2

PARSIAN BANK | Financial Highlights

2015 2014 2013 A) Financial figures for the year $('000) Total income 2,730,233.37 2,488,763.88 1,982,475.96 Total incomes of Parsian financial group (consolidated) 7,831,854.61 4,171,085.88 3,639,416.77 Operating profit 34,830.64 244,312.85 322,284.49 Net profit - Profit after tax 34,830.64 191,404.66 284,507.22 B) Financial figures - year end Total assets 19,726,503.18 16,619,899.48 13,199,592.59 Total liabilities 18,733,834.43 15,571,761.70 12,220,424.63 Registered capital 471,529.61 471,529.61 471,529.61 Shareholders' equity 992,668.75 1,048,137.78 979,167.93 C) Return (%) Return on assets (1) 0.19 1.28 2.33 Return on equity (2) 3.41 18.88 30.70 D) Per share figures ($) Number of shares as at the date of AGM (million shares) 15,840 13,200 13,200 Primary earnings per share forecast 0.02 0.02 0.02 Final earnings per share forecast 0.01 0.02 0.02 Earnings per share (IRR) 62 622 603 Dividends per share (IRR) 6 250 400 Final price of share as at confirmation date of reports (3) 0.06 0.13 0.09 Book value per share 0.08 0.08 0.07 P/E 8.8 5.8 4.4 E) Other information Number of employees 4,486 4,477 4,492

1) Return on assets=Net profit to Average assets 2) Return on equity=Net profit to Average assets 3) Approval date of financial statements: June 29, 2015 3

Growth in Recent Years | PARSIAN BANK 284,507 2,730,233 191,404 2,488,764 34,831 1,982,476

Net Profit $('000) Total Income $('000) 992,669 19,726,503 1,048,138 16,619,899 979,168 13,199,593

Shareholders’ Equity $('000) Total Assets $('000) 4

PARSIAN BANK | Table of Contents

Board of Directors' Message 7

Section One

History 10 Vision, Mission, Organizational Values 12 Organization Chart 14

Section Two

Parsian Bank's position among privately-owned banks 18 National Awards and International Awards 20

Section Three

Parsian Bank at a Glance 24 Performance Indicators 25 Collecting Deposits 26 Granting Facilities 28 Financial Indicators 30 Risk Analysis 33 Anti-money laundering actions 35 Economic and social impacts of Parsian Bank activities 36 Innovations and Projects 38 5

Table of Contents | PARSIAN BANK

Section Four

Financial Statements 42 General Information 45 Notes to the Financial Statements 48 Consolidated Financial Statements 65

Appendix

Foreign Exchange Branches 72 Subsidiary and Associate Companies 75 6

PARSIAN BANK | Board of Directors

Mr. Kourosh Parvizian Mr. Hashem Yekke Zare President Chairman of the Board

Mr. Abolghasem Jamshidi Mr. Aref Norouzi Member of the Board Vice Chairman of the Board

Mr. Hesam Shams Alam Mr. Hamidreza Rafiee Member of the Board Member of the Board 7

PARSIAN BANK

In The Name of God

Dear valued shareholders,

Over the years Parsian Bank has built a strong reputation as a sound and safe institution following a path of prudent growth. This together with the well- established business franchise, strong capital base and adequate liquidity will enable us to achieve our strategic business priorities to the ultimate benefit of all our shareholders. The Bank's key performance indicators and successive achievements in the field of monetary and economics, suggests the top position of the Bank in the diversification and development of electronic and retail banking services.

Parsian Bank has always tried to provide a very high standard of service to its customers evidenced by the most satisfactory level of new customer acquisitions achieved. The Bank has also continued to focus on good opportunities in its chosen lending segments and increase its share of target markets.

We are determined to continue our endeavors and hope for a bright future relying on expertise, perseverance and correct understanding of conditions ahead, to play a distinguished role in banking arena, both inside and outside the country.

Here we extend our thanks and appreciation to the staff of the Bank whose dedicated service and commitment has played a vital role in the achievements of the Bank over the years and to all our valued customers and shareholders for their continuous support and the confidence reposed by them in Parsian Bank. Our strategic ingenuity, core values and professional approach to business will enable us to deliver the best value to our stakeholders and further improve our position in the market place.

Board of Directors Introduction 1 10

SECTION 1 | History

Parsian Bank was incorporated in September 2001. Banking operation license was issued by the Central Bank of the Islamic Republic of Iran and the Bank commenced its operations in January, 2002 by opening four branches in Tehran. In October 2004, Parsian Bank was listed on the Tehran Stock Exchange as the 401st listed company and the Bank's share was traded for the first time on December 1,2004. Parsian Bank activities according to its articles of association include all banking operations, commercial activities and services which, are authorized for all banks, based on related rules and regulations. Head office of the Bank is located at No.4, Zarafshan St., Farahzadi Blvd., Shahrak Ghods,Tehran,Iran

Changes in Capital...... $('000)

Increase Date of Annual General Meeting Date of registration Source Capital increase Paid up Capital percentage Initial capital September 6,2001 Cash 11,073.80 11,073.80 - July 12,003 October 4,2003 Retained earnings 1,107.38 12,181.18 10 May 18,2004 June 5,2004 Cash 59,262.70 71,443.88 487 June 30,2005 November 23,2005 Cash 107,165.82 178,609.70 150 July 16,2007 June 11,2008 Cash 35,721.94 214,331.64 20 July 16,2007 December 1,2009 Cash 53,582.91 267,914.55 25 January 4,2010 June 16,2010 Cash 53,582.91 321,497.46 20 January 4,2010 January 5,2011 Cash 71,443.88 392,941.34 22 May 9,2011 May 16,2012 Cash 78,588.27 471,529.61 20 11

Shareholders | SECTION 1

Total number of shareholders was 73,209 by the year 2015.

Shareholders Combination

Number of Shareholders Number of Shares (million shares) Ownership (%) Individuals 72,939 2,079 16 Legal entities 270 11,121 84 Total 73,209 13,200 100

Share price and trading status...... $('000) Year-end Number of shares Value of shares Number of Year traded traded trading days Market value Share price($) Paid up capital 2013 1,748,760,535 133,954 227 957,677 0.07 471,530 2014 1,372,475,911 168,170 236 1,923,841 0.15 471,530 2015 353,075,432 38,486 192 1,097,249 0.08 471,530 12

SECTION 1 | Vision, Mission and Organizational Values

Vision

Enjoying largest domestic market share Largest market share of total international transactions among privately-owned banks Best bank in providing advanced banking services Capable and committed to raise stakeholders' satisfaction

Mission

Parsian Bank offers all banking and financial services commensurate with the requirements of customers, using advanced banking tools and relying on specialized human resources. We, the management and employees of Parsian Bank, have faith in our triumph since we attempt to be:

• The best in honoring customers • The swiftest in identification of customers' demands and espondingr to them accordingly • Conspicuous in offering all banking and financial services • The most profit-making in terms of investments; and last but not least • Respondent to the society and compliant with Islamic banking principles In our team, we constantly strive for • Depositors' full satisfaction is fulfilled, being assured of having selected the best investment opportunities • Our customers have access to the best financial solutions and banking services proportionate to their needs •Our business partners enjoy the most successful and lucrative long term commercial ties • Our shareholders, beneficiaries, and staffs view a promising perspective of bank's achievements • Our society can take pride in us, as a member who plays a remarkable role in economic prosperity 13

Vision, Mission and Organizational Values | SECTION 1

Organizational Values

• Dedicated to provide shareholders with maximum return • We care about customers' privacy • Compliance with international and domestic banking rules and regulations • Provide high quality banking services at the shortest delivery time • Innovation in providing banking services • A knowledge base bank with customized banking services • Offer standard banking services • Trust, fairness and honesty in relationship with stakeholders 14

SECTION 1 | Organization Chart

Board of Directors

Compliance & anti money Appointments Committee laundering Committee

Risk Management Auditing & internal controls Committee Committee

Risk Management Internal auditing

President

Senior Vice President

Business innovation and Islamic banking research center Human resources & Welfare

Training & knowledge Business Innovation Center development

Legal affaires Public relations

Compliance & anti money laundering Office Inspection & Monitoring

Vice president Vice president Vice president Vice president Vice president Vice president IT Project & Planning Credit Operations Finance International Banking

Research & International Software Development Credits Branches Finance & Planning Affaires

Hardware & Organization & Budgeting & Foreign Debt Collections VIP Customers Network Methods Financial Reporting Operations

Procurement & Subsidiaries Overseas IT Development Logistics Affaires Branches

Network security Help Desk 15

Executive Board Members | SECTION 1

Mr. Kourosh Parvizian President

Mr. Nader Hagh Verdi Mr. Mansour Tafazoli Mr. Hesam Shams Alam Vice President Operations Vice President International Banking Member of the Board

Mr. Ahmad Jafari Mr. Mohammadreza Faghiri Mr. Mehdi Rezaei Mr. Abbas Khosravani Vice President IT Vice President Project Vice President Finance and Planning Vice President Credit Parsian Bank's Achievements 2 18

| Parsian Bank's position among SECTION 2 | privately-owned banks

Parsian Bank ranked as the first bank among privately-owned banks in terms of deposit market share.

Privately-owned banks market share of total deposits

Parsian Bank %18 Bank Pasargad %15 Eghtesad Novin Bank %13 Ayandeh Bank %9 Saman Bank %8 Ansar Bank %7 Shahr Bank %7 Sina Bank %5 Karafarin Bank %4 Bank Day %4 Sarmaye Bank %3 Iran Zamin Bank %2 Tourism Bank %2 Tose-e Credit Institute %1 Hekmat Iranian Bank %1 Middle East Bank %1 19

Parsian Bank's market share of | total liquidty | SECTION 2

33.6% 33.7% 32.6% 33.3% 32.0% 32.0%

233,555,904.84 244,217,760.95 245,409,730.66 212,459,241.27 18.3% 17.7% 17.6% 17.7% 18.2% 17.1%

6.0% 5.9% 6.0% 5.9% 5.8% 5.8% 39,413,410.02 20,792,241.19 June 2014 March 2014 March January 2015 November 2014 December 2014 September 2014

Liquidity $('000) Parsian Bank deposits Parsian Bank's market share of total liquidity in the market Parsian Bank's market share among privately-owned banks 20

SECTION 2 | National Awards

Parsian Bank succeeded to take 9th place in "top 100 Iranian companies"as ranked by Industrial Management Institute (IMI) of Iran in 2014. Sales and revenue indicators are most important factors in this ranking.

Position of Iranian banks in "Top 100 Iranian companies" ranking

Iranian Companies” Ranking 100 Top“ Domestic banking industry Bank Mellat 6 1 Tejarat Bank 8 2 Parsian Bank 9 3 Bank Saderat Iran 14 4 Mehr Eqtesad Bank 17 5 Bank Pasargad 20 6 Ghavamin Bank 24 7 Saman Bank 34 8 Eghtesad Novin Bank 35 9 Ayandeh Bank 37 10 Refah K. Bank 41 11 Bank of Industry and Mine 46 12 Sarmaye Bank 51 13 Ansar Bank 52 14 Sina Bank 53 15 Shahr Bank 58 16 Bank Day 66 17 Karafarin Bank 74 18

International Awards

• "Best Islamic Bank" and “Best Islamic Retail Bank” in Iran ,The Asset Triple A Awards 2014 • Rank first in "The Best Bank In Iran" ranking , Euromoney 2014 • Place 1st in Iran and 13th in the world in “Top 500 Islamic Financial Institutions” ranking ,The Bankers 2013 • Top Iranian Bank based on return on equity (ROE) in "Top 1000 World Banks" ranking ,The Banker" in 2013 21

National Awards | SECTION 2 Financial Performance 3 24

SECTION 3 | Parsian Bank at a glance

$('000) 2015 2014 2013 Income Total income 2,730,233.37 2,488,763.88 1,982,475.96 Depositors' share of joint income 2,388,064.16 1,894,938.17 1,467,696.94 Total expenses 307,338.54 349,512.86 190,708.40 Profit before tax 34,830.64 244,312.85 322,284.49 Net profit 34,830.64 191,404.66 284,507.22 Dividends per share Financial position Year-end Balance of deposits 18,178,296.53 15,055,121.42 11,564,843.47 Year-end Balance of facilities 11,637,051.15 10,150,676.68 8,631,977.60 Total assets 19,726,503.18 16,619,899.48 13,199,592.59 Shareholders' equity 992,668.75 1,048,137.82 979,167.93 Share capital 565,835.54 471,529.61 471,529.61 Capital adequacy ratio (%) 7.07 8.90 11.48 Per share figures Earnings per share (IRR) 62 622 603 Dividends per share (IRR) 6 250 400 25

Performance indicators | SECTION 3

$('000) 2015 2014 2013 Profitability Net profit growth (%) )81.80( )32.72( 8.61 Operating efficiency Facilities / Total deposits (%) 68.18 71.77 80.48 Facilities / Total assets (%) 58.99 61.08 65.40 Average facilities per branch 42,302.21 37,128.71 32,317.18 Average deposits per branch 62,041.97 51,735.80 40,155.71 Total incomes / Average assets (%) 15.02 16.69 16.24 Operating expenses / Average assets (%) 0.81 1.19 1.37 Capital adequacy ratio (%) 7.07 8.90 11.48 Development of operations Deposits growth (%) 20.7 30.2 21.13 Granted facilities growth (%) 14.64 17.59 15.72 Letters of guarantee 959,312.71 765,628.35 763,592.20 Letters of credit 1,291,000 843,000 3,683 Number of branches 293 293 288 Number of employees 4,486 4,477 4,492 Staff productivity*(per staff) Average incomes 609.17 555.05 439.42 Average deposits 4,055.83 3,357.51 2,563.41 Average facilities 2,765.41 2,409.55 2,063.01

*It is calculated based on average number of staffs during fiscal year. 26

SECTION 3 | Collecting Deposits

Successful performance of Parsian Bank has resulted a growth rate of %21 in deposits and collecting $ 18.18 million of deposits.

Parsian Bank Deposits...... $('000)

2015 2014 2013 Growth Combination Growth Growth Value Value Value rate rate rate rate Demand and saving deposits 3,618,704.01 5 20 3,431,521.04 297 865,400 48 Short term investment deposits 5,308,709.01 89 29 2,809,244.84 )19( 3,479,388 46 Term deposits 9,106,344.22 6 50 8,594,091.59 25 6,877,831 12 Other deposits 144,566.69 )34( 1 220,261.48 )36( 342,180 (21) Total 18,178,323.93 21 100 15,055,118.95 30 11,564,800 21

Deposits interest rates...... %

2015 2014 2013 Short term deposit 10 , 7 7 7 Special short t term deposits: 3 month 14 10 10 6 month 18 , 16 12 12 9 month 18 , 20 15 15 Term deposits: 1year 22 17 17 2 year 22 18 18 3 year 22 19 19 4 year 22 19.5 19.5 5 year 22 20 20 27

Collecting Deposits | SECTION 3

Total Number of Deposit Accounts 2015 2014 2013 Short term deposit 3,582,827 3,283,299 2,915,768 Demand and saving deposits 1,230,894 1,156,282 1,138,872 Special short term deposits 4,197 4,059 10,118 Term deposits 912,060 654,753 823,229 Other deposits 30,362 57,134 122,889 Total 5,760,340 5,155,527 5,010,876 28

SECTION 3 | Granting Facilities

Financing different economic sectors amounted to $ 3,107 million for both individuals and corporate customers in 2015. Facilities granted based on customer type...... $('000)

2015 2014 2013

Value Value Value Number Number Number Total Average Combination Total Average Total Average

Individuals 29,622 947,637.67 12.47 2 42,745 580,309.46 13.57 75,956 413,370.62 13.97

Corporate customers 3,386 2,159,484.00 573.73 98 3,083 1,646,461.81 534.04 3,764 2,006,266.91 592.52

Total 33,008 3,107,121.67 38.97 100 45,828 2,226,771.27 48.58 79,720 2,419,637.53 73.30

Principal balance of facilities...... $('000)

2015 2014 2013 Value Growth rate Value Growth rate Value Growth rate Facilities granted 12,500.74 15.00 10,895 17.80 9,250 15.00 Deferred interest )106.20( 17.00 )91( )10.30( )101( )30.00( Principal balance of facilities 12,394.54 15.00 10,804 18.10 9,149 16.00 Provision for doubtful debts )757.49( 16.00 )654( 38.30 )473( 16.00 Principal balance of facilities 11,637.05 15.00 10,151 17.00 8,676 16.00 29

Banking Services | SECTION 3

I ) Local currency services

Facilities granted based on customer type...... $('000)

2015 2014 2013 Value Growth rate Value Growth rate Value Growth rate Guarantees issued 959,312.71 25.00 765,628.35 0.27 763,592.20 )10.00( Guarantee commitments 469,171.97 16.00 405,229.69 14.00 354,183.04 )8.00(

II ) Foreign currency services Guarantees, Letters of credit and customer payment orders...... $('000)

2015 Growth rate 2014 2013 Value Number Value Number Value Number Value Number Letters of credit 1,291,000 1,801 53,000 45 843,000 1,241 3,683,000 3,716 Letters of guarantees 19,200 26 92,000 73 10,000 15 8,000 36 Outward payment orders 4,225,000 3,916 27,000 )3( 3,319,000 4,052 1,729,000 1,957 Inward payment orders 8,221,000 14,678 25,000 39 8,459,000 11,771 7,770,000 6,598

Long term investments Long term investments in subsidiary and associate companies: Subsidiary and associate companies of Parsian Bank...... $('000)

Capital Parsian Bank ownership )%( Parsian Exchange Company 7,144.39 80 Parsian Data Processing Company (IT holding) 357.22 99 Parsian E-commerce Company 32,537.40 54 Parsian Investment Company 58,941.20 49 Caspian Computer Application Services Provider Company 2,857.76 1 Amin Parsian Insurance Company 1,071.66 21 Parsian Gharz al-Hasaneh Funds 1,786.10 100 Parsian Financial Group (Finance holding) 35,721.94 99

Comparison of budget and performance...... $('000)

Budget Performance Coverage Total income 2,782,554.08 2,730,233.37 98.12 Net profit 113,145.82 34,830.64 30.78 30

SECTION 3 | Financial Indicators

Growth in incomes Total income and facilities income amounted to $ 2,730 and $ 1,902 million which, show growth rates of %9.70 and %1.21 respectively. The following illustrations show some of the most important indices on profitability and performance. 1,902 2,730 2,489 1,879 1,737 1,982

Total Income Facilities Income

Depositors' share of joint income In response to depositors confidence In response to depositors confidence Parsian Bank pays special attention to its customers - existing and potential-through its cutting-edge banking services and products and raise its financial resources despite unification of interest rate of deposits as instructed by the Central Bank of the Islamic Republic of Iran. Depositors' 2,388

share of joint income amounted to $ 2,388 million with a growth rate of 1,895 %26 in 2015. 1,468

Operating expenses to average assets ratio Operating expenses consist of general and administrative expenses and financing expenses. 1.23 1.19 0.81 31

Financial Indicators | SECTION 3

Operating expenses to total incomes ratio This ratio indicates the relationship between performance and managing costs.On the other hand increase in incomes should not lead to an unexpected increase in operating expenses.It has been an outstanding achievement for Parsian Bank to keep its expenses at the lower rate. 7.5 6.5 5.9

Operating expenses to total expenses ratio Total expenses consist of operating expenses,depositors' share of joint income and provision for doubtful debts. 8.6 6.4 6.1

Capital adequacy ratio Regarding banking system and its regulations, capital adequacy ratio is one of the key indices in evaluating financial soundness of banks. Capital adequacy ratio is a measure of the amount of a bank's core capital expressed as a percentage of its risk weighted assets. Minimum capital adequacy ratio is %8 for banks. Managing assets may also affect the capital adequacy ratio in addition to paid-up capital and dividend policy of banks. 11.5 8.9 Keep a balance between the risk level and assets profitability has always

7.1 been important to the management of banks. After capital increase registration this ratio is expected to reach %7.68. 32

SECTION 3 | Deposits and Facilities Per Branch

Number of Branches

2015 2014 2013 Tehran branches 164 164 164 Other cities 128 128 123 Free zones 1 1 1 Total 293 293 288

Average deposits and facilities per branch are $ 62 and $ 42 million respectively in 2015. 62 42 52 37 32 40

Average deposits per branch Average facilities per branch 33

Risk Analysis | SECTION 3

Risk management can be defined as processes and structures that direct any financial Institution towards effective management of potential opportunities and adverse effects. Risk is inherent in all banking activities. Formal and systematic approach to managing risk is regarded as good management practice. As a consequence, Parsian Bank acknowledges that the adoption of a strategic and formal approach to risk management will improve decision making, enhance outcomes and accountability. Risk management is used as an effective tool for Parsian Bank corporate governance system. In this regard Risk Management department provides required feedbacks to both Risk and Compliance Committees.

Parsian Bank 's actions in the area of risk management

Strengthening Supreme Committee for risk management

• Changes in the structure and composition of the Supreme Committee for risk management according to the requirements of the Basel Committee • Use of consultants and professional experts in the Supreme Committee for risk management meetings

Promote a culture of risk management

• Risk management principles training courses for the Banks' staffs. • Develop risk management portal to inform and continuous communication with other employees of the Bank. • Publish articles related to concepts of risk management in the Bank's internal magazine.

Create infrastructures for crisis management

• Determining back up branches and take necessary steps promote employee readiness to deal with different scenarios. • Training courses and crisis management simulations in Tehran branches to promote readiness of staff to deal with the dramatic circumstances.

Operational Risk

• Documentation of operational processes in different business sectors,according to the Bank guidelines, circulars and existing procedures. • Assessment of the bank's processes in order to identify the most vulnerable points. • Assess the risks associated with new products and processes and reduce them. • Provide required information and reports for other departments to identify vulnerabilities and provide appropriate solutions. • Investigate and respond to suspected cases that have been referred by 34

SECTION 3 | Risk Analysis other departments of the Bank in order to identify amount of imposed risks and propose a solutions.

Liquidity Risk

• Plan to maintain an appropriate level of liquidity to meet cash outflows. • Check the features and capabilities of the Bank to provide required liquidity in critical conditions. • Liquidity gap analysis based on different scenarios

Credit Risk

• Assistance in creation and implementation of customer credit rating system to minimize credit risk. • Development and promotion of internal rating model for corporate customers.

Market Risk

• Portfolio risk analysis and determine minimum capital required to cover the risks. • Documenting the processes of review, monitoring and measuring market risk through internal procedures (Internal Model). • Developing strategies to determine the minimum capital required to cover market risk in accordance with requirements of Basel II.

35

Anti-Money Laundering Actions | SECTION 3

List of steps taken in the fight against money laundering

1. Establish anti-money laundering department in Parsian Bank 2. Collect and maintenance of legislation, regulations, guidelines ,national and international banking laws and regulations regarding anti-money laundering 3. Provide instructions and circulars related to design and implementing anti money laundering after obtaining approval 4. Coordinating with training department to assess required training courses 5. Preparation of educational contents in the form of anti-money laundering pamphlets 6. Preparation of anti-money laundering brochures for customers 7. Publish weekly articles related to anti-money laundering in the Bank's internal magazine. 8. Detection, identification and monitoring of suspected money laundering cases through: a form of reporting suspicious operations / deployment of anti-money laundering system 9. Determine deputies in branches as part of money-laundering interface 10. Sending Suspicious Transaction Report (STR) to Financial Intelligence Unit (FIU) 11. Responding to inquiries sent by Financial Intelligence Unit (FIU) 12. Implementation of Cash Transaction Report system (CTR ) at Parsian Bank 13. Sending Cash Transaction Reports to Financial Intelligence Unit (FIU) on a daily basis 14.Take part in national and international seminars on anti-laundering topics 15. Design anti-money laundering questionnaires in order to send to correspondent banks and replies to anti-money laundering questionnaires received from other banks 16. Validation of individual /Corporate customers through Iranian National Organization for Civil Registration database 17. Validation of foreign customers through related databases 18. Conclusion of agreements with Iran Post Company to exploit the its mail, address, phone and zip code databases 19. Update customers information in related data management systems 20. Updating core banking system in accordance with the requirements with the aim of identify customers and prevent cash transaction 21. Review and edit forms and conventions base on money laundering requirements 22. Updating and control people mentioned in black list and list of suspects

36

| Economic and Social Impacts of SECTION 3 | Parsian Bank's Activities

The total value created for stakeholders from banking activities has been $ 2,730 million in 2015. The chart below shows the value distribution.

Depositors 88.42% Shareholders and Bank growth 7.13% Staff 2.27% Other stakeholders 2.18% 37

Education and Human Resources | Development | SECTION 3

Combination of human resources in terms of education

Male Female Total Higher education 2,647 1,388 4,035 Diploma and lower degrees 437 14 451 Total 3,084 1,402 4,486

Comprehensive training plan Number of Staffs Trainees Courses Hours of training Hours of training per capita 2013 4,492 11,025 442 256,698 57 2014 4,477 9,699 544 172,458 39 2015 4,486 11,005 359 138,155 39

Electronic Banking Services In order to reduce visiting the branches of the Bank and customers convenience, development of E-banking tools have always been on the agenda of Parsian Bank. As the table below shows %83 of all banking transactions are remote banking transactions.

Total number of banking transactions of Parsian Bank in 2015...... $('000) Remote banking transactions Teller-based transactions 2013 Value Number Value Number 2014 7,366,721 26,322,000 2,284,275 9,893,000 2015 %76 %73 %24 %27 38

SECTION 3 | Innovations and Projects

Innovations and Projects

According to customers perception of remote banking service and respond to customer needs, most projects are in line with electronic banking services.

Carried out projects in 2015

• Improvement of e-channels • Customer Loyalty Program • Taylor-made deposits • Low cost facilities to POS owners • Deposit Insurance Scheme

Outlook

• Finalization and implementation of five year strategic plan(2016-2012) of Parsian Financial Group • Development of joint products in cooperation with Parsian Financial Group Companies • Implementation of Corporate banking and Private banking • Developing E-banking capabilities • Improve interaction between Parsian Financial Group and capital market in line with supporting national products • Development of human resources capabilities • Incentive plans to reinforce position in POS market • Managing Debt collection • Introducing new products and banking services 39

SECTION 3 Financial Statements 4 42

SECTION 4 | Balance Sheet as of March 20,2015

$('000)

Note March 20 ,2015 March 20 ,2014 Assets: Cash 4 79,397.65 67,076.04 Due from the Central Bank 5 2,077,003.01 1,387,105.68 Due from other banks & credit institutions 6 2,848,556.06 2,898,122.65 Facilities granted 7 11,637,051.17 10,150,676.69 Investments 8 358,661.97 754,951.95 Accounts receivable 9 1,716,393.55 564,503.61 Tangible fixed assets 10 186,303.68 200,131.48 Intangible assets 11 66,566.46 56,152.15 Other assets 12 ______756,569.62 ______541,179.21 19,726,503.18 16,619,899.46 Total assets ______Liabilities: Due to the Central Bank 13 2,256,496.20 1,753,711.40 Due to banks & credit institutions 14 1,163,861.25 654,823.70 Demand deposits 15 474,319.59 767,657.34 Saving deposits (Gharz al-Hasaneh) 16 513,112.74 478,629.28 Term deposits 17 13,642,616.70 11,199,712.62 Other deposits and advances 18 144,556.04 220,268.77 Dividend payable 19 2,986.96 29,167.55 Tax reserves 20 0.00 22,520.97 Interest payable to depositors 21 267,445.65 285,156.12 Reserves and accounts payable 22 251,357.61 147,817.81 Provision for post-retirement benefits 23 ______17,081.72 ______12,296.14 Total liabilities ______18,733,834.44 ______15,571,761.70 Shareholders' equity: Paid-up capital 24 471,529.61 471,529.61 Capital increase 93,759.74 66,177.02 Statutory reserve 25 242,745.26 237,520.66 Discretionary reserve 26 32,366.03 31,669.42 Retained earnings ______152,268.09 ______241,241.05 Total shareholders' equity ______992,668.73 ______1,048,137.76 19,726,503.18 16,619,899.46 Total liabilities and shareholders' equity ______Letter of Credit Commitments 812,882.39 487,397.39 Letter of Guarantee commitments 654,330.62 604,181.71 347.81 505.35 Managed funds ______1 USD=27,994 IRR The supplementary notes are an integral part of these financial statements. 43

Income Statement For the year ended | March 20,2015 | SECTION 4

$('000) Note Year Ended March 20 ,2015 Year Ended March 20 ,2014 Joint incomes Income from facilities 27 1,902,220.07 1,879,409.49 Income from investments and deposits interest 28 ______244,860.89 ______219,702.19 Total joint incomes 2,147,080.97 2,099,111.69 Interim interest of deposits 29 )2,388,064.16( )1,894,938.17( Difference between definite and interim interest of deposits 30 ______- ______- Depositors' share of joint income 29 ______)2,388,064.16( ______)1,894,938.17( Banks' share of joint income )240,983.19( 204,173.52 Non-joint incomes Income from non-joint activities 31 203,407.72 112,846.93 Fee and commission 32 71,192.31 145,658.53 Gain on exchange 33 235,837.28 103,016.14 Other incomes 34 ______72,715.08 ______28,130.57 Total non-joint incomes ______583,152.39 ______389,652.18 Total income 342,169.20 593,825.70 Expenses General and administrative expenses 35 )176,875.47( )146,756.72( Provision for doubtful debts 36 )103,715.65( )180,909.30( Finance cost 37 )1,059.29( )215.85( Other expenses 38 ______)25,688.14( ______)21,630.97( Total expenses ______)307,338.55( ______)349,512.85( Profit before tax 34,830.65 244,312.85 Tax paid ______- ______)52,908.19( Net profit ______34,830.65 ______191,404.65 Earnings per share (IRR) 62 622 Number of shares-year end (Million shares) ______15,840 ______13,200 Statement of Retained Earnings Net profit 34,830.65 191,404.65 Retained earnings at the beginning of the year ______343,048.58 288,294.31 Adjustments 39 ______)101,807.53( ______0.00 Attributable profit ______276,071.70 ______479,698.97 Appropriation of earnings Statutory reserve (%15 of net profit) 25 )5,224.60( )43,981.83( Discretionary reserve (%2 of net profit) 26 )696.61( )5,864.24( Dividend 22 )117,882.40( )188,611.85( Total appropriation ______)123,803.61( ______)238,457.92( Retained earnings-year end 152,268.09 241,241.05 1 USD=27,994 IRR The supplementary notes are an integral part of these financial statements. 44

| Statement of Cash Flows For the year SECTION 4 | ended March 2015 ,20

$('000)

Note Year Ended March 20 ,2015 Year Ended March 20 ,2014 Operating activities Net cash flow from operating activities 40 ______274,469.40 ______1,299,510.33 Investment return and financing expenses paid Dividends payable ______)144,063.00( ______)95,592.08( Net cash flow used in investment returns ______)144,063.00( ______)95,592.08( Taxation Tax paid )22,544.55( )37,800.88( Investing activities Paid for tangible fixed assets )3,786.80( )29,372.22( Paid for intangible assets )11,618.61( )19,105.18( Proceeds from disposal of tangible fixed assets 5,142.03 7,230.73 Proceeds from disposal of intangible assets ______0.18 ______0.00 Net cash flow used in investing activities ______)10,263.20( ______)41,246.66( Net cash flow before financing activities ______97,598.66 ______1,124,870.72 Financing activities Proceeds from capital increase ______27,582.72 ______264.72 Net cash inflow 125,181.38 1,125,135.44 Gain on exchange ______235,837.28 ______103,016.14 Net cash increase 125,181.38 1,125,135.44 Cash at start of year ______2,636,519.33 ______1,408,367.74 Cash at end of year 41 ______2,997,537.99 ______2,636,519.33 Non-cash transactions 42 0.00 64,283.66 1 USD=27,994 IRR The supplementary notes are an integral part of these financial statements. 45

General Information | SECTION 4

1- History

Parsian Bank was registered at State Organization for Registration of Deeds and Properties in Tehran - license No. 178028 dated September 6, 2001 - as per Article 98 of the Law for Third Economic, Social and Cultural Development Plan of the Islamic Republic of Iran, approved on April 7, 2000, the Single Article of the Law for permission to establish privately-owned banks, approved on April 10, 2000 and other related rules and regulations. The banking license was issued by the Central Bank of the Islamic Republic of Iran- under No. H/2348 dated September 17, 2001- and the Bank started its operation on February 1, 2002 by opening four branches in Tehran. Parsian Bank was listed on Tehran Stock Exchange on October 26, 2004 as the 401st listed company. The Bank's share was traded for the first time on December 1, 2004. The Head Office of Parsian Bank is located at No.4, Zarafshan St., Shahid Frahzadi Blvd., Shahrak Ghods, Tehran, Iran.

1-1-Profile According to its Articles of Association, Parsian Bank's activities include all types of banking transactions and commercial operations authorized for banks as per the pertinent rules and regulations.

1-2- Number of branches 2015 2014 Tehran 164 164 Other cities 128 123 Free zones 1 1 Total 293 288

1-3- Human resources

2015 2014 Head office 868 805 Branches 3,618 3,672 Total 4,486 4,477

2- Basis of preparation of the financial statements

Financial statements have been prepared based on the historical cost basis and wherever necessary using current value. 46

SECTION 4 | General Information

3- Accounting Policies

3-1- Depositors' share of joint income According to Usury Free Banking Law and related regulations, the owners of term deposits are entitled to share in banks' incomes. Income from facilities, participation bonds and investments called joint income. Depositors' share of joint income is determined by the percentage of 52-week weighted average of deposits (net of statutory deposit) to 52-week weighted average of allocated resources.

3-2- Investments 3-2-1.Marketable securities are valued at market price and other short-term securities are carried at lower of cost and net sale value. 3-2-2. Long-term investments are carried at cost less value reduction reserve. 3-2-3. Income from investments in subsidiary and associate companies is recognized at the time of approval of DPS by annual general meeting of the investee companies (up to the date of financial statements approval) and other long-term and short-term investments income, is recognized at the date of approval of financial statements by the annual general meeting of the investee companies (up to the balance sheet date).

3-3- Tangible fixed assets 3-3-1.Tangible fixed assets are recorded at cost. While cost of major repairs and renewals are capitalized and would be depreciated over the remaining useful life of the assets, the cost of minor repairs and maintenance would be charged to the profit and loss accounts in the year of recurrence. 3-3-2. Depreciation is calculated according to the following rates and methods:

Asset Type Depreciation Method Depreciation Rate Buildings Reducing Balance 7% Vehicles Reducing Balance 25%, 35% Computer Equipment Straight-line 3-6 Years Office Equipment Straight-line 10 Years

3-4- Intangible fixed assets Intangible fixed assets consist of goodwill and software which, are recorded at cost. Software is amortized under the straight–line method over 3 years but no amortization is considered for goodwill.

3-5-Foreign currency translation Assets and liabilities denominated in foreign currencies are translated into local currency using formal exchange rate of the Central Bank of the Islamic Republic of Iran on March 20, 2014 (1 USD=27,994 IRR). 47

General Information | SECTION 4

3-6- Income and fees recognition Based on regulations Income and fees are recorded based on accrual basis.

Types of Income Recognition Method Facilities Income Based on time and principal balance of facilities and interest rates Late Payment Penalties Based on time and amount of installments and penalty rates Charging for issuance of letter of guarantees At the time of issuance of L/Gs Bank Service Fees At the time of rendering services

3-7- Statutory deposit According to Monetary and Banking Act of Iran, statutory deposit is accounted and maintained by the Central Bank of the Islamic Republic of Iran based on approved rates and regulations

3-8- Facilities Classification According to rules & regulations of the Central Bank of the Islamic Republic of Iran customers are assessed based on delay on repayments, financial status and activity field of the customers and classified as one of the following categories:

Past due: maximum 2 months from overdue and… Overdue: between 2-6 months from overdue and… Deferred debts: between 6-18 months from overdue and… Doubtful debts: over 18 months from overdue and…

3-9- Provision for doubtful debts 3-9-1. General provision In line with prevailing banking regulations as administered by the Central Bank of the Islamic Republic of Iran, all banks are required to allocate 1.5% of total facilities as general provision for doubtful debts. 3-9-2. Specific provision: Depending on the following classification:

Classification of facilities Coefficient (%) Overdue debts 10 Deferred debts 20 Doubtful debts 100-50

3-10- Provision for post-retirement benefits In accordance with Iranian labor law, provision for post-retirement benefits are calculated based on employees' last monthly salary and for each year of employment. 48

SECTION 4 | Notes to The Financial Statements

4-Cash...... $('000) March 20 ,2015 March 20 ,2014 Cash - IRR 44,423.57 34,622.42 Cash - FX ______34,974.08 ______32,453.63 Total ______79,397.65 ______67,076.04

4-1- Adequate insurance coverage is provided for cash in branches.

5-Due from the Central Bank ...... $('000) March 20 ,2015 March 20 ,2014 Statutory deposit - mainland 1,761,740.84 1,261,858.08 Statutory deposit - free zone 4,188.47 2,130.06 Demand deposit with the Central Bank 223,589.89 49,987.73 Statutory deposits bonus 14,354.00 0.00 Due from the Central Bank ______73,129.81 ______73,129.81 Total ______2,077,003.01 ______1,387,105.68

6-Due from other banks & credit institutions...... $('000) March 20 ,2015 March 20 ,2014 Demand deposits with local banks - IRR 59.35 341.83 Demand deposits with local banks - FX 69,047.86 105,899.32 Demand deposits with foreign banks - FX 2,625,443.24 2,413,214.41 Investment deposits with local banks - IRR 99,920.27 89,722.89 Investment deposits with foreign banks - FX 4,500.00 82,121.60 Interbank transfers (Shetab network) 32,196.56 16,713.46 Cheques in transit (net) ______17,388.78 ______190,109.15 Total ______2,848,556.06 ______2,898,122.65 49

Notes to The Financial Statements | SECTION 4

7- Facilities granted...... $('000) March 20 ,2015 March 20 ,2014 Provision for Balance Deferred interest Net balance Net balance doubtful debts Installments sales contract 286,068.17 )94,523.70( )7,946.87( 183,597.60 178,332.60 Joalaa 5,571.27 )153.84( )283.03( 5,134.40 7,547.68 Ijara (Capital lease contract) 17,120.76 )99.67( )811.72( 16,209.37 22,150.75 Salam (Forward sale) 1,795.30 0.00 )136.29( 1,659.01 1,477.96 Mudaraba 2,063,690.15 0.00 )117,701.78( 1,945,988.37 1,682,557.77 Musharaka (Civil partnership) 8,312,799.25 0.00 )414,060.78( 7,898,738.47 6,770,679.31 Gharz al-Hasaneh 53,440.38 )9,430.11( )662.35( 43,347.92 47,629.72 Letter of credit debtors 273,340.56 0.00 )29,813.69( 243,526.87 174,255.10 Letter of guarantee debtors 87,616.75 0.00 )30,780.39( 56,836.35 48,933.69 Foreign exchange facilities' principal balance 1,211,044.68 )1,985.55( )28,983.99( 1,180,075.13 1,011,374.49 Other ______188,248.77 ______0.00 ______)126,311.09( ______61,937.68 ______205,737.61 Total ______12,500,736.02 ______)106,192.86( ______)757,491.99( ______11,637,051.17 ______10,150,676.69 50

SECTION 4 | Notes to The Financial Statements

8- Investments...... $('000) March 20 ,2015 March 20 ,2014 Short-term Long-term Total Short-term Long-term Total Investment in listed companies 37,372.52 38,905.76 76,278.28 137,901.40 35,645.86 173,547.27 Other investments ______143,154.55 ______139,229.15 ______282,383.70 ______225,203.59 ______356,201.09 ______581,404.68 Total ______180,527.06 ______178,134.91 ______358,661.97 ______363,105.00 ______391,846.95 ______754,951.95

9-Accounts Receivable...... $('000) March 20 ,2015 March 20 ,2014 Facilities to Leasing Khodrokar agency - 2,512.61 Facilities to Parsian Leasing Co. agency 167,022.75 142,430.38 Dividends 56,984.50 150,573.80 Due from subsidiaries 255,726.69 83,547.35 Other receivables ______1,236,659.61 ______185,439.47 Total ______1,716,393.55 ______564,503.61

10- Tangible Fixed Assets...... $('000)

Cost Accumulated Depreciation Book Value March 20, Increase March 20, March 20, Increase March 20, March 20, March 20, 2014 )Decrease( 2015 2014 )Decrease( 2015 2014 2015 Land 613.15 )274.85( 338.30 0.00 0.00 0.00 613.15 338.30

Buildings 236,197.17 )6,680.31( 229,516.86 55,711.80 65,199.62 65,199.62 180,485.37 164,317.24

Office equipments 38,023.24 4,986.31 43,009.55 23,227.18 27,763.31 27,763.31 14,796.06 15,246.24

Vehicles 464.12 584.38 1,048.51 234.91 310.01 310.01 229.22 738.50 Reconstruction of rented premises ______5,065.82 ______)188.26( ______4,877.56 ______1,122.51 ______1,300.28 ______1,300.28 ______3,943.31 ______3,577.28 ______280,363.50 ______)1,572.73( ______278,790.77 ______80,296.39 ______94,573.22 ______94,573.22 ______200,067.11 ______184,217.55 Capital prepayments ______64.37 ______2,021.76 ______2,086.13 ______0.00 ______0.00 ______0.00 ______64.37 ______2,086.13 Total ______280,427.87 ______449.03 ______280,876.90 ______80,296.39 ______94,573.22 ______94,573.22 ______200,131.48 ______186,303.68 51

Notes to The Financial Statements | SECTION 4

11-Intangible Assets...... $('000) March 20 ,2015 March 20 ,2014 Goodwill 64,649.28 54,295.13 Software 1,827.66 1,768.12 Royalties ______89.52 ______88.90 Total ______66,566.46 ______56,152.15

11-1 Except for vehicles which have standard insurance coverage, $ 88.12 million considered as extra insurance coverage for tangible fixed assets against some natural disasters.

12-Other Assets...... $('000) March 20 ,2015 March 20 ,2014 Deposits on rented premises 4,814.09 4,354.61 Confiscated collaterals 372,194.60 250,252.22 Work in progress 163,768.73 149,837.90 Rent prepayment 65.78 36.15 Prepaid Expenses 69,362.85 91,847.77 Stamps 272.07 258.64 Customers' liabilities for deferred L/Cs 17,468.57 27,747.45 Other assets ______128,622.94 ______16,844.46 Total ______756,569.62 ______541,179.21

13-Due to the Central Bank...... $('000) March 20 ,2015 March 20 ,2014 Facilities received from the Central Bank - FX 0.00 2,049.03 Term deposits from the Central Bank - FX 154,536.93 201,772.22 CBI demand deposits - FX ______2,101,959.27 ______1,549,890.14 Total ______2,256,496.20 ______1,753,711.40 52

SECTION 4 | Notes to The Financial Statements

14-Due to Banks & Credit Institutions...... $('000) March 20 ,2015 March 20 ,2014 Term deposits from local banks - IRR 686,562.80 179,361.49 Demand deposits from local banks - FX 350,710.78 432,706.97 Demand deposits from foreign banks - FX 24,056.97 863.70 Term deposits from local banks - FX 24,658.46 0.00 Term deposits from foreign banks - FX 61,206.24 24,258.84 Facilities received from local banks - IRR Facilities from foreign banks - FX 3,476.75 8,723.63 Due to foreign banks (refinance) Due to domestic banks Due to foreign banks ______13,189.24 ______8,909.07 Total ______1,163,861.25 ______654,823.70

15-Demand Deposits...... $('000) March 20 ,2015 March 20 ,2014 Current accounts - IRR 222,432.15 263,725.86 Current accounts - FX 17,932.01 2,196.09 Banking cheques 52,787.29 244,605.24 Outward Payment order - FX 34.30 23.72 Non-allocated managed funds 125.21 151.03 Other deposits ______181,008.62 ______256,955.39 Total ______474,319.59 ______767,657.34

16-Saving Deposits (Gharz al-Hasaneh )...... $('000) March 20 ,2015 March 20 ,2014 Saving Accounts - IRR 64,326.70 57,608.92 Saving Accounts - FX ______448,786.03 ______421,020.36 Total ______513,112.74 ______478,629.28

17-Term Deposits...... $('000) March 20 ,2015 March 20 ,2014 Long term deposits 9,106,340.57 8,594,078.41 Short term deposits 4,504,251.65 2,577,749.61 Special short term deposits ______32,024.48 ______27,884.60 Total ______13,642,616.70 ______11,199,712.62 53

Notes to The Financial Statements | SECTION 4

17-1-Breakdown of Term Deposits ...... $('000) March 20 ,2015 March 20 ,2014 IRR FX Total IRR FX Total

Long term deposits 8,625,533.92 480,806.65 9,106,340.57 8,055,179.02 538,899.39 8,594,078.41

Short term deposits 4,503,878.16 373.49 4,504,251.65 2,577,238.34 511.27 2,577,749.61 Special short term deposits ______23,756.20 ______8,268.28 ______32,024.48 ______20,031.40 ______7,853.21 ______27,884.60 Total ______13,153,168.28 ______489,448.42 ______13,642,616.70 ______10,652,448.75 ______547,263.87 ______11,199,712.62

18-Other Deposits and Advances...... $('000)

March 20 ,2015 March 20 ,2014 IRR Cash deposit for guarantees 42,414.36 34,722.67 FX Cash deposit for guarantees 2,602.33 1,473.56 Letters of credit advances ______99,539.34 ______184,072.54 Total ______144,556.04 ______220,268.77

19-Dividend Payable...... $('000)

Approved Dividend March 20 ,2015 March 20 ,2014 Previous years 179,181.25 299.97 440.09 Dividend for the year ended March 20,2013 188,611.85 115.42 28,727.46 Dividend for the year ended March 20,2014 117,882.40 ______2,571.56 ______0.00 Total ______2,986.96 ______29,167.55

20-Tax Reserves...... $('000)

March 20 ,2015 March 20 ,2014 Opening balance 124,352.08 109,221.18 Tax for the year 0.00 52,908.19 Tax paid ______22,544.55( ______)37,777.30( Amount payable 101,807.53 124,352.08 Tax prepayment ______101,807.53( ______)101,831.10( Closing Balance ______0.00 ______22,520.97 54

SECTION 4 | Notes to The Financial Statements

21-Interest Payable to Depositors...... $('000)

Balance at March 20 ,2014 Interim Interest for the Period Interest Paid During the Year Balance at March 20 ,2015

Short term deposits 20,541.34 556,497.64 537,233.18 39,805.80 Special short term deposits 222.88 5,386.24 5,437.07 172.05 One year term deposits 1,004.69 405,708.90 363,635.94 43,077.66 Two year term deposits 14,246.83 515,794.95 506,148.84 23,892.94 Three year term deposits 179.16 2,236.88 2,324.79 91.25 Four year term deposits 70.33 858.69 882.17 46.85 Five year term deposits 68,837.14 801,001.62 819,804.86 50,033.91 Special term deposits 177,377.25 71,277.68 141,015.75 107,639.17 CDs ______241.60 ______29,301.55 ______28,607.93 ______935.23 Interest paid to IRR deposits 282,721.23 2,388,064.16 2,405,090.53 265,694.86 Interest paid to FX term deposits ______2,434.88 ______35,693.40 ______36,377.50 ______1,750.79 Total ______285,156.12 ______4,811,821.71 ______4,846,558.56 ______267,445.65

22-Reserves and Accounts Payable...... $('000)

March 20 ,2015 March 20 ,2014 Deferred letters of credit 17,468.57 27,747.45 Insurance 3,870.73 2,620.74 Withholding tax 2,291.21 1,160.12 Expenses 13,130.06 12,019.50 Others liabilities ______214,597.04 ______104,270.00 Total ______251,357.61 ______147,817.81

23- Provision for Post-Retirement Benefits...... $('000)

March 20 ,2015 March 20 ,2014 Opening balance 12,296.14 8,274.16 Payment )432.41( )608.57( Applied provision ______5,217.99 ______4,630.54 Closing Balance ______17,081.72 ______12,296.14 55

Notes to The Financial Statements | SECTION 4

24- Paid Up Capital Initial capital of the Bank was $11.07million which increased to $471.53 million within several stages. Change in capital of the Bank are as the following table: $('000)

Date of Capital Registration Increase percentage Capital increase Paid up capital Source October 2003 ,4 10 1,107.38 12,181.18 Retained earnings June 2004 ,6 487 59,262.70 71,443.88 Cash November 2005 ,23 150 107,165.82 178,609.70 Cash June 2008 ,11 20 35,721.94 214,331.64 Cash December 2010 ,1 25 53,582.91 267,914.55 Cash June 2011 ,16 20 53,582.91 321,497.46 Cash January 2011 ,5 22 71,443.88 392,941.34 Cash May 2012 ,16 20 78,588.27 471,529.61 Cash

24-1-Composition of Shareholders...... $('000)

March 20 ,2015 March 20 ,2014 Legal entities 270 271 Individuals ______72,939 ______72,139 Total ______73,209 ______72,410

24-2-Capital adequacy 24-2-1-Core Capital...... $('000)

March 20 ,2015 March 20 ,2014 Paid up capital 471,529.61 471,529.61 Statutory reserve 242,745.26 237,520.66 Discretionary reserve 32,366.03 31,669.42 Retained earnings ______152,268.09 ______241,241.05 Tier 1 capital ______898,909.00 ______981,960.75 Provision for doubtful debts 187,059.99 158,706.34 Adjustments )1,908.39( )10,734.10( Tier2 capital ______185,151.60 ______147,972.24 Core capital ______1,084,060.60 ______1,129,932.99 Risk weighted assets 15,338,892.69 12,696,506.85 Capital adequacy ratio (%) 7.07 8.90

24-2-2-As instructed by the Central Bank of Iran , the minimum capital adequacy ratio is 8 percent. 56

SECTION 4 | Notes to The Financial Statements

24-2-3- Risk Weighted Assets Ratio...... $('000)

March 20 ,2015 March 20 ,2014

weight Risk weighted weight Risk weighted Cash Assets Assets of risk% assets of risk% assets

Cash 2,222,657.79 - 0.00 1,877,726.76 - 0.00

Due from the Central Bank 58,143,622.22 - 0.00 38,830,636.54 - 0.00

Due from other banks and credit institutions 79,742,478.37 20 15,948,495.67 81,130,123.66 20 16,226,024.73

Participation bonds 3,856,952.40 - 0.00 4,539,485.40 - 0.00

Other participation bonds 150,516.00 20 30,103.20 1,764,864.00 20 352,972.80

Tangible fixed assets 5,215,385.33 100 5,215,385.33 5,602,480.62 100 5,602,480.62

Investments 5,979,491.45 100 5,979,491.45 14,529,285.14 100 14,529,285.14

Letters of credit debtors 7,651,895.62 100 7,651,895.62 6,102,862.88 100 6,102,862.88

Customers' liabilities for deferred L/Cs 489,015.25 100 489,015.25 776,762.00 100 776,762.00

Other assets 70,602,577.41 100 70,602,577.41 32,597,567.94 100 32,597,567.94

Principal balance of housing and construction Facilities 20,053,218.81 50 10,026,609.41 15,276,476.85 50 7,638,238.42

Principal balance of facilities with housing collateral 26,439,260.02 50 13,219,630.01 28,717,984.36 50 14,358,992.18

Principal balance of other facilities 292,828,466.71 100 292,828,466.71 252,362,533.86 100 252,362,533.86

Letters of guarantee commitments (coefficient %20) 3,411,426.78 100 3,411,426.78 3,180,037.12 100 3,180,037.12 Letters of credit commitments(coefficient %20) ______3,993,865.06 _____100 ______3,993,865.06 ______1,698,255.16 _____100 ______1,698,255.16 Total ______20,746,618.18 ______15,338,892.69 ______17,467,567.42 ______12,696,506.85 57

Notes to The Financial Statements | SECTION 4

25-Statutory Reserve...... $('000)

March 20 ,2015 March 20 ,2014 Opening balance 237,520.66 193,538.84 Reserve from net profit ______5,224.60 ______43,981.83 Closing Balance ______242,745.26 ______237,520.66

25-1-According to article 33 of the Monetary and Banking Act of Iran and Articles of Association of the Bank ,15 percent of net profit will be allocated to statutory reserve.

26-Discretionary Reserve...... $('000)

March 20 ,2015 March 20 ,2014 Opening balance 31,669.42 25,805.18 Reserve from net profit ______696.61 ______5,864.24 Closing Balance ______32,366.03 ______31,669.42

26-1-In accordance with the Articles of Association of the Bank, 2 percent of net profit will be allocated to discretionary reserve

27-Income from Facilities...... $('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014 Installments sales contract 8,911.76 14,751.84 Joalaa 81.30 185.93 Ijara (Capital lease contract ) 487.76 1,969.15 Mudaraba 89,751.36 74,474.65 Musharaka (Civil partnership) 707,107.54 688,403.76 Other facilities ______1,095,880.35 ______1,099,624.17 Total ______1,902,220.07 ______1,879,409.49 58

SECTION 4 | Notes to The Financial Statements

28-Income from Investments and Deposits Interest...... $('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014 Income from investments Dividends 213,300.86 103,478.96 Stocks value increase ______)14,169.67( ______38,399.61 199,131.19 141,878.57 Deposits interest Statutory deposit bonus (%1 each year) 14,354.00 12,078.07 Term deposits interest with other banks 27,898.90 58,990.32 Participation bonds income ______3,476.81 ______6,755.23 ______45,729.70 ______77,823.62 Total ______244,860.89 ______219,702.19

29-Interim Interest of Deposits...... $('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014 Term deposits: One year 405,708.90 28,388.85 Two year 515,794.95 19,574.21 Three year 2,236.88 3,489.99 Four year 858.69 1,677.23 Five year 801,001.62 1,345,710.95 Other deposits: Special term deposits 71,277.68 78,628.22 CDs 29,301.55 61,412.09 Short term deposits 488,966.08 349,311.50 Interest paid to Banks & Credit institutions 67,531.56 2,807.65 Special short term deposits ______5,386.24 ______3,937.47 Total ______2,388,064.16 ______1,894,938.17 59

Notes to The Financial Statements | SECTION 4

30- Difference Between Definite and Interim Interest of Deposits...... $('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014 Facilities 9,943,237.92 8,672,503.20 Participation Bonds 14,366.31 36,957.68 Due from other banks 119,256.87 362,347.94 Investments ______532,241.70 ______448,606.62 Application of funds 10,609,102.80 9,520,415.44 Average amount of investment deposits 12,043,565.79 10,403,264.45 Average amount of statutory deposit on investment deposits ______)1,344,386.91( ______)1,135,751.08( Unallocated deposits ______10,699,178.88 ______9,267,513.37 Sources of funds ______0 ______252,902.07 Total income ______2,147,080.97 ______2,099,111.69 Depositors' share of joint income 2,132,726.96 2,031,593.27 Depositors' share of statutory deposit bonus 13,453.21 11,366.78 Honorarium ______0.00 ______)148,021.88( Depositors' share 2,146,180.17 1,894,938.17 Interest paid to depositors ______)2,388,064.16( ______1,894,938.17( Payment to depositors deficit /(surplus) ______)241,883.98( ______0.00 Honorarium rate 0 %2.4

31-Income From Non-joint Activities...... $('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014 Income from facilities 209,791.24 129,411.99 Other income from facilities 15,472.83 18,252.90 Interest on FX short term deposits 13,837.06 3,827.74 Less: Interest on FX term deposits ______)35,693.40( ______)38,645.69( Total ______203,407.72 ______112,846.93 60

SECTION 4 | Notes to The Financial Statements

32-Fee and Commission...... $('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014 Commission from letters of credit 3,512.98 5,706.85 Commission from letters of guarantee 8,410.22 7,619.83 Commission from FX operations 28,855.00 21,356.86 Commission from managed funds 8.99 16.17 Commission from outward payment orders 6,381.15 351.53 Commission from Gharz al-Hasaneh facilities 3,369.67 2,969.64 Commission from assessment of collaterals 185.09 151.52 Commission from credit assessment of customers 4,037.90 1,727.74 Commission from interbank transfers 13,670.61 9,442.70 Other fee and commission ______2,760.70 ______96,315.70 Total ______71,192.31 ______145,658.53

33-Gain on Exchange...... $('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014 Foreign currency transactions gain 83,299.16 6,929.22 Foreign currency translation gain ______152,538.11 ______96,086.93 Total ______235,837.28 ______103,016.14

34-Other Incomes...... $('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014 Disposal of properties 3,105.27 5,471.47 Rents 361.28 316.63 Other incomes ______69,248.53 ______22,342.48 Total ______72,715.08 ______28,130.57 61

Notes to The Financial Statements | SECTION 4

35-General and Administrative Expenses...... $('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014 Staff expenses 83,045.23 62,078.80 Administrative expenses ______93,830.23 ______84,677.92 Total ______176,875.47 ______146,756.72

35-1-Breakdown of Staff Expenses...... $('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014 Salaries and benefits 63,421.68 47,754.87 Employer's insurance contribution 7,598.57 5,754.25 Employees' post-retirement benefits 5,217.99 4,630.54 Other ______6,806.99 ______3,939.14 Total ______83,045.23 ______62,078.80

35-2-Breakdown of Administrative Expenses ...... $('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014 Rent paid (branches) 7,868.58 6,533.61 Depreciation and amortization 16,781.95 16,785.95 Printing, publishing and advertising 8,988.35 6,750.36 Training 674.58 278.75 Telecommunication 10,637.61 7,067.64 Insurance 171.05 484.81 Auditing 1,107.14 473.53 Transport 308.79 219.32 Gas & electricity 2,337.71 1,708.65 Tangible assets maintenance 9,158.25 10,266.14 Requirements 2,035.07 1,815.65 Other expanses ______33,761.15 ______32,293.51 Total ______93,830.23 ______84,677.92 62

SECTION 4 | Notes to The Financial Statements

36-Provision for Doubtful Debts...... $('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014 General provision 23,085.19 26,590.52 Specific provision ______80,630.46 ______154,318.78 Total ______103,715.65 ______180,909.30

37-Finance cost...... $('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014 Interest-paid for borrowings 99.38 210.00 Banking commissions ______959.91 ______5.86 Total ______1,059.29 ______215.85

38-Other Expenses...... $('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014 Interbank transfers fees 24,568.52 20,473.47 Clearing house fees 102.65 107.28 Gharz al-Hasaneh deposits bonus ______1,016.98 ______1,050.23 Total ______25,688.14 ______21,630.97

39-Adjustments...... $('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014 Tax reserves 30,363.65 0.00 Provision for doubtful debts ______71,443.88 ______0.00 Total ______101,807.53 ______0.00 63

Notes to The Financial Statements | SECTION 4

40-Reconciliation of Net Profit...... $('000) Year Ended March 20 ,2015 Year Ended March 20 ,2014 Net profit before tax 34,830.65 244,312.85 Depreciation and amortization expenses 16,781.95 16,785.95 Employees' post-retirement benefits 4,785.58 4,021.97 (Gain) / loss on disposal of fixed assets )3,105.27( )5,471.47( Gain on exchange ______)235,837.28( ______)103,016.14( )182,544.36( 156,633.15 Net increase/(decrease)in operating liabilities : Due to the Central Bank 502,784.80 1,125,904.34 Due to other banks & credit institutions 509,037.55 392,849.78 Demand & Saving deposits )258,854.29( 123,920.25 Short term deposits 1,930,641.93 )1,441.31( Long term deposits 512,262.15 1,716,235.85 Other deposits )75,712.74( )121,934.05( Other liabilities 96,108.21 94,257.32 3,216,267.60 3,329,792.19 Net decrease/(increase)in operating assets : Statutory deposit )501,941.17( )167,645.53( Due from The Central Bank & other banks 210,307.49 )63,857.94( Facilities granted )1,486,374.48( )1,518,699.08( Investments 396,289.98 )282,909.13( Prepayments and other receivables )1,151,866.36( )131,637.36( Confiscated collaterals )121,942.38( )39,854.67( Other assets )103,726.91( 17,688.69 ______)2,759,254.03( ______)2,186,915.03( Net cash flow from operating activities ______274,469.21 ______1,299,510.32 64

SECTION 4 | Notes to The Financial Statements

41-Cash Balance at the End of the Year...... $('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014 Net decrease (increase) Cash 79,397.65 67,076.04 12,321.61 Demand deposit with the Central Bank 223,589.89 49,987.73 173,602.16 Demand deposit with local banks 59.35 341.83 )282.48( Demand deposits with local banks - FX 69,047.86 105,899.32 )36,851.46( Demand deposits with foreign banks - FX ______2,625,443.24 ______2,413,214.41 ______212,228.84 Total ______2,997,537.99 ______2,636,519.33 ______361,018.66

42-Non-Cash Transactions...... $('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014 Capital increase ______0.00 ______64,283.66 Total ______0.00 ______64,283.66 65

Consolidated Balance Sheet | as of March 20, 2015 | SECTION 4

$('000)

March 20 ,2015 March 20 ,2014 Assets: Cash 79,781.45 67,243.45 Due from the Central Bank 2,077,003.00 1,387,105.70 Due from other banks and credit institutions 2,853,930.81 2,913,108.88 Facilities granted 11,716,938.27 10,175,190.72 Investments 1,178,956.10 1,045,625.38 Prepayments and receivables 1,032,279.06 330,383.26 Inventories 29,779.10 40,130.56 Tangible fixed assets 283,639.21 282,477.85 Intangible assets 77,552.33 66,570.52 Consolidated Goodwill 65.12 67.23 Other assets 759,535.58 542,926.27 Liabilities: Due to the Central Bank 2,256,496.21 1,753,711.44 Due to banks and Credit Institutions 1,163,861.22 654,823.71 Demand deposits 425,908.66 746,342.89 Saving deposits (Gharz al-Hasaneh) 513,112.74 478,629.28 Term deposits 13,642,616.70 11,199,712.65 Other deposits and advances 144,556.05 248,016.22 Dividend payable 4,336.61 36,168.93 Tax reserves 15,291.46 37,252.80 Reserves and accounts payable 766,941.77 528,542.97 Borrowings 141,366.97 106,204.79 Provision for post-retirement benefits ______19,716.44 ______14,194.58 Total liabilities ______19,094,205 ______15,803,600 Shareholders' equity: Paid up capital 471,529.61 471,529.61 Capital increase 93,759.73 66,177.00 Parent company stocks owned by subsidiaries )11,210.76( )3,932.77( Statutory reserve 258,018.34 238,820.14 Discretionary reserve 33,725.67 31,759.84 Gain / (loss) on assets and liabilities translation )247.20( 165.30 Retained earnings ______106,215.44 ______184,621.15 Total shareholders' equity ______951,790.84 ______989,140.28 Minority interest ______43,464.36 ______58,089.27 Total liabilities and shareholders' equity ______20,089,460.03 ______16,850,829.82 Managed funds 347.82 505.36 Letters of credit commitments 812,882.39 487,397.39 Letters of guarantee commitments ______654,276.99 ______604,181.72 1 USD=27,994 IRR 66

| Consolidated Income Statement SECTION 4 | For the year ended March 20, 2015

$('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014

Joint income

Facilities income 1,892,916.70 1,879,409.48 Investments income and deposits interest ______225,450.38 ______187,767.94 Total joint income 2,118,367.08 2,067,177.43

Interim interest of deposits (2,374,079) )1,881,935.88(

Difference between definite and interim interest of deposits 0 0 Depositors' share of joint income ______)2,374,078.84( ______)1,881,935.88( Banks' share of joint income )255,711.76( 185,241.55

Non-joint income

Credit cards services income 175,294.67 82,496.75

Card services cost (131,244.09) )41,656.82(

44,050.58 40,839.93

Other services income 4,930,419.48 1,645,678.41

Other services expenses (4,902,684.40) )1,624,730.69(

27,735.09 20,947.72

Capital lease income 13,311.00 18,290.38

Agency contracts income 4,020.22 5,796.99

Income from disjoint activities 220,700.40 123,294.42

Gain on exchange 228,891.98 102,428.95

Other incomes and fees 140,849.79 165,278.88 Total non-joint income ______679,559.05 ______476,877.28 Total income ______423,847.29 ______662,118.82 Expenses:

Provision for doubtful debts (194,352.97) )159,139.52(

General and administrative expenses (68,844.00) )183,627.60(

Finance cost (27,901.26) )25,777.64(

Other expenses (25,933.88) )21,660.82( Total expenses ______)317,032.11( ______)390,205.58( Profit before tax 106,815.17 271,913.25 Tax paid ______)14,570.34( ______)67,735.62( Net profit ______92,244.84 ______204,177.63 Minority interests ______10,603.72 ______21,225.70 1 USD=27,994 IRR 67

Consolidated Statement of Retained Earnings | For the year ended March 20, 2015 | SECTION 4

$('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014 Net profit 92,244.84 204,177.63 Balance at the beginning of the year 277,930.77 259,533.90 Adjustments )105,036.47( )5,389.30( Restated balance 172,894.30 254,144.60 Previous year dividend ______(142,029.24) ______)207,479.10( Attributable profit 30,865.06 46,665.50 Appropriation of earnings: Transfer to statutory reserve (%15 net profit) )12,697.01( )46,285.06( Transfer to discretionary reserve (%2 net profit) )1,576.70( )5,993.46( Total appropriation ______(14,273.70) ______)52,278.52( Group retained earnings at the end of the year ______108,836.20 ______198,564.60 Minority interests ______(2,620.74) ______)13,943.45( Retained Earnings at the end of the year ______106,215.46 ______184,621.15 1 USD=27,994 IRR 68

| Consolidated Statement of Cash Flows SECTION 4 | For the year ended March 20, 2015

$('000)

Year Ended March 20 ,2015 Year Ended March 20 ,2014 Operating activities : Net cash flow from operating activities 322,338.86 1,365,313.46 Financing expenses Repayment of interest-bearing borrowings 1,934.12 )4,932.31( Dividends paid )143,895.12( )95,433.20( Net cash used in financing activities )141,961( )100,366( Income tax ______)37,236( ______)48,809( Investing activities : Paid for operating lease Investments )27,642.71( 6,790.18 Purchase of tangible and intangible fixed assets )53,495.21( )89,654.45( Proceeds from disposal of tangible assets 7,156.48 7,544.12 Net cash flow used in investing activities ______)73,981.45( ______)75,320.15( Net cash flow before financing activities 69,160.61 1,140,818.98 Financing activities Proceeds from capital increase 28,111.42 264.74 Facilities income 30,363.65 30,319.57 Repayment of interest-bearing borrowings )33,430.41( )56,513.18( Net cash flow from financing activities ______25,044.65 ______)25,928.88( Net increase in cash 94,205.26 1,114,890.10 Cash at beginning of year 2,672,987.28 1,432,305.27 Foreign currency exchange gain ______236,103.95 ______104,477.60 Cash at end of year ______3,003,296.49 ______2,651,672.98 Non Cash transactions ______90,339.11 ______177,351 1 USD=27,994 IRR 69

SECTION 4

72

APPENDIX | Foreign Exchange Branches

Tehran Province Molasadra No. 105, Molasadra Ave., Tehran, Iran Argentina Sq. Tel: +98 21 88610690-3 19 Alley, Argentina Sq., Tehran, Iran Fax: +98 21 88612593 Tel: +98 21 88728216, 88722261 Fax: +98 21 88723771 North Africa St. Africa Tower, North Africa St., Tehran, Iran Azadi Tel: +98 21 88728216 No.462, Azarbaijan St., Azadi Ave., Fax: +98 21 88723771 Tehran, Iran Tel: +98 21 66362190-2 Pamenar Fax: +98 21 66860094 Moshir khalvat St., Pamennar Ave., Tehran, Iran Tel: +98 21 33951177 Keshavarz Blvd Fax: +98 21 33991441 Corner of Shoorideh St. and Keshavarz Blvd.,Tehran , Iran Rashid Tel: +98 21 77298788-7 No.262, Tehranpars, Resalat Highway, Tehran, Iran Fax: +98 21 84232148 Tel: +98 21 77298788-7 Fax: +98 21 77298209 Shahid Behshti No. 69, Andisheh Crossroad, Beheshti St., Sadra Tehran, Iran No.3 Shafagh St. East Pounak St.,Shahrak Tel: +98 21 88975118-20 Ghods, Tehran, Iran Fax: +98 21 88455084 Tel:+98 21 88377924-7 Fax:+98 21 88367979 Ferdowsi No. 487, Ferdowsi St., Tehran, Iran Takhti Tel: +98 21 66740680 , 66744570 No.203, Takhti Sq., Beheshti St, Tehran, Iran Fax : +98 21 66740876 Tel:+98 21 88740965 Fax:+98 21 88748363 Fereshteh No. 58, Daryoush Business Centre, Mirdamad Fereshteh St.,Tehran, Iran No.222, West Mirdamad St., Vali-e-asr St., Tel:+98 21 22630360-5 Tehran,Iran Fax:+98 21 226303667 Tel:+98 21 88661283-5 Fax:+98 21 88663489 Karimkhan zand No. 86, Kheradmand St., Karimkhan zand St., Teh- Gharani ran, Iran No. 198 , Gharani St., Tehran, Iran Tel: +98 21 88318681-6 Tel:+98 21 88921426 Fax: +98 21 88347911 Fax:+98 21 889208920

Central Branch PEC tower No.4 Farahzadi Blvd., Shahrak Ghods, Tehran, Iran No. 8 , Africa St., Tehran, Iran Tel:+98 21 88362800-9 Tel:+98 21 22662001 Fax:+98 21 88975125 Fax:+98 21 22662005 73

Foreign Exchange Branches | APPENDIX

Suleiman Khater Sheikh Bahaei St. No. 142 , Amir atabak St., Tehran, Iran No. 136, Sheikh Bahaei Sq.,Kulivand St.,Tehran, Iran Tel:+98 21 88323611 Tel:+98 21 88616421 Fax:+98 21 88323612 Fax:+98 21 88600490

Eskandari Tohid Sq. No. 135 , Azadi St., Opposite Avesta Park, Tehran, No. 88, Tohid Sq.,Tehran, Iran Iran Tel:+98 21 66567551 Tel:+98 21 66595758 Fax:+98 21 66567550 Fax:+98 21 66901892 Ettehad Kamraniye No. 95, Damavand St.,Tehran, Iran No. 6, Kamraniye St., Lavasani St.,Tehran, Iran Tel:+98 21 77343675 Tel:+98 21 22837868 Fax:+98 21 77346332 Fax:+98 21 22837873 Laleh Apadana Fatemi St.,Tehran, Iran No. 44 , Apadana St.,Tehran, Iran Tel:+98 21 88987535 Tel:+98 21 88531471 Fax:+98 21 88987544 Fax:+98 21 88531470 Taleghani East Kashani No. 143, Taleghani St.,Tehran, Iran No. 1/140 , Kashani Blvd.,Tehran, Iran Tel:+98 21 55321214 Tel:+98 21 44040336 Fax:+98 21 88303027 Fax:+98 21 44047027 Nazi Abad Saipa Nazi abad, Madaen St.,Tehran, Iran Karaj Special Road,Iran Khodro crossroad ,Tehran, Tel:+98 21 55068021-2 Iran Fax:+98 21 55068033 Tel:+98 21 44195212 Fax:+98 21 44196265

Saee Park No. 2129, Vali asr St.,Tehran, Iran Tel:+98 21 88101115 Other Cities Fax:+98 21 88101119

North naft St. Ghasroldasht No. 24, North naft St.,Tehran, Iran Afif Abad St., Ghasroldasht St., Shiraz, Iran Tel:+98 21 22923673 Tel:+98 711 6263813-17 Fax:+98 21 22923680 Fax:+98 711 6267817

Motahari St. Kish Island No. 91, Motahari St.,Tehran, Iran Central Banks Tower, Sanaee St., Kish Island, Iran Tel:+98 21 88101103 Tel:+98 764 4420851-7 Fax:+98 21 88101109 Fax:+98 764 4420550

74

APPENDIX | Foreign Exchange Branches

Moali Abad No.151, Moali Abad St., Shiraz, Iran Tel:+98 711 6351518-19 Fax:+98 711 6356719

Ostad Shahriar Khabgah St., Vali-e-asr St.,Tabriz, Iran Tel:+98 411 3339670-73 Fax:+98 411 3320545

Noorbakhsh Apadana St.,Feyz Sq., Isfahan, Iran Tel:+98 31 36642800 Fax:+98 31 36624270

Ahwaz No.51,Kianpars St., Ahwaz, Iran Tel:+98 61 33379844 Fax:+98 61 33379841

Sari Farhang St., Sari, Iran Tel:+98 11 33266947 Fax:+98 11 33248393

Ahmad Abad Mashhad No.124, Ahmad Abad St., Mashhad, Iran Tel:+98 51 38449640 Fax:+98 51 38449648

Madar Sq. Madar Sq.,Karaj, Iran Tel:+98 26 32747778 Fax:+98 26 32742453

Urmia Sardaran St.,Imam Hussein Sq.,Urmia, Iran Tel:+98 44 32246616 Fax:+98 44 32245418

Motahari Rasht No. 333, Motahari St.,Rasht, Iran Tel:+98 13 33336068 Fax:+98 13 33335057 75

Subsidiary and Associate Companies |APPENDIX

Amin Parsian Insurance Services Company Parsian Construction Development Company No.12, 15th St., Gandhi St., Tehran, Iran No. 79, Sheikh Bahai Square, Postal Code: 15178- 94811 Sheikh Bahai Shomali St., Tehran, Iran Tel:+98 21 8887 0191- 7 Postal Code: 19958545148 Fax:+98 21 8887 0199 Tel:+98 21 8860 4433- 40 Website: www.aminparsian.com Fax:+98 21 8804 7879 E-mail: [email protected] Website: www.pcdco.ir E-mail: [email protected]

Caspian (Computer Application Services Provider Company) No. 225, Parsian Bank Building, Takhti Sq, Parsian E-commerce Company Shahid Beheshti St., Tehran, Iran No. 8, Sayeh St., Africa Blvd., Tehran, Iran Tel:+98 21 8215 2000 Postal Code: 1967735811 Fax:+98 21 8252150 Tel:+98 21 2266 1777- 86 Website: www.caspco.com Fax:+98 21 8878 7535 E-mail: [email protected] Website: www.pec.ir E-mail: [email protected]

Lotus Parsian Investment Bank No.53, Shahid Shurideh St., Keshavarz Blvd., Parsian Exchange Company Tehran, Iran Parsian Bank Building, Takhti Sq., Shahid Tel:+98 21 88977753-4 Beheshti St., Tehran, Iran Fax:+98 21 88977752 Tel:+98 21 8853 5012-4 Website: www.parsianlotusib.com Fax:+98 21 8873 3914 E-mail: [email protected] Website: www.parsian-exchange.ir E-mail: [email protected]

Kherad Pirooz Consultant Services Company Units 21-24, 4th Floor, Shahrak Gharb Parsian Insurance Company Commercial Complex, Farahzadi Blvd.,Sanat Sq., No.15, Shahid Saneyee St., Jahan Koodak Shahrak Gharb, Tehran, Iran Crossroad, Africa Blvd., Tehran, Iran Tel:+98 21 8836 2437- 9 Tel:+98 21 8259 Fax:+98 21 8837 2846 Fax:+98 21 8864 2737 Website: www.kpc.co.ir Website: www.parsianinsurance.com E-mail: [email protected] E-mail: [email protected]

Parsian Brokerage Company Tamin Andish Pars Company No. 24, 8th Alley, Opposite Tehran Clinic, No. 53, Between Pars and Sasan Hospitals, Across Ghaem Magham St., Tehran, Iran Shahid Shurideh St., Keshavarz Blvd., Tehran, Iran Postal Code: 1586853714 Tel:+98 21 8853 5012- 4 Tel:+98 21 87148 Fax:+98 21 8873 3914 Fax:+98 21 8851 1683 Website: www.tamin.com Website: www.parsianbroker.com E-mail: [email protected] 76

APPENDIX| Subsidiary and Associate Companies

Lotus Parsian Construction Development Company Unit 1, No. 79, Opposite Emdad Khodro Building, Sheikh Bahai St., Tehran, Iran Postal Code: 1918633814 Tel:+98 21 8861 4223- 26 Fax:+98 21 8803 4111 Website: www.parsian-lotus-hotels.com E-mail: [email protected]

Parsian Investment Company No. 230, Vahid Dastgerdi St., Tehran, Iran Postal Code: 19186- 33815 Tel:+98 21 2225 7927-32 Fax:+98 21 2225 7830 Website: www.parsian-invest.com E-mail: [email protected]

Parsian Leasing Company No. 53, Shahid Shurideh St., KeshavarzBlvd., Tehran, Iran Postal Code: 1416634681 Tel:+98 21 8898 5525- 32 Fax:+98 21 8898 5514 Website: www.parsianleasing.com E-mail: [email protected]