STrATEGY
ANNUAL REPORT 2006
Strategic partnership
ABSOLUT BANK BECAME A MEMBER THE NEW SHAREHOLDERS SUPPORT KBC GROUP IS CURRENTLY PRESENT OF KBC GROUP — ONE OF THE OUR STRATEGY OF SEEKING REGIONAL IN MORE THAN 27 COUNTRIES LARGEST FINANCIAL GROUPS IN THE EXPANSION AND STRENGTHENING OUR AROUND THE WORLD. ABSOLUT BANK WORLD — IN APRIL 2007, WHEN KBC POSITIONS IN THE RETAIL MARKET. WAS CHOSEN AS A PLATFORM FOR ACQUIRED A 95 % SHAREHOLDING. THEIR TECHNOLOGIES, EXPERIENCE THE DEVELOPMENT OF THE BANKING AND RESOURCES WILL MEAN EVEN BUSINESS IN THE PROMISING, THIS IS AN EXCELLENT START FOR MORE FAVORABLE CONDITIONS GROWING RUSSIAN MARKET. THE NEXT STAGE IN ABSOLUT BANK’S AND INTERNATIONAL STANDARDS FACTORS FAVOURING THE STRATEGIC DEVELOPMENT. THE NEW STRATEGIC OF SERVICE FOR OUR CLIENTS AND PARTNERSHIP INCLUDE THE DYNAMIC PARTNERSHIP WILL ALLOW US TO PARTNERS. BEING PART OF A LEADING GROWTH SHOWN BY THE BANK IN THE COMPETE EVEN MORE EFFECTIVELY FINANCIAL GROUP IN EUROPE HAS LAST FEW YEARS, ITS HIGH LEVEL BOTH WITH THE LEADING RUSSIAN STRENGTHENED THE CREDIBILITY OF EFFICIENCY AND ITS STRONG BANKS AND WITH THE FOREIGN BANKS OF ABSOLUT BANK, WHICH WILL BE MANAGEMENT. THAT ARE TODAY ENTERING RUSSIA’S REFLECTED IN THE RATINGS AWARDED FINANCIAL MARKET. BY INTERNATIONAL RATING AGENCIES.
Andr Bergen, CEO, KBC Group: Nikolay Sidorov, CEO, Absolut Bank:
“Over the past years, KBC has signif- “Joining KBC, one of the larg- icantly strengthened its positions in est financial groups in Europe, member countries of the European presents opportunities for Union. The long-term strategy of improving Absolut Bank’s posi- the group includes further expan- tions on the Russian financial sion to emerging markets of Central market. I’m absolutely sure that and Eastern Europe, and Russia. the employees and customers of Absolut Bank is a well managed, the Bank will be pleased with the fast-growing independent bank that conditions of the agreement. This constitutes a perfect platform for represents a new breakthrough the development of KBC’s business in Absolut Bank’s development.” in the promising Russian market.”
ANNUAL REPORT
ABSOLUT BANK
2006
Belgium France Hong Kong Taiwan
Czech Republic Germany India USA
Hungary Ireland Japan AUSTRALIA
Poland Luxemburg Malaysia NEW-ZEALAND
Slovakia THE NETHERLANDS Slovenia MONACO
Switzerland Romania China RUSSIA
UNITED KINGDOM Serbia Singapore
KBC Group strategic plans include exploring A Banka (Belgrade, Serbia) to market opportunities in the region, acquire a majority stake in that KBC Group is one of the lead- as it expects countries here to bank through a public takeover ing financial groups in Europe. demonstrate above-average growth. bid. Finally, at the end of January, A multi-channel bancassurance At the end of December 2006, KBC and Kontrakt Sofia reached group with a geographic focus on KBC announced the acquisition agreement for KBC to acquire 70% Europe, it caters mainly for retail of Romstal Leasing, the largest ownership of DZI Insurance, the and private banking customers and independent leasing company in market leader in non-life and life small and medium-sized enterprises. Romania, and of INK Insurance insurance in Bulgaria. Following Besides focusing on providing Broker, the seventh largest the acquisition, KBC will launch retail and private bancassurance insurance broker in Romania. KBC a public bid for the remaining services, it is also active in asset Securities, the broking company of 30%. As part of that deal, KBC management, the provision of KBC group, acquired Swiss Capital, will also acquire DZI INVEST, services and market activities. the second biggest independent a securities broker active on the broking company in Romania, and Bulgarian Stock Exchange. KBC occupies significant, even lead- Equitas, the leading Hungarian ing positions in Belgium and Central online retail broker. KBC has KBC Group is listed on Euronext and Eastern Europe and has an also announced its agreement Brussels (ticker symbol ‘KBC’) and extensive private banking network with the major shareholders in the Luxembourg Stock Exchange. operating under the European Private Bankers concept. It has also customers selectively established a presence 11 000 000 in a number of other countries and regions around the world. 27 countries around the world Over the past decade, KBC has built up a strong presence in employes several of the countries that joined 51 000 the EU on 1 May 2004 (Poland, the In equity market capitalisation Czech Republic, Slovakia, Slovenia as at 1 April 2007 euros and Hungary). KBC’s long-term 35 000 000 000 The word “strategy” is derived from discipline and the ability to prevent the Ancient Greek words “stratos” the actions of adversaries. Team (army) and “agein” (to lead). unity, a flexible strategy and profes- sionalism enable us to outperform A business strategy rooted in the the market, each year reaching art of war and today’s banking excellent results in business. market looks like the battlefield. The victory in this battle will be Last year we set ambitious goals, achieved by ingenuity, experience, and today, having surpassed them,
Nikolay Mikhail Oleg Dmitry Sidorov Serdtsev Skvortsov IVlyushin we can be sure that our strategy is The essence of our strategy is That’s why attaining results not only dynamic and aggressive but that we invest in each and every is the logical outcome for us. also efficient. In 2006 Absolut Bank client, because we are in the grew 2,5 fold and joined the Top 25 same camp. We invest in the This potential allows us to raise the largest Russian banks, the Top 3 talent, creativity, loyalty and bar. In business, as in war, the rules fastest growing banks in CIS, and professional growth of every of the game are dictated by mobile the Top 10 leaders of the Russian member of our team because our strategy. This is why achieving our market in all priority sectors. We weapon is skill. We invest in the results and our future success are also tripled our branch network. effectiveness of each of our office. virtually foregone conclusions.
The Management of Absolut Bank.
Dmitry Anatoly Sergey Dmitry Alexander IVlyushin Maksakov Rats Larin Lapko Absolut Bank in Ratings
The Bank’s financial stability was confirmed in March 2007 by the international agencies Fitch Ratings and Moody’s based on the Bank’s previous year results.
Absolut Bank ratings according 25th place among the most credit sian Trading System Stock to Russia’s leading business worthy banks (Kommersant Exchange), Absolut Bank is publications: Daily, October 2006); among the Top 5 leading banks in 2nd place among the Top 30 Russian 25th place among the most active the derivatives market trading. banks by car loans growth rate stock exchange operators Absolut Bank entered the (RBC Rating, February 2007); (MICEX, November 2006); Top 10 in terms of mutual 3rd place on the list of the 100 CIS 38th place according to the size funds market share. fastest growing banks (Kommer- of the own capital (Finans Mag- Absolut Bank was awarded by sant Daily, December 2006); azine, December 2006); EBRD as “The most active 5th place among Russian banks According to MICEX (Moscow Issuing Bank under the TFP in according to individual deposits Interbank Currency Exchange) Financing Imports of Russian growth rate (Bankir.ru, Absolut Bank is among the SMEs in 2006.” The prize will November 2006); Top 10 bank leaders in the be handed to Absolut Bank 9th place among Russian banks in securities market and the Top 15 by EBRD’s representatives terms of mortgage loans portfolio in leaders in the bond market. in Kazan at its usual annual 2006 (RBC Ratings, Ferbruary 2007) Absolut bank became a winner in com- meeting in May 2007; 9th place among Russian banks petition in rating of ММВА 1st place in the category of in terms of information trans- (The Moscow Internation- “Best Website — Banks” in parency (Standard & Poor’s al Currency Association) in the First All-Russia Competi- research, October 2006); a “The Best Money Desk 2006”; tion “Best Advertising Cam- 12th place in plastic cards people’s According to the RTS (Rus- paign of the Year — Banks.” choice rating (Credcard.ru, November 2006); Fitch Ratings (as of 2007) 17th place in a rating of leading operators of the market of federal Long-term В loan bond according to the Moscow Interbank Currency Stock exchange; Short-term В 22d place in the rating of banks with most credits to non- National rating (rus) ВВВ governmental entities (Profil Magazine, January 2007); Outlook Stable 25th place among Russian banks in terms of assets (Interfax, Moody’s Investors Service (as of 2007) January 2007); Long-term foreign currency deposit rating Ba3
Financial Strength Rating (FSR) to Absolut Bank of Russia D–
National Rating Aa3.ru
Outlook Stable
ANNUAL REPORT ABSOLUT BANK Events, Deals 2006 and Agreements in 2006
F e b r u a r y J u l y Absolut Bank joined IFC’s Global Trade Absolut Bank organized its sec- Finance Program. Absolut Bank ond bond issue on MICEX. received an uncommitted trade A u g u s t finance line up to 10 million USD. Absolut Bank and DEG (Deutsche M a r c h Investitions- und Entwicklungsge- Moody’s international rating sellschaft) signed an Agreement agency changed Absolut Bank’s on a subordinated loan for the rating outlook to Positive. total amount of 20 million USD. Fitch international rating Absolut Bank opened new offices in agency upgraded Absolut Kazan, St. Petersburg and Dmitrov. Bank Long-term to B. S e p t e mb e r Absolut Bank successfully placed its Absolut Bank implemented micro- debut Eurobond issue. The first credits in a pilot project for issue amounted to 150 million small and medium businesses USD; in May 2006 it was partnered with KFW (Kredi- enlarged to 200 million USD. tanstalt fur Wiederaufbau). A p r i l O c t ob e r Absolut Bank attracted its first Absolut Bank opened new offices syndicated loan in Russian rubles in Moscow,Ufa and Pushkino. in the amount of RUR 1 billion. Absolut Bank attracted loan in the The European Bank for Reconstruction total amount 20 million USD and Development (EBRD) has from the National City Bank. The raised the amount of guarantees 5 years loan was covered by the to Absolut Bank to 50 million OPIC (US Overseas Private Invest- USD in the framework of the ment Corporation) guarantee. Trade Facilitation Program. n O v e mb e r Absolut Bank increased its Charter Absolut Bank attracted a 120 mil- capital by 60 million USD through lion USD A+B syndicated loan an additional issue of shares that with EBRD participation. were bought out by bank sharehold- D e c e mb e r ers in proportion to their shares. Absolut Bank’s mortgage portfolio Absolut Bank opened an office exceeded 200 million USD. in the city of Ufa. New offices were launched in Moscow, M a y Schelkovo and Dolgoprudny. Absolut Bank initiated the “Investment in the Future” charity project. J u n e Absolut Bank attracted a syndicated loan in the amount of 35 mil- lion USD from foreign banks. Absolut Bank opened branches in Omsk and Chelyabinsk. 2006 Results in Numbers
Last year Absolut Bank’s business Assets ($, million) Share capital ($, million) grew 2,5 times. As at 01.01.07 2519 200 Bank’s assets amounted to 2,5 bln 2500 200 USD with 1.3 bln USD corporate 160 loan portfolio that grew more 2000 than 2 times. Individual loan 120 962 100 portfolio exceeded 331 mln USD, 1000 demonstrating 3,5 times growth. 80 103 700 The major share falls on mortgages. 60 506 The volume of this loan product 500 40 77 increased 3 times. Thus retail prod- 290 55 ucts’ stake in loan portfolio climbed 300 170 47 from 14% up to 20%, which shows 20 the successful implementation of the 100 Bank’s business strategy focused on 0 0 an increase in retail business share. 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006
Total credit portfolio (net) ($, million) Net profit ($, million)
1620 24 1600 24 1000 21 700 610 18
500 15 14
297 12 300 12 9 200 182 9 6 6 100 81 3
0 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006
Financial Indicators (%)
2002 2003 2004 2005 2006
Costs/ Income Ratio 29,2 32,4 41,5 41,1 45,8
Capital Adequacy Ratio 32,0 21,0 19,0 13,5 13,4
Overdue/ Gross loans ratio 0,1 1,1 0,9 0,8 0,1
ROAE 15,0 17,3 18,4 15,8 16,6
ANNUAL REPORT
ABSOLUT BANK
2006
Retail clients (thousand)
4 3,3 4 60 3 12 12 Absolut Bank significantly diversi- 3,5 53 2 fied the base of attracted funds, 10 50 having tripled volume of corporate 3 1 8 deposits up to 260 mln USD. 40 The total balance of individual CAR LOANS MORTGAGE PRIVATE DEPOSITS PLASTIC CARDS 6 deposits have grown 2,6 times 2 30 since the beginning of 2006 and 1,4 4 amounted to 208 mln USD. 20 19 2,5 0,16 1 2 Absolut Bank’s capital doubled 10 to 200 mln USD because of Tier II capital injections and 0 0 0 0 extra issue of shares. 2005 2006 2005 2006 2005 2006 2005 2006
Corporate clients Ranking by Assets Size
8500 9000 6600 10 5000 25 20 3000 30 2000 42 40 BORROWERS 56 50 1000 60 68 682 70 77 289 80
CUSTOMER ACCOUNTS 90 0 100 2005 2006 2002 2003 2004 2005 2006
Absolut Bank year-to-year growth in compare with TOP-100 Russian Banks (source: Interfax, %)
139 140
ABSOLUT BANK 120 113 RUSSIAN BANKS ТОП-100 (BY ASSETS GROWTH) 100
80 64 58 60 ТАБЛИЦА 48 41 40 34 33 36 33
20
0 2002 2003 2004 2005 2006 MORTGAGE PORTFOLIO HAS TRIPLED
AND REACHED 226 MLN USD BY JANUARY 2007
CAR LOAN PORTFOLIO ONT LINE HAS GROWN BY 18.5 TIMES AND REACHED E FR AG 59 MLN USD BY JANUARY, 2007 TG OR M DEPOSIT VOLUME
HAS TRIPLED SALES INFRASTRUCTURE HAS BEEN FORMED AND REACHED 206 MLN USD BY JANUARY, 2007 SALES PATTERN HAS BEEN SET UP LOAN FRON PRODUCT LINE HAS EXPANDED PARTNERS:450REAL R T ESTATEAGENCIES A ANDDEVELOPERS C L IN LENDING PORTFOLIO FOR SMALL BUSINESS E DEP HAS GROWN BY 3,5 TIMES OSIT FRO NT LI NE T LINE PARTNERS: RON 150 CAR DEALERS E F SM
PARTNERSHIP PROGRAMS WITHPROGRAMS EBRR, IFC, KFW IFC, EBRR,
20 SPECIAL PROGRAMS AND PROMOTION ACTIONS ON MORTGAGE, DEPOSITS, AUTO LOANS FOR CLIENTS AND PARTNERS
Oleg Skvortsov Deputy
Chairman of the TOP-10 BEST RUSSIAN MORTGAGE BANKS Management Board TOP-5 RUSSIAN BANKS BY RETAIL DEPOSITS GROWTH RATES TOP-3 RUSSIAN BANKS BY AUTO LOAN PORTFOLIO GROWTH RATES
NOTATION SIGNS:
DIRECTIONS OF REGIONAL BANKS’
COMPETITIVE ACTION
DIRECTIONS OF FOREIGN BANKS’ ATTACK
DIRECTIONS OF COUNTER-STRIKES OF ABSOLUT BANK
KEY VICTORIES OF ABSOLUT BANK IN 2006 11
ANNUAL REPORT ABSOLUT BANK Retail 2006 Business
Absolut Bank retail activity Mortgage Lending this business. So, the Bank was one mostly focused on providing of the first to reduce the sum of an package of retail services, Our clients under programs of initial payment, launch the program which are in demand of our mortgage are mainly families of mortgage refinancing and offer key customer segment as eco- with the stable and dynami- its clients various of consumer nomically stable middle class. cally growing income. They are credits with property as a collateral. Most clients of the Bank have highly skilled office employees families and the products that and workers, managers of aver- For convenience of numerous Absolut Bank provides are very age and top echelons, owners of client audience under the topical for them. medium-size and small business. mortgage the Absolute Bank has opened the specialized mort- Key promoted products by the Bank Mortgage lending is a core product gage center in Moscow in 2006. in 2006: mortgage, car loans, MSE of Absolut Bank’s retail busi- and private deposits. Today Absolut ness. From the beginning of the The advantageous terms, Bank is also involved in develop- mortgage market in Russia we attractive tariffs, operative ment of private banking, credit have offered our clients the most process of decision-making and and debit plastic card business interesting programs and terms flexible client focused approach, and several new credit products. under the mortgage credits. For the with an active development of recent years the Bank has entered regional credit programs have Bank’s advantages include a wide in TOP-10 leaders of the Russian allowed the Bank more than triple range of banking products, attrac- mortgage market, constantly a portfolio of mortgage loans in tive tariffs and a high quality of improving the service quality. 2006, increasing its volume up service to which the Bank always to 226 million USD. The number gives enhanced attention. Bank We are always in line with the of borrowers of Absolut Bank offices are open for our clients 6 market, trying to advance our has exceeded 3300, average sum days a week, 12 hours a day. The competitors in all key sectors of of the credit was 80,000 USD. Absolut On-line system provides customers ability to make payments and control their accounts on a Mortgage Portfolio Growth ($, million) continuous basis throughout the 226 corporate site www.absolutbank.ru. 220 160 NUMBER OF CUSTOMERS 134 120 3264 80 71 2331 60
40 1507
20 16
461 0 01.07.2005 01.01.2006 01.07.2006 01.01.2007 12
Car Loans Strengthening cooperation with partners (showrooms and dealers) Аbsolut bank offers wide range of car and developing regional car loan loans for different types of cars: new programs made a major contribution and used cars, Russian and foreign, to these high rates of expansion. passenger cars, cargo and a special Currently the Bank has as partners auto-equipment. So in this case Abso- more than 150 showrooms and lut Bank has wide range of clients. dealers of various car producers in Among our clients are young perspec- 11 Russian regions. Bank has always tive people buying a car to prove their focused on maintaining long-term status and increase of income; fami- partnerships. Absolut Bank takes an active part in financing the construc- Car Loans Portfolio Growth ($, million) tion of new car showrooms, common programs and support out partners 3,16 19,9 60 60 in terms of corporate clients services. 40 4,3% MOSCOW AND MOSCOW REGION 15,3% The Bank has repeatedly increased its 20 ST. PETERSBURG 4% line of products offering customers UFA 54% 42% classic as well as special car loans OTHER REGIONS 10 programs. Today the Bank offers a full range of car loans program including trade-in, special-pur- pose vehicles loans, all included, with no down-payment, etc.
38,4% 43% 41% The growth of regions portfolios is equal to or even exceeds those in Moscow. The total growth of bank’s 57% car loan portfolio is supported by regional expansion of Absolut Bank. 0 01.01.2005 01.07.2006 01.01.2006
lies buying more comfortable cars, and businessmen who prefer to take advantage of extra means for devel- opment of their growing business.
The Bank developed car loan program by the end of 2005, and in just one year Absolut Bank achieved impressive results in this business segment. By increasing the car loans portfolio in 18,5 times in 12 months, Absolut Bank ranks second TOP-30 Russian banks in terms of car loan growth. 13
ANNUAL REPORT
ABSOLUT BANK
2006
Small Business Loans Small Business Loans Portfolio Dynamics ($, million)
18,7 Among our clients under the 19 9,342 5,687 SME lending the largest share 5 NUMBER OF CUSTOMERS 3 of the loan portfolio (55%) falls 444 2 138 to trading companies, which are 79 the Bank’s biggest client sector. We are also actively involved in 1 financing the manufacturing companies and the private service sector (medical centers, print 0,114 management companies, etc.)
3 In 2006 Bank significantly increased 0 the line of its private business- 01.07.2005 01.01.2006 01.07.2006 01.01.2007 oriented products. Today we provide for small and medium business vari- Bank an ability to minimize risks high quality of services allowed ous products including loans, credit and offer the most profitable terms us to achieve the record growth lines, leasing, financial guarantees to its customers in line with the of deposits portfolio and to triple and current account overdrafts. In particulars of Russian business. the overall volume of individual the autumn of 2005, the Bank’s deposits up to 206 million USD microcredit program (5,000 USD or Deposits as of January 1, 2007. At the more) was launched jointly with KfW same time the number of Bank and IPC and now is available in all In 2006 Absolut Bank played depositors has grown 3 times. regions of the Absolut Bank activity. major emphasis on improving the quality of additional services Today the Bank deposits line Timely entry has allowed the Bank and preferential treatment for offers a choice to all types of to leave its competitors behind and its existing line of deposits. customers, from special conditions confidently occupy its niche in for medium-sized deposits up this segment. The use of advanced The implementation of Bank’s to the VIP-series of products western technologies gives the active marketing strategy and for affluent citizens. The most popular product is Profitable Deposit Growth ($, million) deposit with the interest rate higher than the average in the 208 market. Mortgage deposit is in 200 NUMBER OF CUSTOMERS great demand among young people who apply for Mortgage loans 12 389 even more frequently. The Absolut, 150 Capital, Rentier and other types 107 of deposits differ by terms, rates, 100 early and partial withdrawal 71 options, etc. The Pension deposit 6208 47 with concessionary terms is also in 50 great demand as it was developed 2495 specially for retired people 1728 0 as well as those who have just 01.07.2005 01.01.2006 01.07.2006 01.01.2007 started to save for their pension. 14
Plastic Cards international and long distance phone Trust Management calls, Internet shopping, etc., all Today servicing credit and debit without visiting the bank. Shops and Taking into consideration that a plastic cards is among key priorities service providers that are members group of the Bank of clients are of the Retail business development. of the Absolut Bank Discount Club families with constantly growing Almost a quarter of the volume of provide 3% to 20% discounts for income and active position, the issued plastic cards falls on VIP all Bank cards transactions. Bank offers them a wide range of cards such as Visa Gold and Visa complex services in the field of Platinum. The Bank offers the full The Bank’s infrastructure includes trust management and brokerage range of services for VIP clients, more than 300 ATM in 11 regions service. We are open to develop including personal manager, medi- of Russia. Bank “plastic” business a special package of services for cal insurance with a $100,000 limit, plans for the near future include each client to invest the available an emergency assistance support setting up the Bank’s own process- assets into securities and to program International SOS and ing center, the extension of ATM manage the generated portfolio. other services. Besides, opera- network, the development of new tions with Visa payment system credit card-based programs and Currently Absolut Bank offers implies some concessionary terms, products for various regions and a number of investment strate- discounts and extra preferences. client target groups as well as gies and styles of assets trust improving additional service pack- management that satisfy the needs The Bank offers a range of additional ages. In 2007 the Bank will develop of the majority of investors. services to plastic card owners. For a network of electronic self-service example, the active SMS-service terminals that would make Bank Bank Safe Deposits Absolut-Info allows a client to check services even more convenient his/her balance, get a mini-statement and accessible to customers. A safe deposit box is a reliable or immediately block all card way to safeguard your valuables. transactions by using a cell-phone. This business will be expanded also This is the only way to insure The SMS-notification service also in a direction of active development against unforeseen circumstances sends cell-phone information on debit of corporate programs under which when dealing with real estate operations, reminders of minimum the Bank will provide concessionary and securities, making financial payment due, and impeding card terms for salary projects for deals, etc. Absolut Bank offers expiration warnings to the clients. the companies of any scale. its customers safe deposit box The Absolut online Internet service rental for period of 15 days or allows the card holder 24 hour/7 day- more. Absolut Bank’s safe deposit a-week access to interbank transfers box line includes a variety of safe to the card or current account, pay deposit box sizes for the customer for cellular phone services, utilities, to choose the most convenient one. 15
ANNUAL REPORT
ABSOLUT BANK
2006
Money Transfers Investment Coins New Products
Using a wide network of direct Absolut Bank offers In 2007 Absolut Bank plans correspondent accounts in the commemorative coins made to significantly expand retail largest banks in the CIS countries of precious metals, which have products line by offering the and overseas, Absolut Bank makes an investment, collection and customersnew plastic cards lend- money transfers in the shortest numismatic value, and could be ing programs as well as launching possible time. Such transfers an excellent gift. Due to precious a number of consumer loans for may be either executed without metals the coins have real value specific purposes, including setting up the account. Thanks to that will grow with the laps education, repairs, holiday, etc. the Western Union system, Bank of time. Commemorative coin customers may transfer money purchase is a profitable money to any place in the world within investment. We offer our clients minutes. Besides, Absolut Bank’s a wide range of opportunities to own system of money transfer invest in coins made of precious “Absolut Express” allows customers metals (gold, silver). In the long to transfer money to the CIS coun- term investments in silver can tries with minimum commissions. bring a profit times over expenses.
Price movement on precious metals, (RUR/gr)
1400
1200
1000
800
600 GOLD
400 SILVER
200
0 2003 2004 2005 2006 F R O N T L I A L I N E F R O N T L I N E T R A D I N G U S S T N E I L C , S E S I R P R E T N E T R C O N D S T R I N U C T I O N F R O N T A I L S E R V L R E T I C E I N O F S E E I N - L T N O R F
ENTERPRISES, CLIENTS
TOTAL CLIENTS’ BALANCE ENTERPRISES, CLIENTS
HAS GROWN BY 4 TIMES IN 2006
AND REACHED 350 MLN USD OVER 1000 TF TRANSACTIONS
ENTERPRISES, CLIENTS TO THE TOTAL AMOUNT OVER, 750 MLN USD 60% OF CLIENTS HAVE BEEN OVER 10,000 CORPORATE
WITH US FOR OVER 2 YEARS ACCOUNTS
RESOURCES: CORPORATE LENDING
RESOURCES: TRADE FINANCING
RESOURCES: COMPLEX SERVICE PROVISION
Mikhail Serdtsev Senior Deputy Chairman of the OUR POSSIBILITIES: FAVORABLE CREDIT RATES Management Board CREDIT: PERIOD — UP TO 5 YEARS, AMOUNT — UP TO 70 MLN USD
ACCORDING TO EBRR: “THE MOST ACTIVE CREDITOR” IMPORT FINANCING
OF THE RUSSIAN MEDIUM-SIZED ENTERPRISES
REGIONAL BUSINESS: PRIORITIZATION AND INDIVIDUAL APPROACH
NOTATION SIGNS:
DIRECTION OF REGIONAL BANKS’
REINFORCED COMPETITION
DIRECTIONS OF FOREIGN BANKS’ ATTACK
DIRECTIONS OF ABSOLUT BANK’S RESOURCE ALLOCATION
KEY VICTORIES OF ABSOLUT BANK IN 2006 17
ANNUAL REPORT ABSOLUT BANK Corporate 2006 Business
Possibility of financing Today we are prepared to offer our Leasing operations are among new clients with long-terms corporate clients more favorable rates and fastest growing segments of the western resources and of lending for the term up to 5 years Bank’s business. In 2006 their volume knowledge of Specific features with the limit up to 70 million USD. doubled and the terms of financing of Russian, including Besides, we constantly expand the under such programs are significantly regional, market allow forms and sorts of financing, offering more attractive than the average us to increase the volume our clients the most optimum alterna- offer in the market. The balance of our corporate business tive depending on specific features of corporate accounts in 2006 qua- rapidly. Today Absolut Bank and scale of their business. We are drupled up to almost 350 million USD. is number one in the country currently developing such programs by volumes of financing as the arrangement of factoring All Bank products are technologi- trade operations of the transactions, attraction of the syndi- cally standardized so that they may medium-sized companies. cated loans for our clients, arrange- be promoted throughout the ment of bond issues, M&A, IPO. branch network, increasing both business volumes and client base. Corporate Products Portfolio in 2006 (%) Entering new region, the Bank pursues a flexible tariffs policy Commercial real estate 29 and is prepared to offer the most Production investments suitable terms to each customer. 14 Computers and IT Automobiles 7 Essential competitive advantage Alcohol 5 of the Bank in corporate service Rolled Metal Products 2 is the individual approach to each 2 Food industry client. The personal manager is 1 Clothes, foot wear designated the companies in the Telephony 2 Bank. We guarantee efficient 3 Residential real estate decision-making and support at all 6 Electronics stages of service of the client irre- 10 Others spective of the scale of his business. 18
Trade enterprises We provide the enterprises and 38,1 organizations with a full complex Construction of financial services, including 14 Service sector corporate lending and SME lend- ing, trade financing, leasing, funds 7,2 Others allocation on the accounts in the Production Bank, account services as well as 3,4 settlement and cash services. Real estate deals
12,5 Significant growth of Bank’s business led to the substantial improvement of opportuni- 24,8 ties to finance our clients. 18
Corporate Financing Growth ($, million) Trade Financing
1400 1345 Today Absolut Bank is a leader in 1000 trade financing among Russian 700 banks both in the number of transac- 605 tions and volume of business. In 500 2006 Absolut Bank made more than 1,000 transactions for a total 300 232 amount of more than 750 million 200 175 USD. Absolut Bank is the participant in the EBRD’s Trade Facilitation 100 87 Program and has a limit of more than USD $100 million. International 0 Finance Corporation (IFC) also 2002 2003 2004 2005 2006 provided Absolut Bank with a 10 Number of Corporate Customers million USD limit under its Global Trade Facilitation Program. EBRD 9000 8806 awarded Absolut Bank as “The most 8000 active Issuing Bank under the TFP in Financing Imports of Russian SMEs.” 7000 6600 6000 5239 Since 2003 the Bank held more 5000 than 3,000 transactions with a 4153 total amount over 2 billion USD. 4000 3403 3000 Today Absolut Bank’s partners 2000 are banks from 24 countries. The 1000 total limits for trade finance is over 0 1 billion USD from more than 130 2002 2003 2004 2005 2006 institutions and export credit agen- cies (ECA). Operation procedures Corporate Loans lio. Today 55 % of Bank’s total and their quality fully comply with assets fall on corporate loans. the highest international standards. Active and effective development of commercial lending allows to finance Most of the customers have been The Bank has a wide range of the extension of the retail network, using Absolut Bank’s services corporate borrowers using its trade new promising business-directions for a long time: about 60% finance services, among them are and to uphold the profitmaking have been the Bank’s custom- the well known holdings, such as capacity of the Bank. For a fiscal year ers for more than 2 years. Starik Hottabych, Carlo Pazolini, Absolut Bank increased its Corporate Protek, Shrea, Evroset, Svyaznoy, loan portfolio more than twice. Under its corporate lending business and others. In addition, Bank’s expe- Absolut Bank offers its customers rience and potential make it possible Loans granted to corporate a wide range of financing instru- to finance transactions of both clients is the major share of the ments, including trade financing, large network clients, and small, Bank’s overall credit risk portfo- loans, overdrafts and credit lines. dynamically developing enterprises. 19
ANNUAL REPORT
ABSOLUT BANK
2006
Trade Financing Business Growth ($, million) The Bank offers a wide range of opportunities for cash management: 800 750 deposits, interest and non- interest 600 590 bearing notes, brokerage services 400 (including Internet trading), 300 286 and asset management.
200 178 Absolut Bank offers acquiring programs to trade and service 100 companies: settlements for transac- tions with trade/service enterprises 43 on operations conducted using international plastic cards VISA, 0 Mastercard, Cirrus/Maestro, Diners 2002 2003 2004 2005 2006 Club and American Express. The Number of Trade Financing Transactions Bank provides equipment instal- lation and connection, personnel 990 1050 1000 training, methodical and technical 660 support and slips encashment free of 450 500 charge. The total turnover of acquir-
300 ing activity exceeds USD 70 mln in 2007. The Bank also offers a wide 200 range of payroll card programs. It is part in total volume of issued plastic 100 card in 2006 was more than 40%.
43 In line with the regional business development Absolut Bank will 0 work at increasing the share of 2002 2003 2004 2005 2006 regional companies among its customers. Absolut Bank sees its Complex services Absolut Bank’s customers have objective as providing corporate access to standard services in regard customers with a full range of Absolut Bank aims at developing to the account management. Due to competitive services in confor- long-term partnership relations and direct correspondent accounts with mity with international quality is prepared to offer complex services such major clearing banks as JP standards. We try to get ahead of and individual credit conditions to MORGAN CHASE NY, DEUTSCHE our competitors, making the best every customer. Under its customer- BANK TRUST COMPANY use of increasing opportunities oriented policy Absolut Bank offers AMERICAS (USA), COMMERZBANK of Russia’s finance market to its customers a full range of the AG, and DRESDNER BANK meet the needs of our customers. highest quality financial services. (Germany), Absolut Bank makes In the nearest future we plan to payments in all international initiate a number of new products The Bank pays special attention currencies and receives information such as factoring, arrangement of to the quality and technology of on accounts on a real-time basis. syndicated and bonded loans, and settlement and cash services. Today preparation and making of IPO. 20
Anatoly Maksakov Deputy Chairman of the Management Board 21
ANNUAL REPORT ABSOLUT BANK International 2006 Business
Absolut Bank enjoys its solid reputation on the international arena that along with the Bank’s efficient international business strategy allows it to raise funding abroad on most favourable terms and conditions. As a result the Bank is one of the leaders in financing of the Russian company’s trade operations and can provide its clients with loan facilities, constantly increasing their volumes, cutting interest rates and extending tenor of the loans.
Absolut Bank has over $1 billion USD limits from more than 130 foreign finance institutions and ECA’s. The volumes of its interna- tional business doubles every year. In the year 2006 the volume of funds attracted from the international mar- ket increased up to 1,1 billion USD.
In the year 2006 Absolut Bank’s trade financing portfolio exceeded 500 million USD mostly new credit lines and thanks to the the increase of limits under previous partnership agreements. In terms of trade financ- ing programs we have been actively cooperating with European Bank for Reconstruction and Development (EBRD) which increased limit on Absolut Bank up to 100 million USD last year. Together with Interna- tional Finance Corporation (IFC) the Bank realizes program similar to the project with EBRD. Since 2006 inter- national economic activity of Absolut bank’s clients is also financed under 10 mln USD Facility Agreement, signed by Nordic Investment Bank. The tenor of the facility is 5 years. 22
Diversification of trade financing transactions by location of beneficiaries (%)
0,12% NORWAY 0,12% PORTUGAL 0,12% UZBEKISTAN 0,12% BRAZIL 0,12% CANADA 0,12% LUXEMBURG 0,12% TURKEY 0,24% MALAYSIA 0,24% REPUBLIC OF SOUTH AFRICA 0,24% ISRAEL 0,36% KAZAKHSTAN 0,36% CROATIA 0,36% CZECH REPUBLIC 0,48% INDIA 0,48% POLAND 0,6% SINGAPORE 0,73% SLOVAKIA 0,73% TAIWAN 0,85% BULGARIA 0,97% HONG KONG
1,21% KOREA 1,33% VIETNAM 1,45% DENMARK 1,45% MEXICO 1,57% BELGIUM 1,69% BANGLADESH 1,69% U.K. 2,18% FINLAND 2,3% FRANCE
2,42% SPAIN
3,63% AUSTRIA
4,23% HUNGARY
4,96% USA
5,93% SLOVENIA
6,29% CHINA
8,71% GERMANY
11,12% RUSSIA
12,45% NETHERLANDS
17,9% ITALY 23
ANNUAL REPORT
ABSOLUT BANK
2006
IFC, National City Bank (USA) and the Black Sea Trade and Develop- Trade financing portfolio USD 500 000 000 ment Bank in the total amount of 50 million USD. It should be noted that the loan from National EBRD limit USD 100 000 000 City Bank was secured by the guarantee of Overseas Private Investment Corporation (OPIC). DEG loan USD 20 000 000 One of the key directions of Absolut Enhancement of facilities to attract Besides, last year we also attracted Bank’s international business strat- funds for our clients becomes a number of syndicated loans egy in the short term is an adjust- possible due to enforcement of from foreign banks for total ment of procedures for securitiza- trust from international financial amount over 230 million USD. The tion of the part of its assets aimed at institutions. It is proved by the fact syndicated loans were arranged extending the tenors, increasing the that Absolut Bank became the 22nd by Raiffeisen Bank (Austria), amount of attracted funds and cut- Russia’s bank to issue Eurobonds. Commerzbank and EBRD. Funds ting the interest rates charged on Merrill Lynch International, one granted in terms of these loans bear them. This will allow us to provide of the largest world investment maturity from 1 up to 3 years. our clients in all Russian regions, banks, acted as lead manager and where Absolut Bank actively arranger of this transaction. In 2006 the Bank also registered develops its busines, with more an increase in the short-term notes attractive financing conditions. The total of 75 investors from (STN) issue program up to 200 Great Britain, Ireland, Switzerland million USD and successfully placed and other European and Asian a number of new tranches for a countries participated in the issue. total amount over 90 million USD. Big interest that investors showed towards Eurobonds led to 50 mil- In 2006 the Moody’s international lion USD increase in a total volume rating agency upgraded Absolut of Eurobond issue that amounted Bank’s rating from “stable” to to 200 million USD. During this “positive,” while the Fitch Rat- year Absolut Bank plans to arrange ing international rating agency the second Eurobond issue that will raised Absolut Bank’s long-term increase the volume of borrowings rating from “B-” to “В” level. raised in international capital markets up to 500 million USD. Funds for MSE loans and loans for private entrepreneurs are In 2006 the Bank also attracted provided by Absolut Bank under a subordinated loan from the Small and Medium-sized Business German Society for Investments Credit Development Program and Development (DEG, Germany) of EBRD and German credit in the amount of 20 million USD institution KFW that set 20 mln for increasing of Tier II capital. In USD limit on Absolut Bank. 2007 we plan to further increase our capital through subordinated To refinance its retail and bonds issue in the amount up to 100 mortgage programs the Bank million USD and 10 years tenor. attracted long-term loans from VOLUME OF TRANSACTIONS: 144.0 BLN USD 2 × CONVERSION OPERATIONS: 66.8 BLN USD ANNUAL 6 BLN RUR GROSS TURNOVER LIMITS: 1 BLN USD, TWOFOLD DEPOSIT OPERATIONS: 77.3 BLN USD IN CORPORATE BONDS INCREASE AS COMPARED WITH 2005
6.0 BLN RUR VOLUME OF OPERATIONS WITH GKO-OFZ PARTNERS: 450 BANKS 00 FORTS RTSM TURNOVER EXCEEDED 35.0 BLN. RUR
15 01
14 02
PRIMARY BOND MARKET
13 03
BROKERAGE SERVICE
MONEY MARKET
12 04
EQUITY MARKET
FUTURES MARKET
11 05
COLLECTIVE INVESTMENTS
Dmitry IvlYushin Deputy 10 06 Chairman of the Management Board
09 07 08 2006
BEST DEALING OF MBC
THE BEST MONEY DESK
TOP-25 OF LARGEST BANK-OPERATORS OF RUBLE DEBT
TOP-25 BANKS-UNDERWRITERS OF CORPORATE BONDS
CBONDS
TOP-10 BANKS-OPERATORS OF FUTURES MARKET
ON TRADE VOLUME WITH FUTURES AND OPTION CONTRACTS
TOP-10 BANKS OF LEADING STOCK MARKET OPERATORS
TOP-10 BANKS BY THE SHARE OF OFBU MARKET 25
ANNUAL REPORT ABSOLUT BANK Financial 2006 Markets Operations
Today Absolut Bank is among THE leaders in terms of opera- tions volume and its growth dynamics in all sectors of Russian financial market.
Interbank FX and Money Morgan Bank, Comerzbank AG, Markets Dresdner Bank and ING Bank.
Absolut Bank has been active on The overall volume of interbank the interbank market since 1995 transactions (depositary and and remains one of the leaders on conversion transactions) in the the Forex exchange and interbank year 2006 exceeded 144 billion USD, deposits markets for many years. comprising among 66,8 billion USD for FX transactions and 77,3 billion Absolut Bank’s large scale busi- USD for depositary transactions. ness and high rate of growth are appreciated by the leading Russian The volume of FX transactions and western banks. As a result by on the international market with the end of the year 2006 the total hard currency increased 4 times in volume of unsecured limits estab- 2006 to 20 billion USD compared 5 lished for Absolut Bank’s depositary billion USD in 2005. Absolut Bank’s and FX operations amounted to western partners include such major about 1 billion USD. The volume of financial institutions as UBS AG, limits opened for the Bank has more Dresdner Kleinwort, Standard Bank, than doubled since 2005. RZB Vienna and American Express.
Absolut Bank currently enjoys Absolut Bank’s dealing is a recog- partnership relations with more nized team of high level profession- than 450 Russian and foreign banks, als. Absolut Bank’s money desk including Sberbank RF, Vneshtorg- business success and reputation are bank, Gazprombank, Alfa Bank, annually confirmed by the Moscow Bank of Moscow and International Interbank Currency Association Moscow Bank as well as subsidiaries (MICA). In 2006 Absolut Bank won of major foreign banks such as JP the “Best Money Desk” award. 26
Fixed Income Securities Market trading turnover amounted to March 2006 the first syndicated 6,173 million rubles, exceeding loan amounting to 1 billion roubles Being a dealer for Government the 2005 result of 1,772 million was attracted on the local market. securities of the Bank of Russia and rubles by more than 3,5 fold. a MICEX stock market section mem- Since August 2006 Absolut Bank ber, Absolut Bank offers all types of Absolut Bank’s activities with major has been an active participant in transactions with fixed yield securi- fixed income securities include the initial bond placement market: ties traded on the Russian market: operations with foreign currency Absolut Bank has acted as co- denominated bonds – Eurobonds. manager or underwriter in 25 ruble- • ruble denominated Govern- During the second half of 2006 denominated bond issue placements ment bonds (treasury and the volume of these transactions totaling 70 billion rubles. federal loan bonds) exceeded 250 million USD. • foreign currency Following the 2006 results Absolut denominated bonds Primary Bond Market Bank has joined the TOP-25 • municipal bonds bank underwriters for corporate • corporate bonds At present the Absolut Bank is bonds according to the Cbonds in a position to offer customers a information agency rating. Last year Absolut Bank entered full range of investment services the TOP-25 list of major ruble debt for issuing of ruble-denominated For next year the Bank is planning operators, while the Bank’s overall bonds. Absolut Bank can support to strengthen its market position monthly corporate bond transact all issues related to organiz- and enter the TOP-10 Russian bank ions increased over the year from ing bond issues and syndicated underwriters list for corporate bonds. 210 million to 4,9 billion rubles. loans, together or separately. Derivatives Market Absolut Bank holds a stable posi- In April 2004 and July 2006 Absolut tion among major Government Bank initiated two bonds releases According to the 2006 results, Abso- securities market players. In 2006 of its own with total amount 1,5 lut Bank is ranked among the TOP-10 treasury and federal loan bonds billion roubles face value, and in major bank operators of derivatives markets in terms of futures and options contracts sales volumes. TOP-25 largest operators of ruble debt In monetary terms Absolut Bank sales in the 2006 FORTS RTS market (both for its own Consolidated monthly turnover in corporate bonds equaled RUR 4,9 bln. as well as customers operation) exceeded 35 billion rubles. GKO-OFZ transactions turnover amounted to RUR 6,2 bln. In 2006 Absolut Bank’s annual average hedging and arbitrage transactions portfolio totaled surpassed 2005 figure of RUR 1 772 mln. over 3,5 times about 1 billion rubles. 27
ANNUAL REPORT
ABSOLUT BANK
2006
Absolut Bank By end-2006 Absolut Bank’s volume of transactions increased times. at the Brokerage 3 Service Market Bank is a stable member ofТОР-10 bank — operators of stock market. Absolut Bank offers a full range of services at the Russian stock market for trading with corporate The volume of resources under the Bank’s management has increased by 2,5 times. and Government securities (shares and bonds) as well as derivative financial instruments (futures By end-2006 the number of shareholders grew almost 3 times. and options) to credit institutions, legal entities and individuals. In 2006 Absolut Bank was amongТОР-10 banks by it market share of OFBU. The year 2006 witnessed a sub- stantial leap in Absolut Bank brokerage service development. Today the Bank’s funds Tactics” was accepted by the most The number of brokerage service line includes: profitable rouble fund of active customers doubled that year. • Absolut Profitable – management according to the conservative strategy; results of the summer and the 3rd By the end of 2006 Absolut Bank had • Absolut Trust – quarter of 2006. Three funds out of tripled their brokerage transaction moderate strategy; four entered the TOP-10 in terms of volume on the MICEX stock market • Absolut Tactics – profitability on the results of 2006 compared to the year’s start – a 6-fold aggressive strategy; released by the AZIPI association. increase as compared with 2005. • Absolut Perspective – index-based strategy. For 2007 the Bank is planing to Growth in transactions volume add new investment strategy in 2006 kept Absolut Bank among In 2006 the volume of assets funds to the mutual funds line. the TOP-10 stock exchange major under the Bank management operators. According to RBC, increased more than 2,5 fold. during the year Absolut Bank has The number of clients by the strengthened its rating positions in end of the year almost tripled. numbers and volume of transactions In 2006 Absolut Bank joined at all MICEX and RTS trade sections. the TOP-10 banks by the share of assets under management. Mutual Funds In 2006 Absolute Bank funds At present the Absolut Bank repeatedly took the leading posi- offers a number of investment tions in profitability ratings strategies and styles for assets concerning the general funds of trust management to meet the banking management. For example, objectives of the most investors. the aggressive fund “Absolute DIVERSIFICATION LIMITS LOAN PORTFOLIO USD 1,5 BLN INDIVIDUAL BORROWERS PAST-DUE LEVEL OF 0,1% GROUPS OF BORROWERS GROUPS OF PRODUCTS 00 ALCO GEOGRAPHICAL SEGMENTS 29 01 SECTORAL SEGMENTS 28 02
27 03 LIMIT COMMITTEE 26
TECHNOLOGY 25 COMMITTEE CREDIT RISKS 05 MARKET PRODUCTS RISKS
FOREX, INTEREST
24 LIQUIDITY RISK 06
OPERATIONAL MARKET RISKS CREDIT COMMITTEE
23 REPUTATION RISKS 07
22 08 A OPERATIONAL RISKS
BUDGET ANDB PRICING POLICY COMMITTEE 09 21 R H C LEGAL RISKS
I T Q D
S O W F 10 20 TARIFFS & PRODUCTS COMMITTEE X P Y E 19 11
C A U Sergey 18 12 Rats Chief V Financial Officer 17 13
B 16 14
15 RISK MANAGEMENT SYSTEM HAS BEEN RESTRUCTURED
AT YEAR-END LEVEL OF PAST-DUE LOANS
DID NOT EXCEED 0.1% WITH CONSIDERABLE GROWTH RATE OF CREDIT BUSINESS
STABLE REDUCTION OF RISK CONCENTRATION AT LARGE BORROWERS
PORTFOLIO DIVERSIFICATION:
RETAIL SHARE HAS REACHED 20% OF THE CREDIT PORTFOLIO 29
ANNUAL REPORT ABSOLUT BANK Risk 2006 Management
In response to the growing Total Loan Book Diversification scale of business 2006 Trade in a constantly changing 31 market, Absolute Bank Retail permanently improves 18,2 its risk management systems. Production 10,5 Others
1 Agriculture 0,2 Services 7,1 Construction
11,4 Real estate
20,7
2005 Trade 2004 Trade 25 35 Production Construction 15 15 Construction Agriculture 11 8 Agriculture Retail
Services Real estate 1 6 Retail Services 10 Real estate 7 Production
13 9
20 25
2003 29 Construction 2002 Trade 47 Real estate Production 13 Agriculture 9 Construction 6 Services 6 Agriculture 6 Others Others 5 5 Retail Retail 5 Production Real estate 6 8 10 Trade 20 25 30
Total Credit Risk Portfolio, 2006 (%) Real estate (%)
32,1 Real estate Offices 43,9 Retail Others
18,2 Services Residential 10,9 Others Construction 7,1 1 Agriculture 0,2 9,6 Production
10,5 Trade
35,6 31
Risk management is carried out with respect to credit, market, operational, reputational and legal risks through a system of committees where the Bank’s top management is involved. Currently, the Bank has 6 committees responsible for credit risks; a limit committee supervising the Alexander Lapko operations on the open market and Credit development of the effectiveness Department of the Bank’s technologies. Director
As one of the basic functions of the Bank is lending, one of the priorities of the control system of risks is the efficient control of credit risk. This system determines limits on individual borrowers, groups of borrowers, group of products. The ALCo (Assets and Liabilities Committee) is responsible for the management of liquidity risks, interest rate and currency risks. 31
ANNUAL REPORT
ABSOLUT BANK
2006
Trade (%) Production (%)
Others Others 31,3 Computers and components 62,8 Electronics
21,3 Medical Chemicals
Foodstuff 11,4 Shoes 3,2 Cars Foodstuff 3,9 Household appliances 0,9 and electronics 3
13,5 21,9
26,8
31,3
Delayed Credits and Assignments (as a % of General Credit)
Share of Delay 2002 2003 2004 2005 2006
Overdue/Gross Loans Portfolio (%) 0,08 1,1 0,9 0,8 0,1
Provisions/ Credit Portfolio (%) 9 6,80 4,80 4,10 2,9
The foundation of the Bank’s credit (from a current level of 18,2% up and at the same time to strictly policy means diversification of risks. to 62 % by the end of 2011). control the level of risk of these With the Bank’s credit portfolio operations as extensively as possible. standing at 1,5 billion USD (as of The volume of transactions with The Bank operates a number of 1 January 2007), it is well diversi- related parties is minimal and was special management procedures fied with the low level of overdue 1,4% from a Bank’s total credit when dealing with liquidity or loans less than 0,1%, which is portfolio as of 1 January 2007. market risks. To this end, a major record-breaking for the market. supervision element of oversight is All operations in the financial a committee which sets limits on the The concentration of risks on markets are carefully supervised Bank’s FX and deposit transactions. the largest borrowers constantly and controlled. The purpose of the decreases: from 36 % in 2003 down establishment and control of limits Supported by its wide spectrum to 22% at the end of 2006. In the is to minimize possible losses and of quality monitoring and risk long term, portfolio diversification preserve capital and assets. In its management, the Bank confidently will increase due to the growth in a work the Bank aspires to be effective increases its operation volume credit portfolio of private clients regarding operation profitability in the financial markets. Regional 32 Network Development
In 2006 Absolut Bank paid much the policy of regional business is attention to the development of a oriented towards long-term partner- regional network, as it is obvious ship, realization of socially impor- that any bank which intends to tant programs and maintenance of maintain its leading position among principles of a mutually beneficial financial service providers needs a cooperation. As a result, during its widely extended network. According first working years each new office to the results of the year, the number outside Moscow takes a confident of outlets has increased 3 times and position in the banking community has amounted to 38. On opening a of the concerned region. For example, new office, we are always aware that the Bank’s St. Petersburg office, we can attract new potencial and seri- opened in September 2005, already ous clients in the long run. Therefore, ranks among the TOP-30 of the larg-
ST. PETERSBURG
M OSCOW
LIPE TSK NIZH NY NOVGOROD PERM’ VORONEZH YEKATERINBURG
KAZAN’
SAMARA TUMEN’ ROSTOV-ON-DON
KRASNODAR CHELYABINSK
VOLGOGRAD UFA STAVROPOL KRASNOYARSK OMSK
KEMEROVO
NOVOSIBIRSK IRKUTSK NOVOKUZNETSK
BARNAUL 33
ANNUAL REPORT
ABSOLUT BANK
2006
est banks of the Northwest region of opened in the cities of Yekaterin- Our plans include the extension Russia by its perfomance in 2006. burg, Perm, Chelyabinsk, Kazan, of branch network and by the end Tyumen and Sterlitamak. These of 2007 Absolut bank will have During the first half of 2006, offices offer car and small busi- branches in more than 20 regions new branches were opened in ness loan services. In December of Russia. The number of offices Omsk, Ufa, Chelyabinsk. In sum- 2006, the Bank opened a Repre- in Moscow and Moscow region mer 2006 we opened office in sentation in Samara that should will exceed 30 point of sales. Kazan and additional branch in achieve branch status in 2007. St. Petersburg — “Pravoborezhnoe”.
Following the branch network development strategy of the Bank, credit and cash offices were
ST. PETERSBURG
MOSCOW DMITROV AND MOSCOW REGION M OSCOW
LIPE TSK NIZH NY NOVGOROD PERM’ VORONEZH YEKATERINBURG
KAZAN’ PUSHKINO SAMARA TUMEN’ ROSTOV-ON-DON ZELENOGRAD
KRASNODAR CHELYABINSK DOLGOPRUDNY SHCHELKOVO MYTISHCHI VOLGOGRAD UFA KOROLEV STAVROPOL KRASNOYARSK KHIMKI OMSK
KEMEROVO
NOVOSIBIRSK IRKUTSK BALASHIKHA NOVOKUZNETSK
BARNAUL LYUBERTSY ODINTSOVO
VIDNOE
PODOLSK NARO-FOMINSK Shareholders 34 and The Board of Directors
Absolut Bank shareholders The Board of Directors includes the founded the Bank 14 years ago current shareholders: Mr. Alexander and since then have constantly Svetakov (Chairman of the Board), provided assistance Mr. Andrey Truskov, Mr. Gleb and support to the growth Galin, Mr. Andrey Kosolapov, as of Bank capitalization. well Dr. Thomas E. Krayenbuehl and Mr. Nikolay Sidorov (Chair- man of the Management Board).
Board of Directors
N.V. Sidorov Chairman of the Management Board
E. Bukina Management S. Avramenko Iternal Audit Board Head of financial monitoring and currency control
M. Serdtsev O. Skvortsov D. Ivlyushin A. Maksakov Corporate Business Retail Business Investment&Trade International business Business
S. Rats D. Larin A. Lapko Financial Department Operations, IT, Credit Department Infrastructure & Risks 35
ANNUAL REPORT
ABSOLUT BANK
2006
Shareholders’ Equity (USD, mln) of a team of creative profession- als. With main emphasis on the 200 200 growth and development inside 180 the Bank – the keeping of the 160 present team which has repeat- 140 edly confirmed its efficiency. 120 103 100 80 77 The second line is the engagement 55 of top-notch professionals in the 60 47 40 business areas new for Absolut Bank, 20 as well as employment of young, cre- 0 ative, customer and career-oriented 2002 2003 2004 2005 2006 specialists with a high potential of dynamic professional growth. Corporate Management At present, the Bank’s activity is strictly regulated, while the Bank In the year under review, the The International Finance Corpora- management exercises control over number of the bank personnel tion became the shareholder of the prompt and accurate disclosure of has almost doubled to exceed Bank in the end of 2005. This helped information about the Bank and its 1400 persons. The average age review several principle of the corpo- activity, including the matters con- of the employees is 33 years. rate governance in accordance with cerning ownership and capitalization. the advanced international stan- The Bank has set up a single HR dards. As a result, in 2006, accord- The development strategy of the development center which inte- ing to the Standard and Poor’s Bank is worked out and implemented grates and coordinates all process international rating agency, Absolut by the Management Board which involved in the selection, traning Bank held the 9th place in the includes 8 top managers of the Bank, and motivation of employees. Russian banking community with who supervise the main business regard to information transparency. areas, risks, operations and finances. The compensation package and Absolut Bank’s social policy provide In 2006, based on IFC’s Personnel for a market wage level, a powerful recommendation the Bank has bonus system linked to personal adopted new version of the Charter The strategy of the Bank is aimed results and convenient social pack- and bylaws for the governing at the formation and development age for Bank employees of all levels. bodies of the Bank, introduced the post of corporate secretary Number of employees (persons) in the Board of Directors of the Bank and established the HR and 1500 1416 Remunerations Committee.
Today, the man principles of the 1000 854 Bank’s activity are manageability, efficiency and professionalism of 554 500 460 the top management. Sharing of 395 responsibility among the top manag- ers ensures strict control and deci- sion-making at all governance levels. 0 2002 2003 2004 2005 2006 1 100 101 10 10 01 10 001 01 11 00 010 01 01 0 11 10 00 1 00 11 100 11 00 101 00 10 10 01 00 10 0 10 01 1 10 00 10 00 0 1 01 011 00 01 00 01 1 10 01 01 01 0 00 11 0 00 01 00 01 11 1 0 11 10 0 0 1 0 01 1 00 01 00 01 10 1 10 01 01 0 1 0 0 1 0 00 0 0 01 1 1 0 01 0 01 0 1 1 0 11 10 0 0 00 11 0 01 1 1 0 0 00 01 1 10 1 10 01 01 0 0 1 0 0 1 0 0 00 0 0 01 1 1 1 0 01 0 01 0 0 1 1 0 11 10 0 0 0 00 11 0 01 1 1 1 0 0 00 01 1 1 10 1 10 01 01 0 0 0 1 0 0 1 0 0 0 00 0 0 01 24 HOURS A DAY 1 1 1 1 0 01 0 01 0 0 0 1 1 0 11 10 0 0 0 0 00 11 00 01 0 1 1 1 0 0 0 01 1 1 1 10 1 10 01 01 1 0 0 0 1 0 0 1 0 0 0 0 00 0 0 01 1 1 1 1 1 0 01 0 01 1 0 0 0 1 1 0 11 10 1 0 0 0 0 00 11 0 01 0 0 1 1 1 0 0 00 01 1 1 1 1 10 1 10 01 01 0 1 0 0 0 01 0 0 1 1 0 0 0 0 0 0 10 01 1 0 1 1 1 1 1 10 0 10 00 1 1 0 0 0 1 0 0 1 11 1 1 0 0 0 0 0 11 00 0 1 0 0 1 1 1 0 0 0 01 1 1 1 1 0 1 0 1 1 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 10 01 1 0 1 1 1 1 1 0 0 10 0 1 1 0 0 0 1 01 10 1 0 1 1 0 0 0 0 1 0 0 0 0 1 1 1 00 0 00 1 1 1 1 1 1 0 1 0 1 0 1 0 1 1 0 1 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 1 1 1 1 0 0 0 1 0 0 0 0 1 1 1 0 1 1 1 0 0 1 0 10 0 1 1 0 0 0 0 0 1 0 0 0 1 1 1 0 01 0 1 1 1 1 1 1 0 1 0 0 1 0 0 1 0 0 1 1 1 0 0 0 0 0 0 0 0 1 1 0 0 0 0 1 0 0 1 1 1 1 0 0 0 1 0 0 1 1 1 0 1 0 0 1 0 0 1 1 1 0 0 0 0 7 DAYS0 A WEEK0 0 0 1 1 1 0 0 1 1 1 1 1 0 1 52 WEEKS A YEAR 1 0 0 1 0 1 1 1 0 1 0 0 0 0 0 1 0 0 0 0 0 0 1 1 1 1 1 0 0 1 0 0 0 1 1 0 1 1 1 0 0 0 1 1 0 0 1 1 0 0 0 0 0 1 0 0 0 1 1 0 0 1 1 1 0 0 1 1 0 1 1 1 1 0 1 0 1 0 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 0 0 1 1 1 1 0 0 1 0 0 1 0 1 1 0 1 0 0 0 1 0 1 1 1 0 0 0 0 1 0 0 1 1 0 0 0 1 1 1 1 1 0 1 0 0 0 1 0 1 0 0 1 0 0 0 0 0 1 0 0 0 1 0 1 1 1 1 1 0 1 0 0 0 0 1 0 0 1 1 1 0 0 1 0 0 1 0 0 1 0 1 1 0 0 0 0 1 0 1 0 0 0 1 1 1 1 1 0 1 0 0 1 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 1 0 0 1 1 1 1 1 0 0 1 0 0 1 1 0 1 0 0 0 0 1 1 1 43,200 MINUTES 1 1 0 0 0 0 0 0 0 0 1 1 0 1 0 1 1 1 A MONTH 0 1 0 1 0 0 1 0 1 0 0 0 1 0 0 0 1 0 0 1 0 1 1 1 0 0 1 0 0 1 1 0 1 0 1 1 0 0 0 1 0 0 1 0 1 1 1 1 1 0 0 0 0 1 0 0 0 1 0 1 0 1 1 0 1 0 0 1 0 0 0 1 0 0 1 0 0 1 0 0 0 1 0 1 0 1 1 1 0 0 1 0 0 0 1 1 0 0 1 0 0 0 1 1 0 0 0 1 0 1 1 1 1 0 0 0 1 1 0 0 0 1 1 0 1 0 1 1 0 0 0 0 1 0 1 0 1 0 0 0 0 0 1 0 0 0 1 0 1 0 1 1 0 1 0 1 0 1 0 0 1 0 0 1 0 0 0 1 0 0 0 1 0 1 1 0 1 0 0 0 0 1 1 0 0 0 1 0 1 0 1 1 0 1 0 0 0 1 1 0 0 1 0 0 0 1 1 0 0 0 0 1 0 1 1 0 0 1 0 1 0 1 1 0 1 0 0 1 0 0 0 1 0 1 0 1 0 1 1 1 0 1 1 0 0 0 0 0 1 0 0 0 0 1 1 0 1 0 1 0 0 1 0 1 1 0 0 1 0 0 0 0 1 0 0 0 1 0 1 0 1 0 1 1 1 1 1 0 0 1 0 0 0 1 1 0 0 0 0 0 1 0 1 1 1 0 0 1 1 1 1 0 0 0 0 1 0 1 0 1 1 1 0 0 0 1 0 0 1 0 0 1 0 0 1 0 1 0 0 0 0 0 1 1 0 1 1 1 0 1 1 0 1 0 0 1 0 1 0 1 0 0 0 0 0 1 0 1 1 1 0 1 1 1 1 0 0 0 0 0 0 1 0 1 1 1 1 0 0 0 1 1 0 1 0 0 1 0 0 1 0 1 0 0 0 0 1 0 1 0 0 1 1 1 0 1 1 0 0 1 0 1 0 0 0 0 0 0 1 0 1 1 0 1 1 1 1 1 0 0 0 0 1 0 1 0 0 1 1 0 1 1 0 1 0 0 1 0 0 1 0 1 0 1 0 1 1 0 0 0 0 0 1 0 1 0 0 1 1 1 0 1 1 0 0 1 0 0 0 1 0 1 0 0 0 0 1 0 1 0 1 1 0 1 0 1 1 1 1 0 0 0 0 1 0 1 0 0 1 1 1 0 0 0 1 0 1 0 0 1 1 0 1 1 0 1 1 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 1 0 0 0 1 0 1 0 0 0 1 0 1 0 1 0 1 1 0 1 0 0 1 1 1 1 0 0 0 0 1 0 0 0 0 1 1 1 0 0 0 1 0 1 1 0 0 1 1 1 0 0 1 0 1 0 0 0 1 0 0 0 0 0 1 1 1 1 0 0 0 0 1 0 0 0 0 1 1 0 1 1 0 1 1 1 1 0 1 0 1 0 0 0 0 1 0 1 0 0 0 1 0 1 0 0 0 0 1 1 1 0 1 1 1 0 1 0 1 0 1 0 1 0 0 0 0 1 0 1 0 1 0 1 1 0 0 0 0 1 1 0 0 0 0 1 0 0 0 0 1 1 1 0 1 0 1 1 0 0 1 0 1 0 1 1 1 0 0 0 0 0 0 1 01 0 0 0 0 1 1 0 1 0 1 1 1 0 1 0 1 1 0 1 1 0 1 1 0 0 0 0 1 10 0 0 0 0 1 1 0 1 0 0 0 0 0 1 0 0 1 0 10 1 1 1 0 1 0 0 1 1 1 0 1 1 0 0 0 0 0 0 0 0 1 0 11 1 0 0 0 1 1 0 1 0 0 1 0 0 0 1 0 1 0 10 1 1 1 1 0 0 1 1 1 0 0 1 0 1 0 00 0 1 0 0 0 0 1 1 0 0 0 0 0 0 1 0 0 1 1 1 1 1 0 1 1 1 0 0 1 1 1 0 1 10 0 0 0 0 0 0 0 1 11 11 1 0 00 0 0 1 1 0 10 0 00 1 1 1 0 1 0 1 10 10 1 1 0 1 1 0 0 0 0 0 1 10 0 0 0 0 1 1 1 00 00 0 0 0 0 1 0 0 11 01 1 1 1 0 1 0 1 LAUNCHED OF THE PROJECT ON THE SELLING UP 10 0 00 01 0 1 0 0 1 1 1 1 0 0 0 0 1 1 01 01 0 1 0 0 0 1 0 01 0 10 1 1 1 1 0 OF INTERNAL PROCESSING CENTER 01 01 1 0 0 1 0 0 1 0 0 1 00 0 0 0 1 10 10 10 1 0 0 1 0 01 0 0 1 01 1 1 0 1 10 0 0 0 0 0 0 CONTRACT WITH IBM CONCLUDED 11 1 1 0 0 0 0 1 10 0 00 1 1 1 0 1 0 10 1 1 0 1 1 0 01 0 1 10 0 0 0 0 ON BUSINESS PROCESSES OPTIMIZATION 1 00 00 0 0 0 0 1 11 1 1 1 1 0 1 0 00 00 1 0 1 0 11 1 1 00 0 0 0 01 01 0 1 0 0 0 2 AUTONOMOUS IT-SYSTEM AUDITS 01 0 0 1 1 1 1 1 01 11 0 0 1 0 10 0 0 1 0 0 0 10 10 10 0 0 0 01 0 0 11 1 1 11 10 0 0 00 0 01 01 01 0 0 0 01 0 10 11 1 1 01 01 1 0 00 1 1 00 00 01 0 00 11 1 1 1 1 10 00 00 01 0 11 11 1 0 00 10 00 00 11 1 010 01 11 0 0 1 00 0 1 00 11 10 10 1 10 00 00 01 Dmitry 11 11 01 0 10 00 0 11 010 01 11 0 Larin 1 00 00 01 11 01 01 Deputy Chairman 10 10 0 011 01 01 01 10 10 of the Management 101 00 01 10 10 Board 01 00 111 11 10 00 10 01 10 00 011 111 37
ANNUAL REPORT ABSOLUT BANK Development 2006 of Information Technologies
The growing competition minimized and capable of flexible between the banks increases and rapid adjustment of the the importance of the IT sphere applications. Moreover, the in the banking business. Bank has a customer-oriented software using CRM as the single Absolut Bank is constantly upgrad- point of entry of the customer- ing its IT system in order to provide related information and the data prompt services of the highest of the customer agreements quality to its customers. The and contracts with the Bank. strategy of the Bank provides for an active growth in the number of In 2006, the IT system of the Bank its branches and offices in various was audited twice by independent regions of the country, increase auditors. Based on the audit results in the number of customers of we launched several new projects the Bank in various time zones which will make it possible in the and considerable growth in the near term to improve the quality number of accounts and transac- of the services provided to the tions. The IT infrastructure of customers and divisions of the Bank. the Bank is ready to provide a The Bank is doing its best to use reliable support for these plans. the most up-to-date technological solutions and the best business Our banking system currently performs over practices in the IT sphere. For this purpose the contract with IBM directed to business-processes 120 000 transactions on a daily basis optimization and implementation of advanced banking technologies was concluded in the year 2006. Services on 400 000 accounts have been extended New component business-model of the Bank was developed, plan of system architecture transformation for more than 100 000 customers. was keyed out and changes to key business processes were made The existing system of the in the frame of this project. Bank is ready to support the planned pace of the growth in Another important project launched the customer base for 3 years. by the Bank in September 2006 provides for the establishment of The IT system of Absolute Bank the Bank’s own processing center, is oriented to the development of which is to be commissioned in the retail business and regional September 2007. In December expansion, making it possible to 2006 Absolut Bank set about operate in different time zones 24 the establishment of a new hours a day, 7 days a week. Absolut technological centre, which will Bank has a fully centralized and take in IT, reporting and back- easily scalable IT infrastructure, office departments as well as a new allowing its maintenance costs reserve data-centre and processing in the regional network to be centre of the Bank by summer 2007. Financial 38 Statements
From 2000, the auditor of Absolut Bank is Price Waterhouse Coopers, a major international auditing company.
The Bank prepares its reports in accordance with the Russian standards (RAS) and international standards (IAS) and promptly makes them available to the leading news agencies and business media. All topical reports are regularly published on the Bank’s corporate website and circulated to partners over the RSS distribution channels.
To the Board of Directors making accounting estimates that but not for the purpose of expressing of Absolut Bank Group: are reasonable in the circumstances. an opinion on the effectiveness of the entity’s internal control. An audit We have audited the accompanying Auditor’s Responsibility also includes evaluating the appro- consolidated financial statements priateness of accounting policies used of Absolut Bank and itssubsidiaries Our responsibility is to express and the reasonableness of accounting (the «Group») which comprise the an opinion on these consolidated estimates made by management, as consolidated balance sheet as of financial statements based on our well as evaluating the overall presen- 31 December 2006 and the consoli- audit. We conducted our audit tation of the financial statements. dated income statement, consoli- in accordance with International dated statement of changes in equity Standards on Auditing. Those We believe that the audit evidence and consolidated statement of cash Standards require that we comply we have obtained is sufficient flows for the year then ended and a with ethical requirements and plan and appropriate to provide a summary of significant accounting and perform the audit to obtain basis for our audit opinion. policies and other explanatory notes. reasonable assurance whether the financial statements are free Opinion Management’s Responsibility from material misstatement. for the Financial Statements In our opinion, the accompanying An audit involves performing proce- consolidated financial statements Management is responsible for the dures to obtain audit evidence about give a true and fair view of the preparation and fair presentation the amounts and disclosures in the financial position of the Group as of these consolidated financial financial statements. The procedures of 31 December 2006, and of its statements in accordance with the selected depend on the auditor’s financial performance and its cash International Financial Reporting judgment, including the assessment flows for the year then ended in Standards. This responsibility of the risks of material misstatement accordance with the International includes designing, implementing of the financial statements, whether Financial Reporting Standards. and maintaining internal control due to fraud or error, in making those relevant to the preparation and fair risk assessments, the auditor consid- ZAO presentation of financial statements ers internal control relevant to the PRAICEWATERHOUSECOOPERS that are free from material mis- entity’s preparation and fair presen- AUDIT statement, whether due to fraud tation of the financial statements in or error; selecting and applying order to design audit procedures that Moscow, Russian Federation appropriate accounting policies; and are appropriate in the circumstances, 1 March 2007 39
ANNUAL REPORT
ABSOLUT BANK
2006
Absolut Bank Group Consolidated Balance Sheet
(In Thousands of Russian Roubles)
Note 31 December 2006 31 December 2005
ASS e t S Cash and cash equivalents 7 10 996 406 5 003 330 Mandatory cash balances with the Central Bank of the Russian Federation 766 710 325 638 Trading securities 8 6 673 655 1 593 280 Repurchase receivables 8 182 338 Due from other banks 9 2 323 849 1 914 231 Loans and advances to customers 10 42 755 190 17 550 531 Premises, equipment and investment property 11 2 245 792 1 199 671 Software 11 40 203 14 696 Other assets 12 315 208 98 416 Total assets 66 299 351 27 699 793
l i AB i l i t i e S Due to other banks 13 18 890 514 9 508 362 Customer accounts 14 19 925 990 6 945 683 Debt securities in issue 15 18 079 951 7 002 674 Other borrowed funds 16 1 836 405 487 669 Current income tax 72 154 114 516 Deferred tax liability payable 23 107 970 179 229 Other liabilities 17 214 322 63 472 Subordinated debt 18 1 856 291 431 738 Total liabilities 60 983 597 24 733 343
E Q u i t y Share capital 19 1 714 609 1 339 609 Share premium 19 2 060 896 772 096 Revaluation reserve for premises 11 361 475 361 475 Retained earnings 1 178 774 493 270 Total equity 5 315 754 2 966 450
Total liabilities and equity 66 299 351 27 699 793
Approved for issue and signed on behalf of the Board of Directors on 1 March 2007
Nikolay V. Sidorov Olga N. Prigornitskaya Chairman of the Board Chief Accountant 40
Absolut Bank Group Consolidated Balance Sheet
(In Thousands of Russian Roubles)
Note. 2006 2005
Interest income 20 4 491 266 1 852 261 Interest expense 20 (2 617 295) (817 138)
Net interest income 1 873 971 1 035 123 Provision for loan impairment 10 (541 676) (329 164)
Net interest income after provision for loan impairment 1 332 295 705 959 Fee and commission income 21 515 581 366 076 Fee and commission expense 21 (222 118) (162 542) Gains less losses from trading securities 532 392 95 637 Losses net of gains from operations with securities derivatives 27 (195 810) (22) Gains less losses from trading in foreign currencies 151 968 42 313 Foreign exchange translation gains less losses 22 612 55 259 Release of provision for losses on credit related commitments 26 20 691 35 666 Dividend income 12 070 1 318 Other operating income 54 632 22 188 Administrative and other operating expenses 22 (1 311 283) (612 818)
Profit before tax 913 030 549 034 Income tax expense 23 (227 526) (145 100)
Profit for the year 685 504 403 934
Approved for issue and signed on behalf of the Board of Directors on 1 March 2007
Nikolay V. Sidorov Olga N. Prigornitskaya Chairman of the Board Chief Accountant 41
ANNUAL REPORT
ABSOLUT BANK
2006 note: MOSCOW STERLITAMAK 127051, Tsvetnoy Bld. 18 453101, Mira St., 1-B (495) 777-71-71 YEKATERINBURG 127051, M. Sukharevsky, 7 620026, Belinskogo St., 61 (495) 995-10-01 (343) 228-30-87 125284, Leningradsky Av, 33, building 3 KAZAN (495) 945-94-39 420111, Ostrovskogo, 14 107082 Bakuninskaya St., 23 / 41 (843) 294-55-55 (495) 265-78-09 CHELYABINSK 119415, Leninsky Av, 108, building 1 454000, Lenina Av, 52-А (495) 777-71-66 (351) 247-29-15 113623, Yuzhnobutovskaya St., 61 PERM (499) 793-26-45 614000, Lenina St., 60 109652, Lublinskaya St., 165 (342) 220-94-61 (495) 722-29-51 SAMARA 107113, Sokolnicheskaya Sq, 4, building 1-2 443010, Chapaevskaya St., 212, 16 (495) 268-81-22 (846) 332-22-17 105064, Zemlyanoy Val, 18-22 443010, Vilonovskaya St., 20 (495) 916-28-37 (846) 276-72-62 117630, Arkhitektora Vlasova St., 57 NIZHNY NOVGOROD 603000, Vorovskogo St., 3 off. № 6 ST. PETERSBURG (831) 296-05-65 197136, Shpalernaya St., 54 TYUMEN (812) 333-32-22 625003, Respubliki St., 14 / 1 193231, Klochkov St., 6, b. 1 (345) 246-69-35 (812) 333-07-11 NOVOSIBIRSK 197224, Bogatyrsky av, 14, av 2 630091, Krasny Av, 77-B (812) 334-83-82 (383) 217-16-44 OMSK VOLGOGRAD 644043, Kommunisticheskaya St., 20 400038, Komsomolskaya St., 6 (381) 223-14-33 (844) 249-33-30 UFA KRASNODAR 450077, Dostoevskogo St.,.100 / 1 350063, Mira St., 25 (347) 292-31-13 (861) 210-99-70 450001, Babushkina St., 25 / 1 (347) 277-86-06 MOSCOW REGION: BALASHIKHA ZELENOGRAD 143900, Sovetskaya St., 2 / 9 124683, Building 1824 (495) 524-41-90 (495) 745-71-16 VIDNOE PODOLSK 142702, Shkolnaya St., 60 142100, Rabochaya St., 2 / 40 (498) 547-02-76 (276) 9-44-44 142702, Sovetskaya St., 23 KOROLEV (495) 220-12-51 141070, Tsiolkovskogo, 27, building 2 NARO-FOMINSK (496) 777-71-59 143310, Marshala Zhukova St., 3 LYUBERTSY (234) 3-16-99 140000, Krasnaya St, 4 (496) 229-00-31 142784, Leninsky region, Moskovsky, 24 DOLGOPRUDNY Autosalon Volvo Car City 141707, Lishachevskoe av, 14, 1, № 7 (498) 547-03-02 (498) 584-00-98 ODINTSOVO 143005, Molodezhnaya St., 48 (495) 540-25-55 SCHELKOVO 141102, Proletarsky av, 7-А, b. 1 (495) 777-71-71, 52-690 MYTYSCHY 141018, Novomytyschinsky St., 76 (496) 220-09-18 141006, Sharapovsky St., 2 (496) 225-21-13 PUSHKINO 141205, Moscovsky Av, 44, b. 4/1 (496) 580-00-08 KHIMKI 141400, Yubileiny Av, 9 / 1 (795) 777-71-57 DMITROV 141800, Professionalnaya St.,3 (222) 46-074 design: wowhouse 2007