasks of providing medicine and protection equipment to the public. Bank GPB (JSC) took an active part in it. In April 2020, during

the high COVID-19 risk, the Bank ensured quick financing for the supply of more than 35 million kits of personal protective equipment to the Russian Federation. The Bank was actively involved in launching the processes of production of vital medicines, arranging settlements with producers and buyers all over the world, which made it possible to solve problems of state importance as quickly as possible. Moreover, realizing the acute need, the Bank participated in the upgrade of the fleet of the Moscow Region Emergency Ward by fully financing the deal. To save public funds, the deal used subsidies, VAT reduction possibilities, and other tools. A systemic company, Bank GPB (JSC) took an active part in financing customers from various industries under state support projects. It was one of the first banks to sign a trilateral agreement with the State Development Corporation VEB.RF and the Ministry of Economic Development of the Russian Federation to provide concessional financing to the customers of Bank GPB (JSC). The total volume of loan agreements concluded under the Program (Resolution of the Government of the Russian Federation No. 582 dated 24 April 2020) on the provision of subsidies from the federal budget to Russian credit institutions for the compensation of their income shortfall on loans issued in 2020 to systemic companies for the replenishment of working capital amounted to about RUB 30 billion.Bank GPB (JSC) continues to carry out systematic work under the state program

Customer Base

During its digital transformation, Gazprombank paid special attention to solutions providing for fail-free operation and communication with customers during the pandemic. Thus, in 2020, the Bank implemented the project for electronic document exchange system services for key products. Customers were given the opportunity to switch to the electronic document exchange system in the shortest possible time, which significantly reduced the time needed for transactions and operations. Together with the ETP GPB authentication center, the Bank organized issuing keys for reinforced qualified electronic signatures on a preferential basis across the entire branch network.

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of concessional lending of the Ministry of Agriculture of the Russian Federation (Resolution of the Government of the Russian Federation No. 1528 dated 29 December 2016) to ensure national food security and maintains its leading position. In 2020, the program to finance agribusiness customers from the small-scale farming segment that is new for Bank GPB (JSC) was developed. The implementation of this program makes it possible to increase the limits for concessional lending by attracting a new business segment, as well as support the development of small businesses in the industry. Financial support was provided to key retailers as part of the state support programs for industries affected by the pandemic (Resolutions of the Government of the Russian Federation No. 696 dated 16 May 2020 and No. 1582 dated 1 October 2020).“Traditional” support programs were also actively developed.In the challenging conditions of the pandemic in 2020, Bank GPB (JSC) confirmed its status as one of the key support banks for agricultural companies and proved to be a reliable partner providing industry customers with a versatile and diversified product lineup, first-class services, and unique industry expertise. In 2020, the growth in the financing of the industry by Bank GPB (JSC) amounted to RUB 100 billion, reaching RUB 364 billion. Bank GPB (JSC) pays special attention to cooperation with exporting companies, including as part of the implementation of the state’s priority task of developing the export potential of the industry. In 2020, the total volume of export of agricultural products and foodstuffs exceeded the export of pipeline gas. Breaking the record, export surpassed import for the first time (USD 30.7 billion).Together with the Ministry of Agriculture of the Russian Federation, Bank GPB (JSC) continues increasing the volume of industry financing under all state support programs and is also working to expand the areas of support in the interests of its customers, including support for investment

projects for developing the manufacture of products with a high added value. High interest in this segment creates the need for the development of the corresponding infrastructure in the country, and growing volumes promote customers’ use of additional financing tools besides crediting, which is usual for the agriculture segment.The amount of targeted financing provided by Bank GPB (JSC) in 2020 for projects to improve the competitiveness of Russian agricultural products under the State Program of Concessional Lending of the Ministry of Agriculture of the Russian Federation (Resolution of the Government of the Russian Federation No. 512 dated 26 April 2019) amounted to RUB 25.2 billion. In 2020, together with the Ministry of Digital Development, Communications and Mass Media of the Russian Federation, the Bank concluded the first concessional lending deals in the industry under the state program of lending for projects based on cross-cutting digital technologies (Resolution of the Government of the Russian Federation No. 1598 dated 5 December 2019). This program provides for crediting projects based on the implementation of Russian IT products, services, and platform solutions with a cost of up to RUB 10 billion at an interest rate not exceeding 5 % per annum. It is aimed to speed up the digital transformation of companies in various economic sectors through concessional lending and factoring, as well as to support Russian software developers. Two projects were financed under the Program in 2020: in December, Bank GPB (JSC) concluded first loan agreements with the Komos Group. In accordance with the agreements, Bank GPB (JSC) provided financing for the project to implement an information system based on the 1C platform.Active crediting of companies in the ore mining and smelting sector in 2020 contributed to the development of the industry and the implementation of major investment projects. A deal for the financing of the Taishet aluminum smelter (RUSAL Taishet LLC) with a credit risk

limit of RUB 15 billion was concluded under the subsidy program according to Resolution of the Government of the Russian Federation No. 191 dated 23 February 2019. The Taishet aluminum smelter will be one of the most eco-friendly plants in the global aluminum industry, which will help lower the specific greenhouse gas emissions and increase the share of low-carbon products.Bank GPB (JSC) continued the implementation of hedging projects for significant volumes of iron ore, gold, tin, coking and steam coal and was also involved in projects to hedge the currency risk.The expansion of the strategic partnership with the SUEK Group is also notable: the launch of two-level cash pooling with an overdraft limit of RUB 15 billion and the ability to view analytical data on the GPB Business Online platform, as well as the new level of interaction using the Host-to-Host technology.Another notable 2020 deal was the start of cooperation with the Solopharm Group (Grotex LLC). The Bank has set a credit risk limit for the Group and finances the construction of a solid dosage form plant in St. Petersburg.The transaction on entry into the share capital of the leading player in the pharmacy retail market in Russia, ASNA LLC, was implemented. In 2020, Bank GPB (JSC) significantly increased the already high rate of development of the online collection service (Cash Acquiring) using automated deposit machines (ADM). The number of outlets covered by these services almost doubled to more than 21,000 units. Regional retailers were the new wave promoting this solution. Fifteen pilot projects with regional outlets and pharmacies as well as car dealerships were launched in 2020. Mobile operators also used this service: two pilot projects for ADMs for their retail networks were implemented.For the second year in a row, Bank GPB (JSC) became the “Retail Partner Bank” of the professional industry competition Retail Week Awards 2020 held as part of the International Forum of Business and Government “Russian Retail Week”. This award is a testimony that the vector chosen


by Bank GPB (JSC) for development in this important industry is right.The Bank continued the development of the product and service lineup for companies in the telecommunications, IT, and media industries. In particular, the year was fruitful for leasing transactions in the field of telecommunications equipment: Gazprombank Leasing received the “Leader in the Telecommunications Equipment Segment” award and became No. 1 in leasing telecommunications equipment.2020 was the year of active promotion of payroll card programs for high-technology companies. The Bank is able to meet the demand, among other things, with the use of new and actively developing technologies. As a result, the dynamics of the penetration into the customer base was 70 %.There were a number of significant transactions in other sectors where Gazprombank’s positions are traditionally strong. Bank GPB (JSC) and Titan-Polymer LLC signed an agreement for the financing of the construction of a plant for the production of biaxially-oriented polyethylene terephthalate (BoPET) film with a capacity of up to 72,000 tons per year and polyethylene terephthalate (PET) pellets with a capacity of up to 210,000 tons per year in the Pskov Region. The project with the total cost of RUB 16.7 billion is implemented with the use of funds of the Industrial Development Fund. The amount of financing under the loan agreement exceeds RUB 12.8 billion for a period of 10 years. It is implemented on the principles of project financing and involves the provision of credit against future cash flows.

Bank GPB (JSC) has been cooperating with the Titan Group for two years now. It is already financing the retrofitting and upgrading project for the production of phenol and acetone as well as the organization of isopropyl alcohol production at Omsky Kauchuk plant. We highly value the participation in the Group’s strategic projects and plan to continue supporting the implementation of the large-scale investment program, including import substitution. The production of personal protection equipment is especially important in the pandemic, and Titan-Polymer supplies components for them.Bank GPB (JSC) also continued developing relationships with transport companies, including those in the aviation and railway segments. The volume of bank guarantees and letters of credit provided to the largest Russian airlines was significantly increased, and new deals on rolling stock leasing for railway transport operators were concluded.The water transport business was one of the growth points for Bank GPB (JSC) in the transport industry. In 2020, the Bank concluded financing agreements for water transport projects amounting to more than RUB 15 billion, which significantly supported the Russian shipbuilding and the upgrade of Russian companies’ fleets. The Bank also provided credit lines for EUR 522 million for the construction of two floating gas storage facilities for LNG transshipment. Cooperation with machine-building companies boosted in 2020, and new products were in demand: thus, hedging of currency risks in the amount of more

than EUR 130 million was carried out for the companies in the industry.In 2020, the Bank actively developed business with the NOVATEK Group, one of the biggest companies in the gas sector. Bank GPB (JSC) became the Group’s support bank for ruble settlements. A pilot material pooling project was implemented for the Group, fundamental decisions were made with the customer to implement contract banking support and factoring services, and the implementation of a payroll project for the Group companies continues. The parent company has opened accounts with Bank GPB International S.A. for transactions related to placement of temporarily available foreign currency funds.A pool in foreign currency was launched on the platform of Bank GPB International S.A. as part of developing one of the key areas of cooperation with the Gazprom Group, i.e. the consolidation of liquidity of the Group’s foreign companies. Transborder cash pooling was implemented in three foreign currencies: the US dollar, the euro, and the British pound.The number of active customers with payroll cards from the Gazprom Group grew by 12 % in 2020, which became possible with a new attractive payroll package. The number of savings account users doubled to 43,000 people.A new approach has been developed and approved for suppliers and contractors of the Gazprom Group companies, which makes it possible to make decisions on setting credit risk limits both for one-time requests and for a list of companies at the same time. Potential borrowers are checked against external databases. The first limits with this

The Bank took an active part in state support measures for businesses affected by the pandemic.

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approach were set in November 2020. All in all, 3,125 limits for RUB 630 billion were set. Within these limits, companies can receive financing and bank guarantees for contracts with the Gazprom Group. Further limit setting process is automated based on model assessments.In 2020, Bank GPB (JSC) started cooperating with contractors of Gazprom Mezhregiongaz LLC for the provision of bank guarantees under the gasification program of the Russian Federation. Bank guarantees for more than RUB 6 billion were issued to 16 contractor companies by the end of 2020.Bank GPB (JSC) continues its cooperation with major electric power companies of the Russian Federation and is a key financial partner for many of them. Thus, in 2020, the Bank confirmed its undisputed leading position in the financing of “green” power in Russia by supporting several major projects for the construction of wind farms and solar parks, the installed capacity of which reached 2.4 GW.In 2020, together with State Development Corporation VEB.RF, the Bank continued providing financing to a project in the Moscow Region to build four solid waste incineration plants using the “waste to energy” technology. They will be capable of processing 2.8 million tons of waste per year, with a total installed capacity of 280 MW. This is a part of the Clean Country federal program based on the principles of state policy in the field of environmental development of the Russian Federation. The total project budget amounts to RUB 137 billion. Bank GPB (JSC) is the support bank for the Rosseti Group for arranging financing in the debt capital markets. In 2020, the Bank acted as the arranger of bond issues with a total value of RUB 58 billion for the Group’s companies. Continuing its traditional cooperation with the Rosseti Group in corporate lending, Bank GPB (JSC) is also developing new areas of cooperation with contracts banking support introduced in 2020.

The Bank carries out extensive work with municipal services companies, which are offered individual service packages.The Bank is strengthening its position in the market of servicing capital repair funds of apartment buildings, significantly increasing its portfolio of deposited cash balances in 2020 and constantly improving its product service.In developing relations with construction companies and developers in 2020, under the decision taken by the Management Board to create a comprehensive product range for participants of shared-equity residential construction projects, Bank GPB (JSC) continued to take an active part in the integrated financing of property developers, contributing to the formation of a comfortable urban environment both in Moscow and in the Russian regions. Funds are provided for both the financing of specific construction projects and long-term business development. Escrow accounts are used when crediting property developers, which provides additional guarantee for the invested funds for the Bank and continuous financing for the developer. Thanks to the flexible individual approach to customers, the Bank could expand its portfolio and attract leading property developers for financing: companies from the TOP 10 property developers in terms of construction volume, such as the PIK Group and Samolet.One of the key points for Bank GPB (JSC) is the social aspect, including cooperation with higher education institutions. In 2020, we could implement what were previously pilot projects for their crediting: Bank GPB (JSC) increased the number of documentary and loan transactions with higher education institutions fivefold. We value this comprehensive and mutually beneficial cooperation. With last year’s challenges for educational institutions taken into account, Bank GPB (JSC) launched a lineup of products for campus and payroll services for developing fundraising in favor of endowments of universities. More than ten projects were implemented with it.

The Bank actively worked on developing cooperation with cultural institutions throughout the entire 2020. A pilot project was implemented with the State Tretyakov Gallery to collect donations via the Fast Payment System; and more and more organizations, including the Peterhof State Museum-Reserve, the Igor Moiseyev State Academic Ensemble of Popular Dance, and the Tsaritsyno Museum-Reserve, are switching to the Bank’s payroll cards.Bank GPB (JSC) became the main banking partner for the construction of the multifunctional sports complex Arena Omsk: it provided bank guarantees and ensures full banking support for the project.As a long-time partner of Skolkovo Foundation, at the end of 2020, Bank GPB (JSC) launched a pilot project and concluded an agreement for banking support of grant recipients for control over the designated use of funds. This program supports the transformation of priority sectors of the economy and the social sphere through the introduction of domestic products, services and platform solutions created on the basis of cross-cutting digital technologies. Cooperation with oil and gas companies is built around the active development of new banking services. The trend of dynamic development of contracts banking support for the oil and gas customers continued in 2020. In the area of consulting and intermediary activities of Bank GPB (JSC), there is a significant demand for brokerage services, where the Bank provides agency functions for the most effective placement of customers’ available funds, in particular, the formation of a Eurobonds portfolio in USD.The Bank’s experience in arranging investment projects financing for corporate customers in the oil and chemical sector based on project finance principles, both as part of a syndicate and as a sole contributor, is increasingly important. Thus, the deal with PJSC LUKOIL on the implementation of an energy investment project was closed successfully. It was LUKOIL’s debut transaction on the terms of project finance. The financing will go toward the upgrade of the Krasnodar


Combined Heat and Power Plant. The project implemented under the state Power Delivery Contract 2 (DPM-2) program provides for the comprehensive replacement of steam turbines and the main elements of boiler equipment, which will reduce specific fuel consumption for electricity generation at the CHP plant by more than 30 g/kWh and reduce CO₂ emissions by 155 thousand tons per year. The deal started a new leaf for the cooperation of Bank GPB (JSC) and LUKOIL, and the Bank as the financing organization is directly related to a project for reducing environmental pollution. The Bank’s rating and positioning in organizing issue of securities of Russian issuers in the fuel and power sector enabled it to become one of the arrangers of LUKOIL’s external borrowing (Eurobonds) for the first time.In the area of joint development of digital solutions with major partners, the Bank and Gazprom Neft PJSC are working on the isource digital platform and are considering the prospects of scaling it for the benefit of the Russian industry. Bank GPB (JSC) has a long successful experience in financing federal investment projects and knows the needs of industrial companies well. Together with its Gazprom Neft partners, the Bank looks to provide the market with a unique seamless ecosystem that will fully meet their needs in digital services for procurement and logistics in the shortest possible time.The new isource digital platform operates on the basis of the resources and competencies of the Electronic Trading Platform of Bank GPB (JSC) (GPB ETP) and Gazpromneft-Snabzheniye LLC, a specialized subsidiary of Gazprom Neft. The platform is a “digital twin” of the supply chain, automating procurement, logistics, and financial operations. The isource digital ecosystem solutions support the customer from demand generation to inventory management, making it possible to administer the company’s business processes and improve their efficiency while reducing the risks associated with poor quality equipment deliveries or delayed contract

fulfilment. Customers will also be able to use banking (contract support and bank guarantees for suppliers) and factoring services.Bank GPB (JSC) launched a new Unified Signature service on the basis of Gazpromneft Business Service. It will permit the employees of the Single Settlement Center of Gazpromneft Business Service (unified servicing center) to significantly optimize their work and reduce operational risks when ensuring document flow in remote banking systems. Unified Signature is a significant achievement in the development of transactional business products and services of Bank GPB (JSC). The fact that this technology was tested in the structure of Gazprom Neft, which is a reliable partner of Bank GPB (JSC) and has been the industry leader in applying the latest digital services at all levels of operations for many years, is a positive factor. The customer experience management system for corporate customers was completed in 2020. It includes regular monitoring and analysis of customer loyalty and satisfaction with the products and services offered by Bank GPB (JSC). The project team that worked on the creation of this system has strengthened its competence in the in-depth analysis of the wishes and needs of customers, which has significantly improved the experience of the corporate customers of the Bank.The research shows a high level of Net Promoter Score and Customer Satisfaction Index of corporate customers with the products of Bank GPB (JSC). Customers especially note the professionalism and customer focus of the Bank employees. Corporate customers also highly value the Bank’s flexible approach to individual requests.The transition to a new work model and significant time spent working remotely made the Bank focus on the further professional development of employees of the Customer Relations Unit: The emphasis was placed on training managers to develop meta- and soft skills, as well

as on the peculiarities of working with certain new banking products. All this serves one of the main tasks of improving corporate customers’ experience of working with Bank GPB (JSC).

Direct investments. Oil & gas projects. Gazprom Gazomotornoye Toplivo

In 2020, the company engaged in setting up infrastructure for the development of the gas engine fuel market in the Russian Federation. 30 new gas motor fuel infrastructure facilities were commissioned in 2020, 23 of which were capital construction projects and 7 were purchased from private investors. In 2020, the actual sales volume of compressed natural gas of Gazprom Gazomotornoye Toplivo increased to 839 million m³, which is 9 % more than in 2019. 6,000 tons of liquefied natural gas were also sold. The company strategy envisages further expansion of the fueling station network to make gas motor fuel more accessible for consumers.

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2020 was a challenging year for businesses due to the COVID-19 pandemic, which negatively affected various areas of activity. Companies dealing in retail, consumer services, and those in the catering industry were hit the most. It was important to support them under the Concessional Lending Program in these conditions. The Bank acted as an active agent of the state in implementing the Government’s resolutions, supporting both systemic companies and small and medium-sized businesses. RUB 28.5 billion were lent under the Program for Crediting Systemic Companies and Their Subsidiaries (Government Resolution No. 582 dated 24 April 2020). Under Resolutions of the Government of the Russian Federation for granting of concessional loans to maintain employment (No. 422 dated 2 April 2020) and to resume operations (No. 696 dated 16 May 2020), the Bank granted loans in the amount of RUB 5.4 billion. Concessional lending programs largely helped lessen the potential adverse consequences for the businesses in the affected industries.In order to support the gasification program implemented by Gazprom Mezhregiongaz, the Bank started large-scale cooperation with contractors engaged in the gasification of Russian regions. More than thirty companies are taking part in the Program. The total guarantees provided for contractors amounted to more than RUB 6 billion. The list of Program participants with set credit risk limits is still being expanded.The Bank provides leasing for various gas-powered construction machinery

and vehicles for the Gazprom Group companies.During 2020, the Bank actively expanded its collaboration with oil and oilfield service industry enterprises, including both vertically integrated majors (Gazprom Neft Group, Rosneft Group, Tatneft Group, etc.) and large and mid-sized independent regional oil producers/service providers.The Bank has a comprehensive program for factoring contractors of Russia’s biggest oil and gas holdings.It also traditionally finances petrochemical and gas-to-chemicals companies and those in the derived products sector.The Bank concluded several deals for discounting domestic letters of credit with the SIBUR Group companies.Limits were set for several big companies producing consumer goods from petrochemicals — from a wide range of detergents and cleaning chemicals to products for external anti-corrosion coating of oil and gas pipelines.The Bank also started cooperating with the international ChemPartners Group focused on export and import in the sphere of chemical feedstock for various industries.The development of the state program for export support led to an agreement being concluded with KuibyshevAzot PJSC.Further business development is pursued with enterprises of the ferrous and non-ferrous metal industry, as well as the pipe segment. Among its customers, the Bank has Russia’s major metallurgical holdings: TMK Group, UGMK Group, EVRAZ Group, USMK Group, Russian Copper Company Group,

Commercial Lending

During the reporting period, the Bank managed to maintain the optimal industrial structure of its loan portfolio. Loans were mainly extended to the basic industries of the economy, such as metallurgy, power generation, oil and gas production, transportation and refining, chemical and petrochemical industries, minerals extraction, agribusiness, engineering, and trade. The Bank is expanding cooperation with prospective customers in various sectors, at the same time maintaining relations with traditional creditworthy customers and supporting the high credit quality of its loan portfolio.


Metalloinvest Group, IMH Group, PJSC MMC Norilsk Nickel, OJSC KUMZ, and JSC Zagorsk Pipe Plant.Throughout 2020, the Bank retained its position as one of the main commercial creditors of electric power companies, increasing the share in the portfolio of the RusHydro Group, Irkutskenergo, the STS-ESE Group, etc.It also supported and continues to support the transport industry. Great attention was paid to the development of the documentary portfolio of industry customers as a number of major transactions for the provision of bank guarantees and letters of credit were concluded with key market players.The possibility of issuing bank guarantees for tax payment in installments was provided as part of the support for the aviation segment according to Article 64 of the Tax Code of the Russian Federation and Resolution of the Government of the Russian Federation No. 409 dated 2 April 2020.The Bank continued to actively work with Transmashholding companies.The Bank holds leading positions in concessional lending to companies in the agro-industrial complex. According to the results of 2020, Gazprombank is No. 2 in terms of subsidies received by authorized banks under Resolution of the Government of the Russian Federation No. 512 dated 26 April 2019 and No. 3 in terms of loans issued under Resolution of the Government of the Russian Federation No. 1528 dated 29 December 2019 (according to the Ministry of Agriculture of the Russian Federation). The portfolio of concessional loans grew by RUB 32.8 billion or 49 %. The share of concessional loans as a key product for the industry grows continuously, including with the development of relationships with new customers.As part of the development of cooperation with food retail companies, new loan agreements were signed with key industry players, including the O’KEY Group and the Magnit Group.One of the growth points in 2020 was the development of business with pharmaceutical companies:

• a loan agreement was signed with the R-Pharm Group specializing in the development, production and supply of medicine for hospital and specialized medical care;

• a credit limit was set for the Grand Capital Group;

• a credit limit was set for the Medsi private network of treatment and prevention facilities, with a loan agreement and first deals concluded.

The Bank continued to develop business with telecom, IT, and media companies:• a credit limit was set for the X-Holding;• cooperation with existing customers,

such as the Gazprom Media Group and Rostelecom was expanded.

2020 was a turning point for the Bank in terms of the development of small and medium-sized businesses. In 2019, it approved the concept for its development, and a professional team in most cities of the Bank’s operation was created in 2020. During the year, the Bank was able to significantly expand its customer base, with the number of small and medium-sized businesses using its services increasing by more than 20%. Credit limits for about RUB 32 billion were set for new customers alone. The credit and documentary portfolio more than doubled.In 2020, the Bank continued to take an active part in the state program for concessional lending to small and medium-sized businesses implemented by the Ministry of Economic Development of the Russian Federation under Resolution of the Government of the Russian Federation No. 1764 dated 30 December 2018. Loan agreements for more than RUB 7.7 billion were concluded throughout the year, the total value of issued loans reached RUB 9.0 billion.The Bank actively supports foreign trade activities of corporate customers, issuing bank guarantees and letters of credit, as well as providing settlement services and trade finance services (short, medium, and long-term lending to foreign trade operations, including under the cover of export credit agencies). Documentary products related to servicing current operations of customers within the country are becoming highly

relevant, in particular, bank guarantees and domestic ruble-denominated letters of credit, including deferred payment refunds and early repayment (discounting).Bank guarantees for RUB 461 billion were issued in 2020. The number of active guarantees as of 1 January 2021 increased by 10 % YoY. The volume of advised guarantees in favor of corporate customers and counterparty banks increased by 70 %. The volume of commission income from documentary operations in the area of commercial lending increased by 10 % YoY.In 2020, the first joint transactions with the Bank of Russia were implemented as part of a new product to issue guarantees secured by housing purchased or owned by the borrower in favor of the Bank of Russia to secure obligations under loans provided by the Bank of Russia to its employees (borrowers) to purchase housing.The letter of credit portfolio as of 1 January 2021 increased by 17 % YoY. The demand for Russian ruble-denominated letters of credit is growing, including those with deferred payment, and the new product, discounting (early payment) on domestic letters of credit with deferred payment opened by the Bank also became popular.In 2020, there was an increase in the volume and number of trade finance transactions for counterparty banks. The key driver was transactions with Uzbekistan: more than 100 trade finance transactions were implemented, with an annual increase in the transaction portfolio for Uzbek banks of 38 %. Besides, the segment of discounting operations with export letters of credit more than doubled: their annual volume amounted to an equivalent of RUB 2.5 billion.Cooperation with EXIAR actively expanded: in 2020, risks on export letters of credit were insured for a total amount of RUB 2.6 billion.The Bank continues cooperation with Russian exporters within the framework of state financial (guarantee, insurance) export support programs, as well as through trade finance instruments, including confirmation, post-financing and discounting of export letters of credit, and also participates in a program for subsidizing interest rates on export credits.

A N N U A L R E P O R T 2 0 2 0 31

Trade, Structured and Syndicated Finance

The Group’s portfolio got another deal for the financing of the advance payment under a commercial contract for the supply of Indian-made petroleum products for USD 200 million.

A number of smaller deals were made with the participation of the GPB Group’s European trader partner (for USD 30–70 million), including the financing of export supplies of metal products manufactured in Russia.As for structured finance, in 2020, Gazprombank successfully closed the deal for the purchase of shares of the Expert Group, one of the key players in the Russian market of private medical services. The Bank provided comprehensive financing for the Group, which

included investments in the stock capital and debt financing in the form of syndicated loan. The loan terms provide for a possibility to increase the financing amount and new creditors accession.Apart from primary syndicated loans, loan sales in the secondary market were a focal point of the syndicated lending market in 2020. Through such loan assignments, the Bank remains flexible in managing its loan portfolio, can minimize the load on capital, and, provided that a loan is sold at a premium

to its face value, earns additional income. Following the results of the work done last year, four loan sales in the secondary market totaling USD 200 million were closed in early 2021. The demand for syndicates organized by the GPB Group, including from foreign banks, is due to the high quality of deal structuring.The Bank’s leading role in the market is confirmed by the second place in the “Best Russian Bank in the CIS Syndication Market” nomination of the Loans Cbonds Awards 2020.With its extensive practical experience and significant positions in the financial market, the Bank took an active part in the improvement of legislation and the regulatory framework in the area of syndicated lending and securitization. The Bank played a key role in the development and adoption of amendments to Federal Laws “On Syndicated Credit (Loan)” and “On Insolvency (Bankruptcy)” at the end of 2020. These amendments provide for the possibility of documenting the relationship between creditors in the form of a funded sub-participation. This tool is widely used in international practice to redistribute risks for deals between different financing institutes without involving the borrower. It will expand the product line of Russian financial institutions and improve their ability to quickly manage the bank balance and capital.

In 2020, the GPB Group strengthened its leading market positions and continued to increase the volume of international trade finance.


Challenges and achievements in 2020The dramatic spread of COVID-19 significantly changed the lives of people all over the world. Last spring was full of events that turned nearly all areas of our life upside down.Despite the unstable situation in 2020, the retail business could quickly adapt to the new conditions and not only retain the dynamic growth in several key areas but also increase the market share.

Thanks to digitalization, quick transition to stable and efficient remote work, the retail business could promptly recover from the events of the first half of 2020 and achieved the level of sales of Q4 2019 by June. In the second half of the year, it could already beat records in terms of sales, including the volume of consumer loans through regular Rate Boom campaigns. This enabled us to catch up with the reduced pace of the first half of 2020 and draw closer to the implementation of strategic plans

in the second half of 2020 without changing the key business goals and objectives.The retail business financial result in the reporting period was RUB 4.7 billion thanks to the great teamwork and the development of efficient services. Consumer loans, savings accounts, and debit and credit cards were the key products in 2020.The consumer loans issued in 2020 amounted to RUB 205 billion (+37 % YoY), and the Bank’s consumer loan portfolio amounted to RUB 259 billion (+46 % YoY), which made it possible to strengthen positions in the fifth place among Russian banks in terms of portfolio size and become No. 1 in terms of portfolio growth rate among key market players¹. The total loan portfolio reached RUB 739 billion (+21.5 % YoY).At the end of 2020, Gazprombank entered the securitization market and placed two issues of mortgage-backed bonds totaling about RUB 60 billion. With the release of RWA, these deals will additionally increase the credit portfolio with a financial result possibly exceeding RUB 1.5 billion. Bonds are also a potential source of additional liquidity for the Bank.The growth of the savings account portfolio was RUB 119 billion, four times YoY. In general, balances across all products for attracting funds from individuals showed an increase, which ranked the Bank fourth among Russian banks by the volume of current accounts, improving its market position by one line at the end of 2020. The total liabilities portfolio reached the record RUB 766 billion (+16 % YoY).

Retail Business. Key Results in 2020

All key retail goals and tasks remained unchanged in 2020 despite the challenging year. Business is focusing on consumer loans. As a result, the volume of consumer loans amounted to RUB 205 billion, or +37 % YoY, and the financial result was RUB 4.7 billion.

¹ Comparison of the top 7 banks by portfolio volume according to the Retail Banking Market report of Frank RG.

Thanks to the digitalization of its services, the retail business could quickly adapt to the conditions of 2020 and showed great results fulfilling strategic plans without changing the key business goals and objectives.

A N N U A L R E P O R T 2 0 2 0 33

In 2020, Gazprombank continued to actively develop its card business, staking on a personalized approach to customers and making an emphasis on digital services, offering unique products. Customers were more interested in card products than in 2019, the average card balance per year increased by 22 % YoY, and the total purchase volume by 18 %.Income from commission products has shown impressive results. The most notable include RUB 16 billion from credit insurance (two times more than in 2019) and RUB 3 billion from investment products (+22 % YoY). The total commission result of the retail business in 2020 was RUB 24 billion (+RUB 8 billion), which is 1.5 times more than in 2019. The share of retail business in the total commission income of the Bank was 42 %.

New products in 2020Gazprombank launched several new products and services in the reporting year, focusing the most on the development of remote servicing channels. Courier delivery is very popular. Customers can get virtually any product delivered by a Bank representative, be it a debit or credit card, a deposit account, credit, or even a payroll card.The Bank entered the car loan market by offering the entire documentation process online without the need to come to a Bank office. One of the advantages was the ability for the customer to get the money first and then decide if they want to spend it on a car and pledge it.To attract funds from individuals, the Bank gave new customers the opportunity to open the Success account remotely and launched a new product in June, the Manage Percentage savings account, where the annual interest goes up to 6 % and depends on the amount of monthly replenishment. From December 15, Gazprombank introduced the Your Success account with capitalization and yield up to 6 % per annum. The Bank’s participation in state-subsidized programs helped attract mortgage

customers. RUB 25 billion of loans were issued on concessional mortgages, Far Eastern, and family mortgages. In May, Gazprombank launched the real estate selection project on its website. Created together with major real estate search engine Cian, this service enables customers to find suitable housing and file an application for a loan with the Bank online. Among innovative card products of 2020 was the Convenient Card credit card with a flexible grace period determined automatically depending on how much the customer spends every month. In December, Gazprombank launched the Gazprombank Investments mobile application for retail customers who want to buy securities at the stock market. The new online service provided by the GPB Investments LLC broker (part of the Gazprombank Group) is for trading stocks, bonds, currencies, and other financial instruments. The service was launched at the end of 2020, and GPB Investments LLC was among the TOP 15 operators of the Moscow Exchange in terms of active customers in December with 3,300 active customers out of 11,700 accounts opened in 2020.Before the New Year, Gazprombank also launched its own mobile operator GPB Mobile, which operates on the Tele2 network and offers subscribers a lineup of Be Together rate plans with the opportunity to receive a discount of up to 70% of the subscription fee depending on the monthly expenses on the bank card.Thus, with quick adaptation during the long quarantine, the implementation of most of the plans and the introduction of a number of innovative products, the base of active retail customers exceeded 3.2 million people for the first time. 882,000 new customers were attracted in 2020, and the number of customers attracted in Q1 was 40 % higher than in the same period of 2019.

Awards in 2020In 2020, Gazprombank won the “Bank of the Year” award in the “Consumer Loan of the Year” nomination. The Bank’s cash loan was deemed the best out of more than 700 offerings presented on Banki.ru. Gazprombank was awarded for its flagship Smart Card product at FINAWARD-2019 in August, and in July it got two awards at the seventh annual professional award in the field of CRM and loyalty marketing Loyalty Awards Russia 2020. The smart cashback system for the Smart Card was deemed the “Best Financial Institution Loyalty Program”, and the Autodrive Start card for car enthusiasts was named the “Best Cobranded Card”. Gazprombank Premium servicing program was named the “Best Dynamically Developing Premium Program” at Frank Premium Banking Award 2020. It was awarded in October of the reporting year.


¹ Services are provided by the Luxembourg-based subsidiary bank.

GazprombankPrivate Banking: Customer Focus

Gazprombank Private Banking is the most customer-oriented bank offering private banking services.

Gazprombank Private Banking footprint

2 jurisdictionsRussia and Luxembourg¹

16 citiesof presence in Russia

Ufa

Luxembourg Saint Petersburg

KrasnodarRostov-on-Don

VolgogradSaratov

TulaMoscow

Nizhny Novgorod

Kazan

Yekaterinburg

Tyumen

Surgut

Novosibirsk

Kemerovo

Krasnoyarsk

A N N U A L R E P O R T 2 0 2 0 35

The liabilities portfolio grew by 29 %. The share of new funds directed to investment products also increased even though customers still view deposits as an obligatory tool when placing funds with the Bank. This is facilitated by a balanced line of term deposits of Gazprombank Private Banking, which enables customers to obtain rates above the market average with a comfortable level of funds liquidity.The customer investment portfolio grew by 59 % to more than RUB 169 billion. Much demanded investment solutions that make it possible to gain profit on various asset classes were added to the product line. The range of securities offered to customers by way of investment advice was also expanded. As part of the development of alternative investments, customers were provided with an opportunity

to buy diamonds from the special assortment of PJSC ALROSA. In 2020, the Private Banking unit, jointly with Gazprombank — Asset Management, expanded the range of solutions the Bank offers, including trust asset management strategies and mutual funds for qualified investors. Insurance solutions also remain popular with private banking customers. The product lineup got new investment life insurance strategies, including investment ideas relevant in the time of a pandemic: investment into the shares of companies whose activity is related to ensuring work from home, delivery of vital goods, and online entertainment. New endowment life insurance products were also added. A good level of protection is afforded through a high insurance limit, with the entire amount of premiums paid being refunded in full at the end of the insurance period. The share of sales of investment and endowment life insurance products increased by 52 % and amounted to RUB 2.3 billion.In line with market trends, customer interest in lending has grown. The credit card lineup was upgraded, business processes optimized, and special credit programs developed.At the beginning of 2020, Gazprombank Private Banking relaunched its service packages. In the new version, customers get access to up to 10 top-tier cards, travel insurance for the whole family, access to business lounges, concierge service, loyalty

In 2020, assets under the management of Gazprombank Private Banking added 34 %. The average customer’s account size grew by 18 %. Portfolios grew in all segments, with major private customers and with customers whose capital does not exceed USD 3–5 million. Despite the changing working conditions and transition to work from home and online communication with customers, we could grow our team of customer managers in Moscow and in the regional network alike, which also contributed to the growth of the customer base.

34% 59%

16

2jurisdictions

cities of presence

in Russia

Russia and Luxembourg

were added to the assets managed by Gazprombank

Private Banking

growth of the investment portfolio managed

by Gazprombank Private Banking, the size of which exceeded RUB 169 billion


programs, special foreign currency exchange rates, 50 % discount for safety deposit boxes, and more. Metal cards were added to the lineup, as well as the possibility of issuing Rosan Diamond jewelry cards in solid gold with precious stones. The market’s only cobranded card Mastercard World Elite PRIME is still the flagship product uniting the offers of the Bank and the payment system with the PRIME loyalty program benefits. The Aeroflot Bonus loyalty program was also improved with the addition of the gold-tier Sky Team Elite Plus.Developing an approach to funds management for the whole family, we continued to expand the Heirs program, offering cards with a unique loyalty program for customers’ children from the age of six. Gazprombank Private Banking continued active development in the regional network. New private banking divisions were opened and a team of customer managers was formed in Tyumen, Krasnoyarsk, Volgograd, and the Central Branch, while the Saratov team was relocated to a new office. Despite the pandemic, the regional teams could carry on with the steady growth of the business volumes, which made it possible to exceed the planned figures. In 2021, Gazprombank Private Banking in regions will be focusing on a long-term increase of commission revenue, attraction of new customers, and synergy with the Bank’s small and medium-sized business division.

Developing LifeStyle Management, customer events in 2020 — business lunches, webinars, and lectures — were held in a safe online format.A customer survey was conducted to improve service quality and provide relevant financial solutions; its results will be taken into account in 2021. The Bank continued with its personnel development efforts as employees were trained online. 2021 shall be the year of continuing growth and transformation. Gazprombank Private Banking plans to increase the synergy effect with related business units of the Bank and improve online communication with customers in key channels while maintaining an emphasis on data confidentiality.

Art BankingFor many years, Gazprombank has provided its Private Banking customers with services in the art market, with activities that range from servicing investments in works of art and sought-after collector’s items to specially designed programs that allow them to keep abreast of the main global events as well as the domestic art scene.Gazprombank’s corporate collection has been the first and to date the only corporate collection with a focus on contemporary Russian art. Works from the Bank’s collection are sought after by curators of museum and other exhibition projects in Russia and abroad, including exhibitions in the State

Tretyakov Gallery, the National Centre for Contemporary Arts, the Moscow Museum of Modern Art, the Multimedia Art Museum, the Garage Museum of Contemporary Art, the Albertina Museum (Austria), Bologna Museums Association (Italy), projects of the Moscow, Venice, Liverpool, and Ljubljana Biennial, the Thessaloniki Biennial and many others. In 2019, as part of the annual LOOP video art festival in Barcelona, an exhibition of selected works from the Bank’s collection was placed on display in Casa de Russia as yet further evidence of the Bank’s interest in Russia’s contemporary art scene and its evolving international cultural relationships.In 2020, focus was made on disseminating information about the collection and the art market on the Internet, in particular, via the Bank’s Instagram account and Telegram channel.

2020 Awards

Among the TOP 5 Russian Private Banking banks,

FORBES

Most Customer-Oriented Bank for Private Customers, Spear’s Russia

Wealth Management Awards

A N N U A L R E P O R T 2 0 2 0 37

The fact that bank project financing is an important and popular source of funds for investment projects was confirmed yet again. Even in the challenging economic situation, the credit portfolio of Gazprombank’s project financing retained its quality and showed considerable growth.The main features of 2020 were the increased focus on “green” power (Gazprombank’s share in the Russian renewable energy sources market reached 62 %), financing of projects in the mining and metallurgical

sector (portfolio increase of more than RUB 80 billion), the oil and gas and chemical sector (portfolio increase of RUB 140 billion), as well as a significant expansion of bank financing for developers using escrow accounts (the total credit risk limit of over RUB 250 billion was set, loan agreements for about RUB 170 billion were concluded). The Bank continued to take an active part in syndicated credit deals, first and foremost within the framework of VEB.RF’sProject Finance Factory (hereinafter the Factory). Agreements were signed to finance Gazprombank’s projects as part

of the Factory for a total amount of over RUB 74 billion. The project for the construction of the K grade sulfuric acid and improved oleum production unit of KuibyshevAzot PJSC implemented within the framework of the Factory was launched in December 2020.2020 saw some significant projects.In the oil and gas sector, the Bank opened a credit line with a limit of EUR 522 million for the financing of the construction and commissioning of two floating gas

storages, which will help create capacities for the storage and transshipment of liquefied natural gas as part of NOVATEK’s construction of transshipment complexes in Kamchatka and the Murmansk Region. Uzbekneftegaz JSC was provided advance financing in the amount of up to RUB 8 billion to implement stage two of the Program to Increase Hydrocarbon Production in 2017–2021 in the Republic of Uzbekistan. The total amount of funding provided by the Bank for the implementation of the Program exceeded USD 500 million.

Project and Structured Finance

In 2020, Gazprombank confirmed and strengthened its leading positions in the Russian and international markets as an arranger of project finance and financial advisor. This was facilitated by the vast experience of implementing projects in the key economic sectors: oil and gas, chemicals, infrastructure, power, mining, metallurgy, industry, agriculture, real estate, etc. Gazprombank strengthened its leading

position in the project finance market in 2020.


Together with VEB.RF and InfraVEB JSC, in 2020, Bank GPB (JSC) became the financial advisor for the project companies RusKhimAlyans LLC and Baltic Chemical Complex LLC for the purposes of attracting foreign funds on the principles of project financing for the unmatched large-scale investment project Ethane-Containing Gas Processing Complex in Ust-Luga.In the petrochemical industry, the construction of the Amur gas chemical complex is being financed with a bridge loan in 2020 from a syndicate of banks for USD 1.5 billion. Also as part of a bank syndicate in the framework of the Factory, Gazprombank started financing (RUB 19.7 billion) EuroChem’s project for the creation of an ammonium carbamate complex. For the first time in the Factory’s history, the syndicate is formed from five banks, including VEB.RF, Gazprombank, Sberbank, VTB, and Otkritie. Its structure includes a specialized tranche in accordance with the requirements of the program to support export-oriented industries (Resolution of the Government of the Russian Federation No. 191). Due to the intensive development of project financing of property developers with the use of escrow accounts, the aggregate credit risk limit for this area has been set at more than RUB 250 billion. Cooperation was established and loan agreements were signed, including with such market leaders as the PIK Group, KORTROS Group, Sminex Group, and Setl Group.In the industry sector, the financing of the Taishet aluminum smelter was started in syndicate with Russian banks

(the RUSAL Group, Gazprombank’s credit share is RUB 15 billion). Funds were provided for the manufacture of 15 excavators at the UZTM-KARTEX plant (RUB 3.5 billion credit) for use in the Elga coal complex, as well as RUB 9.6 billion for the investment program for Grotex LLC to build a pharmaceutical plant and develop medicines. One of the flagship companies of the coal industry, the Kolmar Group, was provided with financing exceeding RUB 26 billion for projects to expand coal mining and enrichment.In the energy industry, the financing of 10 solar power plants of the Hevel Group (RUB 20 billion) and wind power plants of VetroOGK-2 (RUB 40 billion) was started. Financing in the form of syndicated loans was provided for the construction of a wind power plant by the 7th Wind Farm of the Wind Energy Development Fund (WEDF) in the Rostov region and the upgrade of the Krasnodar Combined Heat and Power Plant of LUKOIL-Kubanenergo, and loans to JSC GT Energo were provided to refinance the existing indebtedness and purchase GT Thermal Power Station Kasimovskaya.Among the new milestone projects in the mining industry is the financing of capacity expansion of Pavlik JSC gold extraction plant in the Magadan Region. The financing will amount to USD 354 million. In addition, we financed the final stage of construction and commissioning of the copper concentrate plant of Tominsky GOK LLC, part of the Russian Copper Company Group (portfolio growth in 2020 exceeded RUB 18 billion) and continued to actively finance the Udokan Copper project

(portfolio growth for the year exceeded RUB 27 billion).The Bank also takes an active part in the development of the agricultural complex in Russia and helps realize the industry’s export potential. Credit funds provided to the Miratorg Group in the reporting year went toward the development of pig and poultry farming in the Kursk, Bryansk, and Orel Regions (credit limit of RUB 137.8 billion). Financing was provided to the Nefis Group as part of the program to support exports of agricultural products (RUB 5.0 billion). The Bank supports agricultural products logistics. It signed a loan agreement with the Sodrugestvo Group of Companies for RUB 20 billion to purchase railroad cars for transporting agricultural products.In the pharmaceutical industry, the Bank started cooperating with one of the fastest growing companies, Solopharm (credit limit of RUB 9.0 billion). Financing of leasing operations was also actively expanded in 2020. Major deals include the financing of GTLK for more than RUB 19 billion to buy ships for subsequent leasing, crediting of leasing of business jets for Gazpromavia Aviation Company Limited for RUB 10.5 billion, and agreements for the provision of financing to CARCADE, a leasing company (RUB 25.5 billion).The projects implemented in the reporting year resulted in Gazprombank’s specialized lending portfolio reaching more than RUB 1 trillion (according to IFRS).Based on its 2020 results, Gazprombank confirmed its leading position on the market

Even in the challenging economic situation, the credit portfolio of Gazprombank’s project financing retained its quality and showed considerable growth.

A N N U A L R E P O R T 2 0 2 0 39

once again. In the international professional ratings of project finance by Project Finance & Infrastructure Journal, Gazprombank ranked second in Europe as a financial advisor for infrastructure finance and eighth as an authorized leading arranger of project finance. The Bank was also ranked third globally as a financial advisor for infrastructure financing in the oil and gas sector, sixth globally as an authorized lead arranger of project finance in the energy sector, and seventh globally as a financial advisor for infrastructure financing in the same rating. Another famous magazine, Project Finance International, ranked the Bank fourth in the EMEA region and fifth in the world in terms of closed financing advisor deals.The Russian economy’s growing demand for successful investment projects, Gazprombank’s unique experience in this area tested by the difficult economic situation of 2020, and well-established mutually beneficial relationships with the Bank’s customers provide a background for long-term confident development of Gazprombank’s project and structured finance, investment lending, and financial advisory business.

Private-Public Partnership (PPP)Just like in recent years, Gazprombank’s 2020 results show growth in key financial metrics relating to transactions in the infrastructure and PPP fields. The yearly increase of the credit portfolio amounted to about 30 %.The considerable growth of the credit portfolio is first of all due to the financing

of projects for the construction of the Central Ring Road (TsKAD) Phases Four and Five. Both highway sections were put into operation at the end of 2020. The TsKAD project (Gazprombank participates in the construction of the third, fourth, and fifth phases) is important for the dynamic development of the entire Central economic region of Russia. The project is a key element of the Moscow Region’s transport system and will help significantly lessen the burden on the region’s roads.Gazprombank also provided financing to two more road projects in the Moscow Region: the project for the reconstruction and operation of a toll road section of M-3 Ukraine federal motorway and the project for the construction of the Vinogradovo–Boltino–Tarasovka road. One of the key events in 2020 in the field of PPP for Gazprombank was the financial closure on the project of the construction and toll operation of the bridge overpass over the Ob River in Novosibirsk. The project will improve the transport availability of the two parts of one of Russia’s biggest cities separated by the river by connecting Yuzhnaya Square on the right shore and Truda Square on the left shore. It will be parallel to the existing railroad overpass and provide access to the federal highways Baikal, Chuya Highway, and Siberia. The length of the main road section is more than 5 km, while the bridge overpass is 1.5 km. The facility cost exceeds RUB 37 billion.Thanks to timely financing provided by Gazprombank, an opening ceremony for a car bridge over the Pur River

was held in October 2020 in the Yamal-Nenets Autonomous Area. The successful implementation of this project gave people living in the region connection to the mainland all year round. The project budget was RUB 9.6 billion. At the end of 2020, a deal unique for the PPP market was made to refinance the equity and bond loans of Upravleniye Otkhodami JSC and its subsidiaries. This improved the financial stability of the Group’s companies, which provide socially important solid waste management services under eight concession agreements in seven regions of Russia. The financing provided by Gazprombank in syndicate with VEB.RF amounted to about RUB 10 billion.

Gazprombank showed growth in key financial metrics relating to transactions in the infrastructure and PPP fields.


Main Project Finance Deals in 2020

Lender

LenderLender Lender, loan manager

Lender Lender

RUB 28.1 billion

RUB 6.6 billionRUB 2.3 billion RUB 13.1 billion

RUB 3.04 billion RUB 1.8 billion

Escrow-based financing of residential estate Serednevskiy Les

construction project in the New Moscow area

Escrow-based financing of residential estate

Autograph in the Center construction project

in St.Petersburg

Escrow-based financing of residential estates Bavaria and Spektr

construction projects in Novosibirsk

Krasnodar Combined Heat and Power Plant upgrade project

Escrow-based financing of residential estate Chistaya Sloboda

construction project in Novosibirsk

Financing of a retrofitting project

at isopropyl benzene plant, isopropyl alcohol production plant

Lender Lender Lender

RUB 12.8 billion RUB 15.3 billion RUB 7.67 billion

Construction of a plant for the production

of biaxially-oriented polyethylene terephthalate film and polyethylene

terephthalate pellets


Dostigenie construction project

in Moscow


Simonovskaya Naberezhnaya construction project

in Moscow

A N N U A L R E P O R T 2 0 2 0 41


EUR 522 mln RUB 5.6 billion RUB 20 billion

Construction of two floating gas storage

facilities and leasing to a NOVATEK Group company

Expansion and upgrade of poultry farming division

for Bryansk Broiler LLC

Financing of railroad cars purchase for agricultural products

transportation


RUB 40 billion RUB 9.0 billion RUB 19 billion

Construction of wind power plants

of VetroOGK-2 with installed capacity

of 340 MW

Loan portfolio refinancing for a Grotex LLC project

Refinancing of ships procurement

for subsequent leasing



USD 750 mln RUB 1.9 billion RUB 7.2 billion


Bridge financing of the Amur gas

chemical complex construction

Financing of the first full-cycle microfiber

production plant in the Republic of Tatarstan

Provision of a subsidized loan

to PJSC Metafrax

Financing of investment activities and current operations

Ammonium carbamate complex

construction by EuroChem NorthWest 2


Businovskiy Park construction project

in Moscow


Lender

Lender

Lender Lender

Lender


USD 100 mln

USD 300 mln


RUB 2.2 billion

USD 50 mln Up to RUB 1.1 billion RUB 10.5 billion

Financing of Navoi Mining

and Metallurgical Combinat investment projects

Financing of procurement of the Group’s Russian division assets by the Group’s sub-holding company

(Baltic Logistic Company)

Financing of five solar power plants

construction under the Renewable Energy Sources CDA

Program

Leasing operations financing and debt refinancing

Provision of a subsidized working capital loan

to the Metafrax Group

Oil and gas infrastructure construction

in Uzbekistan

Facility under the program for subsidized loans

for systemic companies

Financial leasing of two business jets

Lender

RUB 8 billion

Implementation of Stage 2 of the State Program

to Enhance Hydrocarbons Production in the Republic of Uzbekistan

in 2017–2021



Financing of residential estate

I Love construction project

in the North East of Moscow

Construction of a wind power plant in the Rostov region

Refinancing of JSC GT Energo existing debt

and purchase of GT Thermal Power Station

Kasimovskaya

A N N U A L R E P O R T 2 0 2 0 43

Lender

Lender

Lender Lender

Lender Lender


RUB 15 billion

RUB 1.7 billion


EUR 40.35 mln RUB 3.5 billion

USD 354 mln RUB 10 billion RUB 2.5 billion

Construction of an aluminum smelter

with a capacity of 430,000 tons per annum

in the Irkutsk Region

Construction of an alkyl ethanolamine plant

in the Nizhny Novgorod Region


Kantemirovskaya construction project

in St. Petersburg

Financing of three solar power plants

construction under the program to support RES in retail markets

Financing of rail tank cars procurement

for Shchekinoazot products transportation

Financing of the manufacturing

of 15 excavators for Elga coal deposit

Capacity expansion of Pavlik JSC

gold extraction plant in the Magadan Region

Financing of Schelkovskiy

multipurpose complex construction

Subsidized loans

provision


Arranging transactions on the local debt capital marketOver the last six years, Gazprombank has reasserted its leading positions on the local debt capital market; the Bank’s market share grew from 26 % in 2015 to 38 % in 2020 (in terms of size of offerings), while the volume of transactions with Gazprombank participation grew from RUB 0.4 trillion to RUB 1.3 trillion — a record for the Bank over its entire history.In 2020, Gazprombank acted as the arranger of 111 bond issuances for 65 issuers on the local debt capital market setting a new record for the Bank over its entire history of operations on the local debt market (in 2019 Gazprombank acted as the arranger of 100 bond issuances for 50 issuers).

In 2020, Gazprombank represented the oil and gas, extracting, chemical and power industries, metallurgy, retail, infrastructure and transport, construction, telecommunications and financial sectors, sub-federal borrowers, as well as foreign corporate and sovereign borrowers.

Capital Market Operations

Gazprombank maintains leading positions in capital markets offering a full range of debt and equity raising services.

2016. 64 issues 2018. 54 issues 2020. 111 issues2015. 52 issues 2017. 73 issues 2019. 100 issues

■ Gazprombank transactions, RUB trillion■ Other market transactions, RUB trillion

In the center: total volume of transactions in the market, RUB trillion

Gazprombank market share

¹ Excluding issue of GSP-Finance LLC bonds for RUB 225.2 billion.

26 %

0.8 0.60.6

0.4

1.0 1.31.2 0�91.21.3 1�7 1.8 2.0 1�5 2.7 2.91�7 1.6¹

35 % 38 % 39 % 36 % 38 %¹

A N N U A L R E P O R T 2 0 2 0 45

2020 achievementsAccording to the results of Сbonds Awards 2020 voting by the market participants, Gazprombank won a record number of awards over its entire history: 12 awards in total, including prestigious team and personal categories. Most of the landmark deals recognized as the best in their respective segments were implemented with Gazprombank participation:• Debut of the Year (Kazakhstan);

• Best Primary Placement Deal in the Oil and Gas Sector (Rosneft);

• Best Primary Banking Sector Bond Deal (VEB.RF);

• Best Primary Sub-federal Bond Deal (Republic of Bashkortostan);

• Best Primary Placement Deal of the Metallurgy Industry (Metalloinvest);

• Best Primary Eurobond Deal (GTLK);• Best Primary Non-Financial Sector Bond

Deal (Segezha Group);

• Best Primary Construction and Development Industry Bond Deal (PIK);

• Best Primary Subordinated Bond Deal (Sovcombank);

• Best Structured Finance Deal (MSP Bank);• Return of the Year (PSB).

Награды Cbonds Awards 2020

CBONDSDebut of the Year

(Republic of Kazakhstan)

CBONDSBest Primary

Placement Deal in the Oil and Gas Sector

CBONDSBest Primary

Banking Sector Bond Deal

CBONDSBest Primary

Placement Deal of the Metallurgy Industry

CBONDSBest Primary

Subordinated Bond Deal

CBONDSBest Primary

Eurobond Deal

CBONDSBest Structured

Finance Deal

CBONDSBest Primary

Non-Financial Sector Bond Deal

CBONDSReturn

of the Year

CBONDS

1Best Bond Market

Sales Team

CBONDSBest Primary

Sub-federal Bond Deal (Republic of Bashkortostan)

CBONDSBest Primary Construction

and Development Industry Bond Deal

2020 2020 2020

2020

2020

2020

2020

2020

2020

2020

2020

2020


Debut placements

New instruments

Maximum maturity

¹ Zero coupon yield curve (G-curve).

Republic of Kazakhstan 5.40% / 6.55% / 7.00%

RUB 40 billion

3 / 7 / 10 years

September 2020

October 2020

December 2020

January 2020 March 2020

November 2020 December 2020

January 2020 March 2020

December 2020

8.40 %

RUB 5 billion

3 years

10.00 %

RUB 500 million

3 years "Green" bonds

6.75 %

RUB 10 billion

10 years

G¹(7Y) + 50 b.p.

RUB 15 billion

10 years

G¹(7Y) + 175 b.p. (step up 95 b.p. after 10 years)

RUB 33 billion

Perpetual

G¹(7Y) + 175 b.p. (step up 95 b.p. after 10 years)

RUB 10 billion

Perpetual

7.10 %

RUB 10 billion

3 years

11.00 %

RUB 4 billion

3 years

6.55 %

RUB 5 billion

5 years

A N N U A L R E P O R T 2 0 2 0 47

Minimum interest rates

Issues with a record-high share of distribution in favor of individuals

May 2020 May 2020

May 2020

July 2020

5.50 %

RUB 10 billion

2 years

5.50 %

RUB 15 billion

2.5 years

5.70 % / 5.90 %

RUB 30 billion

5 / 7 years

5.55 %

RUB 5 billion

3 years

May 2020 October 2020

9.45 %

RUB 5 billion

5 years

9.00 %

RUB 2.5 billion

3 years

52 % 56 %

December 2020

October 2020

12.00 %

RUB 2 billion

3 years

8.90 %

RUB 4.95 billion

3 years 2 months

40 %

47 %


Unique deals in the local debt market In 2020, Gazprombank implemented a number of milestone transactions, including debut placements of Russian and foreign borrowers, issues with record-low rates and maximum maturity, placements with a high share of distribution in favor of individuals, as well as new instruments for the Russian debt market such as “green” and perpetual bonds:• Kazakhstan: largest debut placement

in the history of the Russian debt market, double listing (MOEX and AIX).

• Segezha: debut placement of Sistema Public Joint Stock Financial Corporation subsidiary at the level of the parent Company’s yield curve.

• Brusnika: debut placement of the regional developer targeted at the buyers of the company’s real estate.

• QIWI: debut placement of the leading provider of new-generation payment and financial services in Russia and the CIS countries.

• Vostochnaya Stevedoring Company: continuation of the public debt history of Global Ports, the leader of the Russian container terminal market.

• Garant-Invest: first issue of “green” bonds in the local debt market with the participation of Gazprombank.

• Russian Railways: perpetual bonds that provide for the compensation of unreceived income to investors in accordance with the Order of the Government in the event of the issuer’s refusal to pay coupon income.

• FGC UES: lowest coupon rate among 10-year bonds in the market’s history.

• Russian Railways: first market placement of the company’s bonds with a link to the G curve.

• Gazprom Capital, MTS, SIBUR, MOESK: deals with the lowest interest rates.

• Eurotorg, VIS Group, Softline Group, ABZ-1: issues with a record share of distribution in favor of individuals.

Arranging transactions on international debt capital marketsGazprombank is a leader among arrangers and underwriters of debt instruments issued by Russian issuers in international capital markets. In 2020, the Bank was book-runner and underwriter of 21 international issuances of issuers from the Russian Federation and other CIS countries; the total amount exceeded (the equivalent of) USD 16 billion in various currencies, including the US dollar, the euro, the Russian ruble and the Uzbekistani som.The Bank was placed at the top of rankings of underwriters of Eurobond issuers in 2020:

• 1st place in the ranking of Eurobond issues of issuers based in Russia

• 1st place in the ranking of Eurobond issues of CIS oil and gas industry issuers

• 2nd place in the ranking of Eurobond issues of CIS-based issuers.

Arrangers ranking in 2015–2020. Local market issues, excluding structured bonds

Arranger Share, % Amount, RUB billion

1. Gazprombank 16.1 1,520.1

2. Sber CIB 15�4 1,451.3

3. VTB Capital 15�0 1,419.7

4. Sovcombank 10�6 1,006.3

5. Region BC 8.8 831.3

Others 34.1 3,224.2

Total 100�0 9,452.9

Source: Cbonds, 2015–2020 results

Arrangers ranking 2020 (Eurobonds). Issues of Russia-based issuers

Arranger Share, % Amount, USD billion

1. Gazprombank 21 4.0

2. J.P. Morgan 16 3.0

3. VTB Capital Plc 11 2.1

4. Sberbank CIB 10 1�9

5. UniCredit 6 1.2

Others 36 6�6

Total 100 18.8

Source: Bloomberg, as at 31 December 2020

A N N U A L R E P O R T 2 0 2 0 49

2020 milestone deals on international debt markets

• Ministry of Finance of the Russian Federation: the Bank acted as the bookrunner and settlement agent for two Eurobond issues totaling EUR 2 billion.

• Republic of Uzbekistan: placement of two tranches of Eurobonds in USD and in Uzbekistani soms, with the tranche in the national currency placed in the form of development impact bonds.

• Gazprom: debut issue of perpetual subordinated Eurobonds among Russian and CIS corporate borrowers, placement of two tranches of USD 1.4 billion and EUR 1 billion.

• Russian Railways: the Bank acted as the arranger and bookrunner of the first issue of the company’s social Eurobonds in Russian rubles.

Operations on stock marketsDespite the COVID-19 pandemic and the high volatility of the global markets, 2020 was a successful year for the Russian stock capital market. Russian companies conducted 22 transactions totaling slightly more than USD 9.0 billion, which is comparable with USD 8.6 billion in 2019:• The secondary placement market remained

active throughout the year as companies from primarily the gold mining and IT sectors conducted 15 additional SPOs and ABBs totaling USD 5.4 billion.

• The initial public offerings segment of the Russian stock market opened in the second half of 2020 after a long lull: companies managed to attract USD 2.0 billion through 4 IPO deals.

• There were also two convertible bond offerings totaling USD 1.7 billion in 2020.

In 2020, Gazprombank continued to actively expand its presence in the equity capital market, forming an intensive portfolio of IPO projects with implementation in early 2021. In October 2020, Gazprombank also successfully launched a new product by acting as an authorized agent and broker under

2020 milestone deals

Lead manager and bookrunner


Lead manager and bookrunner Lead manager and bookrunner


Global coordinatorLead manager and bookrunner

Russia-2027 EurobondsEUR 750 million

RZD-2028 EurobondsRUB 25 billion

Russia-2032 EurobondsEUR 1.25 billion

Uzbekistan-2023 EurobondsUZS 2 trillion

Uzbekistan-2030 EurobondsUSD 555 million

Perpetual subordinated Eurobonds

USD 1.4 billionYield: 4.60 % / Coupon: 4.5985 %

EUR 750 millionYield: 3.90 % / Coupon: 3.897 %

Maturity: 7 years1.125 % annual coupon

Listing: Euronext Dublin Reg S only

Maturity: 7.25 yearswith a 6.598 % annual coupon


Maturity: 12 years1.85 % annual coupon


Maturity: 3 yearswith a 14.50 % annual coupon

Listing: London SE, Reg S / 144A

Maturity: 10 yearswith a 3.70 % annual coupon

Listing: London SE, Reg S / 144A

Euronext Dublin, Reg S / 144A

Dublin 12 November 2020

Dublin 3 December 2020

Dublin 12 November 2020 London 12 November 2020

London 19 November 2020

Dublin 13 October 2020


the program to purchase common shares of PAO TMK through the Moscow Exchange for a total amount of USD 23.4 million (2.9 % of the authorized capital). Gazprombank continues active work under corporate broker mandates for Gazprom and Transneft. The Bank provides a range of consulting services that focus on strengthening the Russian companies’ positions on global stock markets, enhancing investment attractiveness, providing recommendations on interaction with the investment community, and arranging management road shows and investor days, as well as maintaining company stock in key stock indices.

Debt securities trading and institutional salesIn 2020, the Bank is among the debt securities market leaders, and, in particular, it is:• TOP 1 in terms of the percentage

of executed customer requests in Eurobonds of Russian issuers (according to MarketAxess),

• TOP 1 as a liquidity provider in Gazprom bonds (according to Bloomberg’s data for 2020),

• among the TOP 4 largest dealers of corporate bonds in the Russian market (according to the Moscow Exchange),

• among the TOP 5 federal loan bond (OFZ) dealers (according to the Moscow Exchange).

In 2020, the Bank received a prize in one of the Cbonds Awards key nominations: the “Best Sales Team in the Bond Market” (first place for the fourth year in a row).Thanks to the active fostering of relations with a global pool of investors, successful placements of 111 local bond issues and 21 Eurobond issues were completed.Despite the pandemic, active work was carried out online in 2020 to expand geographic investor coverage. Dialog with major institutional investors from Great Britain, the European Union, the United States, and China is gaining momentum.

Transactions in precious metalsThe Bank actively pursues financing and purchase transactions involving precious metals with the top leaders of the gold-mining industry. The customers of Bank GPB (JSC) include Polymetal International Plc. companies, PJSC Polyus, Millhouse Capital UK Ltd., NORILSK NICKEL, Petropavlovsk PLC, Yuzhuralzoloto (UGC), UMMC, Russian Copper Company, Highland Gold Mining Ltd., Russian Platinum, JSC Pavlik, GeoProMining Gold LLC (Armenia), refineries of JSC Uralelectromed, OJSC Krastsvetmet, JSC Prioksky Non-Ferrous Metals Plant, and JSC Shchelkovo Precious Metals Recycling Plant.The average annual amount of financing provided to industry companies in 2020 exceeded RUB 100 billion, current and investment lending to gold mining and processing companies, including advances for precious metal to Petropavlovsk PLC, reached RUB 5.2 billion. Notable deals in the reporting period include the growth of transactions with industry leaders on the provision of advances for precious metals under sale agreements to both Russian and foreign companies with the participation of Bank GPB International S.A. Namely, in April 2020, the Bank provided an advance of USD 25 million for 24 months to GeoProMining Gold LLC (Armenia).In terms of purchases of precious metals from mining and processing enterprises, Gazprombank is one of the leaders in the Russian market of precious metals. Last year, purchases exceeded the record 62 tons in gold equivalent.Traditionally, own export operations and foreign trade transactions under commission contracts are also developed. Export operations were carried out to international centers of physical metal trade: London, Zurich, Dubai, Hong Kong, Singapore, Delhi, and Chennai. The volume of export of precious metals in 2020 increased by 20% and reached a record 46 tons in gold equivalent.

A separate area of business is development of the service segment to supply gas and petrochemical companies with high-tech catalytic systems and equipment provided by the Bank’s 100 % subsidiary, GPB-Metallinvest.The strategic partners of GPB-Metallinvest are Gazprom, Rosneft, Gazprom Neft, SIBUR Holding, NOVATEK (Yamal LNG), LUKOIL, Krastsvetmet, Surgutneftegas (KINEF), and the NNK Group. The subsidiary is the operator (arranger) of the precious metals circulation system at Gazprom Neft, the official dealer of Axens, a subsidiary of Institut Francais du Pétrole et Energies Nouvelles (IFPEN), has dealership status in supplying catalysts produced by Shell Global Solutions (Eastern Europe) B.V. and Clariant International AG.In 2020, GPB-Metallinvest as the sole supplier of Chevron (USA) catalysts for hydrocracking, hydrotreating and isodewaxing to Rosneft’s refineries successfully supplied the said catalysts to RN-Komsomolsky Refinery LLC.In 2020, the subsidiary successfully delivered first batches of Shell catalysts for ethylene oxide production to SIBUR Holding in accordance with the framework agreement for the supply of the said catalysts in 2020–2022. Various types of catalysts were delivered to Surgutneftegas (KINEF LLC).The revenue of GPB-Metallinvest amounted to RUB 7.2 billion in 2020.

A N N U A L R E P O R T 2 0 2 0 51

The managed net assets amounted to RUB 614.7 billion in 2020. Expert RA rating agency confirmed the maximum reliability and quality of services of GPB-AM, which is part of Bank GPB (JSC)¹ asset management business, at the A++ level in 2020.

Closed-end unit investment fundsThe Asset Management Unit of Bank GPB (JSC) is the undisputed leader in the closed-end unit investment funds (CEIF) market. For the fourth consecutive year, its management company was rated No. 1 by Expert RA² agency in terms of customer assets in CEIF, which reached RUB 443.8 billion in 2020. This vehicle allows investors to structure complex investment deals, finance and manage investment projects, make direct and venture investments, and organize management of large private equity.

Retail business The retail business of the Asset Management Unit of Bank GPB (JSC) also showed considerable growth. The number of retail customers who have transferred their funds into trust management has increased from 53,100 to 69,300 people. The volume of funds of private investors in open-end unit investment funds (OEIF), exchange-traded funds (ETF), and individual investment accounts (IIA) increased by RUB 17.4 billion and by the end of 2020 reached a total volume of RUB 53.1 billion (+49 % YoY).The volume of IIA customer assets showed even higher growth rates. According to the Moscow Exchange data on IIA as of the end of 2020, the managing company of the Bank’s Asset Management Unit is among the TOP 5 Russian market players, and the total number of IIAs opened by the company’s customers reached 10,800³.

High Net Worth Individuals The HNWI asset management business offers wealthy individual customers a wide range of investment solutions with various risk-return ratios. In 2020, this segment of the Asset Management Unit showed a customer base growth. The amount of assets brought in by high net worth individual investors grew by 40 % to reach RUB 31 billion. The Asset Management Unit expanded its product lineup: namely, the number of closed-end and interval unit investment funds formed in 2020 increased from 30 to 49 funds.

Managing institutional investors’ assetsThe Asset Management Unit currently manages the assets of 94 corporate customers, including major non-governmental pension funds, insurance company reserves, endowment fund assets, self-regulated companies, and other legal entities.According to the results of 2020, the total amount of assets of non-state pension funds (pension savings and pension reserves) under the management of the Asset Management Unit was RUB 62.1 billion. At the end of 2020, the Unit retained its position as one of the leaders in the Russian market of endowment fund management, with 68 endowments (59 unique customers) under management. The total amount of managed endowment fund assets grew by 18 % YoY.

Asset Management

¹ www.raexpert.ru/ratings/managing² raexpert.ru/rankingtable/managing/uk_2020/tab04³ www.moex.com/ru/spot/

members-rating.aspx?rid=125


The highlights of 2020.

In the nuclear energy sector:• Contracts were signed to manufacture

pressurizers for Units 7 and 8 of Tianwan NPP (China) and vessels of the passive core flooding system for Unit 5 of Kudankulam NPP (India).

• A contract was signed for the supply of 48 hydraulic vessels for Akkuyu NPP (Turkey).

• A batch of fabricated parts was shipped, including seven shells for steam generator casings, for Unit 8 of Tianwan NPP (China).

• Pressurizer shells were delivered for Unit 4 of the Xudapu NPP (China) being constructed.

• The production of the embedded transport locks for Units 5 and 6 of the Kudankulam NPP (India) was completed.

• Equipment and revision shaft fillers were shipped for Unit 1 of Kursk NPP-2.

• A pressurizer for Unit 1 was shipped to Rooppur NPP (Bangladesh).

• The production of the reactor core emergency cooling system hydraulic accumulator was completed for Akkuyu NPP (Turkey).

• A new tightening unit EZ 650 PRO was shipped for Loviisa NPP (Finland).

Petrochemicals and chemicals• A contract for the manufacture and supply

of equipment for the combined hydrocracking unit of the TANECO refinery and petrochemical plant complex was signed.

• A contract was concluded to manufacture four reactors by KINEF’s order to replace the existing units of the catalytic gasoline reforming unit with preliminary feedstock hydrotreatment.

• An order to manufacture and supply modular equipment for the first stage of the Semakovskoye oil and gas condensate field development was received.

• Work is ongoing under the order of Irkutsk Oil Company to produce ten ball tanks with a capacity of 2,000 m³ each.

• It is planned to produce and supply a large batch of block and modular equipment for the Yen-Yakhinskoye oil and gas condensate field in the Yamal-Nenets Autonomous Area of the Tyumen Region.

• The diesel fuel isodeparaffinization reactor was shipped for the TANECO refinery complex.

• The last of 12 units of large-capacity equipment assembled at the Omsk Refinery complex was produced.

• We completed the delivery of a large batch of column equipment for the new maleic anhydride production facility of the SIBUR Holding (Tobolsk).

• The first batch of amine columns was shipped for NOVATEK’s stable gas condensate transshipment and fractionation complex in the Ust Luga port.

Engineering Assets: Core Business Operations and Key Projects

The engineering assets of the Gazprombank Group provide strategically important sectors of the Russian economy with integrated solutions and unique domestic-made technological equipment.

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Metallurgy• Contracts were signed for the production

of work rolls for Cherepovets Steel Mill and the production of a heavy backup roll for Plate Mill 5000 of PAO Severstal’s pipe mill.

• A set of work rolls for Hot-Rolling Mill 4500 was produced for Magnitogorsk Iron and Steel Works.

• Another large batch of fabricated parts was produced for the Pipe Metallurgical Company (TMK).

Air separation and LNG

• A contract for the manufacturing and delivery of separation equipment for Arctic LNG 2 was concluded.

• The second contract with Arctic LNG 2 was signed for the supply of separation equipment for the Salmanovskoye (Utrenneye) oil and gas condensate field.

Mining equipment

• A contract was signed for the supply of 15 EKG-18R excavators for Elga coal deposit (Republic of Sakha (Yakutia)) with coal reserves exceeding 2.0 billion tons.

• After successful tests, a modernized EKG-35 excavator, the most powerful machine in the range of electric mine excavators of UZTM-KARTEX Group (the second of this class made by the Group), started working at the coal mine of Kuzbassrazrezugol (UGMK).

Export expansion

• An agreement was signed with a customer from Uzbekistan for the supply of an EKG-20KM excavator with a 26 m³ bucket. This is the first time a machine of this type is exported.

• The shipment of trestle cranes for Unit 3 of Kudankulam NPP (India) has started.

• Two EKG 12K excavators were put into operation in Erdenet (Mongolia).

New product capture

• A new patent for the installation for the extraction of He-3 from commercial liquid helium by rectification was received.

• The first shaft hoisting machine made by the UZTM-KARTEX Group was successfully put into operation at the Novo-Uchalinsky mine (UGMK).

• Production of large ММС-9500х2900 mills started for the needs of Lebedinsky GOK.

• A tender for the supply of steel castings for the construction of the world’s largest nuclear-powered icebreaker LK-120 Leader was won.

In 2020, the Gazprombank Group’s engineering assets successfully implemented and concluded a number of major contracts in Russia and abroad and continued to develop new products.


Sustainable development at Gazprombank Honesty and transparency are the basis of the Bank’s trusting relationships with all interested parties, which is why it yearly publishes non-financial results for the public apart from financial reports. In 2020, it decided to publish the first Sustainable Development Report, which touches upon the Bank’s key aspects in this field in more detail, in addition to the Annual Report. Moreover, this year, Gazprombank developed

a sustainability section on its website to publish related news and media materials, as well as all information on the Bank’s main ESG focus areas.In 2020, Gazprombank started systematizing its vast sustainable development activities. It was decided to create a dedicated authority to control and lead this work: In September 2020, the Council for Sustainable Development was created, with Deputy Chairman Alexey Matveev appointed Chief Sustainability Officer. The Council was joined

by the chief executives of Gazprombank supervising field-specific areas pursuant to the Council’s goals. Three independent members also became part of the Council: ICLRC Head of Sustainable Development Department Jean-Claude Knebeler, UNEP National Goodwill Ambassador for Russia Vyacheslav Fetisov, and Chairman of the Energy Committee of the Association of European Businesses Ernesto Ferlenghi.The Council has approved the list

and composition of Commissions: Business Development and New ESG Products Introduction Commission, Government Relations and Sustainable Development Goals Promotion Commission, and Commission for Sustainable Development Policy Development and Implementation, and International Best Practices Compliance Monitoring. A working group was also established under the Council to solve current business issues of the Council’s activity.

Sustainable Development

Gazprombank has been guided by the principles of sustainable development for many years now. Throughout its history, Gazprombank has demonstrated its sincere commitment to the principles of responsible and conscientious business conduct and compliance with corporate ethics.

The Council for Sustainable Development was established in 2020; it is comprised of Gazprombank’s top executives in charge of relevant areas in accordance with the Council’s objectives.

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The Bank’s Sustainable Development PolicyThis year, the Bank developed and approved its Sustainable Development Policy, which establishes unified approaches for the three areas of Sustainable Development: economic, social, and environmental. The document establishes approaches to responsible investment and financing, including goals and objectives for the main areas of activity. It was approved by the Council for Sustainable Development and the Management Board.The Bank’s Sustainable Development Policy enshrines the Bank’s priority Sustainable Development goals as formulated by the United Nations, as well as its commitment to responsible banking as defined by the United Nations Environment Programme Finance Initiative (UNEP FI).On the basis of the Sustainable Development Policy, the Bank developed an Environmental Responsibility Policy and an updated version of the Corporate Code of Ethics, which are necessary documents regulating not only the Bank’s activities in these areas but also its relations with the company’s external stakeholders.

Responsible bankingIn recent years, social and environmental criteria have become integral components of partnership and project investment. For corporate customers, the Bank offers its expertise in ESG diagnostics and consulting for ways to improve the customers’ positions in ESG ratings as well as advisory services in the framework of ESG tools. Moreover, the Bank also develops strategies for the customers’ entering the responsible financing market. Another important area is consulting on the provision of subsidies from the federal budget to partially reimburse the costs of investment projects to implement the best available technologies, as well as services for the preliminary environmental assessment of the project and environmental auditing.For retail customers, the Bank offers digital card products that reduce consumption

of plastics, as well as products for achieving social justice for vulnerable populations. Gazprombank adheres to the Principles for Responsible Banking formulated by the United Nations Environment Programme Finance Initiative (UNEP FI), which are an integral part of the Bank’s activities. Doing business on the basis of environmental, social, and management responsibility principles is Gazprombank’s contribution to the expansion of banks’ positive impact on the environment and society.When building business relationships with partners and competitors, the Bank complies with the current legislation and recognized global business practices. The Bank shares the principles of fair and honest competition and adheres to equality and fairness as well as generally accepted moral and ethical stand-ards. The Bank guarantees that all used infor-mation about its partners and competitors is obtained in compliance with the principles and norms of business ethics.

COVID-19In March 2020, after the announcement of the epidemic threat, the Bank established an Emergency Operations Center for prompt response and arrangement for epidemic-prevention measures. The Bank took urgent action to introduce new digital communication channels. Virtually on the first day after the announcement of the pandemic restrictions in Russia, a special

section was created on the corporate intranet portal to post current information about the Bank’s operation and important changes. A Telegram channel was additionally launched for employees, with more than 10,000 people subscribing in the first days of its creation. A 24-hour hotline was organized to support the employees on COVID-related issues. 2020 saw the start of the update of the main digital communication channel, the intranet portal; the new version is scheduled to launch in April 2021. An expeditiously developed infrastructure of distance work enabled the Bank to allow telecommuting for more than 50 % of employees within the shortest possible time period. Employees working in offices during the pandemic could take the advantage of specific privileges, uninterrupted provision of personal protective equipment and regular PCR tests for COVID-19 at the Bank. The Fellow Traveler service using mathematical modeling was

launched to search for fellow travelers to get to work and back home, corporate car sharing was organized, reimbursement of taxi expenses was allowed, and employees could benefit from transportation to work and back home using the corporate car fleet. Gazprombank participated in the work to prevent the spread of the pandemic in 2020 beyond the Bank’s premises. Considerable quantities of personal protective equipment

The Bank is seeking to build a new sustainable economy and, in this regard, actively implements ESG principles at all levels and works on the development of special conditions to interact with customers sharing the position in the ESG field.


were promptly delivered to various categories of recipients in Moscow, the Moscow Region, and other areas. Hundreds of thousands of masks and gloves, tens of thousands of protective overalls were handed over to state hospitals, private clinics, emergency services, voluntary service organizations. The Bank also donated significant funds to medical institutions.

Environmental mattersWe pay special attention to environmental matters, in particular, by reducing the environmental impact of the Bank’s business processes and by making efficient use of energy and other resources, largely through better management of consumables. In particular, the Bank’s Sustainable Development Policy establishes commitment to implement best practices in managing the environmental efficiency of work processes within the Bank, including energy and resource saving, and to encourage its partners and suppliers to follow similarly high environmental standards.One of the Bank’s promises made in the Policy is to prioritize the financing of projects that have proven to bring additional environmental benefits and that help solve priority global, national, and regional environmental problems.In 2020, Gazprombank took part in the main platforms for sustainable and “green” financing as its representatives provided expert support in the working groups of the Expert Council of the Bank of Russia, VEB.RF, and the Association of Banks of Russia.

The Bank is actively involved in various activities in the area of sustainable development (including as the organizer or a strategic partner). The most important event in the 2020 environmental agenda for the Bank was the partnership in the annual Industrial Ecology Conference that took part in Moscow in October. The conference included a workshop during which the main topics of discussion were the current state of “green” financing and the place of the banking sector as a potential driver of the environmental agenda of Russia. In 2020, the Bank signed a cooperation agreement for the development of the solid waste management industry in the Russian Federation with Russian Ecological Operator, Public Not-for-Profit Organization, and with FSBI VNII Ekologiya for the development of the programs of the Ecology National Project, environment impact assessment and environmental responsibility. The Bank also continued cooperation with the Separate Collection volunteer ecological movement as part of the implementation of the social-ecological project Sobirator (the Collector).The Bank places ever-higher priority on employee education and embedment of a corporate culture that facilitates the proliferation of sustainable development principles both inside and outside the Bank. #GPBecooffice environmental program pilot began last fall at four sites at the Bank’s Head Office: Dining areas and coffee points have special containers for collecting plastic cups, lids, and batteries. There is a collection

point for unnecessary items in the office at Novocheremushkinskaya Street. In addition, in 2020, an environmental education program was launched for the Bank’s employees, and the first introductory lecture, Separate Waste Collection, was held jointly with the eco-movement RazdelnyiSbor.RF. Corporate paraphernalia was also produced, partly made from recycled materials (backpacks, fanny packs, raincoats, notepads, and pens).In November 2020, the Bank established the Competency Center for Environmentally Responsible Banking, which accumulates the Bank’s efforts in the field of environmentally responsible activities and supports customers in implementing environmental projects and using the best available technologies in the environment protection.

Gazprombank pays particular attention to environmental protection as it strives to reduce the environmental impact of its business processes and use energy and other resources efficiently.

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The fourth industrial revolution is changing not only the production and services, but all of our lives, relationships between people, and, to a greater extent, the very understanding of what it means to be human. The pace of transformation is reaching its maximum and changing the role of employees, and their ability and will to create and proactive approach to their activities are becoming critical factors affecting financial results. The challenges of our society demand creating new tools for the employees to realize their abilities, forming incentives for employee self-development and improvement, as well as providing managers with effective algorithms for working with their employees. The Bank understands that human capital is one of the biggest competitive advantages in today’s financial world.At the end of 2020, a group of promising HR development and management initiatives were combined into a comprehensive Human Capital Management program. Its key performance metrics include the growth in the net operating income per employee, achievement of the highest results in terms of employer branding, keeping employee turnover rates at a market low for financial organizations, expansion of employee KPI coverage, and automation of HR processes. The Bank’s goal of retaining the leading positions among financial employees is not the only one.Priority tasks also include searching for qualified specialists on the market, adaptation of personnel, improvement of qualification and training of employees

in the field of breakthrough technologies, development of mechanisms of goal-setting, motivation, and retention of key specialists.The Bank’s mission and values were formulated in 2020 with a major campaign to promote them, and the corporate intranet portal posted all the necessary information about corporate life projects.Over many years, the Bank has relied on in-house personnel selection competencies and, alongside recruitment via traditional channels, has developed new mechanisms of cooperation with potential candidates and external audience. In 2020, the Bank created a HeadHunter page, redesigned the Career section on the official Internet portal, developed the digital portal GPB Space, which is an open platform to meet the Bank’s team, attract professionals, exchange views on technology and innovation, and build direct communication with technology startups.One of the key HR policy goals was attracting IT specialists. Gazprombank acted as an official partner of Digital Breakthrough, a flagship project of the Russia — Land of Opportunities presidential platform, which was attended by more than 45,000 IT specialists from 85 regions of Russia. As a result of the competition, the Bank created a bank of prototype solutions in the areas of internal corporate communications, streaming analytics, digital document management, as well as geographic information systems, artificial intelligence, and other areas.Special projects were implemented to attract young IT specialists to the Bank:

HR Policy and Employee Incentives

The latest methods and technologies such as artificial intelligence and robotics, the Internet of Things and 3D printing, virtual and augmented reality, bio- and neurotechnologies, the widespread use of Big Data, the formation of financial and technological ecosystems are becoming part of our daily existence.


• Front-end developer school with an original course and further employment of the best students at the Bank.

• Digital Lecture Hall, where Gazprombank’s experts share their experience and knowledge of digital transformation and answer questions online.

• Techno Camp, a paid internship program at the Bank under the guidance of an experienced mentor for young professionals with basic IT skills. The best young specialists who show the most progress will be able to be employed at the Bank full-time in the future.

The Bank has a strong focus on engaging talented young specialists in other spheres too. Students of financial and economic institutes in Moscow, St. Petersburg and other cities are offered traineeships in the Bank’s head office and branches and receive scholarships from the Bank. Graduates who successfully complete their theoretical course and earn a good reputation during their traineeships are offered employment with the Bank. In particular, the Bank’s sponsored chair at MGIMO University, which has existed for the past nine years, has already trained six cohorts, most of whom are now employed by the Bank.Over the past two years, the Bank has been successfully implementing the REFriending referral program, which gives the Bank employees the opportunity to competitively offer their acquaintances and former colleagues to fill vacant positions. More than 700 candidates were proposed for the referral program vacancies in 2020.

In its activities, Gazprombank traditionally endeavors to create optimal conditions for efficient work and development of its employees, assisting them in unlocking their potential and fostering the ambition to be creative and useful for the Bank. A well-established system of recruitment, adaptation, and training, a developed program of social benefits and guarantees, support for motherhood and childhood, assistance in difficult life situations, a non-state pension program, voluntary health insurance, as well as the corporate culture of the Bank confirm its principle, “Gazprombank is about people.” All this permits the Bank to keep the personnel turnover rate at the lowest market level in the banking segment for many years.Personnel training and development is traditionally a strong focus area. In 2020, after pandemic restrictions were imposed, to ensure continuity of the learning process and provide equal opportunity for all employees of the Bank, virtually all training was moved online, while the list of open enrollment programs was significantly expanded.Training programs develop modern skills and comprehensive professional training for employees, strengthening the leadership potential of the Bank’s managers, and regular training of the Bank’s front office employees in sales and service skills. The Bank has more than 500 training programs, with 20,000 employees participating in 2020 alone.Welcome Days are held for new hires, providing them with all the information they need on the Bank, its strategy and goals, key banking units and services, and rules of behavior in extreme situations, as well

as on their training, development and self-improvement capabilities. On their first day at the Bank, employees receive a branded welcome kit, which contains useful workplace accessories, and quick onboarding is facilitated by a special chatbot with answers to the most frequently asked questions. Feedback from employees is very important for the Bank. A large-scale engagement, loyalty, and satisfaction survey was carried out for the first time in 2020, covering more than 14,500 people. The results of the study allowed us to identify areas of growth and create a roadmap of work to improve problem areas. Some initiatives have already been implemented: the motivation system for the retail business is changing, and work is being done to create transparent career models and individual development plans. Among the important areas of growth that have come to the fore during the pandemic is establishing a work and life balance. In general, according to the results of the study and compared with market benchmarks, the Bank is one of the leaders among companies in the banking sector and technology companies.Introducing career models in various business areas is one of the priority tasks of the Human Capital Management Program. In 2020, retail business employees were the leaders in this respect. The career model and integral assessment of personnel allow for an objective assessment of achievements and provide new opportunities for growth. Transparency, openness, and career growth opportunities are among the important factors of employee engagement and motivation, and they allow

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them to plan their career path according to their job experience, track record, and achievements.The Bank pays close attention to quick and quality HR responses. Employees can apply for a vacation, get a work certificate, coordinate a business trip, get social guarantees and benefits, form a request for personnel selection, submit an electronic sick leave certificate, register for a conference or training, get corporate mobile services, apply for termination, and do so much more online without leaving their workplace. To improve the speed and efficiency of HR-related management decisions, the Bank is developing analytical reporting and services for managers.In 2020, HR business partnerships were further expanded. HR business partners in the Retail Unit, Information and Digital Technology Unit, Risk Unit, and Corporate Unit have direct day-to-day interaction with internal customers at various levels, which contributes to a deeper understanding of the current and long-term HR needs of the business.COVID-19-related restrictions were a major challenge that tried and tested virtually all HR business processes in 2020. New services and HR procedures were created and implemented on the fly, and there was basically no time to do it slowly and test things properly.In March 2020, after the announcement of the epidemic threat, the Bank established an Emergency Operations Center for prompt response and arrangement for epidemic-prevention measures.

The Bank took urgent action to introduce new digital communication channels. Virtually on the first day after the announcement of the pandemic restrictions in Russia, a special section was created on the corporate intranet portal to post current information about the Bank’s operation and important changes. A Telegram channel was additionally launched for employees, with more than 10,000 people subscribing in the first days of its creation. A 24-hour email and telephone hotline was organized to support the employees on the COVID-related issues.An expeditiously developed infrastructure of distance work enabled the Bank to allow telecommuting for more than 50 % of employees within the shortest possible time period. Employees who supported the Bank’s critical business processes and continued to work in the office were provided with special benefits, uninterrupted provision of personal protective equipment, and regular testing for COVID-19. The “Fellow Traveler” service was created to find traveling companions to and from work using mathematical modeling, as well as corporate car sharing.Given the new realities, including those associated with the transfer of a significant portion of employees to remote work, a training course on information security was developed, as well as methodological recommendations on remote work rules.The Bank HR team’s merits have been acclaimed by the professional community for several years now. In recent years, the Bank has been ranked in the TOP 5 among Russia’s best employers according

to Forbes, outpacing not only its colleagues in the financial sector but also the largest industrial and high-tech companies.

Corporate events

GPB Transform, an all-round development platform for employeesIn 2017, Gazprombank launched GPB Transform, an all-round development platform for employees. It sets goals to discover new opportunities and new thinking of the employees through work with body, spirit and mind, development of internal communication, involvement of the employees in the Bank’s internal corporate life, development of personal and professional qualities and skills, meeting the colleagues from other units, strengthening and development of teamwork skills.Key areas of the Platform: Power Transformation, Spirit Transformation and Mind Transformation. In 2020, all projects were moved to an online format because of the pandemic, thus allowing a significant increase in the involvement of colleagues from the Bank’s branch network. Online training programs and healthy nutrition coaching, Cybersports Tournament, training run by a business coach, lectures by experts in various fields were executed as part of the Power Transformation program — from sports to fashion industry. In 2020, such projects as Dance, Acting, Photography and Fine Arts were successfully implemented in the course of the Spirit Transformation program — employees

In recent years, the Bank has been ranked in the TOP 5 among Russia’s best employers according to Forbes, outpacing not only its colleagues in the financial sector but also the largest industrial and high-tech companies.


of the head office and branch network arranged projects that were dedicated to Gazprombank’s corporate values: proactivity, openness, responsibility, empathy and focus on people. In addition to sports and creativity, the Bank pays great attention to the intellectual development of its employees. As part of the Mind Transformation program, the GPBintellectorium is available, where well-known speakers from the world of business,

cinema, art, sports, psychology and politics share their knowledge and experience, as well as intellectual team and entertaining games are held. All these projects have a positive impact on the lives of the Bank’s employees and, therefore, increase their work efficiency, which helps to have progress in the business.

GPBpomnit (GPBremembers) Gazprombank collects employees’ stories about their relatives who took part in the Great Patriotic War. Up to this time, more than 100 stories and over 300 photos have been collected.A book of poems and songs about the war was published jointly with Clever Publishing. The book contains photos sent by the employees. In 2020, thematic videos and the Poems

about the War project voiced by the children of the Bank’s employees were released to commemorate the 75th anniversary of Victory in the Great Patriotic War.

Occupational SafetyTo ensure safe and comfortable working conditions in the Bank, internal standards for occupational health and safety have been developed: Regulations on Occupational Safety Management System, Occupational Safety Instructions, Regulations on PPE (Personal Protective Equipment). The documents are available on the Corporate Intranet Portal.Each employee of the Bank is instructed on occupational safety (introductory and primary on the job briefings) upon entering employment, confirming it with his/her signatures in the appropriate registers. Thereafter, regular briefings on labor protection are conducted.All bank employees must comply with the Regulations on Occupational Safety Management System, occupational safety instructions and the code of conduct, and follow relevant instructions of their manager and employees in charge of occupational safety. The Bank has developed a clear procedure for employee actions in the event of an accident at the Bank. Detailed information is available on the Corporate Intranet Portal.

New services and HR procedures were created and implemented on the fly, and there was basically no time to do it slowly and test things properly.

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The coronavirus pandemic in 2020 affected plans in all spheres of life, business, and culture. Organizations that yearly receive charitable and sponsorship support from Gazprombank were no exception. Concert, sports, cultural and educational activities were either severely cut or paused. However, our partners did not stop before a challenge and found a way to use online tools to create and promote their content, worked on new forms and productions, and the Bank supported them in this. As a result, when the restrictions were lifted, they were ready to relaunch and return to intensive touring, sports, and other socially beneficial activities.

To promote healthy lifestyles, we sponsor organizations that develop sports such as football, hockey, rowing, tennis, handball, dance, and acrobatic rock’n’roll, especially children’s and youth activities.For many years Gazprombank has been a partner of Zenit football club, which is among the ten most popular clubs in Europe. As part of the cooperation between the Bank and the football club, special attention is paid to the development and support of children’s sports. With the help of the co-branded Gazprombank — FC Zenit card, a charitable program is being implemented, under which the Bank makes donations from its own funds

to the FC Zenit Children and Youth Sports School to train young players. Moreover, we are the general partner of the SKA hockey club, which has won the main trophy of the Kontinental Hockey League, the Gagarin Cup, twice. As part of its cooperation with the Russian Football Union, Gazprombank is the official bank partner of the Russian national football team for the 2020–2021 season.2020 had us change all areas of our work, but we supported most of our projects. For instance, being a strategic partner of the All-Russian Federation of Dance Sport and Acrobatic Rock’n’Roll, Gazprombank

helps develop various dance disciplines in more than 22 cities of Russia, thanks to which not a single club of the Federation closed during that period. The Moscow Kremlin Museums, the Tretyakov Gallery, and a number of our other strategic partners were also not left without support during this difficult period.Gazprombank’s sponsorship and charity activities are in line with the principles of sustainable development, in particular, as part of adherence to the most important principles of conscious consumption in the use of natural resources, environmental protection, and the conservation of unique

Social Responsibility

Every year, we implement over 300 charity and sponsor projects aimed at supporting low-income groups, cultural, academic, arts and educational establishments, public organizations, including those engaged in environment protection, sports organizations, teams and clubs, applied science forums and conferences.

Gazprombank traditionally pays great attention to the social aspects of its work.


animals, Gazprombank has sent regular annual donations to the Land of the Leopard Foundation and the Amur Tiger Center.Gazprombank is especially proud of its joint work with the Igor Moiseyev State Academic Ensemble of Popular Dance. The Bank has been a strategic partner of the famous creative team for a long time, supporting its active work. The 2020 pandemic greatly reduced concert opportunities. But even during this period, the Ensemble was able to not only keep the carefully preserved dance repertoire but also develop new formats. Artists have successfully used the opportunity to access the Internet space, performed for doctors who are in the front line of the epidemic, organized remote rehearsal processes.Assistance to disadvantaged groups, such as veterans’ organizations, orphanages and boarding schools, occupies a prominent place in the Bank’s social program. Support for orphans is one of the most important aspects in this area. For many years, the Bank has made donations to Children’s Villages — SOS, an interregional non-governmental charity. This is a unique alternative to orphanages – a model as close to a normal home as possible, where children live as in a regular family.

Thanks to GPBkrugdobra (“Circle of Good”), all willing Bank employees got an opportunity to help those in need. In the summer of 2020, Gazprombank supported medical professionals, those who are fighting COVID-19 at the frontlines. In December, the annual “I Believe in Father Frost” event for the benefit of orphan children was held in an online format. On New Year’s eve, Gazprombank’s employees become creators of a small miracle, making the most cherished wishes of children from the institutions under the Bank’s care come true. As long-lasting practice has shown, the colleagues are not afraid of taking on the most difficult requests. Despite all the difficulties of 2020, we were able to congratulate more than 400 children in December, while maintaining all safety measures for both children and staff. On New Year’s eve, the staff collected packages with toys for the Children’s Hospice Lighthouse. We regularly allocate funds for targeted charitable assistance to seriously ill children and entire medical institutions, purchase medicines and special equipment, as well as ambulances.

International cultural cooperationIn 2020, the Bank continued to develop its international cultural cooperation program despite the difficult epidemiological situation in the world and the restrictions associated with the closure of borders because of the pandemic. At the Eurasian Economic Forum in Verona, the art group Turetsky Choir gave a Songs of Our Victory concert to mark the 75th anniversary of Victory in the Great Patriotic War. Organized by Gazprombank, the performance not only strengthened the cultural relations between Russia and Italy but also significantly contributed to the preservation of the historical memory of the heroics of an entire generation during World War II in Europe.

Gazprombank's sponsorship and charitable activities comply with the principles of sustainable development.

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Capital market borrowings, including bond placements and subordinated debt, account for a further 5.2 % of the resource base. In 2020, the Bank made scheduled repayments of several foreign currency-denominated debts, partly replacing them with new issues of local bonds and funds of the Bank’s corpo-rate and retail customers, so that the share of capital market borrowings declined by 0.6 p. p. compared to the end of 2019.

Customer fundsFunds of corporate and private customers are a key component of the Bank’s resource base. The experience of many years of successful cooperation with major Russian companies and comprehensive servicing of their employees has allowed the Bank to expand its product offerings for current customers and attract new customers,

thereby maintaining steady organic growth of corporate customers' balances. At the same time, the Bank continued to implement the strategy for developing its retail business. The development of the retail deposit product line in accordance with seasonality trends in the customer base and the price environment in the market, along with vigorous marketing activities, service digitalization and development of the omni-channel customer service platform allowed the Bank to boost its retail account balances by 25 % to RUB 1,524 billion.

Debt capital marketsThe fundraising portfolio in capital markets constitutes a stable long-term funding base for the Bank and plays an important role in maintaining the net stable funding standard. Most of it was raised by placing ruble-denominated bonds in the Russian market; the volume of such bonds grew by 6.6 % to RUB 285 billion in 2020. The loan portfolio is characterized by a smooth repayment schedule up to 2025.In 2020, the Bank continued to actively develop its bond products offer for individuals. The volume of bond placements in favor of individuals increased by 33 % YoY and reached RUB 8.7 billion.Together with DOM.RF, the Bank placed two issues of bonds secured by Gazprombank’s mortgage loan portfolio totaling RUB 56 billion. Mortgage bonds are placed

under the memorandum of cooperation signed between Gazprombank and DOM.RF for the issue of mortgage bonds guaranteed by DOM.RF and totaling up to RUB 350 billion.In 2020, the Bank successfully carried out a partial replacement of perpetual subordinated bonds with new term subordinated bonds in the amount of USD 250 million, which made it possible to achieve a positive economic effect of reducing the cost of servicing subordinated debt.

Resource Base Development

In 2020, the time pattern of Bank funding volumes and structure changed somewhat, impacted by the retail business development strategy. The Bank’s reputation as a reliable borrower and a competitive pricing policy have enabled it to retain a strong position on the corporate borrowing market, while active promotion of its settlement and deposit products, coupled with customer service improvements, have helped reinforce its position in the retail segment.

Customer funds remain the primary source of funding for Gazprombank’s lending and investment business, accounting for 86 % of the Bank’s liabilities at the end of 2020.

Resource base structure as at 31 December 2020, %

■ Amounts owed to corporate customers■ Amounts owed to individuals■ Senior debt borrowed from capital markets■ Amounts owed to banks■ Subordinated debt■ Amounts owed to the Bank of Russia■ Other liabilities

63.44.2

4.2

4.2

22.4

0�61�0


At the end of 2020, the Bank depository was serving over 450,000 depo accounts and maintaining securities registers for more than 2,300 issues, including securities issued by foreign issuers. In the course of the year, securities income was distributed on more than 4,500 issuers’ corporate actions, and over 720,000 notifications of more than 11,600 issuers’ corporate actions were emailed to depositors.In 2020, the Bank continued its collaboration with DOM.RF as the depository providing mortgage deed accounting and custody services. The Bank depository acts as the custodian in relation to storage and recording of the underlying asset for the issuance and redemption of ADRs on Gazprom shares. In 2020, the Bank continued to implement and develop the electronic document exchange system (EDES) for the Depository customers (legal entities), which made it possible to improve the quality and convenience of depository services and provided an opportunity to initiate depository operations without the need to personally come to the Bank. By the end of 2020, the number of orders submitted using the EDES amounted to 88.78 % of the total number of orders of the Depositary customers (legal entities).The Bank’s specialized depository was ranked among the TOP 10 of the national rating of specialized depositories¹ on the back of its performance in 1H 2019 and ranked eighth on the TOP 10 list of specialized depositories in terms of assets in custody as of 30 June 2020. The value of assets held in custody was over RUB 148 billion as of 30 June 2020. The Bank’s specialized depository supervises asset management of its customers, which include mortgage bond issuers and state-owned corporations and funds established by the Russian Federation.

In 2020, the Bank’s specialized depository transitioned to a new accounting system.The Bank has an extensive regional transfer agent network, which includes 76 service points for individual depositors. In regional service locations, the Bank’s customers can receive qualified advice on the procedure for conducting depository operations, submit depository orders and documents for exercising rights to securities, and obtain statements and transaction completion reports.The Bank engages in depository operations on the securities market in strict accordance with the law, the Bank of Russia regulations, and basic standards, and is an active participant in rule-making activities in specialized committees and working groups under the Bank of Russia and SROs with a view to satisfying customer needs as fully as possible, including the development of the product range of services and instruments, optimization of business processes and tariff policy, and implementation of new service technologies.During the COVID-19 epidemic threat in 2020, the Bank’s Depositary carried out procedures to ensure the continuity of banking processes for timely performance of the Bank’s contractual obligations to customers. The Bank’s depository business model enables it to utilize its competitive advantages to the maximum, such as a well-developed customer base, a strong brand, and a significant number of regions of the Bank’s operation.

Depository Operations, Specialized Depository Services

¹ The ratings were released by the Foundation for Development of Financial Institutions — Infrastructural Institute (INFI) on the official website: www.safedepo.ru

The Bank’s depository is assigned the AAA (the highest) reliability rating according to the national depository reliability rating scale¹.

Orders made by Depository customers, %

■ Percentage of orders submitted via the EDES■ Percentage of orders submitted in hard copy

88.78

11.22

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Risk management system

The Board of Directors annually approves the Risk Appetite Statement, which includes both quantitative and qualitative indicators designed to provide high-level guidelines on the structure and values of risks and capital that the Bank and the Group are willing to take in pursuit of their strategic goals. The Bank and the Group then use the approved risk appetite parameters and operationalize them to the level of limits for separate risks and positions.The following key principles guide the Bank’s approach to risk management:A) The Board of Directors adopts the general risk and capital management policy and determines the level of risk acceptability (risk appetite), strategic goals, fundamental risk management policies and the stress-testing scenarios. For the purpose of in-depth and all-around review of matters, the Audit Committee and the Compensation Committee operate under the Board of Directors.The Audit Committee’s mandate includes preliminary review of matters related to internal and external audit, and matters of risk and capital management coming within the terms of reference of the Board of Directors.The mandate of the Compensation Committee of the Board of Directors includes preliminary review of matters coming within the terms of reference of the Board of Directors and related to establishment and functioning

of an effective remuneration system subject to accepted risks.B) Within the risk and capital management strategy adopted by the Board of Directors, the Management Board provides overall risk management for the Group’s operations and regularly monitors actual risk levels to see how they conform to the approved risk appetite level.C) Dedicated committees and commissions reporting to the Chairman of the Management Board and the Management Board of Bank GPB (JSC) (Credit Committee, Investment Committee, Assets and Liabilities Management Committee (ALM Committee), Transformation Committee, Financial Markets Committee, ICAAP and Operational Risks Commission, Corporate Governance and Compensations Committee, Assets Restructuring Committee, Retail Business Committee, Gazprombank Payment System Risks Commission, and Compliance Committee) are designed to address issues relating to individual risk types. Members of the committees are appointed by the Chairman of the Management Board.D) Units of the Risk Management Service (RMS) are independent from business units, whose functions envisage risk-taking, and are supervised by the Head of the Risk Management Service reporting directly to the Chairman of the Management Board.E) Risk management is applied in an integrated manner at all operational levels, considering the relationships and cross impact of various risks. The Bank’s RMS performs the function of managing Group risks.

Risk Management

The Bank continues to improve the methodology for limit setting and credit risk quantitative assessment, as well as financial planning and risk budgeting processes synchronization, develop new pipeline technologies, enhance its business continuity system, implement projects to achieve further automation of risk management processes (including stress testing automation).


F) At the Group level, the Bank has adopted a Group Risk and Capital Management Strategy which defines the roles and objectives of the management bodies of the Group companies, including those of local Risk Management Services (if any), as they pertain to identification, assessment, monitoring and control of risks assumed by the Group companies.The Group has an integrated risk management system, which enables it to:• use unified risk management approaches

within the Group;• control risk management activities in Group

companies;• align the overall Group / Group company

risk profile with the Group’s strategic objectives and make informed decisions at the Group level.

The Group’s risk management system is underpinned by advanced standards, models and practices accepted by banking groups.In 2020, the Bank was focused on the following aspects of risk management:• improvement of risk and capital

management system in line with the requirements set forth by the Bank of Russia Ordinance No. 3624-U

“On the Requirements to the Risk and Capital Management System of a Credit Institution or a Banking Group” at the level of the Bank and the Group;

• revision of the risk characteristics for retail credits (loans) in the light of the regulator’s recommendations on the implementation of the Bank of Russia Ordinance No. 4892-U

“On Types and Characteristics of Assets

for Which Risk-Based Capital Buffers Are Set and on the Methodology for Applying These Buffers to the Said Types of Assets for Credit Institutions to Calculate Their Capital Adequacy Ratios”;

• improvement of the authority delegation system and system of limits for lending and financial markets transactions, optimization of the portfolio limit setting process;

• introduction of new lending products, adapting the lending process tools to efficiently work with retail customers, small and medium-size businesses:

• improvement of the Bank and Group financial recovery system in accordance with the Bank of Russia requirements;

• improvement of the system for the management of risks in Gazprombank’s payment system in accordance with the requirements of the Bank of Russia Regulation No. 607-P

“On the Requirements for the Procedure Ensuring Smooth Functioning of the Payment System, Indicators of Payment System Smooth Operation and Methodologies Used to Analyze Payment System Risks, Including Risk Profiles”;

• development and optimization of the Bank’s business continuity and recovery system;

• formulation of requirements as part of the implementation of a new optimized version of the automated operational risk management system;

• improvement of the system for early identification of counterparties with a higher risk level; improvement

of mechanisms helping work out early response measures and strategies of work with respective counterparties;

• further development of a methodology for quantitative evaluation of credit exposure;

• development of the provisioning methodology (RAS/IFRS) and further automation of provisions calculation;

• implementation of risk management process automation projects (in credit analysis, the financial statements storage and processing system, and the limit-setting system);

• development of the portfolio limits methodology;

• synchronization of the financial planning and risk budgeting processes;

• implementation of the automated complex derivatives risk assessment system (on the basis of Calypso automated system) and improvement of the complex derivatives risk assessment models.

The Group’s risk management system is underpinned by advanced standards, models and practices accepted by banking groups.

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Key risks in 2020

1. Credit riskThe Group is exposed to the risk of financial losses occurring due to a borrower or counterparty defaulting on their obligation to the Group (credit risk).Credit risk includes concentration risk, counterparty financial market transactions risk, participation risk, and residual risk.Credit risk is managed in accordance with the regulations of the Bank of Russia, Basel Committee principles and guidelines concerning banking supervision, and internal documents developed to incorporate such principles. The main objectives of credit risk management include:• maintaining an acceptable level of credit

risk exposure for the Bank and the Group to achieve their strategic goals;

• optimal combination of profitability and credit risk level, compliance of the credit risk profile with the risk appetite and the capital budget.

Credit risk management is based on uniform methodological approaches and procedures within the framework of an integrated system of risk analysis, management and control. Credit risk management is performed at all stages of the credit process, from the review of a customer’s loan application to the full settlement of all liabilities.The credit risk management process includes the following key elements:• risk identification, quantitative

and qualitative assessment of risk;

• risk limitation and mitigation measures (including setting limits, taking security, management of distressed assets);

• risk monitoring and control (including control of set limits), both with respect to individual borrowers and at the general portfolio level;

• building reserves to match the accepted credit risk;

• planning credit risk levels;• informing the management bodies

about the level of risk exposure and limits compliance on a regular basis (reporting).

Qualitative assessment of credit risk is designed for a comprehensive analysis of deals with credit risk exposure taking into account non-quantifiable factors, which takes the form of conclusive expert opinions on acceptability of the requested deal parameters, identified risk factors and measures required to minimize credit risks taken in that regard. Quantitative assessment of credit risk provides a quantification of the credit risk taken, which is then used in the Bank’s and the Group’s internal processes. Quantitative credit risk assessment is exercised in accordance with the Group’s models based on the classification of credit claims:• claims against corporate customers

(including specialized lending deals);• claims against financial institutions;• claims against retail customers;• claims against sovereigns;• participation.Counterparties are assigned internal ratings based on the approved models for estimating the probability of borrower default. Internal credit ratings are used

to take lending decisions and calculate expected losses, define price terms of deals and create provisions, conduct risk-weighted analysis of the loan portfolio and financial planning. Target credit risk levels are set in accordance with risk appetite. The Group sets ultimate risk limits for every borrower or a group of borrowers. Compliance with (and use of) credit risk limits is monitored on an ongoing basis and takes the form of checking the terms and conditions of deals against the approved limits. Development and improvement of the credit risk limits system is a priority line of work for the Group.The key credit risk monitoring tools applied by the Bank and the Group are:• monitoring of loan/deal servicing;• monitoring of the financial standing

of borrowers;• monitoring of security (including for assets

under construction);• control over conditions precedent

and supplementary clauses of deals;• control against preset limits, indicators

and other restrictions related to credit risk;• control over the level of risk

of the loan portfolio, creditworthiness of counterparties, and concentration risk;

• identification of potentially non-performing and non-performing loan signals based on the early warning system indicators.

The outcomes of these monitoring and control procedures are integrated with the provisions creation system (RAS/IFRS) and procedures for identification of and working with potentially distressed and distressed assets of the Bank and the Group.


Alongside credit exposure control at the level of individual operations (transactions) and customers, the actual exposure is contin-uously monitored based on the cumulative debt in the portfolio of lending operations. The degree of the actual utilization of the credit exposure portfolio limits is assessed compared to their critical and alarm levels designated by the authorized bodies.The results of the monitoring of compliance with credit exposure portfolio limits are included in the regular reports submitted to the Board of Directors, the Management Board, the Chairman of the Management Board, the Head of the Risk Management Service, heads of Risk Management Service divisions, members of the Bank’s relevant Committees and Commissions.In the event of risks going above the prescribed alarm or critical values, decisions are made to address the situation by mitigating accepted risk, increasing the amount of available capital for risk coverage, or by redistributing pre-set limits among divisions and individual types of risk.Where negative trends are identified in the activities of counterparties that are legal entities, they are included in the relevant section of the Watch List Register information resource adopted by the Bank with the following status: Troubled Counterparties, Potentially Troubled Counterparties, and Watched Counterparties. Information is included into the Watch List Register depending on the selected strategy of further work with the assets and mechanisms that impose restrictions on transactions with counterparties.

The Group performs stress tests of credit exposure on a regular basis (at least once a year), in order to evaluate potential changes in the quality of the loan portfolio in the event of unfavorable changes in the economic situation. Stress testing includes scenario analysis, which assesses the effect of changes in a relevant set of macro factors, and sensitivity analysis, which evaluates the influence of distinct (discreet) events on the quality of the loan portfolio or the status of transactions with counterparties.As long as credit risk management in retail lending is concerned, analysis of the borrower’s credit risk and security analysis are of importance.Transaction analysis and decision-making process includes application of the following procedures:• counterparty identification;• visual examination of the counterparty

and their documents; • counterparty screening against

the minimum requirements of the Bank and the Group;

• comprehensive review of the loan application using data from internal and external information sources;

• credit scoring;• independent counterparty and collateral

(if any) assessment by the relevant expert teams.

Following the above procedures, the decision on the counterparty’s loan application is made automatically (without the expert team involvement) and with due account of the motivated judgment based

on the independent expert review completed by the expert team.Qualitative risk assessment also applies to partners who are legal entities, if they are involved in retail customers lending programs implementation, to decide on potential cooperation with a partner or define the terms of such cooperation.

2. Concentration risk Concentration risk arises in connection with the Group’s exposure to big risks, which may cause significant losses with a potential to jeopardize the paying capacity of the Bank and the Group entities and their ability to continue operations. The Group performs on a regular basis:• analysis of the Group’s exposure to each

form of concentration risk (identifies concentration risk);

• monitoring of the level of acceptability of concentration risk and estimates acceptability of concentration risk with respect to its every form for which no limits are set.

The Group stress tests concentration risk regularly in order to evaluate potential losses in the event of adverse changes in the economic situation as part of the integra-tion stress testing. The result of stress-testing is presented in the form of evaluation of the impact of negative scenarios on quantita-tive metrics of concentration risk, capital adequacy, and actions aimed at minimization of expected losses.To limit the risk of concentration of finan-cial claims, the Group has adopted limits per country and industry, ТOP10 RWA

Credit risk management is based on uniform methodological approaches and procedures within the framework of an integrated system of risk analysis, management and control.

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(risk-weighted assets) concentration risk limits for counterparties / a group of related borrowers, concentration indicators for coun-terparties, early warning indicators / financial strength recovery indicators / risk appetite as per prudential concentration standards, and limits for operations in financial markets. Limits of concentration risk are set and revised by the authorized body on a regular basis with due account of the appetite for risk and capital budget.Simultaneously with the setting / revision of limits of concentration risk for each type of the above limits, the following parameters are determined at the discretion of the authorized body:• signal values warning of an approach to set

limits of concentration;• the procedure for the monitoring

of the limits, including actions in the event of identified over-limit in a completed deal;

• methodological peculiarities of estimation of a respective limit, and, if possible, the information system is identified which will take account of and monitor respective limits;

• the procedure of documenting the outcomes of limits monitoring.

Monitoring of the credit concentration risk starts as soon as a credit limit is assigned to a counterparty and continues until the counterparty discharges all obligations to the Bank and the Group. The action plan aimed to mitigate concentration risk (setting risk limits, transfer to a third party, securitization, etc.) is defined on the basis of the accepted exposure level.

3. Country riskCountry risk (part of the concentration risk) is a risk of financial losses due to foreign counterparties defaulting on their obligations to the Group for economic, political or social reasons, or as a result of a limited access to the counterparty’s committed amounts denominated in foreign currency because of national legislation (irrespective of the counterparty’s creditworthiness).The Group manages this risk as part of the overall credit risk management system in accordance with the Bank’s Country Risk Policy, which lays out the key principles and approaches to the evaluation of country risks and calculation of limits. The risk value depends on the country’s economy parameters (GDP level) and sovereign rating.

4. Liquidity riskThe Group manages its liquidity to ensure that sufficient liquidity is available to meet its commitments to customers, creditors and note holders, and to fulfill its business plans for active banking operations at all times.The Bank’s liquidity management system is an integrated solution of risk identification, evaluation and control across the Group’s banking segment. It is an essential part of the assets and liability management (ALM) system at the Group level, including the head office and regional branches.The liquidity management system consists of two main components:

• instant (short-term) liquidity management implemented by the Treasury on a regular basis;

• medium-term and long-term liquidity management performed by the ALM Committee and the Internal Treasury Department as part of the ALM function, ultimately for the purpose of setting an effective risk-return ratio.

The liquidity management policy is subject to approval by the Board of Directors upon submission by the Management Board. At the executive level, liquidity risk is managed by the ALM Committee. The ALM Committee determines the policy for asset and liability management that aims to build up a liquidity gap control framework considering maturity profiles for assets and liabilities. It also helps to provide effective diversification of funding sources and availability of sufficient funding in stressed conditions.The Risk Management Service monitors liquidity risks and reports on the status regularly to the ALM Committee, the Management Board and the RMS Head. Risk reporting includes qualitative and quantitative risk estimations, stress testing results, and evaluation of additional liquidity sources (liquidity buffer).

Liquidity risk management methodsThe liquidity risk management system is integrated into the transaction planning processes in order to determine the required funding sources in normal and stressful situations. The Group applies limits on the following liquidity risk indicators to mitigate it:

The liquidity risk management system is a comprehensive process of identification, assessment and control at the level of the Group’s banking segment.


• period of solvency without external support;

• short-term liquidity (STL) ratio;• net stable funding ratio (NSFR);• liquidity gaps for realistic (business as usual)

and liquidity stress scenarios in terms of maturity and key currencies;

• minimum level of liquidity buffer.Alarm risk levels are established in addition to critical ones. When an alarm risk level is achieved (which signals a high level of risk), escalation procedures are initiated to develop and implement mitigation measures. Gap analysis estimates the forecast excess or shortfall of cash inflows over outflows grouped by maturity and currencies and thus allows identification and management of open liquidity exposures. Gap analysis is supported by scenario analysis, which includes a realistic scenario (business as usual) and liquidity stress scenarios. Scenario analysis is performed as part of regular risk evaluation:

• Realistic scenario: shows the average expected liquidity level.

• Stress scenario: shows stress tolerance and the ability to maintain sufficient liquidity without implying restrictions on assets-related banking transactions.

As part of the liquidity risk management system, the Bank has a Contingency Funding Plan (CFP) that sets out the strategies for addressing liquidity shortfalls in emergency situations. The CFP is updated on an annual basis and outlines policies to manage a range of stress scenarios, and establishes lines of responsibility, including proactive emergency monitoring and CFP activation procedures.

5. Market riskManaging market risk includes a set of measures to identify, monitor, limit and accept market risks that have an impact on the Group’s banking activities. Responsibility for the decision-making process regarding acceptable market risk levels is vested in dedicated bodies: ALM Committee, Financial Markets Committee and the Chairman of the Management Board. The market risk management function is assigned to the Risk Management Service.The Bank’s existing market risk management system is based on:• a system of limits ensuring that the volume

of risks corresponds to the adopted risk appetite and the amount of economic capital distributed among business lines concerned;

• qualitative and quantitative market risk assessment with the use of value-at-risk (VaR) methodology, stress testing, scenario analysis and sensitivity analysis.

The RMS supports the market risk management system on a regular basis, and, in particular:• monitors pre-set risk limits; • builds reports to be submitted

to authorized bodies and senior executives;• revises values of risk limits in accordance

with the Bank’s plans and appetite for risk;• establishes alarm levels for the key risk

limits (VaR, stop-loss), which initiate risk mitigation actions when achieved;

• takes part in working out measures for the optimization of the use of risk limits subject to business efficiency, including with due account of stress-test results.

Managing market risk includes a set of measures to identify, monitor, limit and accept market risks that have an impact on the Group’s banking activities.

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Interest rate riskInterest rate risk in the trading book comes from the bonds and derivatives present in the Bank’s trading portfolio. Interest rate risk in the banking book arises when there is a mismatch between the maturity profiles of rate-sensitive assets and rate-sensitive liabilities. The bank uses the following parameters to assess interest rate risks of the trading and banking books:• sensitivity of net interest income changes;• sensitivity of net present value changes;• sensitivity of trading bond portfolio value

to interest rate fluctuations;• gaps between the cost (interest rate)

revision dates of financial instruments; • stress-test results.The Bank’s policy with respect to the interest rate risk exposure is reviewed on a regular basis and approved by the Board of Directors. The RMS prepares regular reports on the interest rate revision gaps, value at risk and scenario analysis (including interest risk stress-testing) for the Bank’s management bodies and the ALM Committee.In accordance with the Bank’s appetite for risk, the ALM Committee and the Financial Markets Committee have set the following indicators of interest rate risk:• sensitivity of the net present value of assets

and liabilities;• gaps in the Bank’s claims and commitments

in terms of time pools and currency groups;• sensitivity of the net interest income;

• sensitivity of the financial outcome (so far as revaluation of financial instruments is concerned) to the changes in the interest rate curve.

Currency riskThe principal sources of currency risk include investment in foreign companies and banks, as well as the position arising from creation of provisions on currency assets that is subject to timely hedging. The Bank is free of significant currency positions opened for the purpose of speculative gains.Currency risks arising from transactions with customers are hedged by counter transactions with highly reliable counterparties.The Financial Markets Committee sets limits on VaR and risk exposure on the Group level as well as on currency risk exposure for each position (trading, investment, that of the Bank and each of its subsidiaries, etc.). For trading positions, maximum losses are also limited (stop-loss). Separate limits apply to operations involving derivatives. The Bank’s currency risk exposure limits comply with the minimum requirements of the Bank of Russia.The Bank assesses the value at risk and sensitivity of profit to foreign exchange rate fluctuations as part of a stress scenario. Stress testing provides conservative scenarios for fluctuations of currencies and precious metals against the ruble.

Equity riskThe Bank has investments primarily in sovereign securities and bonds of high-quality major Russian issuers. The Bank also assumes risks from non-market financial instruments (strategic and direct investments). These risks, however, are specific, due to the fact that no revaluation is required for this type of assets and the investments are long-term, which makes it possible to gain profit from projects once the economic environment becomes favorable. Derivatives are used for risk hedging.The VaR methodology is only applied to quoted instruments. Non-quoted instruments are not included in the traditional VaR model, and a separate model is used to calculate the capital value for these instruments. Therefore, the Bank does not exercise real-time monitoring of risks relating to these assets. The main tool for managing this risk is allocating capital to cover the risk of depreciation over the horizon of financial planning (one year).The Bank also assesses the sensitivity to securities price changes as part of a systemic stress scenario. Stress testing includes analysis of conservative scenarios, where the stress level assumes a decrease in quotes for equities and an increase in YTM for debt securities.According to the Bank’s risk appetite, the Financial Markets Committee sets market risk limits (VaR limits, limits

As part of the response to the epidemic threat, a system for monitoring measures ensuring the implementation of Critical Process Continuity Plans was promptly established. Procedures for allocating and controlling reserve workplaces were in place at Gazprombank, and measures to protect employees from COVID-19 were taken.


for sensitivity to interest rate fluctuations), limits for maximum losses (stop-loss), limits for exposure level (nominal limits, structural limits). The Committees also make decisions on the risk concentration limits for each issuer/financial instrument.

6. Operational riskOperational risk is associated with the probability of direct and/or indirect losses arising as a result of:• a mismatch between the internal rules

and procedures of banking operations and other dealings, on the one hand, and the nature and scope of operations and/or the requirements of the law, on the other;

• employees and/or other persons being in violation of the requirements of any rules, norms and standards of banking operations and other dealings (as a result of inadvertent or deliberate acts or omissions);

• incongruence (inadequacy) of the functionality (characteristics) of existing information, technology, and other systems and/or their failures (malfunctioning);

• external impacts.The existing operational risk management methodology framework lays the foundation for implementing the operational risk proactive management strategy, enabling integrated management of operational risks and control procedures. The operational risk management system is described in the Bank and Bank Group Operational Risk Management Policy and includes the following key elements:• operational risk management

methodology;• operational risk management principles

and integration thereof into decision-making processes;

• operational risk identification and escalation procedure;

• self-assessment of operational risks, maintenance of an operational risks register;

• system of operational risk level monitoring (including Key Risk Indicators system);

• gathering and registration of data on operational risk events and their consequences;

• qualitative and quantitative assessment of operational risks;

• operational risks stress testing (including operational risks scenario analysis);

• business continuity and recovery system for extraordinary (force-majeure) situations;

• enhancement of the operational risk management culture;

• system of reporting on the Bank’s and the Group’s operational risk level.

These components, taken together, enable prompt identification and rectification of deficiencies in policies, processes and procedures for the effective operational risk management purposes. Special attention is paid to a systemic approach to regular operational risk monitoring and reporting and significant risks of loss from materialization of the Bank’s and the Group’s operational risks. Group member subsidiary banks follow the approaches, principles and recommendations developed by the Bank in relation to the set-up of the Operational Risk Management System generally, as well as the individual tools and elements of that system. The Bank and Group members will apply the following key principles in the aims of preventing all types of operational risks and mitigating potential financial losses:• Integration of the operational risk

management system into risk management system of the Bank and the Group. Operational risk management is performed in coordination with the management of other risks, in order to mitigate the cumulative negative effect of risks on operations.

• Risk appetite. The Bank defines the planned (target) risk levels, including the size of the risk appetite for the Bank and the Group as a whole, the system of limits at the Bank and Group level, and approaches to setting up the system of limits for each Group member subsidiary

bank, and monitors compliance therewith. Risk appetite at the level of the Bank and the Group as a whole, as well as thresholds set for operational risks are subject to revision upon a material change in the operational risk source factors (in particular, upon a change in external conditions, the scale or nature of the Bank/Group members’ operations, system of control procedures, major losses arising from the materialization of operational risks, etc.).

• Economic feasibility of operational risks management. Any definition of measures aimed at keeping operational risks at an acceptable level should be economically efficient in terms of the ratio of risk mitigation measures to control procedures implementation expenditure and the size of potential losses.

• Segregation of authorities. The Bank and Group members avoid any combination of functions that may give rise to a conflict of interest. The Bank segregates the authorities of units and their employees executing banking transactions and the functions of their accounting recognition, execution, support and control, and will avoid combinations of any other functions that may give rise to a conflict of interest.

• Escalation of operational risk management authorities. Depending on the level of the operational risk identified and the extent of its impact on the likelihood of other risks becoming materialized, decisions on methods of management will be made at different levels of management.

• Identification and optimization of the operational risk level for new products and processes. It is not permitted to perform any new transactions or make changes to an approved transaction procedure unless there are internal regulatory documents and (or) decisions of collective bodies regulating the manner in which these are to be performed. Any new business process and product must pass an expert review

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by an independent risk management unit with a view to analyzing and optimizing the level of operational risks inherent therein.

• The Bank and Group members hold tenders for the procurement of equipment providing security of banking operations, operating systems, software products, equipment for electronic communication systems, ATMs, etc.

• Disclosure of information on the operational risks management system. The Bank and Group members disclose information on the operational risk management system, making sure that the disclosure granularity level matches the nature and scope of operations.

The Bank pays careful attention to cyber risks. To protect cyber security the Bank uses a combination of organizational and technical solutions in line with relevant international standards and requirements of the Bank of Russia. In particular, the Bank’s information

security system ensures monitoring of the Bank’s information infrastructure and immediate response to cyber threats.For the purposes of mitigating the negative impact of individual types of operational risks, the Bank has in place a comprehensive insurance program, which includes:• a Banker’s Blanket Bond (“BBB”) blanket

property insurance contract with a 2020–2021 liability limit of RUB 5.97 billion;

• insurance contracts for insurance of self-service devices;

• contracts for real estate insurance and insurance of land transport used

in the course of the Bank’s operations, and third party liability insurance for damage caused in the course of using such property.

The Bank is making comprehensive efforts to ensure business continuity, taking organizational and technical measures that minimize the Bank’s losses in the case of emergency situations that can lead to a shutdown of information systems, business processes, affect the work of the Bank employees, and the quality of services provided by it. Organizational measures for business continuity and recovery include the development of Business Continuity and Disaster Recovery Plans (BCDR) to protect the Bank’s critical business processes.In terms of combating the epidemic threat caused by COVID-19, organizational measures to ensure uninterrupted activity of the Bank were taken in the field of the Bank’s personnel protection as well. The health

status of the Bank employees was monitored, sufficient opportunities for efficient remote work were monitored, the efficiency of security measures for employees carrying out their activities from the Bank’s premises was also monitored, all premises were provided with sufficient personal protection means for both employees and visitors (including disinfection means and devices, body temperature control), and all Bank employees were continuously updated on all changes in the Bank’s operation. In 2020, effective technological support of all organizational measures for business

continuity was secured: an accounting and control system for the measures necessary for the feasibility of the BCDR Plans was created, information security risk monitoring systems were functioning, procedures to account for the location of employees during work and vacation were implemented, etc.

7 . ESG RisksToday, sustainable development and responsible financing are in the focus of the global agenda of most countries. The Group pays special attention to environmental, social and corporate governance (ESG) issues and develops risk management procedures taking into account ESG risks.ESG risks are assessed and monitored as part of a comprehensive credit and operational risk analysis and management system, which combines qualitative and quantitative risk assessment. The Bank takes into account environmental and social aspects and factors of corporate governance in the context of investment analysis and investment decision-making processes, in the current lending process upon assessment of internal ratings, monitoring of customers’ risks using an early warning system.Within the framework of the operational risk management system, losses from events related to ESG factors are reported as part of the Bank’s aggregate losses from operational risk materialization, ESG risk management, in particular, risk identification, assessment and mitigation measures are arranged in full conformity with the operational risk management principles and approaches.The Bank has introduced and is developing the integral stress test/scenario analysis system enabling it to assess the impact on credit losses of any ad hoc scenarios, in particular, to conduct scenario analysis with regard to ESG risks.

The Group develops risk management procedures taking into account ESG risks.


In order to ensure customers’ data security and counteract fraudulent transactions, the Bank carried out the following activities in 2020:• identifying and blocking of phishing

resources on the Internet;• blocking of compromised bank cards

of the Bank’s customers;• blocking of unauthorized transactions

on customers’ accounts; • applying to law enforcement authorities

on the issues of illegal actions against the Bank’s customers in order to initiate prosecution.

The pandemic and subsequent surge of cybercriminal activity led to the necessity of urgent mobilization of all the resources of the Information Security Unit. In a short time, the Bank organized and provided remote access to all the Bank employees, including the branch network. This campaign did not affect the regular efforts to ensure information security, improvement and implementation of information security tools under the Cybersecurity Program.

In 2020, the Bank continued to execute the Cybersecurity Program for selection and implementation of information security tools adequate to modern threats.A vast range of works was carried out to improve the Bank’s Information Security Situation Center. Advanced technical solutions to improve the efficiency of information security incident response and incident management processes were implemented, including the following:• the process of information security inci-

dents identification at early stages, as well as the approach to determining the impact of information security incidents on banking technological processes were upgraded;

• a system detecting abnormal behavior of IT resource users was introduced, thus the level of the Bank’s security increased by means of a deeper analysis of employees’ actions while working with different Bank’s systems;

• a system of secure operation of computer programs in a dedicated environment was implemented, providing for checking of suspicious files and links by analyzing the behavior of malicious software, as well as analyzing email and web traffic to automatically detect anomalies typical of “zero-day” and targeted attacks;

• a large-scale cyber training for specialists of the Information Security Unit was held at The Standoff¹ (cyber training ground), where skills of identifying and responding to hacker attacks were mastered.

The range of tasks concerning identification and control of cyber threats and vulnerabilities in the Bank’s infrastructure was significantly expanded. A number of tools for prioritizing

vulnerabilities and analyzing possible attack vectors against the Bank’s IT resources from the Internet were adopted. The Bank’s infra-structure and services were scanned for vulnerabilities, all published darknet adver-tisements were analyzed for attempts to sell illegal banking information and services, and penetration tests were conducted to check the level of the Bank’s services protection.The Bank continued to implement SecDevOps secure software development processes, both with the use of automation tools (as part of DevOps) and without them (manual checks). Source codes and ready software are tested daily. Work continued as part of the project concerning the Bank’s Certification Center infrastructure upgrade; new electronic signature verification key certificates were issued, and the Bank employees were enabled to work remotely in various secure electronic document management systems using cryptographic information protection tools under current pandemic conditions. In 2020, the Bank passed the annual certification for the first time and received certificates of compliance with the requirements of payment systems PCI DSS and PCI 3DS. In addition, the Bank’s compliance with the requirements of the Bank of Russia regulations on the security of money transfers (382-P, 672-P, 683-P) was assessed by the external audit services.

Information Security

The Bank’s information security efforts first and foremost ensure the security of customer data and combat fraud by introducing, among other things, new safety features and improving the security of the Bank’s automated systems.

¹ The Standoff cyber range is a virtual model of a city recreating all production chains, business scenarios, and the technological landscape of various economic sectors, including banking.

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St. Petersburg

Kaliningrad

Krasnodar

Stavropol

Voronezh

Vladivostok

Krasnogorsk

Nizhny Novgorod

PermKazan

Tula

Moscow

Samara

Ufa Yekaterinburg

Surgut

Novy Urengoy

Novosibirsk

Tomsk

Kemerovo

Krasnoyarsk

Central Federal District 3 Krasnogorsk (Moscow Region), Tula, Voronezh

Northwestern Federal District 2 St. Petersburg, Kaliningrad

Southern Federal District 1 Krasnodar

North Caucasian Federal District 1 Stavropol

Volga Federal District 5 Nizhny Novgorod, Ufa, Perm, Samara, Kazan

Ural Federal District 3 Yekaterinburg, Surgut, Novy Urengoy

Siberian Federal District 4 Tomsk, Novosibirsk, Krasnoyarsk, Kemerovo

Far Eastern Federal District 1 Vladivostok

Total 20

Geographic location of the branches across principal regions where the Bank has a foothold as of 19 May 2021:

Region of presence Headquarters Branch

Regional Network Map

76 G A Z P R O M B A N K A N N U A L R E P O R T 2 0 2 0 77

369 sales offices are located in 227 cities and towns, including 154 (42%) in cities with a population in excess of 500,000.To improve the Bank’s availability and customer service quality, 22 new offices were opened in 2020.

As part of the Operating Model Transformation Program, multifunctional support centers were created in 2020 in Nizhny Novgorod, Yekaterinburg, Novosibirsk, and Tomsk with the total number of jobs reaching 1,120, where support functions are centralized to increase their efficiency.

Branch Network Operating Results

The Bank’s branch network is present in 67 regions of Russia, whose aggregate GRP (gross regional product) accounts for 97 % of the country’s GRP (excluding Moscow).

Number of offices opened in 2020

Branch New offices

Southern Branch 1

Northwestern Branch 8

Ufa 1

Central Branch 4

West Siberian Branch 3

East Siberian Branch 1

Far Eastern Branch 2

Kazan 1

Central Black Earth Branch 1

Total branch network 22

Moscow 17

Total branch network + Moscow branch offices 39


Gazprombank’s trusting relationships with its target audience are built on the provision of quick and true information to Russian and international mass media. In 2020, the Bank’s PR specialists backed up by experts, analysts, and the Bank’s top management provided information and opinions on more than 700 requests from mass media. The Press Service initiated more than a thousand publications about the Bank, had 62 interviews with top managers published in mass media, 37 interviews with regional Bank managers, and prepared and published more than 170 press releases. In the past year, the Bank’s social media published 870 posts with a total coverage of 73 million unique views. The number of followers increased by 75,000 people to 345,000 at the end of the year.In 2020, Gazprombank started regularly posting on the Yandex.Zen blogging platform. The channel is to develop the Bank’s image as a reliable and modern employer, as well as an expert in financial safety and management.At the very beginning of the pandemic, the Bank ensured smooth operation of communication systems, information support for all processes, and organized routine work in compliance with all information security requirements. An internal Telegram channel was launched for employees to quickly inform them about the pandemic. A year later, it has more than 10,000 active followers, is updated daily and continues to develop.The Bank also opened the daily “Gazprombank. Opinion” section on the macroeconomic

Telegram channel MMI with more than 101,000 followers. The Bank’s analysts promptly comment on current economic issues and analyze important events. Federal business and industry mass media published materials on the events. Gazprombank also had a blog launched on VC.ru and Habr.In 2020, the Bank held a design competition with more than 60,000 views. About 20,000 people attended three online career fairs of Gazprombank as part of the Game of Jobs, making the Bank one of the five most visited virtual representative offices.Even during the lockdown, Gazprombank’s news included many new loyalty programs and various services. For example, the Bank held a promotional campaign for the FACEIT gamer card and the JCB and UnionPay Smart Card, the launch of the Visa Infinite Metal card as part of the Payroll Premium Plus package, the Gazprombank. Premium UP package with the metal Aeroflot Bonus card, and the launch of the Gazprombank. Investments online service. Fyodor Bondarchuk was still the brand ambassador for the Bank in 2020, thanks to which it could attract new audience, increase the loyalty of the existing customers, and demonstrate the values of the Bank: proactivity, responsibility, openness and attention to people.Well-thought-out campaigns adapted to the current conditions, participation in projects to find new opportunities and improve marketing work processes allowed Gazprombank to maintain the demand for its products and services

Marketing and Communication

The ability to build a dialog with various audiences in the time of crisis — such as, of course, the pandemic — is becoming increasingly important. Combining the experience accumulated over 30 years and a desire to master new technologies, Gazprombank continued to effectively interact with its customers during the reporting period.

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at a high level. Together with Google Digital Maturity Framework, the Bank took part in the 5A project that was launched in 2019 and took place throughout 2020. The project’s main goal is to increase sales volume and the loyalty of existing customers as well as attract new ones. The system makes it possible to avoid unnecessary advertising for current customers and reduce costs. As a result, 5A enabled the Bank to significantly increase the efficiency of its digital services: in May 2020, it received 33 % more applications for consumer loans than in September 2019. And the cost of attraction of one application decreased by 52 %. Moreover, the share of consumer loan sales using digital channels was 80 %. The volume of deposit applications over the past nine months more than quadrupled (by 423 %), and the cost of attracting applications decreased by 73%. This made it possible not only to increase Gazprombank’s brand awareness but also to reduce the cost of attracted online applications by several times, which has a positive impact on the entire online business.In 2020, advertising campaigns for key retail products (consumer loans, refinancing, deposits and savings accounts, etc.) were always on, reaching more than 60 million people and allowing more than a million applications. According to regular Brand Navigator surveys by BrandScience, brand awareness indicators showed a positive trend: they showed an increase of 2.5 % YoY in terms of spontaneous brand awareness, while brand awareness and advertising with prompting

showed an increase of 4 % and 3.5 %, respectively.Sponsorships and partner projects in sports and culture were an important element of the Bank’s marketing activity in 2020. The key areas of development included the Bank’s agreements with FC Zenit, the Russian Football Union, Heroes Race, and the Belokamennaya tennis school. Since March 2020, joint activities with sports partners have taken place predominantly online. Thus, an anniversary Zenit-95 marathon was held together with FC Zenit. In December, the online marathon Zenit vs. Dinamo Sponsored Match was organized, as well as a joint social project Together We Will Win that supports employees of medical institutions in St. Petersburg. The total coverage of all activities with FC Zenit exceeded 60 million people. As part of cooperation with the Russian Football Union and the Russian National Football Team, the Bank was constantly present at the national teams’ matches (broadcasting on federal channels) and implemented a number of joint special digital projects as well as several joint New Year’s projects: a congratulatory video from the players of the Russian national team, a soccer “Blue Light” New Year’s show with Gazprombank. The Mother Knows All! radio project with the mothers of famous soccer players spoke about how future champions grew up and trained is also worth mentioning. The total coverage of all projects with the Russian Football Union exceeded 20 million people.

Cultural projects were implemented locally to promote the Bank’s brand among various target audience segments. The sponsorship of the Salvador Dalí: Magic Art exhibition at Moscow Manege (more than 470,000 visitors) and joint projects (the digital ballet Infinita Frida and a series of dance master classes Stay Balance) with ballet master Yuri Smekalov and the online movie theater IVI (with coverage of over 50 million people) attracted a lot of attention. At the end of the year, a partnership agreement was signed with the Garage Museum of Contemporary Art, under which the Bank’s brand was integrated into the second Triennale of Contemporary Art Beautiful Night of All People. The 2020 activities included the creation of a fully digital online 3D-version of the exhibition with the support of the Bank, which allowed a wide museum audience to experience the Triennale amid pandemic restrictions.In addition to sponsorship, a number of special projects were implemented in 2020 with a total audience reach of more than 130 million people.The #Zaryadka with Gazprombank project was created during the period of restrictions in order to support the Bank’s audience. Famous athletes offered their morning gymnastics options for people of any level in 17 creative videos. The videos in the Bank’s social networks have been viewed more than 24 million times in total.Going online, the Bank’s image projects and business activities became available to a wide audience of viewers of more than 17 million people. Gazprombank’s Music


Room projects continued throughout the year: it is a series of online concerts with the participation of talented artists and world stars, as well as the Balcony theatrical festival. Other successful online projects include the online quiz Wheel of Fortune (over 10 million users), the digital campaign for the Bank’s 30th anniversary (over 15.5 million users), New Year campaigns on the TikTok and Twitter social networks (over 50 million users in total) and the in-house special project New Year Dancing (over 6.5 million users). In 2020, the VMESTE SHOW: 30 Years of Gazprombank won the award for the “Best Event Design”, became a finalist of the “Company Anniversary of the Year” nomination as well as the “Best Event Direction and Production” nomination of the main national award of the special events industry Event of the Year. The Balcony festival became the best cultural project of the year according to Kommersant Initiative Awards.Restrictions had a direct impact on the Bank’s corporate life as well: almost all key events of the year were held online. Employees’ interest in the information about the current situation and development strategy remained high as always. For example, Gazprombank Newspaper’s site with the series of interviews with the Bank’s top management in the Most Unusual Year was visited by more than 12,000 colleagues, while the GPBremembers project received more than a hundred stories about the employees’ relatives who fought in the Great Patriotic War and more than 300 photographs.Gazprombank’s flagship internal communications project, GPB Transform,

which is a platform for comprehensive employee development, was also transferred to an online format. This enabled the Bank to significantly increase the involvement of colleagues from the branch network. The Transformation of Power. From Siberia to Kuban project involved 48 employees of the Headquarters and three branches. More than 500 people joined new online projects GPB_PROman and GPB_PROwoman, where employees trained remotely and received consultations on healthy diets. The cybersports GPBgame took place for the first time in 2020 as more than 200 employees competed for the first place in FIFA, Dota2, and CS:GO. The Transformation of Spirit successfully implemented the Dance, Acting, Photography, and Art projects in 2020. The Transformation of Mind saw 21 online GPBIntellectorium project meetings with more than 5,000 employees participating, and five online GPBQuizzes with more than 1,500 participants from the Headquarters and the branch network.The number of followers of @gpb_life, the account on the corporate life of the Bank, has increased dramatically, almost doubling to more than 5,000 people in 2020. The Most Unusual Year special project, which included blitz interviews with 42 top managers of the Bank, got about 12,000 views.New online projects received seven industry awards, including first place in the “High Start” nomination for the Transformation of Power. Pushing the Boundaries in the contest of best practices of employers in the socio-humanitarian sphere Creating the Future, and the grand prize for the “Leader Company:

Best Corporate Media Communication System” at the Silver Threads corporate media resources contest. 2020 was a challenging year for everybody. It helped get a new perspective on what was going on, opened new communication formats for customers, and enabled the Bank to care for its employees in compliance with its corporate values.

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Amur tiger.Khabarovsk Territory

2Corporate GovernanceCHANGING THE WORLD. STAYING TRUE TO OURSELVES

Bank GPB (JSC) Shareholders

¹ Of the total number of common shares.² Of the total number of Type A preferred shares.³ Of the total number of Type B preferred shares.

⁴ Non-State Pension Fund GAZFOND controls 41.58 % of the voting shares of Bank GPB (JSC), out of which:• 5.09 % are held directly by Non-State Pension Fund GAZFOND;• 36.49 % are controlled through the following shareholders of the Bank:

• 13.59 % are held by PJSC “GAZ-service”;• 13.59 % are held by PJSC Gazkon;• 9.31 % are held by PJSC GAZ-Tek.

Full name of the shareholder As at 1 January 2020 As at 1 January 2021

Share in common

stock ¹, %

Share in Type A preferred

stock ², %

Share in Type B preferred

stock ³, %

Share in common

stock ¹, %

Share in Type A preferred

stock ², %

Share in Type B preferred

stock ³, %

Public Joint Stock Company Gazprom 29.7640 0 0 29.7640 0 0

Limited Liability Company “Gazprom capital” 16.2555 0 0 20.1133 0 0

Non-State Pension Fund GAZFOND⁴ 5�0915 0 0 5�0915 0 0

Public Joint-stock Company GAZ-Tek⁴ 9.3061 0 0 9.3061 0 0

Public Joint-stock Company GAZ-service⁴ 13.5853 0 0 13.5853 0 0

Public Joint-Stock Company Gazkon⁴ 13.5931 0 0 13.5931 0 0

Closed Joint-Stock Company Leader (pension fund asset management company), Trust Management

0.2960 0 0 0 0 0

Closed Joint-Stock Company Leader (pension fund asset management company)

0.0003 0 0 0.0003 0 0

State Development Corporation VEB.RF 8.5341 0 0 8.5341 0 0

The Russian Federation represented by the Ministry of Finance of the Russian Federation

0 100 0 0 100 0

State Corporation Deposit Insurance Agency 0 0 100 0 0 100

Limited liability company New Financial Technologies

3.5618 0

Individuals 0.0123 0 0 0.0123 0 0

Total 100 100 100 100 100 100


Bank GPB (JSC) Board of DirectorsAs of 1 January 2021.

Alexey B. Miller Chairman of the Management Committee, Gazprom

Chairman of the Board of Directors

Deputy Chairmen of the Board of Directors

Members of the Board of Directors

Ilya V. EliseevDeputy Chairman of the Management Board, Gazprombank (Joint Stock Company)

Famil K. SadygovDeputy Chairman of the Management Committee, Gazprom

Sergey S. IvanovChief Executive Officer — Chairman of the Executive Committee, Public Joint-Stock Company ALROSA

Vyacheslav A. TyurinDirector General, Gazprom Invest

Kirill A. DmitrievChief Executive Officer, Joint Stock Company Management Company of Russian Direct Investment Fund

Anatoly A. GavrilenkoGeneral Director, CJSC Leader

Andrey I. AkimovChairman of the Management Board, Gazprombank (Joint Stock Company)

Yuriy G. GazaryanDeputy Chairman — Member of the Board, VEB.RF

Mikhail L. SeredaFirst Deputy Director General, Gazprom Export LLC; Director General, Gazprom Trading LLC

Vladimir A. DmitrievVice President, Chamber of Commerce and Industry of the Russian Federation

Yury N. Shamalov President, Non-State Pension Fund GAZFOND

Mikhail N. RosseevDeputy Chairman of the Management Committee — Chief Accountant, Gazprom

In the course of 2020, Elena A. Vasilieva resigned from the Board of Directors and Mikhail N. Rosseev became member of the Board of Directors.

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Alexey B. MillerYear of birth: 1962.Educational background: Graduated from N.V. Voznesensky Leningrad Institute of Finance and Economics in 1984. Candidate of Sciences (Economics).Job titles in the past three years: From June 2001 to date — Chairman of the Management Committee, Gazprom.

Andrey I. Akimov Year of birth: 1953.Educational background: Graduated from the Moscow Institute of Finance in 1975.Job titles in the past three years: From January 2003 to date — Chairman of the Management Board, Gazprombank (Joint Stock Company).

Mikhail L. SeredaYear of birth: 1970�Educational background: Graduated from St. Petersburg State University of Economics and Finance in 1997; graduated from International Management Institute St. Petersburg (IMISP) in 2008 (Master of Business Administration).Job titles in the past three years: From September 2004 to February 2020 — Deputy Chairman of the Management Committee, Head of the Administration of the Management Committee, Gazprom; from March 2020 to date — First Deputy Director General, Gazprom Export LLC; from July 2020 to date — Director General, Gazprom Trading LLC.

Yury N. Shamalov Year of birth: 1970�Educational background: Graduated from the Higher Naval Engineering School in 1992; graduated from the Russian Foreign Trade Academy (Ministry of External Economic Relations of the Russian Federation) in 1996. Candidate of Sciences (Economics).Job titles in the past three years: From August 2003 to date — President of Non-State Pension Fund GAZFOND.

Anatoly A. GavrilenkoYear of birth: 1972.Educational background: Graduated from M.V. Lomonosov Moscow State University in 1995 and 2001.Job titles in the past three years: From May 2004 to date — General Director, CJSC Leader (pension fund asset management company).

Yuriy G. GazaryanYear of birth: 1974�Educational background: Graduated from the Financial Academy under the Government of the Russian Federation in 1996.Job titles in the past three years: From April 2013 to May 2018 — Deputy Head of the Secretariat of First Deputy Prime Minister of the Russian Federation; from June 2018 to date — Deputy Chairman, State Development Corporation VEB.RF; from June 2020 to date — Deputy Chairman — Member of the Board, VEB.RF.

Board of Directors member profiles


Vladimir A. Dmitriev Year of birth: 1953.Educational background: Graduated from the Moscow Institute of Finance in 1975; starting from 2004 he has been Corresponding Member of the Russian Academy of Natural Sciences. Doctor of Sciences (Economics).Job titles in the past three years: From June 2007 to February 2016 — Chairman, State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank); from April 2016 to date — Vice President, Chamber of Commerce and Industry of the Russian Federation.

Kirill A. DmitrievYear of birth: 1975�Educational background: Graduated from Stanford University in 1996; graduated from Harvard University in 2000.Job titles in the past three years: From February 2012 to date — Chief Executive Officer, Joint Stock Company Management Company of Russian Direct Investment Fund (created by way of transformation of Management Company of Russian Direct Investment Fund (LLC)).

Ilya V. EliseevYear of birth: 1965�Educational background: Graduated from A.A. Zhdanov Leningrad State University in 1987. Candidate of Sciences (Law).Job titles in the past three years: From August 2005 to date — Deputy Chairman of the Management Board, Gazprombank (Joint Stock Company).

Sergey S. IvanovYear of birth: 1980.Educational background: Graduated from Moscow State Institute (University) of International Relations (MGIMO University) in 2002. Candidate of Sciences (Economics).Job titles in the past three years: From March 2017 to January 2018 — President — Chairman of the Executive Committee, Public Joint Stock Company ALROSA; from January 2018 to date — Chief Executive Officer — Chairman of the Executive Committee, Public Joint Stock Company ALROSA.

Mikhail N. RosseevYear of birth: 1975�Educational background: Graduated from N. P. Ogarev Mordovia State University in 1997.Job titles in the past three years: From October 2012 to February 2020 —Deputy Chief Accountant, Gazprom; from February 2020 to date —Deputy Chairman of the Management Committee — Chief Accountant, Gazprom.

Famil K. SadygovYear of birth: 1968.Educational background: Graduated from S. Ordzhonikidze State Academy of Management in 1993. Candidate of Sciences (Economics).Job titles in the past three years: From February 2009 to April 2019 — Deputy Chairman of the Management Board, Bank GPB (JSC); from April 2019 to date — Deputy Chairman of the Management Committee, Gazprom.

Vyacheslav A. TyurinYear of birth: 1960�Educational background: Graduated from Kirov Ural Polytechnic Institute in 1982.Job titles in the past three years: From July 2002 to March 2019 — Director General, Gazpromtrans; from March 2019 to date — Director General, Gazprom Invest; from June 2018 to date — Vice President, Gazprombank (Joint Stock Company) (concurrently).

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Bank GPB (JSC) Management BoardAs of 1 January 2021.

Andrey I. Akimov Chairman of the Management Board

Alexey P. BelousDeputy Chairman of the Management Board

Alexander Y. MuranovDeputy Chairman of the Management Board

Dmitry V. ZauersDeputy Chairman of the Management Board

Alexander I. SobolDeputy Chairman of the Management Board

Elena A. BorisenkoDeputy Chairwoman of the Management Board

Igor V. RusanovDeputy Chairman of the Management Board

Viktor A. KomanovDeputy Chairman of the Management Board

Alexander M. StepanovDeputy Chairman of the Management Board

Irina A. Kaplunnik First Vice President

Alexey V. Popovich First Vice President

Denis V. Kamyshev First Vice President

Vladimir N. VinokurovFirst Vice President

Ilya V. EliseevDeputy Chairman of the Management Board

Vladimir M. Ryskin Deputy Chairman of the Management Board

Alexey A. MatveevDeputy Chairman of the Management Board

Tigran G. KhachaturovDeputy Chairman of the Management Board


Andrey I. AkimovBorn in 1953.Education: higher; a graduate of Moscow Financial Institute (1975) majoring in Economics.Career: From October 1974 to November 1990 Mr. Akimov was an employee of Vneshtorgbank in the positions of Credit Inspector, Head of Foreign Exchange Department, Deputy General Manager of the bank’s office in Zurich, and Chairman of the Management Board in Donau Bank. From February 1991 to January 2003, he held the position of Managing Director at IМAG Investment Management & Advisory Group AG (Austria). Chairman of Bank GPB (JSC) Management Board since January 2003.

Alexey P. BelousBorn in 1969.Education: higher; in 1992, he graduated from the Ordzhonikidze Moscow Aviation Institute, majoring in Electrical Engineering; and in 1997, from the Financial Academy of the Government of the Russian Federation, majoring in Economics. In 2000, he was awarded the degree of Candidate of Sciences (Economics).Career: Mr. Belous began his career at the Moscow Experimental Design Bureau MARS, where he worked as Engineer from April 1992 to June 1993. From June 1993 to August 1996, he was employed at the Main Directorate of the State Marine Emergency Rescue Service of Russia, where he first held the position of a Lead Specialist of the Commercial Department and then that of a Chief Specialist of the Foreign Trade and Contract Administration Department. From August 1996 to October 1999, he worked for Commercial Bank SBS-AGRO and the Managing Company of SBS-AGRO

Banking Group, where he served in turn as Expert, Head of the Banks and Investment Funds Department of the Investment Resource Market Research Division, Deputy Head and then Head of the International Resources Division of the International Banking Operations Center. From October 1999 to April 2000, he held the office of Head of the Project Financial Support Department in CJSC STB-Card; from May 2000 to March 2001, the position of Senior Advisor of the Financial Solutions Department in CJSC NCR; from June 2001 to May 2002, the position of Head of the Economic Projects Department at Gaztechleasing. In June 2002, he joined Bank GPB (JSC) as Head of the Long-Term Foreign Trade Finance Section at the Project Finance Department; in March 2004, he was transferred to the position of Deputy Director of the Project Finance Department, and in July 2007, to the position of Director of the Project and Export Finance Directorate of the Project and Structured Finance Department. In January 2009, he was appointed Deputy Head of the Project and Structured Finance Department; in July 2009, Head of the Project and Structured Finance Department; and in April 2013, Vice President — Department Head, Project and Structured Finance Department. From February 2014 to April 2016, he held the office of Executive Vice President — Department Head, Project and Structured Finance Department; from April 2016 to September 2017, that of First Vice President — Department Head, Project and Structured Finance Department of Bank GPB (JSC). In August 2017, Mr. Belous was elected as Member of the Management Board of Bank GPB (JSC); since September 2017, he has been Deputy Chairman of the Management Board of Bank GPB (JSC).

Elena A. BorisenkoBorn in 1978.Education: higher; a graduate of St. Petersburg State University (2000), majoring in Law.Career: Elena started her career in May 1999 as a Legal Adviser at CJSC Plaza Firm. From August to November 2000, she was the Head of the Law Group at CJSC Plaza Plus. From December 2000 to November 2008, she worked at OJSC Jewelry Trade of North-West, first as a Legal Adviser, then as the Head of the Law Section in the Executive Office. From November 2008 to September 2009, she was an Adviser to the Head of the Federal Service for State Registration, Cadastral Records and Cartography. In September 2009, she joined the Ministry of Justice of the Russian Federation as an Adviser to the Minister and in February 2010 she was appointed as the Director of the Department of Legal Aid and Interaction with the Judicial System of the Ministry of Justice of the Russian Federation, and in March 2011, as an Adviser to the Minister of Justice of the Russian Federation. From June 2012 to July 2015, she was Deputy Minister of Justice of the Russian Federation. In September 2015, Ms. Borisenko joined Bank GPB (JSC) as First Vice President. In September 2015, she was elected as Member of the Management Board of Bank GPB (JSC). Since September 2017, Elena has been Deputy Chairwoman of the Management Board of Bank GPB (JSC).

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Vladimir N. VinokurovBorn in 1959.Education: higher; graduated from F. E. Dzer-zhinsky Tambov Higher Military Aviation Engineering School in 1981 with a degree in Radio Engineering; a graduate of the Higher School of the KGB qualified as an officer with a degree in higher professional education in 1991; a graduate of the Russian Academy of Public Administration with a degree in Social Sciences in 1994.Career: Vladimir did military service with the USSR Ministry of Defense from July 1981 to September 1983 and with KGB/FSB counterintelligence offices (staff records and fieldwork) from September 1983 to December 1998. From December 1998 to March 2014, he served in the FSB Center for Special Assignments, holding the position of Chief Deputy and Chief Personnel Officer to June 2003, Chief Deputy and Chief Officer of Unit A from June 2003 to March 2014. Employed by Bank GPB (JSC) since March 2014 in the positions of First Vice President and Member of the Management Board.

Ilya V. EliseevBorn in 1965.Education: higher; a degree in Law from A. A. Zhdanov Leningrad State University (1987). Awarded a degree of Candidate of Sciences in Law in 2001.Career: From January 1991 to March 2003 Mr. Eliseev worked at St. Petersburg State University in the Department of Law (Civil Law). From May 2003 to July 2005, he held the position of Vice President and President of the Law Center Association in St. Petersburg. He has worked for Bank GPB (JSC) in the position of Deputy Chairman of the Management Board since August 2005.

Dmitry V. ZauersBorn in 1979.Education: higher; graduated from Tomsk State University with a degree in Management (2001).Career: Dmitry started his career in August 2001 with Gazprombank. Through June 2003, he held the positions of Specialist and Lead Specialist of the Lending Department with the Bank’s branch in Tomsk; from June 2003 to May 2011 he worked in the Bank’s Regional Business Development Department and held the position of Chief Specialist of the Network Management Section until March 2006; from March 2006 to September 2007 he was Deputy Head of the Network Coordination Division and Head of the Network Management Section; from September 2007 to February 2010 he served as Head of the Network Coordination Division and from February 2010 to May 2011 as Deputy Head of the Department. In May 2011, he was appointed Vice President and then First Vice President of the Bank in September 2012. He has been a Member of the Management Board since February 2013 and Deputy Chairman of the Management Board since November 2014.

Irina A. KaplunnikBorn in 1969.Education: higher; graduated from G. V. Plekhanov Russian Academy of Economics (1990) as a highly qualified goods manager.Career: She started her career in August 1990 in the Dzerzhinsk branch of Zhilsotsbank as a Category 2 Economist. From December 1990 to July 1996, she worked at Business Commercial Bank, where she consecutively held the positions of Category 1 Economist in the Government Enterprises

and Organizations Lending Department, Lead Economist in the Short-Term and Long-Term Lending Department, branch Chief Economist, and Chief Expert in the Lending Division. From August 1996 to November 1996, she worked at International Commercial Bank in the position of Lead Economist in the Customer Lending Department. In November 1996, she was employed by Business Joint-Stock Commercial Bank in the capacity of the Chief Expert in the Credit Resources Taking and Deployment Department; in April 1997, she was appointed to the position of Deputy Head of Commission Operations Division, and in May 1998, to the position of the Head of Securities Division. From January 2001 to April 2002, she occupied the position of First Deputy Director of Bank St. Petersburg branch in Moscow. She has been with Bank GPB (JSC) since April 2002. Was initially appointed Head of the Customer Cash Management Service Department. In April 2004, she was redeployed as Head of the Banking Operations Accounting, Documenting and Execution Department. In December 2006, she was appointed to the position of Deputy Chief Accountant of the Bank — Head of the Banking Operations Accounting, Documenting and Execution Department, and in October 2007, to the position of Deputy Chief Accountant of the Bank. In April 2012, she was redeployed to the position of First Vice President — Deputy Chief Accountant of the Bank. Since July 2016, she has held the position of First Vice President. In August 2019, she was elected as Member of the Management Board.


Denis V. KamyshevBorn in 1975.Education: higher; in 1999, he graduated from the Moscow State Institute of Steel and Alloys (Technology University), majoring in Mathematics and Engineering.Career: He started his career in February 1998 at SI-Leader LLC as a System Administrator. From April 1999 to April 2002, he was a postgraduate student at the V.A. Trapeznikov Institute of Control Sciences. From November 2002 to January 2003, he worked for OJSC Russian Aluminum Management as Chief Specialist of the Corporate Risk Division of the Finance Directorate. From January 2003 to September 2006, he was employed at RUSAL-Managing Company LLC, where he was a Manager at the Risk Section of the Finance Directorate, Head of the Corporate Risk Evaluation Section of the Risk Department, and Director of the Risk Department. From October 2006 to August 2008, he held the position of Senior Manager of the Business Performance Management Section at the Business Consulting Division in PricewaterhouseCoopers Russia B.V. From August 2008 to June 2013, he was the Director of the Business Risk Service Section of the Business Consulting Department, and then a Partner at Ernst & Young (CIS) B.V. in Moscow. In June 2013, he joined Bank GPB (JSC) in the capacity of First Vice President. In July 2017, he was elected as Member of the Management Board of Bank GPB (JSC).

Viktor A. KomanovBorn in 1973.Education: higher; a graduate of G. V. Plekhanov Russian Academy of Economics majoring in Economics (1995) and the London School of Economics and Political Science (1997).Career: Viktor started his career in September 1990 with commercial banks Stroycredit and Moscovia. Then until March 1996 he worked as a Lead Economist at commercial banks YALOSBANK, National Credit and Gagarinsky. From 1996 to 1997, he served as Head of the New Product Development Sector of the Corporate Services Division at Menatep Bank. From December 1997 to November 1998 Viktor was an Analyst with the Corporate Finance Department of Fleming USB (CJSC). Up to February 2001, he held the position of Deputy Head of the Investment Banking Department of Fleming USB (CJSC). Up to March 2002, he was Deputy Head of the Corporate Client Banking and Capital Markets Department at J. P. Morgan Bank International LLC. From April 2002 to October 2003 Viktor worked in the Moscow office of Lukoil Overseas Service LTD in the positions of Section Head of the M&A Department and later Section Head of the International Business Development Department. Joined Bank GPB (JSC) in October 2003. From October 2003 to February 2004, he acted as Advisor to the Management Board and Director in the Corporate Finance Department; from February 2004 to November 2007, he was Head of the Corporate Finance Department; from November 2007 to July 2010 served as First Vice President. He was elected as Member of the Management Board in April 2007 and appointed Deputy Chairman of the Management Board in July 2010.

Alexey A. MatveevBorn in 1963.Education: higher; a degree in Economics from Moscow Financial Institute (1986).Career: Alexey started his career in January 1986 with VTB’s Soyuzraschetexport, where he worked as an Inspector and an Economist until December 1987. From January 1988 to June 1989, he worked as an Economist in Vnesheconombank of the USSR. Then Alexey joined International Moscow Bank where he was Head of the Financial Credits Department until January 1992. During the following year he worked as Foreign Affairs Consultant with Servis-Globus (a joint venture). From February 1993 to July 1995, he held the positions of Director for External Loans, Member of the Management Board, and Executive Vice President of Inter-Sectoral Commercial Bank for Wholesale Development. In July 1995, he joined JSC Bank Credit Suisse (Moscow) where he worked as Head of the Securities Management Department and Vice President until June 1998. During 1999, Alexey was Advisor to the Chairman of the Management Board in Eastern European Investment Bank. From June 1999 to March 2001, he held the position of Head of the Investment Banking Department in Fleming USB (CJSC). From May 2001 to February 2003, he was Managing Director in Investment Company Troika Dialog (CJSC). He joined Bank GPB (JSC) in February 2003, working as Advisor to the Chairman of the Management Board from February to July 2003, and was appointed Deputy Chairman of the Management Board in July 2003.

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Alexander Y. Muranov Born in 1958.Education: higher; a graduate of Leninsky Komsomol Lviv Polytechnic Institute majoring in Electronic Engineering (1980).Career: Alexander’s career started in November 1980 with Elektroizmeritel Plant named after the 50th Anniversary of the USSR in Zhytomyr, where he worked as an Engineer, Laboratory Chief and Deputy Head of R&D until August 1994. From 1995 to 1998, he held the positions of Economist, Head of the Correspondent Relations Department, Deputy Chairman of the Management Board and First Deputy Chairman of the Management Board in Unibest (a commercial bank). From October 1998 to February 2005, his career continued with Rosprombank in the positions of Vice President, First Vice President, and President of the Bank. He joined Bank GPB (JSC) in February 2005 and has been acting as Deputy Chairman of the Management Board since then.

Alexey V. PopovichBorn in 1987.Education: higher; in 2008, he graduated from the Budget and Treasury Academy of the Ministry of Finance of the Russian Federation as a qualified economist; in 2018, he completed an MBA course at the SKOLKOVO Moscow School of Management. Career: He started his career in July 2006 in the Account Opening Section of the Moscow Representative Office of MANPOWER Inc. From January to March 2007, he worked at Moscow Credit Bank (Open Joint-Stock Company) in the capacity of Car Dealership Front Office Group Manager in the Retail Lending Department’s Auto Lending Division’s Administration

Section. From March to June 2007, he held the position of Auto Lending Section Manager at Spets-finans LLC. From July 2007 to June 2008, he worked as an underwriter and senior underwriter in the Analytical Section of Bank DeltaCredit’s Credit Department. In June 2008, he was employed by EVROFINANCE MOSNARBANK (Open Joint-Stock Company) in the capacity of Deputy Head of the Mortgage Lending Section in the Retail Lending Division; in July 2009, he was appointed Head of the Retail Lending Section of the Lending Division. From December 2010 to July 2014, he worked at Raiffeisenbank. He was initially deployed to the Retail Service Directorate’s Mortgage Lending Development Department’s Regional Sales Development Team in the position of Team Leader. In April 2012, he was redeployed to the Retail Service Directorate’s Mortgage Lending Development Division’s Mortgage Product Sales Development Section in the position of Section Head; in October 2012, he was redeployed to the Retail and Small Business Service Directorate’s Mortgage Lending Development Division’s Mortgage Product Sales Section in the position of Section Head; in December 2012, to the Retail and Small Business Service Directorate’s Mortgage Lending Development Division’s Mortgage Product Sales Section as Deputy Division Head and Directorate Head; in March 2013, to the Retail and Small Business Service Directorate’s Mortgage Lending Development Division, in the position of Deputy Division Head; in August 2013, to the Retail and Small Business Service Directorate’s Pledge-Backed Lending Development Division’s Secured Loan Sales Development Section as Deputy Division Head and Directorate Head; in November 2013, to the Retail and Small Business Service

Directorate’s Pledge-Backed Lending Development Division’s Secured Loan Sales Development Section in the position of Deputy Division Head, Directorate Head and Director. In July 2014, he joined Otkritie Bank in the capacity of Senior Vice President — Director, Pledge-Backed Lending; in October 2014, he was appointed to the position of Senior Vice President — Director, Pledge-Backed Lending and Premium Banking Development; from August 2016 to November 2017, he worked as Senior Vice President — Director, Retail Sales. From November 2017 to February 2018, he held the position of Senior Vice President, and from February to July 2018, the position of Member of the Management Board at Bank Rossiyskiy Capital (Joint stock company). In August 2018, he joined Bank GPB (JSC). From August 2018 to February 2019, he held the position of Vice President, and in February 2019 was appointed First Vice President. In September 2019, he was elected as Member of the Management Board.

Igor V. RusanovBorn in 1970.Education: higher; a graduate of Moscow Institute of Physics and Technology with a degree in Engineering Mathematics (1993).Career: Igor’s career started with the Institute of Design Automation under the USSR Academy of Sciences, where he worked as an Engineer from April 1990 to November 1993. From June 1994 to July 1997, he was employed by Neftekhimbank, where he held the positions of Specialist and Chief Specialist of the Securities Department until May 1996 and Deputy Head of the Dealing Department from June 1996 to July 1997. In July 1997, he was appointed Acting Head of Treasury. In August 1997 he joined Bank GPB (JSC) where he worked


as Head of the Promissory Notes and Bonds Section and Deputy Head of Securities Division until February 1999, Deputy Head of Treasury, Deputy Head of Treasury — Head of Liquidity Control and Analysis, and Deputy Head of Treasury — Head of Cash Flow Management from February 1999 to December 2003; Head of Structured and Syndicated Finance Department from December 2003 to September 2004; Vice President — Head of the Debt Capital Markets Department from September 2004 to January 2006; Vice President — Head of the Capital Markets Department from January 2006 to September 2007; Vice President — Head of Structured and Syndicated Financing and Corporate Solutions Department from September 2007 to January 2011. He was appointed First Vice President in January 2011 and elected as Member of the Management Board in February 2013. Mr. Rusanov has been Deputy Chairman of the Management Board since May 2019.

Vladimir M. RyskinBorn in 1961.Education: higher; in 1983, he graduated from the Moscow Financial Institute, majoring in Economics.Career: He started his professional career at Vnesheconombank of the USSR in August 1983, where he successively held positions of Inspector of the Commercial Operations Division, Senior Economist of the Economic Situation Analysis Section of the Commercial Operations Division, Senior Economist of the Precious Metals Section of the Precious Metals Division, Chief Economist of the Precious Metals Section of the International Currency Exchange Transactions Division. From January 1989 to September 1990, he worked

at the International Economic Cooperation Bank, where he first was Senior Assistant in the Arbitration Section of the Freely Convertible Currency Operations Division, and then Chief Economist of the Lending Operations and Securities Section of the Freely Convertible Currency Operations Division. From September to December 1990, he was employed by Zhilsotsbank of the USSR, in the capacity of Aide to the Chairman of the Management Board. From November 1992 to July 1994, he worked for Mosbiznesbank as Head of the Currency Exchange Section of the Currency Exchange and International Settlements Division, and then, Deputy Director of the Currency Exchange and International Settlements Division — Head of the Currency Exchange Section. From July 1994 to November 2000, he was an employee of OJSC Onexim Bank, holding positions of Deputy Chairman of the Management Board, First Deputy Chairman of the Management Board, First Vice President. From May to July 2001, he was First Executive Vice President of Commercial Joint Stock Bank Rosbank. From November 2001 to July 2002, he moved to OJSC Avtobank, a commercial bank, and was Deputy Chairman and then Chairman of that bank. From June 2003 to August 2007, he worked for OJSC Bank Uralsib, in the position of Chief Executive Officer, Chairman of the Management Board, First Deputy Chairman of the Management Board. In October 2009, he joined Bank GPB (JSC) as First Vice President. In February 2017, he was elected as Member of the Management Board of Bank GPB (JSC). Mr. Ryskin has been Deputy Chairman of the Management Board since May 2019.

Alexander I. SobolBorn in 1969.Education: higher; a graduate of S. Ordzhonikidze Moscow Aviation Institute majoring in Engineering Economics (1991). Awarded a degree of Candidate of Sciences in Economics in 2003.Career: Alexander started his career in February 1989 in S. Ordzhonikidze Moscow Aviation Institute, where he worked as a Technician and an Engineer until September 1993. In September 1993 he joined Russian National Commercial Bank (RNCB) and worked there until November 1998 in the positions of Economist, Head of the Financial Resources Department, Deputy Head and Head of the Consolidated Analysis Department, Vice President of the Bank, Vice President and Head of the Compliance Control Service, and Deputy Chairman of the Management Board and Head of the Compliance Control Service. Alexander joined Bank GPB (JSC) in November 1998 and held the positions of Advisor to the Chairman of the Management Board from November 1998 to February 1999 and Deputy Head of Strategic Development and Resource Planning and Advisor to the Chairman of the Management Board from February 1999 to November 1999. He has been Deputy Chairman of the Management Board of Bank GPB (JSC) since November 1999.

A N N U A L R E P O R T 2 0 2 0 93

Alexander M. StepanovBorn in 1976.Education: higher; a bachelor’s degree from Moscow State Institute (University) of International Relations (MGIMO) in Management with a minor in a foreign language (1997); a master’s degree from G. V. Plekhanov Russian Academy of Economics in Economics (1999). Awarded a degree of Candidate of Sciences in Economics in 2000.Career: Mr. Stepanov started his career in April 1994 with Sozidanie LLP as a Computer Operator. From February 1997 to December 1999 he worked as a Consultant at Monitor Eurasia Africa Ltd. and then as a Consultant in the Moscow Representative Office of A.T. Kearney GmbH from January 2000 to April 2001. From April 2001 to October 2004, he held the position of Analyst, Deputy Director of Transportation Projects, and Investment Director in Finartis LLC. In October 2004, Alexander joined Gazprombank as Director of the Project Finance Department until October 2006 and Advisor to the Chairman of the Management Board from October 2006 to February 2011. From February 2011 to September 2017, he was First Vice President — Head of the Strategic Industrial Assets Department. Elected as Member of the Management Board in November 2014. He has been Deputy Chairman of the Management Board since September 2017.

Tigran G. KhachaturovBorn in 1979.Education: higher; in 2000, he graduated from the G.V. Plekhanov Russian Academy of Economics, majoring in Economics.Career: Mr. Khachaturov embarked on his professional career in September 2000 at the Enterprise for Product Supplies of the Administrative Department of the President of the Russian Federation, a federal state unitary enterprise, as Head of the Financial Analysis Section, then held positions of Head of the Financial Analysis and Planning Section, Acting Head of the Financial and Economic Division. From April 2002 to August 2007, he worked for Techsnabexport, a joint stock foreign trade company, as Director of the Internal Control and Audit Department, Director of the Financial Department, Deputy General Director (Finance), First Deputy General Director. From August 2007 to May 2013, he was employed at OJSC Atomredmetzoloto, holding the position of First Deputy General Director and then of Acting General Director. From June 2013 to July 2014, he was First Executive Vice President, Head of the Representative Office of Uranium One Holding N.V. (Netherlands) in Moscow. From July to December 2014, he was employed as Advisor to Director of JSC Atomic Energy Power Corporation (Atomenergoprom). In April 2015, he joined Bank GPB (JSC) as Advisor to the Chairman of the Management Board, and in August 2016, he was appointed

to the position of Head of the Bank’s Restructured Assets Management. In September 2017, he was elected as Member of the Management Board of Bank GPB (JSC). He has been Deputy Chairman of the Management Board since August 2019.


Board to jointly review key issues related to the Bank’s activities. Committees meet on a regular basis. In the reporting year, the Bank’s annual General Shareholders Meeting was held, which approved the Bank’s 2019 annual report and annual accounting (financial) statements, payment of 2019 year-end dividend as well as the relevant record date, the Bank’s auditor, and the composition of Bank’s Board of Directors and Revision Commission;

the meeting also heard other matters included in the agenda of the Bank’s annual General Shareholders Meeting.In its activities and operations, the Bank adheres to the principles of corporate governance, which were recommended for use by the Bank of Russia and the Basel Committee on Banking Supervision. For that purpose, the Bank maintains the Corporate Governance Code (hereinafter, “the Code”) and monitors compliance of the Bank’s activities and operations with international and Russian principles of corporate governance, efficiency of the risk and capital

management system functioning at the Bank and across the Gazprombank Group, transparency of information, responsibility and accountability of the management. The Bank’s management bodies continuously improve the decision-making system and corporate controls to ensure efficient management of the Bank. In accordance with the recommendations of the Bank of Russia and the Code, a review of the Bank’s corporate governance system will take place in 2021.

Corporate Governance in the Bank

According to the Bank’s Articles of Association, the Bank’s management bodies are the General Shareholders Meeting, the Board of Directors, and two executive bodies: the collective one (the Management Board) and the sole one (Chairman of the Management Board).

According to the Bank’s Articles of Association, the Bank’s management bodies are:• the General Shareholders Meeting —

the Bank’s supreme management body;• the Board of Directors that is in charge

of the general management of the Bank’s operations, except for matters reserved for the General Shareholders Meeting in accordance with the laws of the Russian Federation and the Bank’s Articles of Association;

• executive bodies — the sole one (Chairman of the Management Board) and the collective one (the Management Board) — that manage the Bank’s day-to-day operations.

The Bank’s Articles of Association authorize the Bank’s management bodies to delegate some of their powers to collective bodies which they may set up. Thus, members of the Bank’s Board of Directors comprise the Audit Committee and the Compensation Committee. Members of the Bank’s Management Board participate in committees and other bodies set up by the Management Board and the Chairman of the Management

The Bank is managed in compliance with the laws of the Russian Federation and the Bank’s Articles of Association.

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Bank GPB (JSC)

Management Organizational FlowchartAs of 1 January 2021.

BOARD OF DIRECTORS

Audit Committee of the Board of Directors

Compensation Committee of the Board of Directors

SHAREHOLDERS MEETING

AUDITOR OF THE BANK REVISION COMMISSION

MANAGEMENT BOARDChairman of the Management Board

Internal Audit Service


MANAGEMENT BOARDChairman of the Management Board

First Vice Presidents, Executive Vice Presidents, Vice Presidents, Advisors to the Chairman of the Management Board and Consultants

to the Management BoardThe Bank’s Committees

Deputy Chairman of the Management BoardProject and investment loans, investments

in PPP projects

Deputy Chairman of the Management BoardVIP customers, transaction banking,

financial monitoring, information security

Deputy Chairman of the Management BoardAssets and liabilities management, liquidity management, borrowings, sales of treasury

products, depository operations

First Vice President, Member of the Management Board

Retail business (except retail VIP and Private Banking customers), regional sales offices

Deputy Chairman of the Management BoardStrategic industrial assets, special investment

projects


Operations

Deputy Chairman of the Management BoardCFC segment customer relations, corporate

lending, international business, financial and capital market transactions

First Vice President, Member of the Management BoardSecurity, cash collection

Deputy Chairman of the Management BoardIT, processes and project management,

HR management and organizational development, corporate communications,

regional network development, social projects, digital assets management

Deputy Chairman of the Management BoardStrategic development and financial

planning, rating advisory, equity capital, IFRS, accounting and tax records and reports, subsidiary banks, real estate, business

support services


International projects and representative offices, customer base development

Deputy Chairman of the Management BoardAdministration, legal protection of the Bank’s interests, collateral

management, transactions control

Deputy Chairman of the Management BoardCompliance control

Deputy Chairman of the Management BoardPrivate Banking, portfolio investments, asset management, the Bank’s interactions with

counterparties in financial markets

Deputy Chairman of the Management BoardPrivate equity, corporate finance

Deputy Chairman of the Management BoardDistressed corporate assets, procurement

A N N U A L R E P O R T 2 0 2 0 97

The internal control system affects all managerial levels, all areas of operations, all branches and divisions of the Bank. Efficiency criteria of the Bank’s system of internal controls include uninterrupted functioning of all its components and minimization of all significant risks. The Bank has put in place procedures of regular monitoring of the internal control system. Internal controls at the Bank are designed in a package, with the application of both regulatory requirements and generally accepted international practices, including the Three Lines of Defense Model. That approach provides the Bank’s management bodies with the required level of assurance

that the internal control system functions properly.Setting up the system of effective internal controls and getting it to function is a mission that falls within the authority of the Bank’s Board of Directors.The Bank’s internal control system includes:• management bodies responsible

for building the corporate control culture in the Bank to emphasize and demonstrate the significance of internal control and audit to personnel at all levels;

• the Revision Commission of the Bank;• Chief Accountant and Deputy Chief

Accountants of the Bank;• Head (Deputy Heads) of the relevant

structural unit and Bank employees in charge of internal control by their authority as stated in the Bank’s internal regulations.

The Internal Audit and Internal Control Services are an integral part of the internal control system.

Compliance controlCompliance risk management is one of the purposes of the internal control system.The core of the compliance risk management system is the Compliance Control Service (CCS), which exercises overall management of the Bank’s compliance risks.The main functions of CCS include:• compliance with the applicable rules,

regulations and standards by the Bank;• prevention and detection of competing

interests that may arise in the course of the Bank’s activity and conflicts of interest involving the Bank’s employees;

Internal Control System

The Bank makes every effort to adopt an efficient internal control system as an element of its competitive edge.

An efficient internal control system is essential for the steady development of Gazprombank. A well-functioning system ensures timely response to current challenges, changes in the competitive and regulatory environment, which allows the Bank to achieve strategic goals it has in view.


• performing the functions of a controller of the professional stock market operator;

• performing the functions of a controller of the Bank’s specialized depository;

• internal control aimed at prevention of illegal use of insider information and market manipulation;

• internal control aimed at compliance with the US Foreign Account Tax Compliance Act (FATCA), the Common Reporting Standard (CRS), and any applicable Russian laws by the Bank and all entities of the Gazprombank Group;

• internal control aimed at compliance with applicable foreign legislation (in particular, in such areas as personal data protection, foreign account taxation, common reporting standards, countering illegal market practices related to operations in financial markets, financial market regulation, etc.);

• development of unified approaches to internal control for all entities within the Group.

The CCS submits regular reports to the Bank’s Board of Directors and the Management Board on its work and identified compliance risks. CCS officers are members of the Compliance Risk and AML/CFT Committee of the Association “Russia” and the AML/CFT, Internal Control and Regulatory (Compliance) Risk Committee of the National Financial Market Council (NFMC), Bank of Russia’s Committees on investment advisors and managers performance standards and National Finance Association (NFA) Controllers Council, and play an active role in the task forces of the National Association of Securities Market Participants (NAUFOR), National Finance Association (NFA) and NFMC addressing various issues related to financial market activities, control aimed at prevention of illegal use of insider information and market manipulation, FATCA/CRS-related issues, as well as different internal control and compliance matters and standards.

Internal AuditThe requirements for the organization of internal control in credit institutions

are established by Regulations of the Bank of Russia No. 242-P “On the Organization of Internal Control in Credit Institutions and Bank Groups” dated 16 December 2003. In line with these requirements, the Internal Audit Department is independent of other divisions of the Bank, reports to the Board of Directors, the Audit Committee of the Board of Directors, and acts under the direct supervision of the Board of Directors. Reports and proposals on the results of audits carried out by the Internal Audit Department are submitted to the Chairman of the Management Board of the Bank and the heads of the audited structural units of the Bank. Reports on the implementation of the Internal Audit Department’s work plan, which contain information on significant risks and deficiencies in the Bank’s internal control system, are submitted to the Bank’s Board of Directors at least twice a year. A copy of the report on the implementation of the Internal Audit Department’s work plan is sent to the Chairman of the Management Board and the Management Board.The main functions of the Internal Audit Department are to:• check and assess the efficiency

of the Internal Control System as a whole, track implementation of decisions of the General Meeting of Shareholders of the Bank, the Board of Directors of the Bank, the Management Board of the Bank, and the Chairman of the Management Board;

• check the effectiveness of the banking risk assessment methodology (including checks for timely updates of the internal documents that establish the methods for risk assessment, and validation of quantitative risk assessment models by the Bank’s structural units) and banking risk management procedures established by the Bank’s internal documents (methods, programs, rules, and procedures for banking operations and transactions, banking risk management) and analyze compliance gaps in respect of these documents;

• check the reliability of the internal controls for automated information systems, including control of the integrity of databases and their protection against unauthorized access and/or use, taking into account any measures put in place for abnormal or emergency situations in accordance with the Bank’s Business Continuity and Disaster Recovery Plan;

• check and test the accuracy, completeness, and timeliness of accounting and reporting, as well as the reliability (including accuracy, completeness, and timeliness) of the collation and presentation of information and reports;

• check the methods (techniques) used to ensure the safety of the Bank’s property;

• assess the economic feasibility and efficiency of the Bank’s operations and other transactions;

• check the internal control processes and procedures;

• check the activities of the Bank’s Internal Control Service and Risk Management Service;

• assess the methodology for determining the value of trading portfolio instruments and its efficiency;

• assess the efficiency of the remuneration system organization and functioning;

• assess the corporate governance system;• perform other functions assigned

to the Internal Audit Department by the legislation of the Russian Federation, regulations of the Bank of Russia, internal documents of the Bank, resolutions of the management bodies of the Bank in order to achieve the goals and objectives of the Internal Audit Department.

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Sarykum, the largest sand dune in Europe. Dagestan

3 Summary Consolidated Financial StatementsD E R I V E D F R O M T H E A U D I T E D C O N S O L I D AT E D

F I N A N C I A L S TAT E M E N T S F O R T H E Y E A R E N D E D

3 1 D E C E M B E R 2 0 2 0

CHANGING THE WORLD. STAYING TRUE TO OURSELVES

A N N U A L R E P O R T 2 0 2 0 101

Audited entity:Gazprombank (Joint Stock Company).Registration number in the Unified State Register of Legal Entities 1027700167110.Moscow, Russian Federation.

Independent auditor:JSC “KPMG”, a company incorporated under the Laws of the Russian Federation.Registration number in the Unified State Register of Legal Entities 1027700125628.Member of the Self-regulatory Organization of Auditors Association “Sodruzhestvo” (SRO AAS). The Principal Registration Number of the Entry in the Register of Auditors and Audit Organisations: No. 12006020351.

Independent Auditors’ Report on the Summary Consolidated Financial StatementsTo the Shareholders and Board of Directors of Gazprombank (Joint Stock Company)


OpinionThe summary consolidated financial statements, which comprise the summary consolidated statement of financial position as at 31 December 2020, the summary consolidated statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, and related notes, are derived from the audited consolidated financial statements of Gazprombank (Joint Stock Company) (the “Bank“) and its subsidiaries (the “Group“) for the year ended 31 December 2020.In our opinion, the accompanying summary consolidated financial statements are consistent, in all material respects, with the audited consolidated financial statements, in accordance with the basis described in Note 2.

Summary Consolidated Financial Statements

The summary consolidated financial statements do not contain all the disclosures required by International Financial Reporting Standards. Reading the summary consolidated financial statements and our report thereon, therefore, is not a substitute for reading the audited consolidated financial statements and our report thereon. The summary consolidated financial statements and the audited consolidated financial statements do not reflect the effects of events that occurred subsequent to that date of our report on the audited consolidated financial statements.

The Audited Consolidated Financial Statements and Our Report Thereon

We expressed an unmodified audit opinion on the audited consolidated financial statements in our report dated 31 March 2021. That report also includes the communication of key audit matters. Key audit matters are those matters that in our professional judgement, were of most significance in our audit of the consolidated financial statements for the current period.

Management’s Responsibility for the Summary Consolidated Financial Statements

Management is responsible for the preparation of the summary consolidated financial statements in accordance with the basis described in Note 2.

Auditors’ ResponsibilityOur responsibility is to express an opinion on whether the summary consolidated financial statements are consistent, in all material respects, with the audited consolidated financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810 (Revised), “Engagements to Report on Summary Financial Statements”.

Kolosov A.E.JSC “KPMG”

Moscow, Russian Federation28 May 2021

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¹ Net gain from trading in foreign currencies and foreign exchange translation does not include foreign exchange translation of RUB 15.8 billion included in equity

on perpetual debts issued reclassified to subordinated debts in March 2020 and redeemed in April 2020.

Gazprombank Group. Summary Consolidated Statement of Profit or Loss and Other Сomprehensive Income for 2020(in millions of Russian rubles unless otherwise stated)

2020 2019 Change, %

Interest income calculated using the effective interest rate method 375 696 377 982

Other interest income 31 676 31 477

Interest expense (237 855) (266 705)

Net interest income 169 517 142 754 19

Provision charge for credit losses on interest earning assets (5 430) (10 478)

Net interest income after provision charge for credit losses on interest earning assets 164 087 132 276 24

Fee and commission income 63 497 50 728

Fee and commission expense (21 097) (16 489)

Net fee and commission income 42 400 34 239 24

Net (loss) gain from trading operations (4 850) 7 202

Net (loss) gain from loans and other financial instruments at fair value (3 411) 28 800

Income from equity method investments in associates 4 686 7 817

Net gain (loss) from trading in foreign currencies, operations with foreign currency derivatives and foreign exchange translation¹

3 756 (23 496)

Income from sale of subsidiaries 122 7 750

Net other operating income 24 809 7 918

Other non-interest income 25 112 35 991

Non-banking operating revenues 245 487 270 566

Non-banking operating expenses (246 618) (283 608)

Non-banking operating loss (1 131) (13 042)

Banking salaries and employment benefits (71 829) (61 810)

Banking administrative expenses (65 984) (58 987)

Provision charge for credit losses on non-interest earning financial instruments (5 902) (2 334)

Impairment charge on non-financial assets and provision for other risks (1 853) (6 319)

Impairment of goodwill (3 503) –

Non-interest expense (149 071) (129 450) 15

Profit before profit tax 81 397 60 014 36

Profit tax expense (25 402) (15 429)

Profit for the year 55 995 44 585 26


Signed on behalf of the Management Board:Andrey I. AkimovChairman of the Management BoardAlexander I. SobolDeputy Chairman of the Management Board

28 May 2021

The summary consolidated financial statements were derived from the consolidated financial statements of Gazprombank Group, which were approved for issue by the Management Board of Gazprombank (Joint Stock Company) and signed on its behalf on 30 March 2021.

The summary consolidated financial statements should be read in conjunction with the consolidated financial statements of the Gazprombank Group from which they were derived.

2020 2019 Change, %

Other comprehensive income (loss), net of tax

Items that are or may be reclassified to profit or loss in subsequent periods:

Exchange differences on translation of foreign operations 13 294 (6 088)

Movements in other comprehensive (loss) income of associates (70) 474

Total other comprehensive income (loss), net of tax 13 224 (5 614)

Total comprehensive income for the year 69 219 38 971 78

Profit (loss) for the year attributable to:

Bank’s shareholders 55 956 45 359 23

Non-controlling interests 39 (774) –105

55 995 44 585 26

Total comprehensive income (loss) for the year attributable to:

Bank’s shareholders 69 180 39 745 74

Non-controlling interests 39 (774) –105

69 219 38 971 78

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Gazprombank Group. Summary Consolidated Statement of Financial Position as at 31 December 2020(in millions of Russian rubles unless otherwise stated)

31 December 2020

31 December 2019

Change, %

Assets

Cash and cash equivalents 943 439 739 024 28

Obligatory reserve with the Central Bank of the Russian Federation 60 989 51 709 18

Due from financial institutions 140 675 214 699 –34

Financial assets held for trading 240 298 161 076 49

of which pledged under repo agreements 13 793 5 759 140

Loans to customers 5 037 476 4 394 994 15

Investment financial assets 550 886 474 999 16

of which pledged under repo agreements 9 135 9 007 1

Investments in associates 41 648 43 688 –5

Receivables and prepayments 136 754 116 993 17

Inventories 48 864 47 459 3

Rights for audio-visual products 44 924 40 151 12

Profit tax assets 49 444 39 433 25

Property, plant and equipment and right-of-use assets 144 773 148 513 –3

Intangibles 33 064 24 470 35

Assets held for sale 708 37 880 –98

Goodwill 25 017 25 873 –3

Other assets 31 702 21 237 49

Total assets 7 530 661 6 582 198 14


31 December 2020

31 December 2019

Change, %

Liabilities

Financial liabilities held for trading 82 807 39 675 109

Financial liabilities designated as at FVTPL 20 465 48 154 –58

Amounts owed to financial institutions 321 414 319 402 1

Amounts owed to customers 5 829 173 4 968 481 17

Bonds issued 285 082 267 617 7

Profit tax liabilities 20 953 8 975 133

Subordinated debts 69 748 74 555 –6

Other liabilities 161 746 133 167 21

Total liabilities 6 791 388 5 860 026 16

Equity

Share capital 206 834 206 834 –

Additional paid-in capital 172 193 166 037 4

Treasury shares – (9 756) –100

Perpetual debts issued 185 000 206 906 –11

Foreign currency translation reserve 19 091 5 797 229

Retained earnings 154 455 144 708 7

Equity attributable to the Bank’s shareholders 737 573 720 526 2

Non-controlling interests 1 700 1 646 3

Total equity 739 273 722 172 2

Total liabilities and equity 7 530 661 6 582 198 14


28 May 2021


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Gazprombank Group. Summary Consolidated Statement of Changes in Equity for 2020(in millions of Russian rubles unless otherwise stated)

Share capital

Additional paid-in capital

Treasury shares

Perpetual debts issued

Foreign currency translation reserve

Retained earnings

Equity attributable to Bank’s shareholders

Non-controlling interests

Total equity

31 December 2018 206 834 166 037 (9 756) 124 469 11 885 127 143 626 612 (9 864) 616 748

Profit (loss) for the year – – – – – 45 359 45 359 (774) 44 585


Exchange differences on translation of foreign operations – – – – (6 088) – (6 088) – (6 088)

Movements in other comprehensive income of associates – – – – – 474 474 – 474

Total items that are or may be reclassified to profit or loss in subsequent periods

– – – – (6 088) 474 (5 614) – (5 614)

Total comprehensive (loss) income for the year – – – – (6 088) 45 833 39 745 (774) 38 971

Perpetual debts issued – – – 90 000 – – 90 000 – 90 000

Accruals of interest on perpetual debts issued – – – – – (8 028) (8 028) – (8 028)

Foreign exchange translation on perpetual debts issued – – – (7 563) – 7 563 – – –

Tax effect on perpetual debts issued – – – – – 93 93 – 93

Acquisition and disposal of non-controlling interests in subsidiaries – – – – – – – 63 63

Disposal of subsidiaries – – – – – – – 12 343 12 343

Dividends declared – – – – – (18 106) (18 106) (122) (18 228)

Other distributions to shareholders – – – – – (10 397) (10 397) – (10 397)

Other movements – – – – – 607 607 – 607

31 December 2019 206 834 166 037 (9 756) 206 906 5 797 144 708 720 526 1 646 722 172


Share capital


Treasury shares



Retained earnings



Total equity

31 December 2018 206 834 166 037 (9 756) 124 469 11 885 127 143 626 612 (9 864) 616 748

Profit (loss) for the year – – – – – 45 359 45 359 (774) 44 585


Exchange differences on translation of foreign operations – – – – (6 088) – (6 088) – (6 088)

Movements in other comprehensive income of associates – – – – – 474 474 – 474


– – – – (6 088) 474 (5 614) – (5 614)

Total comprehensive (loss) income for the year – – – – (6 088) 45 833 39 745 (774) 38 971



Foreign exchange translation on perpetual debts issued – – – (7 563) – 7 563 – – –

Tax effect on perpetual debts issued – – – – – 93 93 – 93

Acquisition and disposal of non-controlling interests in subsidiaries – – – – – – – 63 63

Disposal of subsidiaries – – – – – – – 12 343 12 343



Other movements – – – – – 607 607 – 607

31 December 2019 206 834 166 037 (9 756) 206 906 5 797 144 708 720 526 1 646 722 172


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Gazprombank Group. Summary Consolidated Statement of Changes in Equity for 2020(in millions of Russian rubles unless otherwise stated)

Share capital


Treasury shares



Retained earnings



Total equity

31 December 2019 206 834 166 037 (9 756) 206 906 5 797 144 708 720 526 1 646 722 172

Profit for the year – – – – – 55 956 55 956 39 55 995


Exchange differences on translation of foreign operations – – – – 13 294 - 13 294 - 13 294

Movements in other comprehensive loss of associates – – – – – (70) (70) – (70)


– – – – 13 294 (70) 13 224 – 13 224

Total comprehensive income for the year – – – – 13 294 55 886 69 180 39 69 219


Reclassification of perpetual debts to subordinated debts – – – (77 733) – – (77 733) – (77 733)


Foreign exchange translation on perpetual debts issued – – – 15 827 – (15 827) – – –

Tax effect on perpetual debts issued – – – – – 4 050 4 050 – 4 050

Acquisition and disposal of non-controlling interests in subsidiaries – – – – – (121) (121) (13) (134)

Acquisition of subsidiaries – – – – – – – 132 132



Sale of treasury shares – 6 156 9 756 – – – 15 912 – 15 912

Other movements – – – – – (825) (825) (1) (826)

31 December 2020 206 834 172 193 – 185 000 19 091 154 455 737 573 1 700 739 273


Share capital


Treasury shares



Retained earnings



Total equity

31 December 2019 206 834 166 037 (9 756) 206 906 5 797 144 708 720 526 1 646 722 172

Profit for the year – – – – – 55 956 55 956 39 55 995


Exchange differences on translation of foreign operations – – – – 13 294 - 13 294 - 13 294

Movements in other comprehensive loss of associates – – – – – (70) (70) – (70)


– – – – 13 294 (70) 13 224 – 13 224

Total comprehensive income for the year – – – – 13 294 55 886 69 180 39 69 219


Reclassification of perpetual debts to subordinated debts – – – (77 733) – – (77 733) – (77 733)


Foreign exchange translation on perpetual debts issued – – – 15 827 – (15 827) – – –

Tax effect on perpetual debts issued – – – – – 4 050 4 050 – 4 050

Acquisition and disposal of non-controlling interests in subsidiaries – – – – – (121) (121) (13) (134)

Acquisition of subsidiaries – – – – – – – 132 132



Sale of treasury shares – 6 156 9 756 – – – 15 912 – 15 912

Other movements – – – – – (825) (825) (1) (826)

31 December 2020 206 834 172 193 – 185 000 19 091 154 455 737 573 1 700 739 273


28 May 2021


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Gazprombank Group. Summary Consolidated Statement of Cash Flows for 2020(in millions of Russian rubles unless otherwise stated)

2020 2019

Cash flows from operating activities

Interest received 397 601 402 896

Fee and commission received 63 296 50 068

Interest paid (250 125) (266 924)

Fee and commission paid (21 035) (16 243)

Non-interest (payments on) receipts from financial assets and liabilities held for trading (2 473) 6 725

Receipts from (payments on) derivative contracts with foreign currency and from foreign exchange operations 17 612 (48 099)

Media business operating receipts 97 252 100 396

Media business operating payments (54 443) (59 978)

Machinery business operating receipts 64 330 81 493

Machinery business operating payments (58 244) (73 112)

Other segment operating receipts 75 597 100 899

Other segment operating payments (81 773) (95 951)

Other operating receipts 10 469 5 633

Banking salaries and employment benefit payments (68 882) (59 580)

Banking administrative expenses and other operating payments (54 742) (51 871)

Cash flows from operating activities before changes in operating assets and liabilities 134 440 76 352

(Increase) decrease in operating assets

Obligatory reserve with the Central Bank of the Russian Federation (9 280) (3 737)

Due from financial institutions 78 271 (124 408)

Financial assets held for trading (48 114) (19 734)

Loans to customers (364 145) (447 918)

Other operating assets (4 468) 5 932

Increase (decrease) in operating liabilities

Financial liabilities held for trading 7 808 4 547

Financial liabilities designated as at FVTPL 2 971 (5 263)

Amounts owed to financial institutions (62 214) (49 295)

Amounts owed to customers 570 665 359 309

Other operating liabilities 3 941 (5 012)

Net cash flows from (used in) operating activities before profit tax 309 875 (209 227)

Profit tax paid (18 335) (4 576)

Net cash flows from (used in) operating activities 291 540 (213 803)

Cash flows from investing activities

Property, plant and equipment, intangibles and rights for audio-visual products purchased (64 790) (80 265)

Property, plant and equipment, intangibles and rights for audio-visual products sold 1 066 8 600

Acquisition of subsidiaries, net of cash acquired (5 468) –

Disposal of subsidiaries, net of cash disposed 1 367 3 275

Investment financial assets purchased (122 763) (78 135)

Investment financial assets sold and redeemed 58 786 147 818


2020 2019

Acquisition and contribution to share capital of associates (7 585) (2 770)

Disposal of associates – 11 698

Assets held for sale sold 44 883 –

Dividends received from associates 4 678 10 126

Dividends received 1 229 2 140

Net cash flows (used in) from investing activities (88 597) 22 487

Cash flows from financing activities

Bonds issued and sold from earlier repurchased 69 015 95 245

Bonds redeemed or repurchased (51 963) (149 962)

Perpetual debts issued 40 000 90 000

Interest оn perpetual debts paid (4 797) (7 870)

Subordinated debts issued 17 648 –

Subordinated debts redeemed or repurchased (103 449) (63 061)

Financing of non-banking activities received 2 901 5 177

Financing of non-banking activities redeemed (3 027) (7 631)

Dividends paid (9 092) (18 208)

Other distributions to shareholders (19 993) (10 397)

Sale of treasury shares 15 912 –

Acquisition of non-controlling interests in subsidiaries (134) –

Lease liabilities redeemed (6 926) (6 965)

Net cash used in financing activities (53 905) (73 672)

Effect of changes in exchange rates on cash and cash equivalents 55 382 (45 429)

Change in cash and cash equivalents 204 420 (310 417)

Effect of changes in allowance for credit losses on cash and cash equivalents (5) 98

Cash and cash equivalents, beginning of the year 739 024 1 049 343

Cash and cash equivalents, end of the year 943 439 739 024


28 May 2021


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Gazprombank Group. Notes to the Summary Consolidated Financial Statements for 2020

Note 1. Principal activities and organisation

The Gazprombank Group (the Group) primarily consists of:• Gazprombank (Joint stock Company),

which is the parent company• subsidiary banks and financial companies,

including Gazprombank (Switzerland) Ltd., Bank GPB International S.A., Gazprombank Leasing JSC, and a number of other financial companies, that support the banking business

• several large non-banking companies.Gazprombank (Joint stock Company) (the Bank) was established in 1990. The Bank has a general banking license and a license for operations with precious metals from the Central Bank of the Russian Federation (the CBR), and licenses for securities operations and custody services from the Federal Financial Markets Service of the Russian Federation, which in 2013 became a part of the CBR. Its subsid-iary banks and companies also have general banking licenses for operations in Switzerland and Luxembourg and investment, brokerage and asset management licenses for operations in Cyprus, Luxembourg and Hong Kong.The Bank is the third largest bank in the Russian Federation in terms of assets and equity, and it provides a broad range of commercial and investment banking services to many of Russia's leading corporations, including, among others, PJSC Gazprom and its related parties (the Gazprom Group). The principal corporate banking services include: commercial lending, project and acquisition finance, trade finance, financial and operating leasing, deposit taking, settlements and cash management, capital markets transactions, asset management, brokerage, corporate finance and mergers and acquisitions advisory, and depositary and custodian services.

The Bank is also involved in private equity transactions, foreign exchange and securities trading, and operations with precious metals.The Bank provides a range of services to private individuals, including employees of its corporate clients. Retail services include: lending, deposit taking, debit and credit card services, brokerage, asset management and a range of other services.The Bank has controlling stakes in several non-banking entities, which are consolidated in these summary consolidated financial statements and are presented as separate segments, including:• JSC Gazprom-Media Holding

and its subsidiaries (the Media segment) is a Russian media group of companies, which principal activities are TV and radio broadcasting, advertising, publishing, film production and distribution primarily undertaken in the Russian Federation.

• PJSC OMZ and its subsidiaries (the OMZ Group) and a number of other industrial assets (together — the Machinery segment). OMZ Group produces nuclear power plant equipment, specialty steels, machinery equipment, manufacturing and mining equipment. The OMZ Group manu-facturing facilities are based in the Russian Federation and the Czech Republic.

The legal address of the Bank is: Bld.1, 16, Nametkina St., Moscow, 117420, Russian Federation.The consolidated financial statements are published at the Bank's website www.gazprombank.ru.These summary consolidated financial statements are authorised for issue by the Management Board of the Bank on 28 May 2021.


Note 2. Basis of presentation

a) OverviewThese summary consolidated financial statements, which comprise the summary consolidated statement of financial position as at 31 December 2020, the summary consolidated statements of profit or loss and other comprehensive income, changes in equity and cash flows for 2020, and related notes are derived from the audited consolidated financial statements of the Group, except that substantially all note disclosures are omitted.The consolidated financial statements were authorised for issue by the Management Board of the Bank on 31 March 2021. The summary consolidated financial statements do not reflect the effects of events that occurred subsequent to the issue date of the consolidated financial statements.Сonsolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). Management is responsible for the preparation of the summary consolidated financial statements in accordance with IFRS.The preparation of summary consolidated financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosed contingent assets and liabilities at the reporting date in the consolidated financial statements and the reported amounts of income and expense for the reporting period. Actual results could differ from those estimates. Key areas of judgements and key assumptions concerning the future and other key sources of estimation uncertainty at the reporting

date, that may lead to material adjustments to the carrying amounts of assets and liabilities within the next financial year, include:• calssification of financial assets.

Classification of financial assets and their basis for measurement depend on business model within which the assets are held and assessment of whether the contractual terms of the financial asset are solely payments of principal and interest on the principal amount outstanding.

• estimation of allowance for credit losses on financial instruments. The amount of allowance for credit losses on financial instruments equals to either 12-month expected credit losses (ECL) or the lifetime ECLs depending on whether the significant increase in credit risk (SICR) occurred since intitial recognition. Models for measurement of ECL imply incorporation of forward looking information.

• valuation of complex and illiquid financial instruments. This involves professional judgement, including use of valuation models. In the absence of an active market, management uses assumptions for certain valuation models’ inputs, which may not be based on an observable market data.

• estimation of fair values of identifiable assets and liabilities acquired in business combinations. This involves professional judgement, including use of valuation models, which, among others, comprise assumptions about future business performance and cash flows and appropriate discount rates.

• estimation of allowance for impairment on non-financial assets (including goodwill). This involves professional judgement,

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including use of valuation models, which, among others, comprise assumptions about future business performance and cash flows of assets, being tested for impairment, and appropriate discount rates.

• assessment of whether the Group has control or significant influence over investments where control or significant influence is determined by contractual arrangements or other factors other than voting rights held by the Group.

• estimation of the recoverable amount of deferred tax assets. This involves the assessment of future taxable profits available to utilise tax losses carryforward.

b) Russian economic environment The Group’s operations are primarily located in the Russian Federation. The Russian Federation displays certain characteristics of emerging markets. The legal, tax and regulatory frameworks continue to develop and are subject to frequent changes and varying interpretations. Management of the Group believes that it is taking all necessary efforts to support the economic stability of the Group in the current environment.Since 2014, the Group operates under coordinated sectoral sanctions against some of the Russian banks and corporations, including the Bank, and some of the Russian officials and businessmen. The sanctions prohibit the U.S. and EU citizens or entities operating on the territory of the U.S. and EU transacting in, providing financing for, or otherwise dealing in the debt instruments of the Group with a maturity of longer than

14 days (for U.S. sanctions) and 30 days (for EU sanctions). In addition, since 2017, the U.S. introduced restrictions on financing of certain Russian oil projects and the defense industry.In 2018, the U.S. Congress issued a Report regarding senior political figures and oligarchs in the Russian Federation and Russian parastatal entities. The report does not impose any additional risks for the Group as it does not prohibit any relationships of American and foreign figures with the figures from the Report, assets of the figures mentioned in the Report are not blocked and the U.S. sanctions are not implemented against them. In addition, 26 Russian citizens and 15 Russian companies were included in the sanctions list, their assets on the U.S. territory are subject to immediate blocking, US companies and their partners are prohibited from any relationships with these persons or companies.In 2020, the COVID-19 pandemic has become a key factor in the decline of the Russian economy. The decline in oil demand, including due to the imposed quarantine restrictions in developed and developing countries, led to a decrease in the price of Urals crude oil from 63.6 US dollars per barrel in 2019 to USD 41.7 US dollars per barrel in 2020. Amid falling oil prices and increasing economic uncertainty, investors' funds were outflow from emerging markets, as a result of which the ruble depreciated to 72.1 rubles to 1 US dollar in 2020 (2019: 64.7 rubles to 1 US dollar). The GDP in 2020 decreased by 3.1 % because of a decline in consumer and investment activity due to the imposed quarantines. At the same time, an increase in government spending as part

of anti-crisis measures aimed at supporting enterprises and the population mitigated the consequences of the crisis.During 2020, because of the imposed quarantine restrictions, the level of consumer and business activity significantly decreased. The government and the CBR took a number of measures aimed at supporting the economy, including subsidising borrowing for the most affected industries, payment holidays for certain categories of borrowers, and easing regulatory requirements for credit institutions. The impact of the COVID-19 pandemic on the economic activity of enterprises has led and may continue to lead to a deterioration in the quality of corporate borrowers in certain industries and a decrease in the creditworthiness of the individual borrowers, both directly and indirectly associated with these industries.In addition, the Group assessed and took into account the impact of the COVID-19 pandemic and various measures taken and planned by the government to support the public and businesses in assessing the validity of applying the going concern assumption when preparing these summary consolidated financial statements. The management of the Group estimates that there is no significant uncertainty regarding the ability of the Group to continuously operate.Uncertainty remains in assessing the future impact of the COVID-19 pandemic on economic activity in the Russian Federation. The spread of the virus may continue in the first half of 2021, officials from several countries, as well as representatives of the World Health


Organisation, admit the possibility of a third wave of the COVID-19 pandemic.These events, the consequences of which are currently difficult to predict, may have a further significant impact on the future operations and financial position of the Group. The future business environment may differ from the management’s assessment.

c) Basis of measurementThe consolidated financial statements are prepared on the historical cost basis except for financial instruments at FVTPL and at FVOCI.

d) Functional and presentation currency of the summary consolidated financial statementsThe functional currency of the Bank and the majority of its subsidiaries is the Russian ruble (the RUB) as, being the national currency of the Russian Federation, it reflects the economic conditions of the majority of underlying events and circumstances relevant to them.Some of the Group's principal subsidiaries have functional currency different from the Russian ruble:

The summary consolidated financial statements are presented in millions of RUB, unless otherwise stated.

e) Changes in accounting policies The Group has initially adopted Definition of a Business (Amendments to IFRS 3) from 1 January 2020. A number of other new standards are also effective from 1 January 2020 that do not have a material effect on the Group’s summary consolidated financial statements.The Group applied Definition of a Business (Amendments to IFRS 3) to business combinations whose dates of acquisition are on or after 1 January 2020 in assessing whether it had acquired a business or a group of assets. The amendments do not have

a material effect on the Group’s summary consolidated financial statements.

Name Functional currency

Gazprombank (Switzerland) Ltd. Swiss franc

Bank GPB International S.A. Euro

ŠKODA JS a.s. Czech crown

Centrex Europe Energy & Gas AG Euro


28 May 2021


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Vuohensalo Lighthouse on the frozen Lake Ladoga, Leningrad Region

Reference InformationCHANGING THE WORLD. STAYING TRUE TO OURSELVES4

A N N U A L R E P O R T 2 0 2 0 119

Branch name (short name) Branch registration number, date of registration

Branch Manager’s title and name

Address, phone number

East Siberian Branch of Bank GPB (JSC)

354/3425.01.2006

Vice President — Branch ManagerPavel G. Avdeev

10 Maerchaka St., Offices 4–14, Krasnoyarsk, Krasnoyarsk Territory, 660075(391) 274–58–00

Far Eastern Branch of Bank GPB (JSC)

354/4219.03.2009

Branch ManagerLina V. Chervonnaya

109A Svetlanskaya St., Vladivostok, Primorye Territory, 690091(423) 240–45–55

West Siberian Branch of Bank GPB (JSC)

354/2905.02.2001

Branch ManagerDmitry A. Kudryavtsev

2 Kavaleriyskaya St., Novosibirsk, 630105(383) 200–10–00

West Ural Branch of Bank GPB (JSC)

354/3209.10.2002

Vice President — Branch ManagerAlexander N. Zarubey

77A Maxima Gorkogo St., Sverdlovsky District, Perm, Perm Territory, 614007(342) 219–00–50

Branch of Bank GPB (JSC)in Kazan

354/4709.02.2010

Vice President — Branch ManagerMarat F. Mukhametshin

34A Pushkina St., Kazan, Republic of Tatarstan, 420111(843) 221–73–01

Branch of Bank GPB (JSC)in Kaliningrad

354/3802.08.2007

Branch ManagerOlga V. Bolshakova

5 Leninsky Ave., Kaliningrad, Kaliningrad Region, 236039 (4012) 30–52–00

Branch of Bank GPB (JSC)in Kemerovo

354/3627.02.2007

Branch ManagerDaniil V. Leychenko

32 Sovetsky Ave., Office 7, Kemerovo, Kemerovo Urban District, Kemerovo Region, 650000(3842) 34–50–90

Branch of Bank GPB (JSC)in Novy Urengoy

354/604.02.1993

Branch ManagerAndrey S. Bykov

4 26 Syezda KPSS St., Novy Urengoy, Tyumen Region, 629300 (3494) 93–53–81

Povolzhskiy Branch of Bank GPB (JSC)

354/3709.03.2007

Vice President — Branch ManagerVladimir V. Agafonov

106A Novo-Sadovaya St., bldg 1, Oktyabrsky District, Samara, Samara Region, 443068(846) 212 -35–35

Privolzhskiy Branch of Bank GPB (JSC)

354/404.02.1993

Vice President — Branch ManagerEvgeny A. Kogan

65B Maxima Gorkogo St., Nizhny Novgorod, 603000 (831) 422–18–11

Northwestern Branch of Bank GPB (JSC)

354/1313.12.1993

Executive Vice President — Branch ManagerOlga V. Dragomiretskaya

3 Lafonskaya St., Lit. A, St. Petersburg, 191124(812) 301–99–99

North Caucasian Branch of Bank GPB (JSC)

354/2426.12.1997

Branch ManagerAlexander G. Kuritsyn

429B Lenina St., Stavropol, Stavropol Territory, 355029 (8652) 56–67–83

Branches of Bank GPB (JSC)As of 19 May 2021.


Branch name (short name) Branch registration number, date of registration

Branch Manager’s title and name

Address, phone number

Mid-Russian Branch of Bank GPB (JSC)

354/304.02.1993

Vice President – Branch ManagerNatalya A. Antonova

106 Lenina Ave., Tula, 300026 (4872) 50–05–55

Branch of Bank GPB (JSC) in Surgut

354/4814.07.2010

Branch ManagerOleg F. Myzgin

12 Svobody Blvd, Surgut, Khanty-Mansiysk Autonomous Area — Yugra, Tyumen Region, 628417 (3462) 24–49–80

Branch of Bank GPB (JSC) in Tomsk

354/1219.10.1993

Vice President — Branch ManagerDmitry N. Litvinenko

7 1905 Goda Lane, Tomsk, Tomsk Region, 634009 (3822) 61–00–63

Ural Branch of Bank GPB (JSC)

354/2624.01.2000

Vice President — Branch ManagerAlexey V. Vazhenin

34V Lunacharskogo St., Yekaterinburg, 620075 (343) 355–58–00

Branch of Bank GPB (JSC) in Ufa

354/2503.02.1999

Branch ManagerRoza N. Urazgildeeva

138 Mendeleeva St., Ufa, Republic of Bashkortostan, 450022(347) 256–67–80

Central Branch of Bank GPB (JSC), Moscow region

354/2823.06.2000

Vice President — Branch ManagerEvgeny A. Guzeev

Riga Land Business Center, bldg A, B2, 26th km of the Baltic Road, Ilyinskoye Rural Settlement, Krasnogorsk Municipal District, Moscow Region, 143421 (495) 276–31–00

Central Black Earth Branch of Bank GPB (JSC)

354/4926.06.2013

Vice President — Branch ManagerGennady N. Koptyaev

11 Kirova St., Voronezh, Voronezh Region, 394018(473) 200–81–55

Southern Branch of Bank GPB (JSC)

354/203.11.1992

Deputy Branch ManagerKonstantin M. Romanov

11 Dmitrievskaya Damba St., Krasnodar, Krasnodar Territory, 350033(861) 210–48–00

In 2021, the Bank started a pilot to introduce a target model for branch network management — three pilot Level 1 Branch Network Management Units (Regions) were created:

• West Siberia Region West Siberian Branch and Branch in Kemerovo; Manager: P.Yu. Scherbakov.

• Southern Region Southern Branch and North Caucasian Branch Manager: S.V. Selyutin.

• Far East Region Far Eastern Branch Manager: A.V. Lakeev.

A N N U A L R E P O R T 2 0 2 0 121

The key objectives of the Bank’s foreign representative offices include:• representing the Bank and expanding the

scope of its business operations in the local banking markets;

• maintaining relationships with the local governmental authorities and credit institutions;

• assisting in the promotion of Gazprombank brand and products in financial markets;

• supporting business development and implementing specific projects of the Bank’s strategic customers and partners.

Representative Offices of Bank GPB (JSC) in Other CountriesAs of 1 January 2021.

Office Opening date Head of the office Location

Representative Office of Gazprombank (Joint Stock Company) in Beijing (China)

30.08.2006 Averkiy M. Savostianov Central International trade Center, Suite No. 1205 in Tower C, No 6A Jianguomenwai Avenue, Chaoyang District, Beijing, China 100022(+8610) 65–63–05–16

Representative Office of Gazprombank (Joint Stock Company) in Ulaanbaatar (Mongolia)

14.02.2008 Valery A. Kislov 14250, Mongolia, Ulaanbaatar, Prospect Mira, bld.6(+976) 99–10–99–02

Representative Office of Gazprombank (Joint Stock Company) in New Delhi (India)

25.05.2010 Sergey F. Mitreykin 10/48 Malcha Marg, Diplomatic Enclave, Chanakyapuri, New Delhi — 110021, Delhi, INDIA(+9111) 24–10–86–48

Representative Office of Gazprombank (Joint Stock Company) in the Republic of Kazakhstan

28.08.2014 Askar S. Aspandiyarov The Republic of Kazakhstan, 010000, Nur-Sultan, «Esil» district, Kabanbay Batyr avenue, building 15A, block A, Business Center «Q», 6th floor(+7701) 514–04–40

Gazprombank pays close attention to business development abroad. Currently, representative offices of Bank GPB (JSC) are operating in Beijing, Ulaanbaatar, New Delhi and Nur-Sultan.


Gazprombank Group BanksIn 2020, the regional network of Bank GPB (JSC) included three subsidiary banks: Credit Ural Bank Joint Stock Company, Gazprombank (Switzerland) Ltd (Switzerland), Bank GPB International S.A. (the Grand Duchy of Luxembourg), and an affiliated bank — Belorussian-Russian Belgazprombank Joint-Stock Company (the Republic of Belarus).

Credit Ural Bank Joint Stock Company is a universal credit institution with many years of experience, providing a full range of banking services in Magnitogorsk, as well as payment services to a wide range of customers based on digital banking platforms. The Moscow branch opened in 2020 (ProstoBank) started providing digital products for small and micro businesses in 23 Russian cities. The Bank continued to develop remote channels for sale and the issuance of electronic express bank guarantees. The reliability and sterling reputation of CUB JSC were confirmed by Expert RA rating agency at ruA+ with a stable rating outlook.

Subsidiary Banks and Credit Institutions with an Ownership of More Than 5 %As of 31 March 2021.

Name of the bank CEO Contacts

CUB JSC Chairperson of the Management BoardSvetlana V. Yeremina

17 Gagarina St., Magnitogorsk,Chelyabinsk Region, 455044, RussiaPhone: +7 (3519) 248–910Fax: +7 (3519) 248–930E-mail: [email protected]

Gazprombank (Switzerland) Ltd Chairman of the Management BoardRoman R. Abdulin

Zollikerstrasse 183, CH-8032 Zurich Switzerland+41–44–386–86–86E-mail: [email protected]

Bank GPB International S.A. Chairman of the Management BoardDmitry N. Derkach

15 rue Bender, L-1229, Luxembourg+352–26–29–751E-mail: [email protected]

Belgazprombank OJSC Chairman of the Management BoardNadezhda A. Ermakova

60/2 Pritytskogo St., Minsk, 220121, Republic of BelarusPhone: +375 17 218–36–90Fax: +375 17 369–45–25E-mail: [email protected]

Gazprombank has interests in a number of credit institutions in Russia, CIS and Western Europe.

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Gazprombank (Switzerland) Ltd assists in the expansion of the Gazprombank Group presence in global financial markets, and provides financial and banking support to the foreign trade activities of its customers. The bank specializes in commodity trade and export finance operations in Switzerland, as well as in the new regions of the Group’s presence (a representative office in Dubai, UAE, was opened). Gazprombank (Switzerland) Ltd is also successfully entering innovative business areas: in 2020, it received permission from the Swiss Financial Market Supervisory Authority (FINMA) to provide cryptocurrency banking services to corporate and institutional customers, opening up new product offerings for customers and opportunities for the Group. In November 2020, Fitch Ratings affirmed the bank’s rating at BBB- (stable). The S&P rating was confirmed at BB+ (stable).

Bank GPB International S.A. focuses on providing services to corporate customers and individuals and developing financial and investment banking services of the Gazprombank Group in the EU countries and in global financial markets. The Bank successfully acts as a platform for the Gazprombank Group’s settlements in euros, as well as for servicing the Group’s corporate customers: placing foreign currency deposits, providing international lending and agency functions, and serving private banking customers in Europe. In 2020, the Bank continued to provide unique products and solutions (structured deposits, purchase and sale of precious alloy ingots), organize the placement of debt and equity market instruments for key customers of the Group, and began a comprehensive study of “green” financing. In July 2020, the Bank’s BB+ rating with a stable outlook was confirmed by S&P.

Belgazprombank OJSC is a universal bank with a focus on servicing the subsidiaries of Gazprom, the fuel and energy complex and SMEs in the Republic of Belarus. In December 2020, Fitch Ratings confirmed the ratings of Belgazprombank at the highest possible level for Belarusian issuers, limited by the sovereign rating of the Republic of Belarus: long-term issuer default rating B with a negative outlook.


License type (licensed activities): General Banking License.License (permit) or activity-specific permitting document number: 354.License (authorization, permit) date of issue: 29.12.2014.Issuing authority: The Bank of Russia.Validity: Without limitation.

License type (licensed activities): License for banking operations (with precious metals).License (permit) or activity-specific permitting document number: 354.License (authorization, permit) date of issue: 29.12.2014.Issuing authority: The Bank of Russia.Validity: Without limitation.

License type (licensed activities): Professional securities market player license for securities management activities.License (permit) or activity-specific permitting document number: 177-04329-001000.License (authorization, permit) date of issue: 27.12.2000.Issuing authority: Federal Securities Commission of Russia (The Bank of Russia).Validity: Without limitation.

License type (licensed activities): Activity of specialized depository of investment funds, mutual investment funds and private pension funds.License (permit) or activity-specific permitting document number: 22-000-0-00021.License (authorization, permit) date of issue: 13.12.2000.Issuing authority: Federal Securities Commission of Russia (The Bank of Russia).Validity: Without limitation.

License type (licensed activities): Professional securities market player license for dealer activities.License (permit) or activity-specific permitting document number: 177-04280-010000.License (authorization, permit) date of issue: 27.12.2000.Issuing authority: Federal Securities Commission of Russia (The Bank of Russia).Validity: Without limitation.

License type (licensed activities): Professional securities market player license for brokerage activities.License (permit) or activity-specific permitting document number: 177-04229-100000.License (authorization, permit) date of issue: 27.12.2000.Issuing authority: Federal Securities Commission of Russia (The Bank of Russia).Validity: Without limitation.

License type (licensed activities): Professional securities market player license for depository activities.License (permit) or activity-specific permitting document number: 177-04464-000100.License (authorization, permit) date of issue: 10.01.2001.Issuing authority: Federal Securities Commission of Russia (The Bank of Russia).Validity: Without limitation.

License type (licensed activities): General license/export (other raw gold not used for minting coins, in bars with a purity value of no less than 995 parts of gold per 1000 parts of alloy).License (permit) or activity-specific permitting document number: 104RU21002004546.License (authorization, permit) date of issue: 11.05.2021.Issuing authority: Ministry of Industry and Trade of the Russian Federation.Validity: From 11.05.2021 to 10.05.2022.

License type (licensed activities): License authorizing the use of information constituting state secrets.License (permit) or activity-specific permitting document number: 6034.License (authorization, permit) date of issue: 16.05.2018.Issuing authority: Center for Licensing, Certification and Protection of State Secrets of the Federal Security Service of Russia.Validity: 22.11.2022.

Bank GPB (JSC)

Licenses, Permits and Certificates

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License type (licensed activities): General license/export (other raw silver in bars with a purity value of no less than 999 parts of silver per 1000 parts of alloy).License (permit) or activity-specific permitting document number: 104RU21002002803.License (authorization, permit) date of issue: 05.04.2021.Issuing authority: Ministry of Industry and Trade of the Russian Federation.Validity: From 05.04.2021 to 04.04.2022.

License type (licensed activities): Single-use license/export (raw or powdered palladium in bars with a purity value of no less than 999.5 parts of palladium per 1000 parts of alloy).License (permit) or activity-specific permitting document number: 105RU21002000490.License (authorization, permit) date of issue: 01.02.2021.Issuing authority: Ministry of Industry and Trade of the Russian Federation.Validity: From 01.02.2021 to 31.12.2021.

License type (licensed activities): Technical protection of confidential information.License (permit) or activity-specific permitting document number: 0860.License (authorization, permit) date of issue: 03.08.2009.Issuing authority: Federal Service for Technical and Export Control.Validity: Without limitation.

License type (licensed activities): Installation, maintenance and repair of buildings and structures fire safety devices.License (permit) or activity-specific permitting document number: 8-Б/03661.License (authorization, permit) date of issue: 21.12.2008.Issuing authority: Main Directorate of the Ministry of Emergency Situations of Russia for the city of Moscow.Validity: Without limitation.

License type (licensed activities): Single-use license/export (raw or powdered platinum in bars with a purity value of no less than 999.5 parts of platinum per 1000 parts of alloy (refined platinum in bars)).License (permit) or activity-specific permitting document number: 105RU21002001519.License (authorization, permit) date of issue: 02.03.2021.Issuing authority: Ministry of Industry and Trade of the Russian Federation.Validity: From 02.03.2021 to 28.02.2022.

License type (licensed activities): Certificate of registration of a Russian organization with the tax authority at its registered address.License (permit) or activity-specific permitting document number: Without number.License (authorization, permit) date of issue: 06.01.2017.Issuing authority: Inspectorate of the Federal Tax Service No. 28 in the city of Moscow.Validity: Without limitation.

License type (licensed activities): Certificate of entering information about a legal entity, incorporated prior to 1 July 2002 into the Unified State Register of Legal Entities.License (permit) or activity-specific permitting document number: 77 № 004890355.License (authorization, permit) date of issue: 28.08.2002.Issuing authority: Administration of the Ministry of the Russian Federation for Taxes and Levies for the city of Moscow.Validity: Without limitation.

License type (licensed activities): Notice of registration with the tax authority as a major taxpayer.License (permit) or activity-specific permitting document number: letter № 245927939.License (authorization, permit) date of issue: Date of the letter: 10.11.2015. Registered on: 17.11.2006.Issuing authority: Interdistrict Inspectorate of the Federal Tax Service for Major Taxpayers № 9.Validity: Without limitation.

License type (licensed activities): Certificate of registration of a member of the National Securities Market Association.License (permit) or activity-specific permitting document number: 045.License (authorization, permit) date of issue: 28.02.2001.Issuing authority: The National Securities Market Association.Validity: Without limitation.


License type (licensed activities): Certificate of inclusion of the Bank in the Register of the Deposit Insurance System Member Banks.License (permit) or activity-specific permitting document number: 629.License (authorization, permit) date of issue: 10.02.2005.Issuing authority: State Corporation Deposit Insurance Agency.Validity: Without limitation.

License type (licensed activities): License authorizing the use of ionizing radiation sources (generators) (except where such radiation sources are used for medical purposes).License (permit) or activity-specific permitting document number: 77.01.13.002.Л.000007.03.16.License (authorization, permit) date of issue: 03.03.2016.Issuing authority: Moscow Directorate of the Federal Service for Consumer Rights Protection and Human Welfare.Validity: Without limitation.

License type (licensed activities): Certificate of registration of a member of the Self-regulatory Organization National Finance Association with respect to professional depository activities.License (permit) or activity-specific permitting document number: 11.License (authorization, permit) date of issue: 13.04.2020.Issuing authority: Self-regulatory Organization National Finance Association.Validity: Without limitation.

License type (licensed activities): Certificate of state registration of a credit institution (with a note of Moscow Main Territorial Directorate of the Bank of Russia regarding change of form of incorporation from CJSC to OJSC as of 27 September 2007) (with a note of the Bank of Russia regarding change of form of incorporation from OJSC to JSC as of 30 December 2014).License (permit) or activity-specific permitting document number: 354.License (authorization, permit) date of issue: 13.11.2001.Issuing authority: The Bank of Russia.Validity: Without limitation.

License type (licensed activities): License of the Center for Licensing, Certification and Protection of State Secrets of the Federal Security Service of Russia authorizing the development, manufacture and distribution of cryptographic equipment, information and telecommunications systems protected with the use of cryptographic equipment, performance of work and provision of services in the field of data encryption, maintenance of cryptographic equipment, information and telecommunications systems protected with the use of cryptographic equipment (except when such maintenance of cryptographic equipment, information and telecommunications systems protected with the use of cryptographic equipment is performed for meeting own needs of the legal entity or an individual entrepreneur).License (permit) or activity-specific permitting document number: 17076 Н.License (authorization, permit) date of issue: 05.02.2019.Issuing authority: Center for Licensing, Certification and Protection of State Secrets of the Federal Security Service of Russia.Validity: Without limitation.

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www.gazprombank.ru

Contact Information and Bank Details

Full name Gazprombank (Joint Stock Company)

Abbreviated name Bank GPB (JSC)

Start of business operations 31 July 1990

Legal address 16 Nametkina St., bldg 1, 117420, Moscow

Place of business 63 Novocheremushkinskaya St., 117418, Moscow

Single Help Desk +7 (495) 913–74–74

Fax +7 (495) 913–73–19

Telex 412027 GAZ RU

Website www.gazprombank.ru

E-mail [email protected]

SWIFT code GAZPRUMM

Reuters Dealing code GZPM

Correspondent account 30101810200000000823 with the Main Branch of the Central Bank of the Russian Federation for the Central Federal District, Moscow

INN 7744001497

KPP 997950001

BIC 044525823

OKPO 09807684

OKVED 64�19

OGRN 1027700167110 dated 28 August 2002


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