Address of the Chairman of the Bank

Dear stockholders, partners and customers of our Bank,

Let me represent to you the Annual Report of the JSCB “Energobank” for year 2012. Our progress shows that the year passed has been another successful stage of our Bank’s development. Due to our good financial performance and dynamism, the Expert RA rating agency raised the solvency rating of JSCB “Energobank” to level “A” – High Solvency Rating. This allows us to face the future with confidence and to plan the further development of all our main activities. Despite moderately negative situation of the Russian economy in 2012, the Bank met its targets decently, strengthened its position on financial markets, and enhanced the efficiency of its activities, which found its expression in increasing its profit by 23.3%. As before, the Bank is interested in developing each customer’s business, it acts as a reliable partner, a financial advisor, by offering banking products that optimally meet the customer’s business development targets. The Bank’s main strategic goal is the further development of corporate and retail businesses, the retention and brisk growth of branch network within and outside of the Republic of . In prospect, the Bank is planning to broaden the credit portfolios of both our corporate and individual customers by increasing credit volumes and extending the product line, to improve the customer servicing quality and the efficiency of business processes due to implementing the new Automated Banking System. We wish every success to our stockholders, customers and business partners and hope for further fruitful collaboration.

D.I. Vagizov Chairman JSCB “Energobank” 2012 ANNUAL REPORT ANNUAL REPORT 2012

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General Information about the Bank JSCB “Energobank” has been participating in the obligatory deposit insurance schemes since 2005. Full business name: The above is confirmed by the Certificate No. 843 dated July 28, 2005. Joint-Stock Commercial Bank “Energobank” Auditor’s Details: Abbreviated name: For the Russian and international financial reporting standards: JSCB “Energobank” Limited Liability Company “Sredne-Volzhskoye ekspertnoye buro” The Bank was founded: Location: 60 Vosstaniya str., 420039, , Republic of Tatarstan, . On March 2, 1989; CB RF License No. 67 Tel./fax: +7 (843) 555-69-92, e-mail: [email protected] State registration: State Registration Certificate # 2744/Yu-K dated July 2, 1999, issued by the State Location and postal address: Registration Chamber of the Ministry of Justice of the Republic of Tatarstan (Kazan Office #1); The Bank’s registered head office is located at: 32 Sary Sadikovoy str., 420021 Kazan, Republic of Tatarstan, Certificate of Record in the Uniform State Register of Legal Entities of the Legal Entity registered prior to Russia. July 1, 2002, primary state registration number 1021603278663, date of recording: November 22, 2002, The Bank does not have any banking facilities. registering authority: Inspection of the Ministry for Taxes and Charges of the Russian Federation for the As of January 1, 2013, along with its head office, the Bank had 13 branches in Kazan and one branch per each Moskovsky District of Kazan. of the following towns: Almetyevsk, , Naberzhniye Chelny, , and one operational office Director’s name: Alexander Nikolayevich Falaleyev within the Volga Federal District (in Cheboksary). The Bank’s Registrar: Certificate of state registration of the company: Limited Liability Company “Yevroaziatsky Registrator” #1021600000289 of August 13, 2002, registration number with the Bank of Russia #67, dated May 21, 1999 Location: 2 Stolbova str., 420021, Kazan, Republic of Tatarstan, Russia. Address: POB 238, 420021, Kazan, Republic of Tatarstan, Russia. Web site: www.energobank.ru Tel./fax: +7 (843) 236-93-15 Authorized capital details: Principle State Registration Number: 1021603631224; INN (Taxpayer ID): 1660055801 The Bank’s authorized capital is 2,137,400,000.00 Russian Rubles (RUB). It is divided into 21,374,000 License No. 10-000-1-00332 dated March 10, 2005 registered ordinary shares, the par value of one share is RUB 100.00. Duration of license: without limitations on duration; License issuing authority: Federal Securities Market Commission The Bank performs its activities under the following licenses: Head’s name: Eduard Fanisovich Badretdinov yyLicense for performing banking transactions in Russian Rubles and in foreign currencies; yyLicense of a professional participant of the equity market for performing brokerage The Bank’s Situation in Banking Area and in Ratings: activities; JSCB “Energobank” is one of the most reliable and stably developing banks. Among the Bank’s clients, there yyLicense of a professional participant of the equity market for performing dealing activities; are large and dynamically developing industrial enterprises, trade and construction companies, SMEs, as well yyLicense of a professional participant of the equity market for performing depository as non-incorporated entrepreneurs. The Bank’s basic working principles are our client focus and conformity activities; with market trends. The Bank’s activities are based on establishing long-term partner relationships with its yyLicense for performing activities using National Security Information; customers, customization of services, development of banking service systems, rendering real assistance yyLicense for providing information encryption services; to its customers, including consulting them in order to help them perform their economic activities. The yyLicense for distribution of cryptographic facilities; most important criterion of Energobank’s success is its customers’ trust. When working with its customers, yyLicense for cryptographic facilities maintenance. the Bank puts itself the following primary tasks: Providing the highest comfort of the services offered, transparency of all activities, high servicing quality. The Bank’s membership in international payment systems, card schemes, associations, On May 17, 2012, the “Expert RA” Rating Agency raised the Bank’s level to A – “High Solvency Rating”. exchanges: According to the RBC-Rating Agency, the Bank is in the 99th place in the “Top 500 Russian Banks Granting yyCurrency Section of Moscow Interbank Currency Exchange (MICEX); Corporate Loans as of January 1, 2013” rating, and the 4th place among the banks of the Republic of yyAssociation of Russian Banks (ARB); Tatarstan. According to the same Agency, with its 269th place in Russia and the 11th place among regional yyBank Association of Tatarstan (BAT); banks, the Bank was rated among the “Most Profitable and Effective Banks”. In the list of “Top 500 Banks by yySociety for Worldwide Interbank Financial Telecommunications (SWIFT); Loan Portfolio as of January 1, 2013”, JSCB “Energobank” is in the 126th place among the Russia’s and in the yymember in good standing of such payment systems as MasterCard Int, VISA Int, Global rightful fourth place among the Tatarstan’s banks. Payment System (GPS). The Bank’s financial performance gives evidence of its stable position on the market and creates opportunities for efficient solving new, tremendous tasks. 2012 ANNUAL REPORT ANNUAL REPORT 2012

6 7 Bank Management 5. Oleg Radiyevich Kondrashev [Born in 1959.] In 1982, graduated from Kazan S.M. Kirov Chemical-Engineering Institute; Details of the major shareholder possessing more than 1% of voting Starting from 2007 – Deputy Director General on Security at OAO “Edelveis Group”; shares of JSCB “Energobank” Starting from 2008 – Member of the Supervisory Board of JSCB “Energobank”.

Closed Joint Stock Company “Edelveis Corporation”: 6. Venera Yuriyevna Petrushenko [Born in 1951.] yyParticipatory interest: 99.77% of voting shares of the Company; In 1973, graduated from Kazan State V.V. Kuibyshev Finance and Economics Institute. yy OGRN (Principle State Registration Number): 1101690070790, date of state registration: December 20, 2010. Starting from 2007 – Director of Corporate Governance Division at OAO “Edelveis Group”; Address: 11 Pushkina str., Kazan 420111, Russia Starting from 2008 – Member of the Supervisory Board of JSCB “Energobank”; According to the resolution of the Stockholders Meeting, the net profit was completely distributed to the Starting from 2011 – Member of the Board of Directors of OAO “GUM-3”. Bank’s contingency fund, no dividends for year 2011 were paid. 7. Olga Vyacheslavovna Ryazanova [Born in 1978.] In 2000, graduated from Kazan State V.V. Kuibyshev Finance and Economics Institute. Supervisory Board Starting from 2010 – Director of the OOO FPK “Edvos”; Starting from 2010 – Member of the Supervisory Board of JSCB “Energobank”. Information on the composition of the Bank’s Supervisory Board within the reporting year:

Supervisory Board Composition Supervisory Board Composition Members of the Supervisory Board do Bank Management as of December 31, 2011 as of December 31, 2012 not possess any shares in the Bank’s charter capital or any Bank’s ordinary The sole executive authority of the Bank is: Chairman Chairman shares; they have not performed any Dmitry Ilgizovich Vagizov, the Chairman of JSCB “Energobank” Ilshat Nazipovich Khairullin Ilshat Nazipovich Khairullin transactions of purchasing or selling any Members of the Supervisory Board: Members of the Supervisory Board: Bank’s shares within the reporting year. Details of the individuals being the members of the Bank’s collegial Dmitry Ilgizovich Vagizov Dmitry Ilgizovich Vagizov No remunerations were paid to the executive body – its Management (as of December 31, 2012) Nadezhda Yakovlevna Golubeva Nadezhda Yakovlevna Golubeva members of the Supervisory Board for Svetlana Albertovna Koltsova Svetlana Albertovna Koltsova year 2011. 1. Dmitry Ilgizovich Vagizov [Born in 1963.] No resolution on paying any remuneration In 1985, graduated from Moscow Financial Institute. Oleg Radiyevich Kondrashev Oleg Radiyevich Kondrashev to the members of the Supervisory Board Venera Yuriyevna Petrushenko Venera Yuriyevna Petrushenko Starting from 2006 – Chairman of Board of JSCB “Energobank”; for year 2012 has been taken as of the Starting from 2008 – Member of the Supervisory Board of JSCB “Energobank”. Olga Vyacheslavovna Ryazanova Olga Vyacheslavovna Ryazanova date of this annual Report. 2. Anna Vladimirovna Ivanova [Born in 1973.] Members of the Bank’s Supervisory Board (as of December 31, 2012) In 1994, graduated from Kazan State V.V. Kuibyshev Finance and Economics Institute. Starting from 2009: Vice Chairman of the JSCB “Energobank”. 1. Ilshat Nazipovich Khairullin [Born in 1965.] In 1987, graduated from Kazan M. Gorky Agricultural Institute. 3. Rustem Albertovich Ismagilov [Born in 1971.] Starting from 2009 – Chairman of the Supervisory Board of JSCB “Energobank”; In 1993, graduated from Kazan State V.V. Kuibyshev Finance and Economics Institute. Starting from 2009 – Chairman of the Board of Directors of OAO “Agroholding Krasni Vostok”; Starting from 2008 – Treasury Director of JSCB “Energobank”. Starting from 2009 – Chairman of the Board of Directors of ZAO “TK Edelveis”; Starting from 2009 – Chairman of the Board of Directors of PJSC “Hypermarket “Koltso”; 4. Irina Petrovna Konnova [Born in 1964.] Starting from 2010 – Director General of ZAO «Edelveis Corporation». In 1986, graduated from Kazan State V.V. Kuibyshev Finance and Economics Institute. Starting from 2006 – Vice Chairman of JSCB “Energobank”. 2. Dmitry Ilgizovich Vagizov [Born in 1963.] In 1985, graduated from Moscow Financial Institute. 5. Yulia Vladimirovna Sokolova [Born in 1972.] Starting from 2006 – Chairman of Board of JSCB “Energobank”; In 1994, graduated from the Kazan State V.I. Uliyanov-Lenin University. Starting from 2008 – Member of the Supervisory Board of JSCB “Energobank”. Starting from 2006: Vice Chairman for Legal Services in the JSCB “Energobank”.

3. Nadezhda Yakovlevna Golubeva [Born in 1961.] 6. Flura Iskanderovna Yagofarova [Born in 1969.] In 1981, graduated from Moscow Cooperative Institute. In 1991, graduated from Kazan State V.V. Kuibyshev Finance and Economics Institute. Starting from 2007 – Chief Economist of OAO “Edelveis Group”; Starting from 2007 – Chief Accountant at JSCB “Energobank”. Starting from 2008 – Member of the Supervisory Board of JSCB “Energobank”; Starting from 2009 – Member of the Board of Directors of PJSC “Hypermarket “Koltso”. Neither the Chairman nor the members of the Bank’s Management have any shares in the Bank’s charter capital or any Bank’s ordinary shares. They did not make any transactions aimed at acquiring or transferring 4. Svetlana Albertovna Koltsova [Born in 1973.] any stock of the Bank within the reporting year, either. In 1994, graduated from Kazan State V.V. Kuibyshev Finance and Economics Institute. In 2012, the total amount of remunerations paid to the Bank’s Management consisting of 6 members (7 Starting from 2008 – Member of the Supervisory Board of JSCB “Energobank”; members in 2011) made RUB 2,194.5 thousand (vs. RUB 2,393.5 thousand in 2011). 2012 ANNUAL REPORT ANNUAL REPORT 2012

8 9 I.N. Khairullin Data on the Bank’s Observation of the Corporate Code of Conduct 10 50,000,000 OOO «Edelveis-Vostok V» lending 8 (Chairman of the Supervisory Board) In compliance with the best trends in domestic and international banking, a corporate conduct system is OOO «Upravlyayushchaya kompaniya I.N. Khairullin considered by the Bank to be a necessary condition for its successful development, increasing its investment 11 6,251,511 «Energoinvestkapital» issuing a bank guarantee – (Chairman of the Supervisory Board) attractiveness, increasing capitalization. ZAO “Edelveis Corporation” 12 2,413,088 OAO «GUM» issuing a bank guarantee – (shareholder possessing more than 20% of total The corporate conduct system of JSCB “Energobank” is based on effective interaction of all its management votes) bodies – General Stockholders Meeting, Supervisory Board, Board of Directors, and the Chairman, as well as 13 100,000 Anna Vladimirovna Ivanova lending 13 Anna Vladimirovna Ivanova specialized Committees of the Bank. (member of Bank Management) 14 5,000,000 OOO “Energolizing” lending 12 JSCB «Energobank» In performing its activities, the Bank follows the principles and rules stated in the Corporate Code of Conduct Rustem Albertovich Ismagilov approved by the Annual Stockholders Meeting on May 18, 2010. The Code comprises regulations relating 15 74,000 Rustem Albertovich Ismagilov lending 13 (member of Bank Management) to the protection of stockholders’ legal rights and interests, observing which allows the Bank to strengthen Svetlana Albertovna Koltsova its customers’ confidence and increase its investment attractiveness and efficiency of activities performed. 16 150,000 Svetlana Albertovna Koltsova lending 13 (member of the Bank Management and of the Supervisory Board) I.N. Khairullin The priorities of corporate management include measures and activities aimed at: 17 50,000,000 OOO «Edelveis-Vostok V» lending 8 (Chairman of the Supervisory Board) yyProviding efficient control over the Bank’s financial and economic activities in order to protect the ZAO “Edelveis Corporation” stockholders’ legal rights and interests; 18 50,000,000 ZAO “Vodozabor Mirny” renewing the credit agreement 10 (shareholder possessing more than 20% of total Providing transparency of decision making; votes) yy I.N. Khairullin yyDelimiting authorities, issues of competence and accountability among the Bank’s authorities, organizing 19 50,000,000 OOO «Edelveis-Vostok V» lending 8 (Chairman of the Supervisory Board) efficient activities of the Supervisory Board and the Board of Directors of the Bank; ZAO “Edelveis Corporation” yyObserving professional and ethic responsibilities of the Supervisory Board members, the members of 20 100,000,000 ZAO “Edelveis Corporation” issuing a bank guarantee – (shareholder possessing more than 20% of total votes) collegial executive bodies, officers and other employees; I.N. Khairullin yySupporting the high level of transparency (establishing the order and control of timely revealing the 21 50,000,000 OOO «Edelveis-Vostok V» lending 8 (Chairman of the Supervisory Board) comprehensive and reliable information about the Bank); 22 5,700,000 OOO “Energolizing” lending 8 JSCB «Energobank» y Building a well-balanced system of interrelations and preventing conflicts of interests among stockholders, 23 1,600,000 OOO “Energolizing” lending 12 JSCB «Energobank» y 24 1,180,000 OOO “Energolizing” lending 14 JSCB «Energobank» the members of Supervisory Board, executive authorities, officers, creditors, depositors, and other I.N. Khairullin customers or counteragents; 25 50,000,000 OOO «Edelveis-Vostok V» lending 8 (Chairman of the Supervisory Board) yyCompliance with the laws of the Russian Federation and with the Bank’s organizational and internal OOO «Upravlyayushchaya kompaniya I.N. Khairullin 26 2,650,074 «Energoinvestkapital» issuing a bank guarantee – (Chairman of the Supervisory Board) documents. OOO «Upravlyayushchaya kompaniya I.N. Khairullin 27 8,446,826 «Energoinvestkapital» issuing a bank guarantee – (Chairman of the Supervisory Board) OOO «Upravlyayushchaya kompaniya I.N. Khairullin Information on Major Transactions and Interested Party Transactions 28 4,688,786 «Energoinvestkapital» issuing a bank guarantee – (Chairman of the Supervisory Board) List of deals performed by the Bank within the reporting year and considered as major transactions according OOO «Upravlyayushchaya kompaniya I.N. Khairullin 29 3,788,572 «Energoinvestkapital» issuing a bank guarantee – (Chairman of the Supervisory Board) to the Federal Law “On Joint-Stock Companies”, as well as of other deals that should be approved as major OOO «Upravlyayushchaya kompaniya I.N. Khairullin transactions according to the Bank’s Articles. 30 2,508,257 «Energoinvestkapital» issuing a bank guarantee – (Chairman of the Supervisory Board) No major transactions or any deals that should undergo the approval procedures as major transactions I.N. Khairullin 31 5,000,000 – bank deposit 7.5 (Chairman of the Supervisory Board) according to the Bank’s Articles were made by the Bank within the reporting year. I.N. Khairullin Deals performed by the Bank within the reporting year and considered as interested party transactions 32 2,204,742 OAO “Bolshiye Klyari” issuing a bank guarantee – (Chairman of the Supervisory Board) according to the Federal Law “On Joint-Stock Companies”. 33 5,000,000 OOO “Energolizing” lending 13 JSCB «Energobank» Nadezhda Yakovlevna Golubeva In 2012, the Bank’s Supervisory Board approved the following deals that, in compliance with the Federal 34 75,000 Nadezhda Yakovlevna Golubeva lending 13 (member of the Supervisory Board) Law “On Joint-Stock Companies”, were considered as interested party transactions: I.N. Khairullin 35 4,820,613 OOO “Solntsevo Niva” issuing a bank guarantee (Chairman of the Supervisory Board) ZAO “Edelveis Corporation” Transaction Annual Interest 36 50,000,000 ZAO “Vodozabor Mirny” renewing the credit agreement 10 (shareholder possessing more than 20% of total № Amount (RUB) Deal Counterparty Transaction Subject Rate (%) Interested Person votes) 37 10,590,000 OAO “Bolshiye Klyari” lending 9.75 I.N. Khairullin 1 50,000,000 OOO «Edelveis-Vostok V» lending 7.5 I.N. Khairullin (Chairman of the Supervisory Board) (Chairman of the Supervisory Board) I.N. Khairullin OOO «Upravlyayushchaya kompaniya I.N. Khairullin 38 1,167,244,530 OAO “Krasni Vostok Agro” loan security – (Chairman of the Supervisory Board) 2 2,819,230 «Energoinvestkapital» issuing a bank guarantee – (Chairman of the Supervisory Board) ZAO “Edelveis Corporation” 3 11,465,692.87 ZAO “Vodozabor Mirny” issuing a bank guarantee – (shareholder possessing more than 20% of total Amounts of Energy Resources Consumed votes) I.N. Khairullin JSCB “Energobank” consumed the following energy resources in 2012: 4 50,000,000 OOO «Edelveis-Vostok V» lending 8 (Chairman of the Supervisory Board) I.N. Khairullin Resource Amount Cost (RUB) 5 10,143,243 – bank deposit 7.75 (Chairman of the Supervisory Board) I.N. Khairullin Heat Energy (Gcal) 928 1,180,000.00 6 10,143,243 OOO «Makulovo-V» pledging of receivables – (Chairman of the Supervisory Board) Electric Energy (kW/h) 395,868 1,916,000.00 I.N. Khairullin Natural Gas (thousands of m3) 3 13,500.00 7 50,000,000 OOO «Edelveis-Vostok V» lending 8 (Chairman of the Supervisory Board) Water Supply (m3) 2,571 72,000.00 8 150,000 Irina Petrovna Konnova lending 15,5 Irina Petrovna Konnova (member of Bank Management) Motor Gasoline (liters) 108,193 2,888,477.00 Irina Petrovna Konnova 9 300,000 Irina Petrovna Konnova lending 12 (member of Bank Management) Diesel Fuel (liters) – – 2012 ANNUAL REPORT ANNUAL REPORT 2012

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Financial Performance of the Bank Assets

Main financial results: In 2012, the assets decreased by 1.2 % and reached RUB 13,711.0 million. The Bank’s financial results in 2012 demonstrate persuasively the successive development of the Bank in accordance with the intended strategic objectives. Keeping our reputation as a reliable bank, consolidating the positive dynamics in our development and our stand in the banking system, actively interacting with our customers, we managed to achieve good results: yyThe Bank’s assets decreased by RUB 167.8 million, or 1.2 %, and reached RUB 13,711.0 million; yyThe Bank’s own funds increased by 2.5 % and made RUB 3,278.8 million; yyAs of the end of 2012, our net lending receivables decreased by 3.7 %, or by RUB 449.4 million, and made RUB 11,637.4 million; yyMonetary assets attracted into the deposits from the population as of the end of the reporting year made RUB 5,251.1 million, which is RUB 0.417 million, or 7.4 %, lower than that of the preceding year; yyNet profit received by the Bank within year 2012 made RUB 77.7 million, which is 23.3% higher than that of the preceding year.

2012 2011 Changes Assets, RUB millions 13,711.0 13,878.8 -1.2% Own Funds*, RUB millions 3,278.8 3,199.8 +2.5% Credit Portfolio, RUB millions 11,637.4 12,086.8 -3.7% Customers’ Assets, RUB millions 10,837.6 10,805.4 +0,3% Liabilities, RUB millions 10,929.2 11,174.5 -2,2% Profit, RUB millions 77.7 63.0 +23,3% Capital Adequacy, Н1, % 23% 21.8 % +1.1 points Return on Assets, ROA, % 0.63% 0.49 % +0.14 points Return on Equity, ROE, % 2.37% 1.97 % +0.40 points Income on Assets, % 122.03% 79.2 % +42.84%

* According to the Instructions of the Bank of Russia No.215-П dated February 10, 2003.

In the asset profile of the Bank, its advances portfolio is still the major asset and makes 84.9 % of the total amount of assets. The main part of the Bank’s advances portfolio is constituted of loans granted to corporate customers and makes 97.9%. At the same time, the growth rate of consumer credit portfolio made 17.0%, or RUB 193 million. Within the reporting year, the investments into securities decreased by RUB 104.7 million, or 13.3%, and made RUB 680.6 million. In the asset profile of the Bank, the share of liquid assets made RUB 2,346.4 million, or 17.1%, as of January 1, 2013. The amount of the liquid assets satisfies the general liquidity level necessary to execute all the Bank’s obligations to its customers. 2012 ANNUAL REPORT ANNUAL REPORT 2012

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Liabilities Own Funds

Within 2012, the Bank’s liabilities decreased by 2.2 % and made RUB 10,929.2 million. Regarding the results of 2012, the capital of JSCB “Energobank” (calculated in accordance with the

RUB 79.0 million. The share of the authorized capital in the own funds profile makes 65.2%. The share of the Instructionscontingency offunds the withinCB RF No. the 215-П)own funds made profile RUB 3,278.8increased million, from 13.8%which exceedsto 15.4%. the preceding year’s level by

The main part of the borrowed funds profile is the money of legal entities and individuals (99.2%). Within the reporting year, the balances of the legal entities’ accounts increased by RUB 449.8 million; their share in the total amount of liabilities having made 51.1%. The amount of population’s funds decreased by 7.4% within the year and made 48.0% of the total amount of the Bank’s liabilities as of January 1, 2013. 2012 ANNUAL REPORT ANNUAL REPORT 2012

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Main Directions in the Bank Development The Bank offered attractive credit provisions for all categories of borrowers. Neither customers having positive credit histories with other banks nor those having opened deposits or receiving their salaries on Regional Development the bank cards emitted by JSCB “Energobank” were neglected. For this group of customers, the Bank offers As of January 1, 2013, the regional network of JSCB “Energobank” is represented by 19 branches: Along more favorable credit provisions expressed in both the interest rates and the list of necessary documents to with its central office, the Bank has 13 branches in Kazan, one branch in each of the towns of Almetyevsk, be submitted. Bugulma, Naberezhniye Chelny, Nizhnekamsk, and one operational office in Cheboksary. To accelerate the decision making and minimize risks, the Bank collaborates with the “Obyedinennoye buro All branches of the Bank are universal and provide the full range of bank services, such as providing legal kreditnykh istoriy” (Credit Bureau), one of the industry leaders on the Russian market. entities and individuals with the full range of cash and settlement services, including consumer loans. The Within the reporting period, the Bank has processed about 6.2 thousand applications for loans of various operations of branches are scheduled considering the customers’ needs: They operate up to 20 hours on types, which is 1.2 thousand applications more than in 2011. Of the total amount of applications accepted week days and up to 15 hours on Saturdays. The branches service for customers in the no-dinner-hours by the Bank, 59% were for contingency loans, 28% for auto loans, 9% for overdrafts, and 4% for mortgages. mode. In 2012, the portfolio of loans granted by the Bank to individuals increased by 17% and made RUB 1,324 Branches located in the city center, such as offices in TK “Koltso” and TC “GUM”, service for our customers million. Like in all preceding years, consumers were credited in both the Bank’s main office and in all branch/ seven days a week, within working hours of the trading centers. operational offices located on the territories of the Republic of Tatarstan and the Chuvash Republic. 38% of Within the framework of the Bank’s development policy, as well as for the purpose of bringing the banking all contracts executed fall within the Bank’s regional branches, and 62% fall within Kazan offices. services more in line with the customers’ needs and creating most favorable service conditions, we have completed the work on arranging a branch in the town of Zelenodolsk. RUB millions The Bank’s offices service for 5,624 accounts of individual customers and legal entities, which is 78% of January 1, 2013 January 1, 2012 all accounts supported. 89% of customers’ average chronological balances in RUB are concentrated on the Amount % Amount % branch customers’ deposit accounts. The average chronological balances on the customers’ ruble accounts increased by 27% as compared to the preceding year. Consumer Credit Portfolio 1,324 100 1,132 100 As of January 1, 2013, 34,471 individuals’ deposits in Russian rubles were opened in the Bank’s offices, including: which makes 99 % of the total amount of deposits opened. In 2012, the amount of individuals’ deposits Auto Loans 425 32.1 340 30.0 increased by 2,115 accounts, or 106.6 %. As of January 1, 2013, average chronological balances on the Contingency Loans 570 43.1 541 47.8 ruble accounts in the Bank’s offices made RUB 192.4 milliard, or 38.6 % of the total amount of the average chronological balances in the Bank as a whole. The largest share of the balances on the individuals’ accounts Mortgage 322 24.3 247 21.8 is concentrated in the branches located in Fuchika str. and in Maksimova str. in Kazan. Other Consumer Loans 7 0.5 4 0.4 97% of the Bank’s total portfolio of consumer loans granted fall to the share of its branches and operational office, which 24% exceeds the preceding year’s level. A significant growth in the volumes of consumer loans and auto loans was achieved in the branches located in Almetyevsk, Naberezhniye Chelny and at 14b The loan portfolio profile has changed insignificantly. Like within the preceding reporting period, the Kirpichnikova str. in Kazan; as of January 1, 2013, their credit portfolio made RUB 147,222 thousand, RUB individuals’ credit portfolio was mainly concentrated on cash loans (contingency). A significant growth was 136,805 thousand, and RUB 66,031 thousand, respectively. observed for this portfolio (5.4%). The amount of contingency loans granted by the Bank within year 2012 exceeded 1 thousand. As compared to year 2011, the amount of auto loans demonstrated a good growth. The volume of this portfolio Retail Business Development demonstrated a negative trend in 2011, but it actively grew in 2012 (+25%). Almost 2,100 customers of the Granting credits to individuals Bank participated in auto loan programs in 2012, buying new modern cars. In the reporting year, as in preceding years, the Bank adhered to a conservative policy. The Bank strictly Year 2012 was also favourable for the mortgage market High rates of construction, economic stability within followed the standards of issuing credits during the entire reporting year, which allowed it to form a high- the region, governmental support for families having children – all this stimulates people to improve their quality advances portfolio. Each decision of granting a loan was taken on the basis of thorough assessment of housing conditions using mortgage lending services. In 2012, almost 135 families used mortgage crediting a customer’s credit worthiness, his/her financial standing, ability to pay, loan repayment guarantee methods, programs offered by JSCB “Energobank”, having improved their housing conditions, which resulted in the his/her credit history at JSCB “Energobank” or in other lending agencies, as received from the Credit Bureau. 30.4%-growth of this portfolio. For the entire reporting year, the Bank had been working on improving the provisions of credit products As in preceding years, the Bank uses its own mortgage programs, which allows us to approach to solving our offered, in order to cover all categories of borrowers and offer them optimal credit conditions according to customers’ tasks more promptly and individually, and still offers them mortgage credits for both buying and their abilities. repairing private premises and purchasing commercial real estate. 2012 ANNUAL REPORT ANNUAL REPORT 2012

16 17 Currently, the mortgage product line covers all market segments and allows us to meet the most diverse Moreover, in order to provide the Bank’s customers with optional services, the remote banking system has needs of our customers. The Bank’s own mortgage lending programs contribute to this. been implemented that allows perform bank transfers to any targets, pay taxes, fees and penalties, make The share of mortgage credits within the total volume of the Bank’s portfolio for individuals makes 24.23%. other payments to the budget of the Russian Federation, pay for services, such as mobile telephony and The share of debts overdue for over 90 days is 1.5% of the mortgage lending portfolio. city telephone networking, Internet, commercial TV, public facilities, etc., book and pay for flight tickets receiving electronic tickets, transfer money to VISA or MasterCard issued by any Russian bank – all this In 2013, the Bank is planning to continue increasing the volumes of granting mortgage loans due to longer using any PC or a mobile device. crediting terms and more active promotion of mortgage products in the Bank’s branches. One of the most important and solvable tasks of the Bank in servicing for the holders of bank cards is A large product line, comfortable loan maturities, and the high quality of customer services will allow us to improving the terminal network. As of the end of the reporting period, the Bank installed and operated 22 significantly increase the mortgage lending portfolio by the end of 2013. own ATMs in the most popular parts of the city. The Bank aims at making its customer servicing most convenient and comfortable. Thus, we implemented and are currently using a number of remote services available at the Bank’s website. Today, any Internet user Deposits, money transfers, and payments can study the credit terms and conditions, calculate comfortable payments and submit a loan application to be considered within the shortest time, all this without leaving home. To improve the mood of our Borrowers Attracting private customers’ funds into deposits is one of the main activities of the Bank. and manifest our engagement, the Bank continuously carries out various actions that allow customers to get Within the framework of the Development Strategy declared for year 2012, continuously analyzing the additional and desirable prizes while solving their financial problems. market of attracting individuals’ resources, the Bank improves and extends the existing conditions for deposits, and introduces the new ones. As of today, a wide range of deposits in Russian rubles and in foreign currencies, such as USD or EUR, has been created, which allows all categories of customers to allocate their Bank cards money under terms and interest rates acceptable for them. Technology development forges ahead. Banking services become more and more remote every year, In the reporting year, the Bank followed its conservative policies and did not increase deposit interest rates because it is a convenient and modern method of managing financial flows through various communication holding them at an acceptable level. The current rates did not allow the Bank to raise the deposit portfolio channels. One of its tools is, unconditionally, the bank card that allows customers to withdraw from their and keep those customers who, in their pursuit of high profits, did not pay attention to the reputation of accounts through ATMs and pay for goods they purchase in shops, buy flight tickets using Internet, etc. This some lending agencies. Due to this, in the reporting year, the volume of funds attracted to deposits decreased is why we pay special attention to this area of activities. In 2012, for the purpose of expanding the bank card insignificantly and made, as of January 1, 2013, RUB 5,105.5 million (without taking into consideration the servicing network, the Bank joined the Global Payment System (GPS). Joining GPS allows the holders of JSCB balances on bank card accounts). Although the volumetric indicators decreased, the number of depositors “Energobank”’s cards to withdraw money from their accounts or perform other operations without being did not fall, but even grew by 6% and made over 36 thousand people. charged by the Bank at any ATMs of the banks belonging to this system (23,000 locations throughout Russia In order to expand its base of customers and the range of services provided to individuals, the Bank actively and 1,450 locations in the Republic of Tatarstan). uses and offers to its customers money transfers to be performed without opening an account, within such The Bank actively worked on offering legal entities and sole traders to perform salary payments using the systems as Zolotaya korona, Western Union, Migom, Unistream, Blizko, Caspian Money Transfer. Bank’s cards. The work accomplished allowed us to execute 58 contracts of this category. As of the end of the reporting period, the number of valid (active) cards exceeded 13,750. Along with individuals’ bank card, the Bank proactively promotes corporate bank cards, the amount of Corporate Business Crediting which increases year upon year. Year 2012 became another successful stage in the Bank’s corporate business development. The corporate portfolio grew due to both attracting new customers to crediting and simultaneously to settlement and cash In 2012, the balances on the bank card accounts increased insignificantly and made over RUB 142 million as services and to increasing the credit amounts for the customers that have already established long-term of the end of the reporting period. partnerships with the Bank. A flexible individual approach to each corporate customer in combination with The Bank is a member of payment systems Visa and MasterCard, which allows us to offer our customers quick decision making, as well as large experience gained in operating in the local market and offering, a wide range of cards within these systems – from very simple electronic cards through premium cards. along with crediting, the full range of bank services under attractive conditions enable the Bank to continue Competitive rates and the extensive network of optional services allow our customers to make a right choice increasing its portfolio of corporate customers. and opt for JSCB “Energobank”. As of January, 2013, the credit portfolio of the corporate borrowers of JSCB “Energobank” reached RUB yyServices most demanded by bank card holders are: 13,424 million. yyOverdraft on the bank card account, in case of insufficient or no funds on the account; In 2012, the Bank granted credits to 209 customers from various economy sectors, making the total amount yyInforming via SMS, which allows customers to be informed about their bank card balances and notified of RUB 18,812.5 million, which is 8.8% higher than in 2011. The ratio of credits granted to corporate about all operations with the card in the real-time mode; customers in the total amount of credits granted by the Bank in 2011 made 95%. yyOpportunity to get interest on the bank card account balance and on a fixed-period deposit to the bank In 2012, the Bank continued the successful development of factoring services. The size of the Bank’s factoring card account. portfolio increased by 146%, the total volume of debts assigned to the Bank exceeded RUB 72.4 million. In the reporting year, the Bank continued working on improving the customer service providing technology, In the sectoral profile of the corporate credit portfolio, agriculture was still the prevailing sector for using the Bank’s ATM network. Along with conventional operations, such as cash disbursement and informing allocating funds, the share of which credits was kept at the level of year 2011, i.e. 54%. 26.4% fell within about the balances, the following services are provided through the Bank’s ATMs: currency exchange, adding trade companies. The share of credits granted to manufacturing enterprises increased by RUB 257 million money to the bank card account, paying for mobile network operators’ services, informing customers about – from 4% up to 6%. The share of credits granted to construction and building doubled – the enterprises of new banking products and services. the Unistroi holding and OOO Premium City were funded by credits. 2012 ANNUAL REPORT ANNUAL REPORT 2012

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In 2012, the Bank funded the following important projects: For 2013, we are planning to raise the corporate customers credit portfolio, retaining our conservative yyConstruction of the 4-storeyed trading and office center with the total area of 8,000 sqm and a parking for approach to risk management and diversity of the sectoral structure. A long experience in interacting with 145 cars at 62 Zhurnalistov str. in Kazan. To implement the project, the Bank opened credit lines with the the Customers from various areas, understanding the specificity of the business and of the Customer’s total amount of RUB 183,000 thousand. The project is planned to be commissioned in June, 2013; needs, ability to work with different forms of collaterals, flexibility of deal conditions, quick decision making and permanent improving of the banking service model – all this is a basis for a long-term and mutually yyConstruction of auto center Infiniti with the total area of 1693.6 sqm at 220 Pobedy Ave. in Kazan. In 2012, profitable collaboration of the Bank and the Customer and allows us to make optimistic plans for the next the credits of the total amount of RUB 79,047 thousand were granted to OOO “EkoTekhServis”. The auto year’s corporate crediting. center was opened in December, 2012. In 2012, the main focus was on crediting small and medium-sized enterprises. SMEs were granted with 361 credits with the total amount of RUB 12,503.7 million, which is 18% more than that in the preceding year. As of January 1, 2013, the volume of the SME credit portfolio made RUB 10, 303.3 million, increased by 101.4% as compared to the same as of January 1, 2012. 2012 ANNUAL REPORT ANNUAL REPORT 2012

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Operations on financial Markets Information Technology Development As of the end of the reporting year, the share of investments into securities within the Using and developing modern information technology allows the Bank to comply with certain standards and Bank’s assets made 3.92%, or RUB 680,580 thousand, of which: keep up, providing the customers with high-quality and convenient services, optimizing banking workflows, yystock – RUB 51,462 thousand; increasing the quality and productivity. yycorporate bonds – RUB 252,335 thousand; The following tasks performed in 2012 should be noted here: yyFederal Loan Bonds – RUB 376,783 thousand. yySuccessfully passed the Federal Law No. 152-FZ compliance assessment conducted by the Russian Federal In 2012, the Bank issued its own notes. The amount of funds attracted due to the notes issued made RUB Supervision Agency for Information Technologies and Communications (Roskomnadzor); 859,630 thousand. Most of them were interest-bearing notes. yyImplemented additional security tools (e-Token) for the customers using the Remote Banking system and The dividend yield from security portfolio made RUB 2,602 thousand. the service named Tracking System; The fee-based income from operations with securities (brokerage, depository services) made RUB 102 yyPerformed work on upgrading the Bank’s server infrastructure. thousand in 2012. Development prospects for year 2013: In 2012, a significant share within the Banks’ income profile is made by the earnings from the accumulated yyImplementing Automated Banking System (as related to the retail activities) and putting the payment coupon yield on corporate bonds (RUB 26,965 thousand) and accumulated coupon yield on Federal Loan kiosk network into commercial operation4; Bonds (RUB 32,630 thousand). yyImplementing a remote banking (RB) system for individuals and customizing the implemented RB system 92 % of the investments in securities are composed of the emissions included into the Lombard List of the for corporate customers; Bank of Russia (RUB 625,115 thousand), which allows us to be additionally refunded with the Bank of Russia. yyUpgrading the Bank’s Call Center; Automating the internal workflows. Operations with Foreign Currencies yy In the reporting year, as in the preceding ones, the Bank retained active positions on the currency market. The balance-sheet total on foreign exchange transactions made USD 23.3 million. The Bank performs the following foreign exchange transactions: yyBuying/selling of cash foreign exchange; yyForeign payments using the SWIFT system (on customers’ instructions); yyCrediting export earnings to customers’ accounts; yyConversion operations; Prospects for the Bank’s Future Development yyBuying/selling cashless foreign currencies; The main strategic purposes of JSCB “Energobank” are the further development of corporate and retail yyConsulting in making foreign economic contracts and foreign exchange control paperwork. business, maintaining and active development of the Bank’s territorial scope inside and outside the Republic of Tatarstan, improving various technologies and corporate management system, the growth of key figures, The main function of the Foreign Exchange Management of JSCB “Energobank” is controlling the Bank’s customers’ and increasing the efficiency of activities. The Bank, being interested in developing each customer’s business, operations in Russian rubles and in foreign currencies preformed with the near abroad and with foreign countries. will act as a reliable partner and financial advisor, offering a banking product that optimally meets the As of the end of the reporting year, the Bank was servicing for 154 deal passports on exporting goods and development goals of the customer’s business. services, as well as 92 deal passports on importing goods and services. In corporate business, we are planning to expand the volumes of crediting corporate customers, retaining Earnings from exporting of goods and services were received in the amounts of USD 17.5 million, EUR 0.9 our conservative approach to risk management and supporting diversification of branch profile. million, and RUB 241.3 million In retail business, we purpose to dynamically expand the advances portfolio due to expanding the volumes Payments for importing goods and services made USD 11.4 million, EUR 11.3 million, and RUB 356.8 million. of crediting, extending product range, developing sales techniques, improving the customer services quality, In 2012, the Exchange Operations Administration earned RUB 2.8 million for acting as a foreign exchange and increasing the efficiency of business processes. control agent. Information technology development strategies are: JSCB “Energobank” is a member of the currency section of the Moscow Interbank Currency Exchange and yyImplementing Automated Banking System (as related to the retail activities) and putting the payment converts foreign currencies on a non-cash basis. kiosk network into commercial operation; Earnings from conversion operations on the domestic foreign exchange market made RUB 4.9 million. yyImplementing a remote banking (RB) system for individuals and customizing the implemented RB system In 2012, the volume of cash foreign currencies bought and sold in the Bank’s cash offices made USD 30.3 for corporate customers; million and EUR 8.5 million. yyUpgrading the Bank’s Call Center; The earnings from buying/selling cash foreign currencies made RUB 11.8 million. yyAutomating the internal workflows. 2012 ANNUAL REPORT ANNUAL REPORT 2012

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Risk Management Market risks Description of the Bank’s Specific Risk Management Policies In its market risk management, the Bank is guided by regulatory documents of the Bank of Russia, as well as by relevant internal regulatory instruments. Market risk includes stock risk, currency risk, and interest A system for evaluating and managing bank risks was created and is functioning in the Bank. Bank risk rate risk. management is aimed at finding, identifying and evaluating the risk, arranging a set of measures aimed at decreasing the risk level, accepting the admissible risk level, and monitoring the aggregate risk level. Stock risk is the risk of reduction in income and getting losses due to unfavorable changes in the market The risk management system created in the Bank is adequate to the business volumes and provides quotations of the securities acquired by the Bank. The basic method of limiting stock risks is regular (at least tools for timely detecting, evaluating and monitoring the existing and potential risks. quarterly) reviewing the limits on the Bank’s investments into securities on the basis of the issuer’s financial status evaluation, as well as in the market status of a specific security. The decisions on reviewing the limits Credit risk shall be defined as the Bank’s risk of default relating to the debtor’s failure to discharge of securities investments shall be made with mandatory participation of the Risk Analysis Department and or delayed or incomplete discharge of the financial commitments to the Bank in accordance with the no less than once a quarter. The risk management system enables the Bank to quickly change the portfolio contracts executed. investments profile in order not to allow essential losses to arise from the operations with securities. The main collegial authority responsible for managing credit risks is the Credit Committee of the Since the profile of the Bank’s portfolio investments is characterized by predominately high-rated securities, Bank. The main function of the Credit Committee is establishing and reviewing the credit risk limits, the risks relating to investments into securities are estimated by the Bank as low and not having any material examining the issues of executing the loan applications, approving credit limits, formulating the impact on the quality and timeliness of the Bank’s discharging its obligations. No essential corrections are limiting conditions for performing transactions bearing credit risk, examining the provisions for unified expected to be made to the risk level estimation for year 2013. crediting procedures. Currency risk. The actual currency risk management is performed in the Bank on a daily basis. In 2012, there The main credit risk level controlling tool is establishing the following types of credit risk limits: were no cases of violating the CB RF limits on open currency positions. In compliance with the requirements yyLimits on a contracting party, such as Bank loan debtor, issuer of securities in the Bank’s portfolio, agency of the Bank of Russia, the currency risk level is calculated on a permanent basis. The currency risk level does bank; not exceed the values acceptable for the Bank. yyIndustry limits – quantitative limiting conditions applied to all the Bank’s investments relating to economic Interest rate risk. The interest rate risk is managed by forecasting the net interest income of the Bank and subjects within one industry or branch; through making appropriate corrections of interest rates for resources attracted and invested, as well as on the basis of pricing and goal-oriented attracting the funds, with the purpose of reducing the interest rate yyProduct limits – quantitative limiting conditions applied to the procedure of performing the Bank’s retail gaps, for which the Bank is most interest-rate-risk sensitive. credit transactions, as related to credit products; yyLimits of the Bank’s division managers’ responsibilities. Liquidity risk An important tool in regulating credit risk is securing the funds allocated by the Bank. Pledge can be real estate, securities, transport and production equipment, material assets, personal assets. At granting the The Bank’s ability to discharge its liabilities against its creditors in full and timely is influenced by the credit, as well as during the execution of the credit contract secured by a pledge, the Bank regularly controls liquidity risk. The following are the goals of liquidity risk management: the situation of pledged assets. yyCompliance with the Bank of Russia’s requirements relating to liquidity standards; yyThe Bank’s ability to have liquid funds at any time, sufficient to satisfy, in full and within a good time, the Within the framework of working with past-due and troubled debts, the Bank is guided by the following money claims of the Bank’s customers. principles: The current liquidity risks are managed by the Bank’s Treasury. yyStrict regulation of standard procedures determining the work of the Bank’s departments responsible for collecting past-due indebtedness, as well as the division of responsibilities of the Bank’s departments for The Bank’s balance structure was maintained in compliance with all prudential requirements for liquidity different work stages; norms under permanent control by responsible departments and collective organs, which allowed the Bank to discharge its liabilities to creditors in full and timely. The figures of economic standards are sufficient for yyRegular provision of full and reliable information on the past-due debt status and on work therewith; supporting the normal function of the Bank in the current financial situation. The values of quick liquidity yyContinuous record-keeping regarding the results of measures taken by the Bank’s responsible departments within the framework of collecting the past-due debts; had a sufficient safety reserve. The values of the ratios are given below: yyPreparing clear and regular reports on the efficiency of collecting past-due debts; ratio H2, current liquidity ratio Н3, and long-term liquidity H4 were within the range of normal values and yyProvision of the opportunity to take specific point-based managerial decisions on enhancing the efficiency Ratios as of January 1, 2013 as of January 1, 2012 of collecting (prescriptions to perform actions relating to target Borrowers/borrowing groups; Quick liquidity ratio, H2 38.7 % 34.1% yyDaily control over actual execution and action efficiency). Current liquidity ratio, H3 68.3 % 60.5% Long-term liquidity ratio, H4 99.4 % 114.6% 2012 ANNUAL REPORT ANNUAL REPORT 2012

The Annual Report has been preliminarily approved by the Supervisory Board of JSCB “Energobank” (Unnumbered Minutes dated April 24, 2013) Audit Report on the Annual Report of the JSCB “Energobank” , based on the results of activities, for the year ended on December 31, 2012

Benefit of opinion: Stockholders of the Joint-Stock Commercial Bank “Energobank” 24 Auditor: 25 Transaction risks Name: Limited Liability Company (OOO) “Sredne-Volzhskoye ekspertnoye buro”. In the Bank, the regular and sequential set of measures aimed at precaution and/or reduction of risks is Location, post address: 60 Vosstaniya str., 420039, Kazan, Russia. performed, relating to the possibility of losses resulting from defects in activities arranged, technologies Telephone/fax: +7 (843) 555-62-52, +7 (843) 555-62-92. used, informational systems functioning, inadequate actions or faults of employees, or resulting from State Registration Certificate # 2744/Yu-K dated July 2, 1999, issued by the State Registration Chamber external events, which measures are implemented using the following mechanisms: of the Ministry of Justice of the Republic of Tatarstan (Kazan Office #1); State registration: Certificate of Record in the Uniform State Register of Legal Entities of the Legal Entity yyUniversal regulation of business processes and procedures – the Bank regularly improves the detailed registered prior to July 1, 2002, primary state registration number 1021603278663, date of recording: description of operations and the decision-making procedures, implements information, processing and November 22, 2002, registering authority: Inspection of the Ministry for Taxes and Charges of the Russian other banking technologies that allow to reduce the number of manual transactions; Federation for the Moskovsky District of Kazan. yyMaintaining a system of internal control over compliance with rules and procedures of settlement of Auditing company, OOO “Sredne-Volzhskoye ekspertnoye buro”, is the member of the self-regulatory operations and transactions, and of limit discipline; organization of auditors “Non-Profit Partnership “Russian Collegium of Auditors””: basic registration yyInformation security, going concern in the case of emergency; number of the entry about adding the information to the Register of Auditors and Audit Organizations: 10205008931. yyImprovement of procedures of audit and quality control of computerized and hardware systems functioning. Audited entity: Legal risks Name: Joint-Stock Commercial Bank “Energobank” Location: 32 Sary Sadykovoy str., 420021, Kazan, Russia. In order to minimize its legal risks, the Bank shall timely revise internal standardization documents according Telephones/fax: +7 (843) 2316-001, +7 (843) 2316-002, +7 (843) 2316-004. to the requirements of the legislation and normative base of the Russian Federation; ensure the Bank’s Certificate of state registration: Primary State Registration No. 1021600000289 dated August 13, employees’ access to electronic bases of legal documents; studies court practices and prudential measures 2002 undertaken by the Bank of Russia towards lending agencies in order to make changes to the Bank’s practices. State registration: registered by the Central Bank of the Russian Federation in the Lending Agencies Reputation risk State Registration Book on May 21, 1999, under number 67. The Bank uses the following methods to manage its reputation risk: yymonitoring mass media and websites popular with the Bank’s customers in order to detect negative We audited the attached Annual Report of JSCB “Energobank” for the period from January 1 publications that may impact on the Bank’s reputation; through December 31, 2012. The Annual Report of the Joint-Stock Commercial Bank “Energobank” consists of the following documents: yymonitoring information about business reputation of the Bank’s stockholders and affiliated companies; yyBalance Sheet (published form) as of January 1, 2013; yyprompt detection of internal sources of / initial causes for possible worsening of the Bank’s business yyProfit and Loss Statement (published form) for year 2012; reputation, and elimination of the same as soon as possible; yyCash Flow Statement (published form) for year 2012; yyimplementing the corporate culture patterns, as well as business etiquette principles, in the Bank’s yyStatement of Capital Adequacy, Amount of Reserves for Doubtful Loans and Other Assets practices and activities; (published form) as of January 1, 2013; yyStatutory Ratios (published form) as of January 1, 2013; yy improving the information disclosure system in order to ensure due fullness and quality of disclosing any yyNotes. information by the Bank. We consider the audit evidence obtained during auditing to give sufficient reasons for expressing In the conditions of permanent growth in the number of our customers and counteragents, as well as our opinion on the authenticity of this Annual Report in all material respects, as well as on the increasing interest in the Bank, we seek to keep the reputation risk level as low as possible. compliance the accounting procedures with the laws of the Russian Federation. Country risk In our opinion, the Annual Report of the Joint-Stock Commercial Bank “Energobank” authentically JSCB “Energobank” performs its activities on the territory of the Russian Federation, so it incurs the country gives, in all material respects, its financial position as of December 31, 2012, and the financial and risk typical for the Russian Federation. The credit risk rating of the Russian Federation confirmed by leading operating results within the period from January 1 through December 31, 2012, in compliance rating agencies. with the requirements of the laws of the Russian Federation and of the Central Bank of Russia, as applicable to preparing annual reports.

Forecast Rating Agency Sovereign and credit ratings of invested foreign currencies April 24, 2013 Fitch Ratings ВВВ Stable Director of OOO “Sredne-Volzhskoye ekspertnoye buro” A. N. Falaleyev Standard & Poor's ВВВ Stable (Auditor Qualification Certificate No. K 018882 issued in accordance with the resolution of the Central Accreditation Moody’s Bаа1 Positive and License Audit Committee of the Ministry of Finance of the Russian Federation, dated June 28, 2001 (Minutes No. 94), granting the right to perform activities in the area of general auditing starting from November 15, 2004 for an unlimited period of time; basic registration number of the entry about adding the information to the Register of The Bank does not rule out the possibility of the fall the credit risk rating of the Russian Federation in Auditors and Audit Organizations of the self-regulatory organization of auditors “Non-Profit Partnership “Russian 2013. According to the Bank’s estimates, the income from its basic activities that don’t relate to the Russian Collegium of Auditors””: 20105023296.) Federation is minimal, so the Bank does not highly depend on the country risks of other countries. In its risk evaluation and management system, when choosing and monitoring the financial positions of Audit Team Leader, Auditor N.Yu. Tuzankina the Bank’s foreign counteragents, the Bank considers the country risk factors relating to the activities of (Auditor Qualification Certificate No. K 000720 issued in accordance with the resolution of the Central Accreditation the counteragents, such as predictable political climate, stable economic development, high investment and License Audit Committee of the Ministry of Finance of the Russian Federation, dated December 21, 1995 (Minutes potential, and social stability. No. 10), granting the right to perform activities in the area of bank auditing starting from August 26, 2002 for an unlimited period of time; basic registration number of the entry about adding the information to the Register of The Bank’s major transactions with its foreign partners are concentrated in the group of advanced countries Auditors and Audit Organizations of the self-regulatory organization of auditors “Non-Profit Partnership “Russian with stable economic and political situations. The Bank does not operate in the regions of possible military Collegium of Auditors””: 29505023054.) conflicts and social disruptions. 2012 ANNUAL REPORT ANNUAL REPORT 2012

26 27 Balance Sheet Profit and Loss Statement Published Form as of January 1, 2013 Published Form for Year 2012 Lending agency: Joint-Stock Commercial Bank “Energobank” (JSCB “Energobank”) Lending agency: Joint-Stock Commercial Bank “Energobank” (JSCB “Energobank” ) Postal address: 32 Sary Sadikovoy str., 420021 Kazan, Republic of Tatarstan, Russia Postal address: 32 Sary Sadikovoy str., 420021 Kazan, Republic of Tatarstan, Russia Form code 0409806 Form code: 0409807 Quarterly/Annual Quarterly/Annual in RUB thousands in RUB thousands

Figures as of the relevant Figures as of the Figures as of the relevant Figures as of the Item No. Item Name date of the preceding Item No. Item Name reporting period date of the preceding reporting date reporting period reporting period I ASSETS 1. Interest income, in total, including: 2,037,954 1,672,577 1. Monetary funds 210,765 163,105 1.1. Earnings from investment of funds in lending institutions 4,119 7,783 2. Lending agencies’ funds in the Central Bank of the Russian Federation 554,543 390,236 1.2. Earnings from loans granted to customers (non-credit institutions) 1,974,241 1,613,934 2.1. Mandatory provisions 125,230 122,149 1.3. Earnings on providing financial leasing services 0 0 3. Funds in lending institutions 376,379 220,782 1.4. Earnings from investments into securities 59,594 50,860 4. Net investments into securities assessed at their fair value through profit or loss 667,895 768,376 2. Interest expenses, in total, including: 746,771 703,633 5. Net lending receivables 11,637,456 12,086,844 2.1. Expenses on the funds borrowed from lending agencies 24,638 5,644 6. Net investments into securities and other financial assets available for sale 12,740 16,895 2.2. Expenses on funds borrowed from customers (non-credit entities) 720,643 697,989 6.1. Investments into branch and related entities 53 53 2.3. Expenses on certified debts 1,490 0 7. Net investments into securities held to mature 0 0 3. Net interest income (negative interest margin) 1,291,183 968,944 8. Permanent, intangible and tangible assets 125,529 128,473 Provisions change regarding loans, lending receivables and other similar receivables, 9. Other assets 125,659 104,108 4. monies allocated on correspondent accounts, as well as accrued interest income, in -832,259 -694,758 total, including: 10. TOTAL ASSETS 13,710,966 13,878,819 4.1. Provisions change regarding possible losses on accrued interest income 3,166 -40 II LIABILITIES Net interest income (negative interest margin) after provision charge for possible 11. Credits, deposits and other funds of the Central Bank of the Russian Federation 0 245,000 5. losses 458,924 274,186 12. Lending agencies’ funds 132 40,327 6. Net earnings from operations with securities assessed at their fair value through 4,766 -13,918 13. Funds of customers (non-credit entities) 10,837,566 10,805,441 profit or loss 13.1. Deposits of individuals 5,251,111 5,668,756 7. Net earnings from operations with securities available for sale -203 673 14. Financial liabilities assessed at their fair value through profit or loss 0 0 8. Net earnings from operations with securities held to maturity 0 0 15. Certified debts 0 0 9. Net earnings from operations with foreign currencies 6,542 31,255 16. Other liabilities 89,774 74,748 10. Net earnings from revaluation of foreign currency 5,201 -21,601 11. Income from participation in other legal entities’ capitals 2,603 2,193 17. Loss provisions on contingent credit liabilities, on other possible losses and 1,753 8,996 operations with offshore residents 12. Commission earnings 130,943 128,121 18. TOTAL LIABILITIES 10,929,225 11,174,512 13. Commission expenses 16,798 19,831 III SOURCES OF OWN FUNDS 14. Provision changes regarding losses on securities available for sale 0 0 19. Stockholders’ (participants’) funds 2,137,400 2,137,400 15. Provision changes regarding losses on securities held to maturity 0 0 20. Own stock (shares) repurchased from stockholders (participants) 0 0 16. Provision changes regarding other losses 11,285 -5,773 21. Share premium reserve 0 0 17. Other operating earnings 4,638 5,029 22. Contingency fund 503,494 440,460 18. Net earnings (expenses) 607,901 380,334 23. Fair-rate revaluation of securities available for sale -4,869 -4,608 19. Operating expenses 488,109 288,166 24. Revaluation of permanent assets 46,678 46,678 20. Profits (losses) before tax 119,792 92,168 25. Retained earnings (uncovered losses) of:past years 21,343 21,343 21. Taxes accrued (paid) 42,097 29,134 26. Profits (losses) unutilized within the reporting period 77,695 63,034 22. Profits (losses) after taxes 77,695 63,034 27. TOTAL SOURCES OF OWN FUNDS 2,781,741 2,704,307 23. Payments from earnings after taxes, in total, including: 0 0 IV OFF-BALANCE SHEET LIABILITIES 23.1. Distribution among stockholders (participants) as dividends 0 0 28. Lending agency’s irrevocable liabilities 134,649 57,778 23.2. Deductions to contingency fund creation and replenishment 0 0 29. Guarantees granted by the lending agency 264,292 203,015 24. Profits (losses) unutilized within the reporting period 77,695 63,034 2012 ANNUAL REPORT ANNUAL REPORT 2012

28 29 Statement of Capital Adequacy, Amount of Reserves for Doubtful Сведения об обязательных нормативах Loans and Other Assets Published Form as of January 1, 2013 Кредитной организации: Lending agency: Joint-Stock Commercial Bank “Energobank” (JSCB “Energobank” ) Публикуемая форма на 1 января 2013 года Postal address: 32 Sary Sadikovoy str., 420021 Kazan, Republic of Tatarstan, Russia АкционерныйПочтовый адрес: коммерческий банк «Энергобанк» (открытое акционерное общество) (АКБ «Энергобанк» ОАО). 420021, г. Казань, ул. Сары Садыковой, д. 32. Form code: 0409813 Form code: 0409808 Quarterly/Annual Quarterly/Annual in percents Increase (+) / Actual Value Figures as of the Figures as of the Decrease (-) with- Item No. Item Name beginning of the relevant date of the Item Standard in the reporting No. Ratio Name Value As of the As of the preceding reporting period reporting period period reporting date reporting date

1. Own funds (capital), in RUB thousands, in total, including: 3,199,784 79,031 3,278,815 1. Ratio of the bank’s own funds (capital) adequacy (H1) 10 23.0 21.8 Ratio of own funds (capital) adequacy of a non-banking lending agency entitled 1.1. Lending agency’s authorized capital, including: 2,137,400 0 2,137,400 2. to transfer funds without opening bank accounts and other banking operations 0 03 0 associated therewith (H1.1) 1.1.1. Face value of registered common stock (shares) 2,137,400 0 2,137,400 3. Ratio of the bank’s quick liquidity ratio (H2) 15 38.7 34.1 1.1.2. Face value of registered preferred stock 0 0 0 4. Ratio of the bank’s current liquidity ratio (H3) 50 68.3 60.5 1.2. Own shares repurchased from stockholders (participants) 0 0 0 5. Ratio of the bank’s long-term liquidity ratio (H4) 120 99.4 114.6 Ratio of maximum credit risk per borrower or per a group of associated Maximum 21.1 Maximum 20.0 1.3. Share premium reserve 0 0 0 6. 25 borrowers (H6)* Minimum 0.0* Minimum 0.0* 1.4. Lending agency’s contingency fund 440,460 63,034 503,494 7. Ratio of maximum large credit risks (H7) 800 239.4 221.1 1.5. Performance taken into account as own funds/capital of: 75,349 15,968 91,317 Ratio of maximum amounts of credits and bank guarantees provided by the bank to 8. its participants (stockholders) (H9.1) 50 0 0 1.5.1. Past years 21,343 0 21,343 9. Ratio of aggregate risks relating to the bank’s insiders (H10.1) 3 0.5 0.2 1.5.2. reporting year 54,006 15,968 69,974 Ratio of usage of own funds (capital) of the bank to acquire shares in other legal 10. entities (H12) 25 0 0 1.6. Intangible assets 50 -29 21 11. Ratio of aggregate floating assets expiring within the nearest 30 calendar days to 0 0 0 1.7. Subordinate loan (loan, deposit, bonded loan) at the book price 500,000 0 500,000 the Non-Bank Settlement and Credit Authority’s exposure (H15) Ratio of own funds (capital) adequacy of a non-banking lending agency entitled Capital sources (parts thereof) formed by investors with inappropri- 12. to transfer funds without opening bank accounts and other banking operations 0 0 0 1.8. 0 0 0 ate assets associated therewith (H15.1) Ratio of maximum aggregate credits granted to customers (settlement participants) Standard value of the bank’s own funds (capital) adequacy, 13. 0 0 0 2. 10,0 Х 10,0 as of settlements closing (H16) percentage 14. Ratio of Bank Settlement and Credit Authority’s granting credits to borrowers, 0 0 0 3. Actual value of the bank’s own funds (capital) adequacy, percentage 21,8 Х 23,0 other than settlement participants, on its behalf and for its own account (H16.1) Ratio of minimum ratio between the mortgage-backed loans granted and the 4. Actual loss provisions, in RUB thousands, in total, including: 2,918,575 816,372 3,734,947 15. bank’s own funds (capital) (H17) 0 0 0 Loan losses, losses from lending receivables and other similar Ratio of minimum ratio between the mortgage-backing size and the volume of 4.1. 2,890,842 827,905 3,718,747 16. 0 0 0 receivables mortgage-backed bonds issued (H18) Ratio of maximum ratio between the issuing lending agency’s aggregate liabilities losses from other assets for which assets the loss risk exists, and 4.2. 18,737 -4,290 14,447 to creditors that have a priority right to discharge their claims according to federal other losses 17. laws against the owners of mortgage-backed bonds, and the own funds (capital) 0 0 0 (H19) losses from contingent loan liabilities posted to off-balance 4.3. 8,996 -7,243 1,753 accounts, and from forward transactions *The minimum value of ratio the Maximum credit risk per borrower or per a group of associated borrowers 4.4. losses from transactions with off-shore residents 0 0 0 (H6) is 0.005% as of January 1, 2012, and 0.023% as of January 1, 2013 2012 ANNUAL REPORT ANNUAL REPORT 2012

30 31

Cash Flow Statement 1.2.8 Net increase / decrease on financial liabilities assessed at their fair value through profit or loss 0 0 Published Form for Year 2012 Lending agency: Joint-Stock Commercial Bank “Energobank” (JSCB “Energobank”) 1.2.9 Net increase / decrease on contingency funds on certified debts 0 0 Postal address: 32 Sary Sadikovoy str., 420021 Kazan, Republic of Tatarstan, Russia 1.2.10 Net increase / decrease on other liabilities -1,968 16

1.3 Total for section 1 (item 1.1 + item 1.2) 157,758 -88,708 Form code: 0409814 Quarterly/Annual in RUB thousands 2. Net cash accruals received from or used in investing activities 2.1 Acquiring securities or other financial assets classified as “available for sale” -20 -313 Cash Flows Cash Flows within Item No. Item Name within the the Preceding Revenues from selling and redeeming securities or other financial assets classified as Reporting 2.2 “available for sale” 4,129 1,915 Period Reporting Period 2.3 Acquiring securities classified as “hold to maturity” 0 0 1. Net cash accruals received from or used in operating activities 2.4 Revenues from redeeming the securities classified as “hold to maturity” 0 0 1.1 Cash accruals received from or used in operating activities prior to changes made in operating assets 860,728 851,027 and liabilities, in total, including: 2.5 Acquiring permanent, intangible and tangible assets -9,178 -10,648

1.1.1 Interest received 1,991,909 1,690,952 2.6 Revenues from selling permanent, intangible and tangible assets 647 1,849

1.1.2 Interest paid -744,386 -706,155 2.7 Dividends received -20 0

1.1.3 Commissions received 130,943 128,121 2.8 Total for section 2 (sum of items 2.1 through 2.7) -4,442 -7,197

1.1.4 Commissions paid -16,798 -19,831 3. Net cash accruals received from or used in financial activities

Gains less losses from operations with financial assets assessed at their fair value through profit or 3.1 Stockholders’ (participants’) contributions to the authorized capital 0 0 1.1.5 loss, available for sale -421 15,704 3.2 Acquiring own shares repurchased from stockholders (participants) 0 0 1.1.6 Gains less losses from operations with securities held to maturity 0 0 3.3 Selling own shares repurchased from stockholders (participants) 0 0 1.1.7 Gains less losses from operations with foreign currencies 6,542 31,255 3.4 Dividends paid 0 0 1.1.8 Other operating earnings 6,964 6,516 3.5 Total for section 3 (sum of items 3.1 through 3.4) 0 0 1.1.9 Operating expenses -474,897 -278,120 Influence of changes in the official exchange rates of the Russian Ruble, established by the 1.1.10 Tax expenses/compensations -39,128 -17,415 4. Bank of Russia, on cash and cash equivalents 63,736 -58,195

1.2 Increase / decrease of net cash from operating assets and liabilities, in total, including: -702,970 -939,735 5. Cash and cash equivalents increase / usage 217,052 -154,100

1.2.1 Net increase / decrease on contingency funds on the accounts at the Bank of Russia -3,081 -56,346 5.1 Cash and cash equivalents at the beginning of the reporting year 508,424 662,524

1.2.2 Net increase / decrease on investments into securities assessed at their fair value through profit or loss 164,842 -336,428 5.2 Cash and cash equivalents at the end of the reporting year 725,476 508,424 1.2.3 Net increase / decrease on contingency funds on lending receivables -401,183 -2,071,344

1.2.4 Net increase / decrease on other assets -179,379 -106,545

1.2.5 Net increase / decrease on credits, deposits and other funds of the Bank of Russia -245,000 245,000 Chairman of JSCB “Energobank” Dmitry Ilgizovich Vagizov 1.2.6 Net increase / decrease on the funds of other lending agencies -40,204 40,291

1.2.7 Net increase / decrease on the funds of customers (non-credit entities) 3,003 1,345,621 Chief Accountant Flura Iskanderovna Yagofarova Reference Information Head Office of JSCB “Energobank” Registered address: 32 Sary Sadikovoy str., 420021 Kazan, Republic of Tatarstan, Russia Tel.: +7 (843) 231-60-01, +7 (843) 231-60-02, +7 (843) 231-60-03, +7 (843) 231-60-09 Fax: +7 (843) 231-60-04, +7 (843) 231-60-06, +7 (843) 231-60-13 http://www.energobank.ru

Branches of JSCB “Energobank”

Branch # 2 Branch # 11 Location: 1 Maksimova str., 420127, Kazan Location: 39 Gafiatullina str., 423236, Bugulma Registration date: November 16, 2000 Registration date: April 20, 2006 Head of the office: Radik Tagirovich Safargaleyev Head of the office: Polina Vasilyevna Leonova Tel.: +7 (843) 510-56-00 Tel.: +7 (85594) 4-00-25 Branch # 3 Branch # 12 Location: 17 Amirkhana str., 420103, Kazan Location: 102 Dekabristov str., 420080, Kazan Registration date: November 27, 2001 Registration date: July 7, 2006 Head of the office: Yuliya Sergeyevna Spiryagina Head of the office – Head of Clients Payment Servicing: Tel.: +7 (843) 517-12-54 Gulnara Rashidovna Mukhametdinova Branch # 4 Branch # 13 Location: 19 Mira str., 423450, Almetyevsk Location: 37 Mira str., 420071, Kazan Registration date: September 8, 2003 Registration date: August 9, 2006 Head of the office: Head of the office – Head of Clients Payment Servicing: Irina Nikolayevna Rodionova Larisa Eduardovna Zakirova Tel.: +7 (8553) 22-41-41 Tel.: +7 (843) 230-09-88 Branch # 5 Branch # 14 Location: 14a Kirpichnikova str., 420029, Kazan Location: 1 Peterburgskaya str., 420107, Kazan Registration date: July 23, 2004 Registration date: December 8, 2006 Head of the office: Head of the office – Head of Clients Payment Servicing: Ildar Sabirovich Daminov Viktoriya Mikhaylovna Yefimova Tel.: +7 (843) 273-81-82 Tel.: +7 (843) 238-30-90 Branch # 6 Branch # 15 Location: 13 Frunze str., 420033, Kazan Location: 33 Adoratskogo str., 420132, Kazan Registration date: December 16, 2004 Registration date: February 7, 2007 Head of the office: Head of the office – Head of Clients Payment Servicing: Lyudmila Vladimirovna Antonova Guzeliya Saifelmalekovna Gabidullina Tel.: +7 (843) 554-00-34 Tel.: +7 (843) 522-52-98 Branch # 7 Branch # 16 Location: 73 Korolenko str., 420044, Kazan Location: 13/52 Pushkina str., 420111, Kazan Registration date: February 7, 2005 Registration date: April 25, 2007 Head of the office: Head of the office – Head of Clients Payment Servicing: Yekaterina Gusmanovna Karimova Rufina Rashadovna Galiyeva Tel.: +7 (843) 510-37-67 Tel.: +7 (843) 231-60-33 Branch # 8 Branch # 17 Location: 38 Gvardeyskaya str., 420073, Kazan Location: 2a Tukaya str., 423570, Nizhnekamsk Registration date: May 11, 2005 Registration date: July 5, 2007 Head of the office – Head of Clients Payment Servicing: Head of the office: Tatyana Vitalyevna Chmir Venera Shaukatovna Siraziyeva Tel.: +7 (843) 272-25-45 Tel.: +7 (8555) 41-52-20 Branch # 9 Branch # 18 Location: 72 Yu. Fuchika str., 420141, Kazan Location: 25a Mira str., 423800, Naberzhniye Chelny Registration date: May 27, 2005 Registration date: July 26, 2007 Head of the office – Head of Clients Payment Servicing: Head of the office: Guzel Shavkatovna Musina Airat Rasimovich Gazimzyanov Tel.: +7 (843) 275-53-69 Tel.: +7 (8552) 51-49-18 Branch # 10 Operational Office # 3 Location: 5 Tikhoretskaya str., 420054, Kazan Location: 11 Lenina Ave., 428000, Cheboksary. Registration date: December 13, 2005 Registration date: July 28, 2008 Head of the office – Head of Clients Payment Servicing: Head of the operational office: Olesya Rashitovna Gazetdinova Lyubov Ivanovna Platonova Tel.: +7 (843) 278-81-90 Tel.: +7 (8352) 62-87-38