ANNUAL REPORT 2012 Preliminarily Approved Approved by the Annual General by the Board of Directors Meeting of Shareholders on 16 April 2013 on 24 May 2013 (Minutes No

ANNUAL REPORT 2012 Preliminarily approved Approved by the Annual General by the Board of Directors Meeting of Shareholders on 16 April 2013 on 24 May 2013 (Minutes No. 761 dated 16.04.2013) (Minutes No. 23 dated 24.05.2013)

ANNUAL REPORT BANK PETROCOMMERCE 2012 CONTENTS

ADDRESS BY THE CHAIRMAN OF THE BOARD OF DIRECTORS AND THE PRESIDENT OF THE BANK ...... 4

1. DEVELOPMENT OF BANK PETROCOMMERCE IN 2012. THE BANK AND THE BANKING COMMUNITY ...... 5 M AJOR HIGHLIGHTS OF 2012 AND KEY PERFORMANCE INDICATORS ...... 6 T HE BANK’S OPERATING ENVIRONMENT ...... 8 T HE BANK’S PERFORMANCE IN 2012 ...... 12 S TRATEGIC AREAS OF DEVELOPMENT ...... 16 R EGIONAL DEVELOPMENT ...... 17

2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012 ...... 18 C ORPORATE BUSINESS ...... 19 C ORPORATE LENDING ...... 22 F ACTORING ...... 25 SME LENDING ...... 26 R ETAIL BUSINESS ...... 28 RETAIL LENDING ...... 29 R ETAIL DEPOSITS ...... 30 B ANK CARDS ...... 31 P RIVATE BANKING AND WEALTH MANAGEMENT ...... 33 F INANCIAL MARKETS ...... 35

3. RISK MANAGEMENT SYSTEM ...... 38

4. CORPORATE SOCIAL RESPONSIBILITY AND CHARITY ...... 46 H UMAN RESOURCES ...... 47 S OCIAL RESPONSIBILITY AND CHARITY ...... 49 E COLOGY AND ENVIRONMENTAL PROTECTION ...... 49

5. FINANCIAL STATEMENTS ...... 50 AUDITOR’S REPORT ...... 51 BALANCE SHEET ...... 53 STATEMENT OF INCOME ...... 55 CASH FLOW STATEMENT ...... 57 R EPORT ON CAPITAL ADEQUACY, PROVISION FOR IMPAIRMENT OF LOANS AND OTHER ASSETS ...... 59 M ANDATORY RATIOS ...... 61

6. GENERAL INFORMATION ...... 62 L ICENCES ...... 63 M EMBERSHIP ...... 64 C ONTACTS ...... 65

Bank Petrocommerce | 2012 3 ADDRESS BY THE CHAIRMAN OF THE BOARD OF DIRECTORS DEAR SHAREHOLDERS, CLIENTS AND PARTNERS! AND THE PRESIDENT The year 2012 may be considered yet another milestone for Bank Petrocom- OF BANK PETROCOMMERCE merce – we celebrated our 20th anniversary. Throughout the period of its history, the Bank has more than once proved its reliability. We strived for conquering the most challenging summits during the phase of market expansion, while coming out even stronger in the aftermath of severe economic crises. We welcomed 2012 as a bank with established traditions, values and solid positions on the Rus- sian fi nancial market. We confi rmed the status of a reliable Russian bank, which always meets its obligations. 2012 was the second year of successful implementation of the Bank’s strategy. It means that we fi rmly follow the path to our goals. The Bank has adjusted all the key elements to new business objectives, the main of them being asset diversifi cation ensured by entry to the bank market segments capable of generating high margins, thus boosting our profi tability. The Bank has completed the ad- justment of its product range and sales system to the current operating environment: high volatility prevailing on the international fi nancial markets, enhancement of state banks’ positions and intensifi cation of competition among private market players. In 2012, Bank Petrocommerce continued to develop its traditional business segment – corporate lending – while entering the open retail and SME lending market by off ering clients transparent competitive products, state-of-the-art technological solutions and high quality of services. The shift of the development vector and focus on product segments generating high margins made us introduce certain adjustments to risk evaluation procedures. It allowed to speed up Leonid Fedun retail and SME loan portfolio growth rates while maintaining the quality at the same level. Overall, in 2012, the Bank continued to improve its risk management systems. Combined with the reasonably conservative policy, it allowed to reduce the share of overdue debt in the Bank’s loan book. In 2013, Bank Petrocommerce will continue to pursue the path of organic growth outpacing the market in the core business areas and boosting its profi tability. We strive for maintaining all our competitive advantages by off ering market prices combined with high reliability, cutting edge technologies and transparent customer relationship. We are confi dent that the coming years will evidence robust growth and sustainable performance of Bank Petrocommerce.

Chairman of the Board of Directors Leonid Fedun

President, Chairman of the Managing Board Vladimir Nikitenko

Vladimir Nikitenko

Bank Petrocommerce | 2012 4 DEVELOPMENT OF BANK PETROCOMMERCE IN 2012. THE BANK AND THE BANKING COMMUNITY 1. DEVELOPMENT OF BANK PETROCOMMERCE IN 2012. THE BANK AND THE BANKING COMMUNITY MAJOR HIGHLIGHTS OF 2012 AND KEY Major highlights of 2012 comprise fi rst and foremost substantial strengthening PERFORMANCE INDICATORS of the Bank’s positions in key business areas: retail and SME lending as well as factoring. The strategy of focused growth pursued by Bank Petrocommerce ensured a signifi cant improvement of the core indicators: profi tability, performance and business diversifi cation. Stability, reliability and fi nancial sustainability of Bank Petrocommerce are proved by high ratings and awards: in 2012, Bank Petrocommerce won the national prize as the “Company of 2012” awarded by the RBC group for reliability and stability; Bank Petrocommerce was awarded the “Financial Elite of Russia – 2012” award for reliability; in June 2012, RIA Rating Agency (RIA Novosti Group) assigned its A+ national scale credit rating to Bank Petrocommerce; in August 2012, Expert RA rating agency assigned a high rating to the Bank’s risk management system (A.rm), which evidences the compliance of the risk management practice with the state-of-the-art quality standards. In 2012, the Bank entered new regions – Voronezh and Yekaterinburg – in accordance with the strategy of regional business development and geographical diversifi cation.

CREDIT RATINGS Standard & Poor’s Rus-Rating International scale: В+/В/Stable International scale: BBB-/Stable National scale: ruA National scale: АА-/Stable Moody’s Investors service Expert RA International scale: B1/NP/Negative National scale: А+/Stable Financial Strength Rating: E+ RIA Rating Moody’s Interfax National scale: А+/Stable National scale: A2.ru

CHANGES IN THE BANK’S RANKINGS* Assets

Bank cards issued Corporate loans 26 29 23 25 25

47 24 22 Retail loans Retail deposits 4 56 23 24

Corporate 01.01.2012 accounts & deposits Factoring

01.01.2013

Bank Petrocommerce | 2012 * All rankings are listed as per RBC.Rating, save for the factoring (in accordance with the Association of Factoring Companies). 6 1. DEVELOPMENT OF BANK PETROCOMMERCE IN 2012. THE BANK AND THE BANKING COMMUNITY BUSINESS INDICATORS

BUSINESS INDICATORS 01.01.2013 01.01.2012 Growth rate, %

Assets, RUR, bln 226.0 196.1 + 15.2%

Gross Loan Portfolio1, RUR, bln, including 150.2 128.3 + 17.1%

retail loans, RUR, bln 19.0 12.3 + 54.5%

corporate loans2, RUR, bln 112.2 102.4 + 9.6%

factoring, RUR, bln 16.9 13.6 + 24.3%

loans to small business, RUR, bln 2.1 0.09 23-fold

Customer Accounts & Deposits3, RUR, bln, including 155.7 132.9 + 17.2%

retail accounts & deposits, RUR, bln 75.0 66.0 + 13.6%

corporate accounts & deposits3, RUR, bln 80.7 66.9 + 20.6%

Liquidity Reserves4, RUR, bln 57.7 53.1 + 8.7%

Share Capital, RUR, bln 6.7 6.7 -

Sources of Equity, RUR, bln 28.1 24.8 + 13.3%

Number of Employees, people 3,863 3,295 + 17.2%

FINANCIAL INDICATORS 01.01.2013 01.01.2012 Growth rate, %

Net Interest Income, RUR, mln 6,826.4 6,102.9 + 11.9%

Changes in Provisions for Impairment, RUR, mln (2,706.0) (362.4)

Net Non-Interest Income, RUR, mln 5,034.4 2,450.5 + 105.4%

Profi t before Tax, RUR, mln 1,542.4 1,274.8 + 21.0%

Net Profi t, RUR, mln 918.3 638.4 + 43.8%

ROAA5, % 0.4 0.3

ROAE6, % 3.4 2.6

CHANGES IN THE BANK’S INDICATORS VS. MARKET TRENDS Trends in Corporate Lending Trends in Retail Lending

30% 80% 26.0% 70.6% 20% 23.5% 60% 54.5% 40% 10% 12.7% 13.1% 35.9% 39.4% 20% 0% 0% 2011 2012 2011 2012

Banking sector Banking sector Bank Petrocommerce7 Bank Petrocommerce

Trends in Corporate Accounts & Deposits Trends in Retail Accounts & Deposits

60% 30%

40%48.0% 20% 20.9% 20.0% 14.3% 13.6% 20% 26.2% 20.6% 10% 11.7% 0% 0% 2011 2012 2011 2012

Banking sector Banking sector Bank Petrocommerce Bank Petrocommerce

1 Excluding reverse sale and repurchase transactions. Bank Petrocommerce | 2012 2 Excluding factoring and loans to small business. 3 Excluding subordinated loan. 7 4 Liquid assets with maturity up to 30 days calculated by the CBR’s methodology (LAT ratio). 5 Calculated as net profi t to average assets (f. 806). 6 Calculated as net profi t to average sources of equity (f. 806). 7 Including factoring and loans to small business. 1. DEVELOPMENT OF BANK PETROCOMMERCE IN 2012. THE BANK AND THE BANKING COMMUNITY THE BANK’S 1 OPERATING ENVIRONMENT In 2012, the economic growth of the Russian Federation remained positive, although its pace slowed down as compared with the previous period. As at YE2012, Russian GDP increased by 3.4% vs. 4.3% in 2011. The Russian economy continued to grow at a lower pace due to a number of exogenous and endogenous factors: shrinking of the external demand driven by slowdown of the world economy, languishing risk appetite from investors, prevailing debt and political problems in the Eurozone as well as slack domestic consumer and investment demand, etc.

EXOGENOUS ENVIRONMENT In 2012, the Russian economy developed on the background of slowdown of overall pace of the world economic growth. The growth of the world GDP in 2012 was 3.2% as compared with 4.0% in 2011. The major adverse impact on the world economy was exerted by the Eurozone economy accounting for about 17%2 of the nominal volume of the world GDP, which in 2012 decreased by 0.6% vs. the growth of 1.4% a year earlier. The problems of the Eurozone periphery countries continued to remain one of the key factors of the world fi nancial market volatility. In autumn 2012, fi nancial markets received a positive impulse after the heads of major world central banks and international monetary institutions took a number of important decisions aimed at incentivizing risk appetite, in particular, the announcement by the U.S. Federal Reserve of the quantitative easening program with the view of supporting the economy and cutting long-term borrowing costs; the US presidential election; a resolution to establish in 2013 a new monetary institution in the Eurozone – the single bank regulator; announcement by the ECB of the program allowing for purchase of unlimited quantities of sovereign bonds. Besides, a signifi cant support to the markets was rendered by the ECB long-term lending programme (LTRO) worth EUR 1 trln. Among exogenous factors exerting positive infl uence on the Russian economy we should note increasing world demand for oil and geopolitical factors contrib- uting to the creation of a favorable situation on the world energy market. On-going tension in the countries of Northern Africa and the Middle East maintained

Changes in Banking Sector Assets and Lending

60 100%

79.4% 50 75.9% 74.8% 74.6% 80% 40 60% 30 44.4% 41.5% 40.2% 41.7% 40% 20 Assets, RUR, trln Loans, RUR, trln 10 20% 29.4 33.8 41.6 49.5 Assets/GDP, % 16.1 18.1 23.3 27.7 0 0% Loans/GDP, % 2009 2010 2011 2012

Bank Petrocommerce | 2012 1 The information contained in this section is based on the data provided by the Ministry of Economic Development of Russia, the Federal Service of State Statistics, the Central Bank of the Russian Federation, the International Monetary Fund, and Eurostat. 8 2 Calculated on the basis of the IMF data. 1. DEVELOPMENT OF BANK PETROCOMMERCE IN 2012. THE BANK AND THE BANKING COMMUNITY oil prices at a high level: in 2012, the average price of URALS stood at U.S.$ 110.3 per barrel (U.S.$ 109.6 in 2011). As the Russian commodities export structure remained virtually unchanged and dominated by energy producing materials, the above foreign economic situation of 2012 predetermined the growth of the Russian exports from U.S.$ 522.0 bln to U.S.$ 530.7 bln.

ENDOGENOUS ENVIRONMENT Consumer demand remains the most important factor of the post-crisis growth of the Russian economy. As at YE2012, retail turnover incremented by 5.9% (7.0% in 2011), which was driven by higher income and moderate infl ation pressure. In 2012, per capita income growth accelerated as compared with the previous year standing at 9.9% (vs. 9.5% in 2011), consumer prices increased by 5.1% versus 8.4% in 2011, while the real disposable income went up by 4.2% (vs. the modest fi gure of 0.4% in 2011). However, in spite of positive income growth, consumer expectations and economic situation evaluation deteriorated, which probably caused a slowdown of retail trade growth in 2012. Therefore, in 2012, the population preferred to save: the savings rate went up from 14.6% to 15.0%. In 2012, infl ation demonstrated a negligible growth from 6.1% to 6.6%, which was fi rst and foremost determined by the increasing prices of fruit and vegeta- bles due to low harvesting and higher fees imposed by natural monopolies, but not the impact of monetary factors. In terms of manufacturing, a positive GDP trend was mainly driven by processing industries, wholesale and retail trade, fi nancial sector and construction. In 2012, industrial production grew by 2.6%, down by 2.1 p.p. as compared with 2011. As for processing industries, sewing and textile branches, car and machinery sectors as well as chemistry demonstrated the most modest growth. Agribusiness expansion on the background of the high base of 2011 and adverse weather conditions of 2012 was negative (-4.7%). The budgetary policy of the Russian Federation in 2012 maintained an incentivizing profi le: the growth of federal budget expenses outpaced revenues by 17.8% vs. the increment of 8.0% a year earlier. State expenses accounted for 20.6% of the GDP (vs. 19.6% in 2011).

Banking Sector Banking Sector Assets Composition as of 01.01.2013 Total Liabilities Composition as of 01.01.2013

68.7% Loans 60.8% Customer funding 13.0% Securities portfolio 11.9% Equity 7.4% Interbank loans 10.5% Interbank loans 3.1% Cash 5.4% Due to the CBR 7.8% Other 4.4% Debt securities issues 7.0% Other

Bank Petrocommerce | 2012 9 1. DEVELOPMENT OF BANK PETROCOMMERCE IN 2012. THE BANK AND THE BANKING COMMUNITY

Russian domestic debt increased from RUR 4.19 trln (7.5% of GDP) by 18.8% to RUR 4.98 trln (8.0% of GDP), with the main part thereof accounting for sovereign bonds (OFZ). In 2012, sovereign debt grew at a lower pace than during the previous year (42.5%). Development and approval of the so-called “budget rule” should be considered an important achievement of the Russian Government in terms of the budget discipline and reduction of risks of exogenous environment deterioration. The “budget rule” prescribes that the federal budget expenses shall not exceed revenues by over 1% of the GDP with the underlying oil price being determined as the average for the fi ve recent years with further increase to 10 years. In accordance with the eff ective law of budget for 2013-2015, a budget without defi cit is expected to be achieved by 2015. It is expected that the measures aimed at improving administration quality and combating corruption will boost cost effi - ciency and signifi cantly underpin the national economic growth. In 2012, net outfl ow of private sector capital was estimated at U.S.$ 56.8 bln, which is considerably lower that the 2011 indicator of U.S.$ 84.2 bln. The capital outfl ow may be explained both by the investors’ risk aversion on the background of uncertainty on the fi nancial markets and mandatory foreign debt repayments. The increment of investments into the core capital as at YE2012 was 6.7%, slow- ing down by 1.6 p.p. as compared with 2011. The growth of the ultimate money supply (M2 aggregate measure) in the second half of 2012 was 11% vs. 18% yoy, which may be explained by sluggish domestic lending.

FINANCIAL MARKETS AND BANKING SECTOR Overall banking sector performance in 2012 may be considered positive. Assets increased by 18.9% vs. 23.1% in 2011, total loans1 grew by 19.1% vs. 28.2% in 2011, “assets/GDP” ratio augmented from 74.6% to 79.4%, while “loans/GDP” ratio went up from 41.7% to 44.4%. The fi nancial result of the Russian banking sector for 2012 grew by 19.3% as compared with 2011 to RUR 1,011.9 bln (vs. RUR 848.2 bln in 2011), with the asset quality and the pressure remaining a topical issue for Russian banks in spite of a certain improvement. Overdue corporate loans remained at the same level in

Changes in Loan Portfolio of the Russian Banking Sector

30 8% 6.8% 6.9% 7% 25 7.7 5.3% 5.6 6% 20 6.1% 5.2% 4.6% 5% 15 4.1 4.6% 3.6 4% 4.0% 3% 10 12.5 14.1 17.7 20.0 2% Corporate loans, RUR, trln 5 Retail loans, RUR, trln 1% Overdue corporate loans, % 0 0% Overdue retail loans, % 2009 2010 2011 2012

Bank Petrocommerce | 2012 1 Net of loans to fi nancial institutions. 10 1. DEVELOPMENT OF BANK PETROCOMMERCE IN 2012. THE BANK AND THE BANKING COMMUNITY

2012 – 4.6% – due to a comparable growth both of corporate loans and overdue debt. On the contrary, retail segment demonstrated a more positive trend: the share of overdue loans went down from 5.2% as at year-start 2012 to 4.0% as of 01.01.2013. Starting from 2011, retail lending grew at a high pace: during 2012, individual loan portfolio went up by 39.4% (vs. 35.9% in 2011) to RUR 7.7 trln, which consti- tutes 27.9% of total loans of the banking sector, or 12.4% of the GDP (23.9% and 9.9% in 2011, respectively). Corporate lending grew less intensively – by 12.7% (vs. 26.0% in 2011) to RUR 20.0 trln constituting 72.1% of outstanding debt of the banking sector, or 32.0% of the GDP (76.1% and 31.7% in 2011, respectively). Corporate lending was constrained by higher funding costs and limited resources available for the banking sector as well as moderate growth of the Russian economy on the background of declining foreign and domestic demand. The liabilities structure of Russian banks experienced insignifi cant changes in 2012: the share of loans from the Central Bank of Russia (CBR) increased from 2.9% to 5.4%; while the proportion of funding from non-fi nancial institutions went down from 34.1% to 32.1%, with the individual customer funding edging up from 28.5% to 28.8%. As at YE2012, corporate deposits went up by 11.7% (26.2% in 2011), while retail deposits remained virtually at the level of 2011 – 20.0% (20.9% in 2011). In terms of tenors and currencies, the deposit mix did not experience signifi cant changes: population still preferred ruble-denominated (82.5% of total individual customer funding) long-term deposits (deposits over 1 year account for 59%, 1 month to 1 year – 22%, short-term – 19%). Long-term deposits found a better demand, which is explained by the increase of interest rates by Russian banks. The debt debacle of the major world economies, risks of slowdown of the world economy growth rates, fi nancial market volatility, reliance of the national economy on commodities and oil and gas revenues as well as other adverse factors may have a negative impact on the Russian fi nancial and real sectors. Further economic development of the Russian Federation is to a considerable extent reli- ant on exogenous factors and internal measures undertaken by the government to sustain growth and to modify the legal and regulatory base.

Changes in Customer Funding

48.3% 35 46.7% 46.7% 50% 44.2% 30 40% 25 14.3 30% 20 11.9 15 9.8 7.5 20% 10 10% Corporate customer funding, RUR, trln 5 9.6 11.3 14.2 15.9 Retail customer funding, RUR, trln 0 0% Customer funding/GDP, % 2009 2010 2011 2012

Bank Petrocommerce | 2012 11 1. DEVELOPMENT OF BANK PETROCOMMERCE IN 2012. THE BANK AND THE BANKING COMMUNITY THE BANK’S PERFORMANCE IN 2012 In 2012, the Bank’s assets increased by RUR 29.9 bln, or by 15.2%, to RUR 226.0 bln as of 01.01.2013. The major drivers behind the asset growth were expansion of the lending volumes, deposits with the Bank of Russia and the securities portfolio. The loan portfolio increased by RUR 21.9 bln, or by 17.1%, and reached RUR 150.2 bln by the year-end. Such growth was mainly fuelled by corporate lending: corporate loan portfolio augmented by RUR 9.8 bln, or by 9.6%, to RUR 112.21 bln as of 01.01.2013. Moreover, the most dynamically developing segments were target, priority business areas: retail lending, factoring, leasing and SME lending. For instance, in 2012, retail loan portfolio went up by 54.5%, or by RUR 6.7 bln, to RUR 19.0 bln as of 01.01.2013. This was achieved due to the expansion of the credit product range for individuals as well as the development of sales channels and systems. The factoring portfolio grew by RUR 3.3 bln, or by 24.3%, to RUR 16.9 bln by the year-end. The new for the Bank business segment – lending to small businesses and individual entrepreneurs – expanded signifi cantly with its loan book being soared from less than RUR 0.1 bln as at the beginning of 2012 to RUR 2.1 bln by the year-end. In view of the above, interest income from lending to customers grew by 51.6% in 2012, while interest income from corporate lending increased by 44.8% to RUR 12.1 bln and interest income from retail lending doubled to RUR 2.2 bln. As at YE2012, interest income from loans to customers accounted for 86.9%, going up by over 11 p.p. Traditionally, the Bank made a special emphasis on liquidity management. In 2012, the Bank increased investments in securities by RUR 2.4 bln, or by 8.6%, by

Changes in Assets

250 100%

200 80% 31.8 27.0 23.6 9.1 11.9 21.6 19.3 150 14.2 19.8 60% 30.3 14.1 44.2% 27.5 29.9 37.4 Net loan portfolio, RUR, bln 100 15.8 40% 20.9 Securities portfolio, RUR, bln 31.7% Cash & cash equivalents, RUR, bln 27.1% 25.5% 50 20% Interbank loans, RUR, bln 74.7 86.0 112.7 113.1 Other, RUR, bln 0 0% Share of liquid assets, % 2009 2010 2011 2012

Changes in Assets Composition

100% 13.7% 14.0% 4.7% 5.3% 80% 10.1% 8.6% 60% 14.0% 13.2% Net loan portfolio Securities portfolio 40% 57.5% 58.9% Cash & cash equivalents 20% Interbank loans 0% Other 2011 2012

Bank Petrocommerce | 2012 1 Excluding factoring and loans to small business. 12 1. DEVELOPMENT OF BANK PETROCOMMERCE IN 2012. THE BANK AND THE BANKING COMMUNITY expanding its equities portfolio. Therefore, as of 01.01.2013, the securities portfolio amounted to RUR 29.92 bln. The main source of the funding base remained retail and corporate customer funding: as of 01.01.2013, they accounted for 78.7%3 of the Bank’s liabilities. As at YE2012, the volume of customer funding amounted to RUR 155.7 bln, up by 17.2%. Retail deposits increased by 13.6% to RUR 75.0 bln, while corporate deposits went up by 20.6% to RUR 80.7 bln as of 01.01.2013. Interest expenses on customer funding grew by 38.6% to RUR 7.9 bln, mainly due to the surging expenses from corporate customer funding (by RUR 1.8 bln) combined with the moderate growth of individual customer funding costs (RUR 0.4 bln). As at YE2012, interest expenses from customer funding represented 77.4% of the Bank’s interest expenses. The share of expenses on debt securities (bonds, promissory notes, savings certifi cates) increased by 1 p.p. to 15.5% of the Bank’s interest expenses, or RUR 1.6 bln. This was due both to distribution of RUR 3 bln БО-01 series bond issue at the beginning of 2012, replacement of 06 and 07 series bond issues by БО-02 and БО-03 bond issues worth RUR 8 bln in August 2012 as well as expanding volumes of the Bank’s promissory note issues, which as of 01.01.2013 amounted to RUR 7.0 bln (RUR 1.9 bln as of 01.01.2012). In addition, in 2012, savings certif- icates found demand among retail clients – their volumes going up from RUR 0.1 bln to RUR 0.4 bln as of 01.01.2013. Overall, in 2012, interest expenses amounted to RUR 10.2 bln, up by 43.8% yoy. In 2012, the sources of the Bank’s equity went up by 13.3% to RUR 28.1 bln. This was driven by the growing profi t and positive revaluation of fi xed assets.

Changes in Loan Book

160 2.1 140 16.9 0.1 120 13.6 19.0 7.1 12.3 100 5.0 7.2 80 8.2 60 Corporate loans, RUR, bln 40 74.3 86.9 102.4 112.2 Retail loans, RUR, bln 20 Factoring, RUR, bln 0 Loans to small business, RUR, bln 2009 2010 2011 2012

Changes in Interest Income Composition

8.9% 100% 4.7% 8.4% 80% 15.3% 60% 40% 75.8% 86.9% From customer lending 20% From investments in debt securities 0% From interbank loans 2011 2012

Bank Petrocommerce | 2012 2 Comprising portfolios of debt instruments (including discounted promissory notes) and equities taking into account revaluation, net of provisions for impairment, excluding investments into subsidiary and affi liate joint-stock companies and other shareholdings. 13 3 Excluding subordinated loan. 1. DEVELOPMENT OF BANK PETROCOMMERCE IN 2012. THE BANK AND THE BANKING COMMUNITY INCOME STATEMENT Interest income – the backbone of the Bank’s income – amounted to RUR 17.0 bln in 2012, up by 29.0% yoy. Net interest income grew by 11.9% as at YE2012 vs. the decrease of 10.4% in 2011. The second major source of the Bank’s income is constituted by fee and commission income. In 2012, it increased by 21.4% to RUR 2.3 bln, while net fee and commission income went up by 10.0% to RUR 1.4 bln. Acquiring, settlement services and bank card transactions constituted key sources of fee and commission income. As at YE2012, interest income and fee and commission income accounted for 69.5% of the Bank’s operating income. In spite of the volatility prevailing on the fi nancial markets, in 2012, the Bank managed to reduce net loss from securities trading and revaluation to RUR 0.21 bln vs. the negative result of RUR 0.7 bln in 2011. Taking into account interest income from debt securities portfolio, the fi nancial result from investments in fi nancial instruments remained almost at the level of 2011, i.e. RUR 1.2 bln.

Changes in Total Liabilities

250 3.2 4.6 13.1 200 1.9 2.0 4.8 28.1 6.6 21.5 4.6 21.4 150 4.5 28.0 24.8 14.1 10.1 20.6 24.6 Corporate accounts & deposits, RUR, bln 75.0 13.3 Retail accounts & deposits, RUR, bln 100 20.0 66.0 Debt issues, RUR, bln 49.2 57.7 Sources of equity, RUR, bln 50 Interbank loans, RUR, bln 48.2 45.2 66.9 80.7 Subordinated loan, RUR, bln 0 Other, RUR, bln 2009 2010 2011 2012

Changes in Funding Composition

3.5% 3.4% 100% 11.0% 5.8% 12.4% 80% 12.6% 5.1% 9.5% 60% Corporate accounts & deposits 33.7% 33.2% Retail accounts & deposits 40% Debt issues Sources of equity 20% 34.1% 35.7% Interbank loans 0% Subordinated loan & other 2011 2012

Bank Petrocommerce | 2012 1 Net of interest income from debt instruments (i.e. bonds and promissory notes). 14 1. DEVELOPMENT OF BANK PETROCOMMERCE IN 2012. THE BANK AND THE BANKING COMMUNITY

Net income from forex trading and revaluation also demonstrated a positive trend in 2012, going up by 21.7% to RUR 1.5 bln as of 01.01.2013. Apart from the above, the fi nancial result was boosted by dividends worth RUR 1.7 bln from subsidiary banks (OJSC Komiregionbank Ukhtabank and Stavropol- promstroybank) in 2012. In 2012, the Bank’s operating expenses increased by 10.1%, or by RUR 0.7 bln, to RUR 7.6 bln, which was driven mainly by growing costs connected with the expansion of the Bank’s staff by 17.2% and an increase in general and administrative expenses. The growth of operating income and cost control allowed to improve operational performance indicator: the cost-to-income ratio stood at 64.2% as at YE2012 vs. 80.9% as at YE2011. In 2012, the Bank’s net profi t amounted to RUR 0.9 bln vs. RUR 0.6 bln in 2011.

Changes in Interest Expense Composition

100% 5.9% 7.1% 14.5% 80% 15.5%

60%

40% 79.6% 77.4% Customer accounts & deposits 20% Debt issues 0% Interbank loans 2011 2012

Operating Income Composition as of 01.01.2013

57.6% Net interest income 11.9% Net fee & commission income 10.4% Net income from securities & forex trading and revaluation 20.1% Other

Bank Petrocommerce | 2012 15 1. DEVELOPMENT OF BANK PETROCOMMERCE IN 2012. THE BANK AND THE BANKING COMMUNITY STRATEGIC AREAS OF DEVELOPMENT The mission of Bank Petrocommerce is to meet clients’ demand for top-notch banking products and services. The Bank’s major objective consists in sustainable and effi cient business development in key target segments. The Bank’s development complies with the fi ve-year development strategy till 2016, which sets the following main objectives: pro-active business development in target product and client segments and priority regions; expansion of product line with high margin in all business segments; retail business development by further penetration into the existing client segments and attraction of new target segment customers from open market; promotion of the complex product range meeting the clients’ requirements to the maximum extent. The corporate business priority development areas include: SME lending; leasing operations; factoring; documentary business. Regional development envisages the expansion of the Bank’s market share in the regions, where it operates, and entry to the most attractive new regions. In addition, the Bank sets the following objectives: boosting effi ciency of the sales system, development and support of cutting edge technologies in terms of products and business processes at the level comparable with peers, modifi - cation of the product range with the view of off ering the most demanded products, funding base diversifi cation, control of risk exposure in accordance with the Russian and international approaches, effi cient management, personnel training and motivation. The Bank’s major competitive edges comprise: strong management team; signifi cant business volume in the Russian market; well-developed competences in rendering services to such client groups as large and medium-sized corporates, high net worth individuals and employees of corporate customers; a well pondered regional development policy; an effi cient risk management system; good business track record in the banking sector. The achievement of the Bank’s strategic objectives will allow it to reach a new level of development, to expand its clientele, to boost competitiveness and, consequently, to strengthen its positions in the fi nancial market of the Russian Federation.

Bank Petrocommerce | 2012 16 1. DEVELOPMENT OF BANK PETROCOMMERCE IN 2012. THE BANK AND THE BANKING COMMUNITY REGIONAL DEVELOPMENT Bank Petrocommerce’s business is underpinned by a network of offi ces ensuring its presence in the major economic hubs of Russia. As at YE2012, the Bank’s regional network spanned across 60 cities in 29 constituents of the Russian Fed- eration. The Bank’s branches are located in 18 cities: Arkhangelsk, Volgograd, Voronezh, Yekaterinburg, Kaliningrad, Kogalym, Krasnodar, Lipetsk, Nizhny Novgorod, Novorossiysk, Novosibirsk, Perm, Rostov-on-Don, St. Petersburg, Saratov, Ufa, Ukhta and Chelyabinsk. In 2012, the Bank opened 4 additional offi ces and 1 cash offi ce, closed 3 additional offi ces and 1 cash offi ce. On 16 October and 13 December 2012, the Bank registered branches in Voronezh and Yekaterinburg, respectively. Thus, as at YE2012, the Bank’s network comprised 94 outlets, including the head offi ce, 18 branches, 64 additional offi ces, 9 operational offi ces and 2 cash offi ces. At the beginning of 2013, the largest branches in terms of assets were located in Volgograd, Kogalym, St. Petersburg, Perm and Kaliningrad. As at YE2012, the regional network accounted for: 39% of the gross loan book1 (37% as of 01.01.2012), in particular, 35% of corporate loans (comparable with the data as of 01.01.2012), 78% of retail loans (68% as of 01.01.2012); 28% of the customer funding2 (31% as of 01.01.2012), in particular, 27% of corporate customer funding (33% as of 01.01.2012), 30% of retail customer funding (30% as of 01.01.2012).

Regional Network Share in the Bank’s Business Indicators

Share in loan book

Share in corporate loans Share in retail 39% customer funding 37% 30% 35%

27% 28%

33% 68% Share in retail loans Share in corporate customer funding 31% 78%

Share in customer funding

01.01.2012

01.01.2013

1 Excluding reverse sale and repurchase transactions. Bank Petrocommerce | 2012 2 Excluding subordinated loan. 17 OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012

Bank Petrocommerce | 2012 2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012 CORPORATE BUSINESS In 2012, Bank Petrocommerce acquired over 3.5 thous. new corporate clients, including SMEs, up by 75% yoy. At the same time, the Bank continued to optimise its customer base by closing accounts, which are not being operated. These measures resulted in an increase in the number of active customers by 4% in 2012. Overall, the Bank’s customer base remained at the level of 2011 and comprised about 27 thous. corporate clients. The industry composition of the clientele did not experience any signifi cant changes in 2012: trade and service companies still account for over 50%, while the number of service companies demonstrates growth, and that of trade companies decreases. Given the Bank’s objectives for 2012, which comprised sizeable corporate lending growth, the following client segments were selected: Medium-sized business segment comprises companies with annual revenues from RUR 200 mln to RUR 1 bln, employing up to 400 people and operating for at least three years. This segment is appealing due to oppor- tunities of diversifying the loan portfolio, enhancing its sustainability and diluting concentration. Besides, operations in this segment allow to boost customer base effi ciency for the account of complex services and higher customer penetration. Large corporates include companies with annual profi t from RUR 1 bln to RUR 3 bln characterised by high demand for bank products and implementation of joint programmes in various areas along with lending. These client segments constituted a supplementary sustainable channel of product sales throughout 2012. In 2012, the product mix did not experience material changes. The list of banking products and services provided to corporate clients comprised lending, factoring, placement of temporarily available funds (deposits, accounts with minimum required balance), settlement services, payroll projects, acquiring, corporate cards issue, trade fi nance, documentary business, guarantees, conversion transactions, currency control, cash collection, cash management (client’s settlement centre, zero-balancing, cash fl ow management system, info-pooling), corporate treasury services (corporate dealing, corporate loans, short-term placement of funds), payments by individuals for services under contracts with providers, remote banking services (bank-client system, Internet bank-client system, centralised accounting, mobile accounting), arrangement of bond issues. It should also be noted that 2012 saw an increase in sales (number of contracts), which refl ects the pro-active stance of the Bank’s customer relationship units in respect of all lines-up of products. For instance, the number of corporate borrowers went up by 17%, depositors – by 170%, recipients of factoring services – by 43%, holders of the Bank’s promissory notes – by 40%; clients applying for bank

Changes in Corporate Customer Funding

60 38.3 34.3 40 26.2 19.5

20 22.0 25.7 32.6 42.4 Current/settlement accounts, RUR, bln 0 Term accounts, RUR, bln 20092010 2011 2012

Bank Petrocommerce | 2012 19 2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012

guarantees – by 7%, for conversion transactions – by 2%, for acquiring – by 33%, for cash collection – by 17%, for corporate cards – by 17%. Overall, 2012 evidenced a negligible edge up in terms of product penetration – 1 corporate client accounts for about 1.5 bank products and services, which serves as a backbone for further measures aimed at boosting effi ciency. Apart from the above, in 2012, the Bank continued to streamline its business procedures, develop its array of products, enhance their quality, convenience and functionality. The Bank undertook, inter alia, the following measures: Launch of “PKB on-line – information service for corporate cards” allowing corporate clients to obtain up-to-date information in respect of each corporate card, including opening/closing balances and account turnovers subject to individual payment limits, and to control debits. Accreditation at the “MICEX-IT” e-trading platform for participation in electronic trading and at the “OTC-fi nance” deposit electronic platform (RTS-tender) for participation in electronic deposit acquisition. Registra- tion with the electronic trading platforms allows the Bank to take part in open tenders and bids for provision of services to state and municipal entities and natural monopolies held in accordance with the federal law requirements. Besides, the effi ciency of such platforms makes them more popular among other entities for holding bids. The registration with the deposit platform allowed the Bank to raise about RUR 2 bln of corporate customer deposits in 2012. Approval of a new deposit for self-regulating organisations fi nding demand among clients both at the head offi ce and branches.

Corporate Customer Funding* by Tenor

100% 2.5% 4.1% 8.1% 3.1% 8.3% 16.3% 12.6% 9.2% 7.1% 6.3% 5.0% 80% 8.6% 7.1% 10.9% 22.8% 11.5% 60%

40% Up to 30 days 61.1% 69.9% 66.8% 58.7% 31 – 180 days 20% 181 days – 1 year 1 – 3 years 0% Over 3 years 20092010 2011 2012

Corporate Customer Base by Economic Sector as of 01.01.2013

29% Wholesale and retail trade 24% Services 6% Construction 6% Transport & communication 5% Industrial production 2% Non-state public organisations 28% Other

Bank Petrocommerce | 2012 * Excluding subordinated debt. 20 2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012

Development of a new service – the paying agent’s account – providing for a special regime of transfer and disbursement of funds. It is designed for entities in charge of collecting utility payments. Launch of another new service off ering “recurrent payments under register” for social welfare, scholarships, dividends, etc. Payments under register are convenient for those making periodical payments and enable them to cut transaction costs: the use of register allows to avoid the need for issuing a huge number of payment orders, to transfer the clients’ funds to accounts, bank cards, etc. In 2012, Terrasoft, a CRM system, was developed and launched. In De- cember 2012, the Bank tested the system and prepared it for its industrial use. The launch of the CRM system allows to build a clear, controllable and easily adjustable sales system recording all operations performed by the Bank’s customer service units, keeping track of customer relationship and refl ecting its particularities for further segmentation of the clientele and creating strategy for each segment. Besides, the CRM system makes it possible to manage the performance of customer relationship offi cers and evaluate their effi ciency. Development of the ATM and POS-terminal network, expansion and op- timization of the ATM and acquiring network: ensuring a more propor- tionate coverage, relocation of ineffi cient ATMs, introduction of additional payment services, replacement of older ATMs with newer models with the cash-in function, installation of information and payment terminals, installation of light ATMs, etc.

Changes in Corporate Business Interest Income and Expense

14,000 15% 12,000 12,120.1 10,000 10% 8,000 8,371.3 6,000 5.0% 4.7% 5% 4,000 Interest income, RUR, mln 2,000 2,761.2 4,606.9 Interest expense, RUR, mln 0 0% Interest spread,* % 2011 2012

Changes in Fee & Commission Income

300 21.1 22

250 19.9 20 239.0 238.6 224.5 200 209.7 18 150 16 Settlement services, RUR, mln 100 14 Currency control, RUR, mln Cash services, RUR, mln 50 103.0 120.7 112.5 93.4 12 Documentary business, RUR, mln 0 10 Performance per client, RUR, thous. 2011 2012

* Calculated as diff erence between interest income from corporate lending for the year to average corporate loan portfolio and interest expense Bank Petrocommerce | 2012 from corporate customer funding for the year to the average volume of corporate customer funding. 21 2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012

Set-up of mobile offi ces as retail product sales channels targeting corporate clients’ employees. The pro-active attitude of the Bank’s business units, participation in tenders and auctions for provision of banking services to all kinds of companies on an ongoing basis, holding of promotional events for corporate customers of the branches resulted in a substantial increase in corporate customer funding, which grew by 21%, or by RUR 13.8 bln, to RUR 80.7 bln as at YE2012. In 2013, the Bank intends to continue its eff orts aimed at customer base optimisation with a particular emphasis to be placed on the enhancement of product penetration and promotion of fee generating products.

CORPORATE LENDING The major objectives in terms of corporate lending in 2012 comprised the following: expansion of the loan portfolio; control over the portfolio quality; diversifi cation; boosting profi tability and effi ciency of the business segment. In 2012, the Bank’s corporate loan portfolio grew by 9.6%, or by RUR 9.8 bln, to RUR 112.2 bln as of 01.01.2013. It was mainly driven by a signifi cant expansion of lending to the target segment (loans up to RUR 500 mln) by 7.1 p.p. on the background of the decreasing share of credit products exceeding RUR 500 mln; the leasing portfolio increased by 21% to RUR 5.2 bln. Income from corporate lending grew at a higher pace than the portfolio: interest income for 2012 went up by 45%. The key negative factor in 2012 consisted in increasing funding costs in the market combined with emerging signals of liquidity defi cit and exacerbating con- cerns in respect of restricted accessibility of liquid resources, which triggered shrinking of the margins, on the one hand, and, therefore, a need to increase loan interest rates, on the other hand. An additional constraint consisted in competitive pressure in terms of pricing from major state banks having access to cheap funding. In spite of the above, the Bank managed to achieve higher profi tability for the account of growth in the target segments. Measures taken to dilute concentration of the loan portfolio proved to be effi - cient: the number of borrowers went up by 17% to 773, which brought down the share accounting for 20 largest borrowers by 3.4 p.p. to 29.8% of the total loan portfolio, while the average loan amount decreased by 6% to RUR 145 mln. Enhanced requirements to the borrowers’ quality contributed to the improvement of the asset quality. The loan portfolio quality is also underpinned by the results of monitoring of the borrowers’ fi nancial condition, which allows to re- veal negative trends in the clients’ business indicators and to take preventive measures aimed at reducing the Bank’s exposure to risks. In 2012, the share of overdue loans went down by 2 p.p. to 6.4%, provisioning constituted 11.3% by the year-end (vs. 12.2% as at YE2011); the share of secured corporate loans grew by 2.9 p.p. to 89.5%. Real estate remains the most reliable collateral representing 43.3% of total collateral, up by 5.4 p.p. Key objectives for 2013 will consist in increasing revenues from credit operations by selling credit products generating high margins to medium-sized business custoners, while maintaining the portfolio volumes at the same level. This, together with the improvement of the system of credit risk monitoring, should also contribute to portfolio diversifi cation and ensure formation of a high-quality loan portfolio.

Bank Petrocommerce | 2012 22 2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012

Corporate Lending Trends*

120 100% 100 112.2 95% 102.4 80 86.9 90% 84.9% 85.9% 60 74.3 85% 79.8% 40 80% Corporate loan book, RUR, bln 74.7% 20 11.7 10.1 75% Guarantees, RUR, bln 3.2 7.1 0 70% Share in loan book, % 20092010 2011 2012

Changes in Corporate Loans Quality

16% 13.7% 12% 10.7% 8.4% 8% 6.4%

0% Share of overdue loans, % 20092010 2011 2012

Profi tability Trends of Corporate Lending*

12,000 15% 10,000 12% 8,000 9.3% 8.2% 9% 6,000 6% 4,000 7,491.6 10,748.6 Interest income, RUR, mln 3% 2,000 Fee & commission income from guarantees, RUR, mln 159.0 151.6 0 0% Profi tability from corporate lending, % 2011 2012

* Excluding factoring and lending to small business. Bank Petrocommerce | 2012 23 2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012

Loans by Type of Collateral as of 01.01.2013

43.3% Real estate 14.7% Suretyship 11.3% Equipment & vehicles 10.5% Unsecured 2.1% Securities 1.0% Claims to the Banking Group & cash 17.1% Other

Loans by Tenor as of 01.01.2013

62.1% Over 3 years 16.2% 1 – 3 years 10.9% 31 – 180 days 10.6% 181 days – 1 year 0.2% Up to 30 days

Loans by Product* as of 01.01.2013

40.7% Credit lines with the limit of disbursement 37.4% Credit lines with the limit of indebtedness 16.7% Loans 4.6% Leasing 0.6% Overdraft

Loans by Economic Sector as of 01.01.2013

16.9% Construction & construction materials 14.9% Trade 10.3% Machinery 7.4% Services 7.1% Power generation 6.5% Food industry 5.8% Leasing & fi nancial organisations 5.0% Metallurgy 3.7% Agribusiness 2.7% Chemical industry 1.2% Transport 3.0% Other industry 15.5% Other

Bank Petrocommerce | 2012 * Excluding factoring. 24 2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012 FACTORING Factoring is one of the Bank’s fl agship business areas, which is refl ected in the Bank`s strategy. Apart from general objectives established for all business segments, in 2012, in terms of factoring development the Bank set the following targets: maintaining and improving market positions; boosting the share of the regional network; further optimisation of fi nancing terms and conditions subject to local markets specifi cs and customer requirements. In 2012, Bank Petrocommerce maintained its market positions – 4th place among Russia’s largest factors, with the market share accounting for 7%. The key factor preventing the Bank from considerable improvement of its positions was sus- pension of operations with products with enhanced risks or hardly predictable risks. In particular, the share of non-recourse factoring went down from 12.9% in 2011 to 1.6% as at YE2012. In 2012, the Bank’s factoring portfolio grew by 24%, or by RUR 3.3 bln, from RUR 13.6 bln to RUR 16.9 bln as of 01.01.2013, while the volume of fi nancing increased by 37% to RUR 74.4 bln and income from business segment went up by 56%. Due to the fact that revenues from factoring grew at a higher pace than the portfolio, the profi tability of the segment also improved from 10.6% to 11%. However, the abovementioned constraints did not allow to comply with the planned quantitative indicators – the average performance indicator approximated 90%. During the year, the share of 10 largest clients decreased by 6.3 p.p., while that of 10 largest debtors – by 15.1 p.p. The customer base expanded by 43%, the number of debtors increased by 34%, which was achieved mainly due to the regional network. The amount of the average portfolio per client reduced by 13% to RUR 133 mln, and the share of the regional portfolio of non-recourse factoring gained 2.1 p.p. to 21% as at YE2012.

Changes in Factoring Business Development

100 11.2% 10.6% 12% 90 89.0 80 10% 70 74.4 7.0% 8% 60 64.8 5.7% Volume of assigned 50 54.3 6% receivables for the year, RUR, bln 40 Volume of fi nancing 4% 30 32.3 for the year, RUR, bln 28.8 20 24.3 23.2 2% Factoring portfolio 10 13.6 16.9 at year-end, RUR, bln 7.1 0 5.0 0% Share in loan book, % 20092010 2011 2012

Business Segment Profi tability

3,000 15%

10.6% 11.0% 2,000 10% 1,000 5% 500 903.0 1,397.0 Income, RUR, mln 0 0% Business segment profi tability, % 2011 2012

Bank Petrocommerce | 2012 25 2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012

From the point of view of the business segment performance, in 2012, the Bank also managed to improve the following indicators: the average factoring portfolio per employee increased by 14% to RUR 274.5 mln, income per employee – by 21% to RUR 28 mln. In 2013, in order to achieve its strategic objectives the Bank intends to boost the share of non-recourse factoring in the factoring portfolio and to focus on the SME segment.

Factoring Portfolio by Economic Sector Wholesale trade 26.7% Electrical equipment 5.5% Food staff 1.2% Non-food products 0.3% Alcoholic beverages 33.8% Other Manufacturing 25.6% Alcohol beverages production 1.7% Metallurgy 1.6% Food industry 1.2% Electrical & Optical Equipment 2.4% Other

SME LENDING Lending to small business entities and individual entrepreneurship is one of the Bank’s priority business areas. The pilot project was launched in the second half of 2011, and in 2012, the Bank proceeded to the industrial stage comprising a signifi cant number of measures: the number of outlets was increased to 29 (credit products for customers representing small business became accessible in all regions of the Bank’s operations, including the Moscow area); the product range was complemented by two new off ers bringing the total number of credit products to 8 as at YE2012; a call centre was set up, a specialised section of the Bank’s web-site was launched and the approach to evaluation and control of risks was adjusted. In 2012, Bank Petrocommerce signed agreements with 9 regional funds of SME support. This makes loans more accessible for SMEs as the funds can act as guar- antors under their obligations. Furthermore, the cooperation between Bank Petrocommerce and Russian Bank for Small and Medium Enterprises Support (SME Bank) allows to off er SMEs cheaper loans by cutting funding costs.

SME Borrowers by Economic Sector as of 01.01.2013

58% Trade 33% Services 9% Manufacturing

Bank Petrocommerce | 2012 26 2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012

The Bank’s target clientele in this segment comprises: companies and individual entrepreneurs registered in the Russian Feder- ation; individual owners of small and medium-sized businesses with the annual profi ts of up to RUR 200 mln, employing up to 250 people and operating for at least 6 months (subject to the loan amount). The average loan is RUR 3 mln. The core business areas comprise: trade (retail and wholesale), including food, consumer goods, spare parts and components, equipment and vehicles; production of food, consumer goods, spare parts and components, pri- mary processing of agricultural products; services, including catering, real estate rental, domestic and medical services, passenger/cargo transportation. The prospects of development of this business area are confi rmed by the growing demand for credit products: in 2012, the SME loan book surged from about RUR 90 mln to RUR 2.1 bln with zero overdue debt, while the number of clients soared to over 500. The average weighted portfolio return reached 16.7%. The plans for 2013 focus on pro-active lending to medium-sized businesses, with the objective to increase the number of outlets to 50, to triple the clientele and to continue automation of a number of business processes.

Loan Portfolio Composition by Collateral as at YE2012

70% Real estate 23% Vehicles & equipment 17% Inventory 1% Unsecured loans

Customer Base Composition by Loan Amount as at YE2012

76% Up to RUR 5 mln 15% RUR 5 mln – RUR 10 mln 6% RUR 10 mln – RUR 20 mln 2% RUR 20 mln – RUR 30 mln 1% Over RUR 30 mln

Bank Petrocommerce | 2012 27 2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012 RETAIL BUSINESS In 2012, the major goals in terms of retail business development comprised the following: growth of the loan and deposit portfolios; maintaining high quality of the loan book; development of sales channels and boosting their effi ciency; improvement of the quality of services; enhancing profi tability of the retail business segment. In order to boost effi ciency of retail outlets, to improve the quality of services and to ensure convenience for the clients, Bank Petrocommerce undertook the following steps: it held workshops on sales skills for front offi ce employees, introduced the system of incentives for client relationship and services managers, centralised the procedure of handling customer complaints and claims, changed opening hours of a number of offi ces, held marketing campaigns at the federal level with the view of increasing brand awareness, implemented the procedure of regular reviews of the customer base, arranged sales of a complete scope of credit and fee generating retail products and services through the Bank’s mobile offi ces. In 2013, the Bank intends to continue pursuing this policy, i.e. further expand its product line (in particular, by off ering new credit programmes to individuals and extending retail sales channels), enhance the quality of services and accessibility of products (opening new sales outlets in the Russian provinces, acquire street retail customers at petrol stations, shopping malls, etc. in all regions of the Bank’s operations), boost cross sales and agency sales.

Changes in Retail Customer Base

100

80 83.9

60 65.5

40 45.8 46.2

20 Number of borrowers, people, thous. 14.5 14.7 17.3 20.7 1 0 Number of depositors , people, thous. 20092010 2011 2012

Profi tability Trends of Retail Business

3,500 9.5% 10% 3,000 8% 6.9% 2,500 2,000 6% 2,860.8 3,268.6 1,500 4% Interest income, RUR, mln 1,000 1,085.7 2,237.9 2% Fee & commission income, RUR, mln 500 1,001.4 1,369.5 Interest expense, RUR, mln 0 0% Interest spread2, % 2011 2012

Bank Petrocommerce | 2012 1 Only term deposits customers. 2 28 Calculated as diff erence between interest income from retail lending for the year to the average retail loan portfolio and interest expense from retail funding for the year to the average volume of individual customer funding. 2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012 RETAIL LENDING Retail lending is among the Bank’s fl agships, strategically important business areas. In 2012, Bank Petrocommerce undertook a number of signifi cant measures in terms of retail lending, among which the following should be emphasized: launch of a car lending programme, extension of consumer lending programmes’ tenor up to 7 years, start of the programmes of insuring borrowers against the risk of unemployment and accident. In 2012, the portfolio of loans to individuals increased by 54.5%, or by RUR 6.7 bln, to RUR 19.0 bln. The Bank’s retail loan portfolio grew at a considerably higher pace that the market average (39%). Consumer and mortgage loans still bear the palm by increasing by RUR 4.5 bln and RUR 1.8 bln, respectively. However, credit cards and car loans remained popular as well and showed the most aggressive growth rates: card receivables saw an almost 7.5-fold increase, while outstanding car loans quadrupled, which evidences solid marketing characteristics and high potential of Bank Petrocommerce’s credit products. Important progress was also made in reducing the volume of overdue retail loans and enhancing control over new ones. Effi cient steps undertaken to stimulate repayment of overdue debt at all stages of the credit process allowed to cut the amount of overdue loans by 2.4% on the background of an intensive growth of retail lending volumes, while the share of overdue loans to individuals went down from 8.3% to 5.2%. Moreover, as at YE2012, the share of loans 360+ days overdue as percentage of total volume of overdue retail loans decreased by 20 p.p. The Bank also boosted effi ciency of overdue debt collection up to 60 days (95.4% in 2012 vs. 93.7% in 2011). The share of overdue debt subject to legal proceedings went down by 14% in 2012.

Retail Lending Trends

20 20%

16% 15 12.6% 12% 9.3% 9.6% 10 7.1% 8%

5 8.2 7.2 12.3 19.0 4% Retail loan portfolio, RUR, bln 0 0% Share in loan book, % 20092010 2011 2012

Changes in Retail Loans Quality

15% 13.6% 11.5%

10% 8.3%

5.2% 5%

0% Share of overdue loans, % 20092010 2011 2012

Bank Petrocommerce | 2012 29 2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012

The plans for 2013 comprise a signifi cant expansion and development of the credit product range. In particular, the Bank intends to complete the launch of the programme of refi nancing consumer loans granted by other banks, to issue a new credit card with an extended grace period, to complement services off ered to credit cardholders by adding insurance against unemployment and accidents, to launch an interest-free overdraft loan for payroll project clients, to introduce new car lending programmes.

Retail Loan Portfolio Composition by Product as of 01.01.2013

64.3% Consumer loans 31.5% Mortgage loans 3.5% Credit cards & overdraft 0.7% Car loans

RETAIL DEPOSITS The fi rst half of 2012 was marked by the launch of three “ANNIVERSARY” deposits: “ANNIVERSARY!”, “THE ANNIVERSARY IS GOING ON” and “ANNIVERSARY PREMIUM” celebrating the Bank’s 20th anniversary, which allowed to attract over RUR 3.7 bln. These deposits were succeeded by “WINTER STORY” launched on 01 November 2012 on the eve of the New Year, which demonstrated even more impressive results: over RUR 3.8 bln was attracted by YE2012. In order to keep the deposit range at a competitive range, the multicurrency deposit was replaced with the “RIGHT RATE” deposit, which is more adjusted to the market environment and allows to protect savings from exchange rate fl uctuations and switch currencies without losing any interest income. However, the “Classical” deposit maintained leadership throughout 2012 accounting for more than a half of retail term deposits. The “OP- TIMUM” and the “OPTIMUM Plus” deposits hold the second and the third places, respectively. Overall, as at YE2012, retail deposits amounted to RUR 75.0 bln, up by 13.6%, or by RUR 9.0 bln, with term deposits going up by 17.6%, or by RUR 9.3 bln, to RUR 61.2 bln as of 01.01.2013. The number of depositors went up by 29% to 161.1 thous. Rouble-denominated deposits continued to be the most demanded in 2012 and increased by RUR 7.4 bln, or by 19.2%. USD-denominated deposits found a considerably lower demand growing by RUR 2.1 bln, or by 11.7%. EUR-denominated deposits demonstrated a negative change (-1.3%).

Changes in Retail Customer Funding

80 58% 56.1% 70 13.2 56% 60 13.4 10.9 54% 50 8.9 52% 40 49.7% 50% 30 50.5% 48.2% 48% 20 Term deposits, RUR, bln 10 40.4 46.8 52.6 61.8 46% Demand deposits, RUR, bln 0 44% Share of customer funding, % 20092010 2011 2012

Bank Petrocommerce | 2012 30 2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012

The main objective of 2013 is to ensure a sustainable funding base. Therefore, the Bank will continue to launch more seasonal promotions, which proved their effi - ciency. The deposit range will be upgraded by launching on-line deposits with an option of being opened through the “PKB on-line” system and the Bank’s ATMs.

Deposits by Currency as of 01.01.2013

60.4% RUR 26.4% USD 12.6% EUR 0.6% Other

BANK CARDS As of 01.01.2013, Bank Petrocommerce issued 1.5 mln cards, with the number of active bank cards going up by 136.9 thous., or by 20.1%, to 816.9 thous. The total cash fl ow through bank cards issued by the Bank approximated RUR 290 bln in 2012. In 2012, the Bank continued its active participation in marketing campaigns organised by VISA and MasterCard designed to stimulate card issuance, to augment transaction volumes and to increase customer loyalty. One of the most important joint campaigns included “Pay by VISA cards and win a trip to London Olympics 2012 or one of 50 3D TVs”, “Golden times with VISA Gold” off ered in partnership with VISA allowing to win a week of surprises and presents, and “The Return of the Legend” off ered in partnership with MasterCard allowing to win tickets for Michael Jackson the Immortal World Tour by Cirque du Soleil in Moscow and St. Petersburg. In 2012, Bank Petrocommerce continued to promote its co-brand products with LUKOIL and LUKOIL-Garant Non-State Pension Fund. Not only do such co-brand cards allow to pay for any goods and services worldwide and to withdraw cash, but also to earn points that can be spent at LUKOIL petrol stations (LUKOIL-Petro- commerce-MasterCard) or transformed into cash on an annual basis and accrued on the pension account opened with the LUKOIL-Garant Pension Fund (“Decent Retirement” programme). Besides, cardholders are provided with free information services – SMS-service, “PKB-online”, and additional discounts at various merchants – partners of the Bank. The Bank’s achievements are evidenced by our clients’ opinions: in 2012, cards issued by Bank Petrocommerce ranked 1st in the popular rating held by CREDCARD.ru. The Bank’s cards were recognised to be the most reliable and us- er-friendly among those of Russian issuers. In 2013, the Bank intends to launch new card products (“Gift Card” and “Transport Card”), new co-brand projects, an insurance programme for cardholders, which comprises insurance against unexpected expenses during trips.

PROCESSING AND DEVELOPMENT Bank Petrocommerce has its own processing centre as well as issuing and emboss- OF CARD TECHNOLOGIES IN 2012 ing facilities. The Bank’s processing centre ensures complete support of all issuing and acquiring transactions of the Bank and its partners: currently, it services over 1 mln own bank cards and about 100 thous. cards of associated banks. 2012 saw the following technological innovations: as for contactless technologies, the Bank certifi ed and launched VISA Pay- Wave acquiring system and ensured functioning of parking metres for the Government of Moscow;

Bank Petrocommerce | 2012 31 2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012

as for the joint project with LUKOIL, the Bank launched the loyalty system for the pension programme and a new technology of settlements with the regional companies of the LUKOIL Group together with LUKOIL-Intercard (Merchant Transactions Export); as for e-commerce, the Bank passed certifi cation procedures for VISA VbV acquiring, introduced e-commerce acquiring based on 3DS technology (MC SecureCode/VISA VbV). It launched fi rst large-scale projects of on-line utility payments at the regional level. In 2013, Bank Petrocommerce intends to continue implementing cutting-edge technologies based on the best international practices and its own innovations. In particular, special attention will be paid to the development of competences in the following areas: contactless technologies (certifi cation of MasterCard SecureCode and VISA Verifi ed by VISA, issuance of VISA PayWave EMV cards, support of 3DS profi le for cards issued by the Bank, issuance of virtual cards, implementation of VISA PayWave acquiring system throughout the Bank’s terminal network, support of automated complexes, use of non-standard form factors); payments and transfers (launch of money transfers via international payment systems – VISA Money Transfer and MasterCard MoneySend, recurrent payments, Cash-by-Code transfers, restructuring of cooperation with the RAPIDA payment system).

Changes in Card Business 1,800 350

1,500 300 1,513 289.8 250 1,200 1,259 1,070 200 900 962 131.6 150 103.2 600 85.3 100 Cards issued, thous., pcs 300 575.5 589.2 680 816.9 50 Active cards, thous., pcs 0 0 Cashfl ow, RUR, bln 20092010 2011 2012

Development of Network of ATMs, POS-terminals and self-service terminals

9,000

8,000 8,370 7,000 7,061 6,000

5,000 5,263 4,000 3,000 3,625 2,000

1,000 ATMs, thous. 1,019 1,146 1,301 1,538 0 Terminals, thous. 20092010 2011 2012

Bank Petrocommerce | 2012 32 2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012 PRIVATE BANKING As for private banking and wealth management, in 2012, Bank Petrocommerce AND WEALTH MANAGEMENT made a special emphasis on regional business development. In particular, in 2012, the Bank continued to ensure the provision of the VIP clients of the branches with the same access to premium products and services as at the head offi ce. Dedicated areas for VIP customer services were opened in Rostov-on-Don, St. Petersburg and Volgograd. Consequently, the regional customer base growth outpaced that of the Moscow region: 28% vs. 5%. Overall, in 2012, the product off ering for high net worth individuals followed two vectors of development: elaboration of new products with an option of customisation for VIP clients; standardisation of the existing products for segmented groups of customers. This allowed to combine customised product mix integrating the most up-to- date bank and investment products (chip cards, individual asset management strategies, etc.) and standard package off erings designed for specifi c client segments. It should be noted that the Bank made a special emphasis on development of electronic access systems allowing to increase effi ciency and simplify the document clearance procedure. Such measures aimed at improving the quality of package off ering segmentation for various categories of clients and in-depth diversifi cation of packages in terms of product mix allowed to boost sales considerably and to increase the profi t generated by the business segment in 2012 by almost 30%. Besides, a rig- orous approach to the cost of services comprised in the package enabled per- sonal managers to focus on the most demanding categories of customers, which had a direct impact on the business performance. In 2012, the clients continued to follow a conservative investment strategy, and deposits remained the most popular product. Taking into account the clients’ conservative preferences, the product range was complemented by a number of appropriate tailor-made asset management instruments combining conservative strategy with higher returns than deposit interest rates.

Business Segment Trends

70 4,132 4,500 3,553 4,000 60 3,509 3,428 10.5 3,500 50 9.8 10.4 3,000 40 10.3 2,500 2,000 30 35.4 41.0 45.4 52.2 VIP clients deposits and accounts, RUR, bln 1,500 20 1,000 VIP clients funds under management, RUR, bln 10 500 0 0 Number of VIP clients, people 20092010 2011 2012

Loan Portfolio Composition by Type as of 01.01.2013

76.7% Consumer loans 16.6% Mortgage loans 6.1% Overdraft 0.6% Car loans & other

Bank Petrocommerce | 2012 33 2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012

Credit products also found demand among high net worth individuals in 2012: the growth of the loan book of this business segment exceeded 50% bringing its volume to RUR 0.7 bln, with over one third thereof accounting for the branches. The share of mortgage loans in the total VIP loan portfolio increased by 4.8 p.p. in 2012, which evidences the ongoing interest demonstrated by the clients to real estate. The overall structure of the loan book did not experience any major changes. A signifi cant expansion of the lending volumes is driven both by changes of the credit terms and conditions for VIP clientele and a pro-active stance taken by client relationship managers. In 2012, the privilege programme continued its development. In particular, the Bank continued a pro-active development of cooperation with insurance companies, entered into cooperation agreements with a number of major car dealers and a luxurious hotel network and held joint promotional campaigns with the leading foreign airlines. Apart from the traditional privileges from the lifestyle category such as real estate acquisition, compilation of wine and art collections, the programme was complemented by a number of new and so far rare services off ered by partner companies comprising a rehabilitation facility for aged people, a culinary studio of a famous TV anchor, catering services of a fashionable restaurant, etc. The number of partners increased by 23% over the year. Therefore, it might be stated that today the Bank’s programme of privileges does not just meet the requirements of high net worth individuals in terms of top- notch non-banking products, but also complies with the highest standards set for such programmes both in respect of product range and generated returns. In 2013, the Bank intends to continue customer base segmentation, in particular, development and fi ne-tuning of sales technologies for the mass affl uent product range. As for the product off ering, the plans for 2013 comprise building up a set of specialised credit products for high net worth individuals and com- plementing investment off ers with structured products with capital protection. Remote banking services continue to remain one of the Bank’s priorities. As for the programme of privileges, a special emphasis will be made on its regional component. This purpose is expected to be achieved by establishing partnership with regional companies.

Deposits Composition by Currency as of 01.01.2013

48.4% RUR 35.6% USD 16.0% EUR

Bank Petrocommerce | 2012 34 2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012 FINANCIAL MARKETS Bank Petrocommerce is one of the leading players of the forex market, an active stock exchange operator. The Bank ranks among top 20 largest investment banks by CBONDS in 2012 and the 7th best interbank loan market dealer out of 60 in accordance with the rating of the Moscow International Forex Association. In 2012, the Bank performed the following operations in the fi nancial markets: raising of funds (interbank market transactions, repo, issuance of bonds and promissory notes, structured fi nance); fi nancial market placements (management of bond and promissory note portfolios, interbank lending, repo); agency operations and customers trading (conversion operations, asset management, brokerage). Bank Petrocommerce follows a conservative approach to building its securities portfolios, while maintaining strict requirements in respect of fi nancial instruments. In particular, at least 40% of the bond portfolio shall be constituted by sovereign bonds (OFZ), the requirements in terms of the corporate bond issuer’s credit quality are higher than for selection of securities accepted as collateral by the Bank of Russia, with the average tenor not exceeding 1.2 years and the option of refi nancing of the portfolio with the Bank of Russia being a mandatory condition. The equity portfolio comprises securities issued by leading Russian corporations included in the calculation of the MICEX and RTS indices. The portfolio of promissory notes consists of debt issued by the leading fi nancial institutions. In spite of strict limitations imposed on investments into bonds, the return generated on the portfolio of bonds in 2012 was 8.6% exceeding the market benchmarks (the MICEX sovereign bond index, the CBONDS corporate securities index) by 3-4 p.p. In 2012, the share constituted by investments in securities in the Bank’s assets experienced negligible changes and was 13.2% as of 01.01.2013 (14.0% as of 01.01.2012). It was the portfolio composition that was modifi ed: the volume of investments in equities was increased by RUR 7.3 bln in accordance with the approach applied to liquidity management, while investments in debt instruments (bonds, promissory notes) were reduced by the total of RUR 4.9 bln, or by 25%. Therefore, the volume of interest income generated from investments in debt securities experienced a comparable decrease by RUR 0.6 bln, or by 29%. Overall, in 2012, the volume of the securities portfolio grew by RUR 2.4 bln, or by 8.6%, to RUR 29.9 bln as of 01.01.2013. In 2012, Bank Petrocommerce registered four new bond issues worth RUR 16 bln, three thereof totalling RUR 11 bln having been placed: in March, the Bank made three-year 8.9% БО-01 series commercial paper issue worth RUR 3 bln. The issue was oversubscribed four times;

Composition of Financial Investment Portfolio as of 01.01.2013

29.7% Equities 23.9% Sovereign bonds 23.5% Investments in funds 14.1% Bank bonds 6.3% Corporate bonds 2.5% Promissory notes

Bank Petrocommerce | 2012 35 2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012

in August, in lieu of the redeemed series 06 and 07 RUR 8 bln issues, the Bank issued new three-year БО-02 and БО-03 commercial paper issues for the same amount. In December 2012, the Bank successfully exercised a put option on series 05 RUR 2.1 bln bonds. In 2012, the volume of proprietary promissory note issuance increased by RUR 5.1 bln to RUR 7.0 bln as of 01.01.2013. In the middle of 2012, the Bank repaid loans totalling RUR 5.5 bln made available by the Bank of Russia at the beginning of the year. Overall, the volume of borrowings from the domestic capital market (in the form of total bonds, promissory notes, savings certifi cates) expanded by RUR 11.3 bln to RUR 21.4 bln as of 01.01.2013, or 9.5% of the total liabilities (5.1% as at year-start).

Trends in Domestic Financial Market Funding

25 0.4 0.5 20 5.6 7.0 15 0.2 3.1 0.1 10 1.9

5 14.9 9.9 8.0 14.0 Bonds, RUR, bln Promissory notes, RUR, bln 0 Certifi cates, RUR, bln 20092010 2011 2012

Bank Petrocommerce | 2012 36 2. OVERVIEW OF DEVELOPMENT OF MAJOR BUSINESS AREAS IN 2012 CUSTOMER DOMESTIC BOND ISSUANCE IN 2012 UTair-Finance UTair-Finance Bond issue Bond issue БО-10 series БО-09 series

RUR 1,500,000,000 RUR 1,500,000,000 Arranger Arranger 2012 2012

Rossiysky Capital Bank Eurasian Development Bank Bond issue Bond issue 03 series 01 series

RUR 3,000,000,000 RUR 5,000,000,000 Arranger Co-Arranger 2012 2012

Svyaz-Bank Banca Intesa Bond issue Bond issue 04 series БО-01 series

RUR 5,000,000,000 RUR 3,000,000,000 Co-Arranger Underwriter 2012 2012

Home Credit & Finance Bank Bond issue 07 series

RUR 5,000,000,000 Arranger Secondary Placement 2012

Bank Petrocommerce | 2012 37 RISK MANAGEMENT SYSTEM

Bank Petrocommerce | 2012 RISK MANAGEMENT SYSTEM The Bank’s risk management policy is intended to ensure an optimal balance between the acceptable level of risk undertaken by the Bank and the return generated from banking activities in order to mitigate its potential adverse infl uence on the Bank’s fi nancial performance. Another objective of risk management is to ensure business stability and protect the rights of shareholders, clients, counterparties and other respective parties. The risk management system of the Bank includes setting, implementing and controlling risk management policies and procedures followed by updating of policies and procedures based on current economic, business and regulatory environment. Proposals to accept and limit risks, to establish limits for operations are considered and approved by the Bank’s appropriate bodies, including the Board of Directors, the Managing Board, the Financial and Economic Committee, the Credit Committees, within the scope of their respective competences.

CREDIT RISK Credit risk is one of the most important risks for the business of a credit organisation. It is the risk that a counterparty will cause losses for the Bank by fully or partially failing to discharge of its fi nancial obligation. Credit exposures arise principally in lending activities that lead to loans and advances and investment activities that bring debt securities into the Bank’s asset portfolio. Exposure to credit risk arises as a result of the Bank’s lending and other transactions with counterparties giving rise to fi nancial assets. There is also credit risk in off -balance sheet items, such as guarantees and loan commitments. The Bank makes a special emphasis on credit risk control at the portfolio level, fi rst of all, from the standpoint of geographical, regional and industry risk concentration. Credit risk management system envisages setting limits, including risk concentration per borrower/group of related borrowers and industries. Limits are also set by type, term and currency of credit products, types of collateral, etc. The Bank has developed a methodology that enables evaluation of creditworthiness and credit quality of all types of counterparties: corporate clients, small and medium businesses, security issuers, banks, individuals, counterparties within the scope of fi nancing on terms of claim assignment (factoring), insurance companies, etc. The Bank actively continues to develop its risk management system for lending to individuals. The scoring models that are used in lending to individuals enable the Bank to reduce its risks at credit issue, however, the Bank continues to enhance the effi ciency of its systems. Fair value of collateral is determined by the Bank’s experts in respect of the group of related borrowers. Fair value normally exceeds the amount of established limit, depending on the borrower’s fi nancial position, the type of collateral, the borrower’s credit history and information on the borrower. Credit risk for off -balance sheet fi nancial instruments is defi ned as the possibility of sustaining a loss as a result of another party to a fi nancial instrument failing to perform in accordance with the terms of the contract. The Bank uses the same credit policies in assuming conditional obligations as it does for balance sheet fi nancial instruments through established credit approvals, risk control limits and monitoring procedures. The major part of factoring fi nance provided by the Bank implies the possibility of claim recourse from the debtor to the seller. The Bank treats this as a security to mitigate its risks. The Bank’s transactions may lead to settlement risk exposure at the moment of settlement.

Bank Petrocommerce | 2012 39 3. RISK MANAGEMENT SYSTEM

Settlement risk is the risk of losses resulting from the counterparty’s inability to meet its obligations to provide cash, securities or other assets stipulated by the contract. For certain types of transactions the Bank reduces this risk by making settlements in form of “delivery versus payment” or by clearing agents in order to be sure that fi nal settlements will be completed only after both parties fulfi ll their contractual obligations in full. Undertaking an exposure to the settlement risk on unconditional settlement transactions requires availability of credit risk limits and (or) special limits of settlement risk by counterparty. Such limits constitute part of the above process of approval/monitoring of limits per counterparty. A system of limits on types of collateral, limits on counterparties, the level of minimal discounts as well as a mandatory requirement to a counterparty to sign a general agreement based on the Bank’s form with the description of procedures for settling disputes are in place to limit risks related to repo transactions. Evaluation of risks inherent in certain loans, classifi cation of loans into the appropriate categories of quality and provisioning are governed by Regulation No. 254-P “On Provisioning for Loan Impairment” issued by the CBR on 26 March 2004. Evaluation of risks for off -balance sheet commitments is governed by Regulation No. 283-P “On Provisioning for Loss Contingency” issued by the CBR on 20 March 2006.

MARKET RISK The Bank takes on exposure to market risks. Market risks arise from open positions in currency, interest rate and equity products, all of which are exposed to general and specifi c market movements. In 2012, the level of market risks accepted by the Bank was considerably lower that the level of credit risks. Market risks are managed on the basis of the following methods: setting of and monitoring compliance over aggregate and individual limits on market instruments; setting of and monitoring compliance with stop-out limits to restrict the Bank’s losses on instruments; portfolio diversifi cation using, inter alia, a multilevel system of limits; daily revaluations of positions based on market prices; limits on investments in securities are revised subject to their liquidity (possibility of immediate disposal of portfolio without signifi cant eff ect on the market price). Before opening of the limits for debt securities, including repurchase receivables and investment securities available for sale, the Bank assesses both the credit quality of the issuer and the liquidity of the securities. The credit quality requirements applied to the issuers are higher than the criteria applied to the borrowers. These criteria additionally include higher requirements to some fi nancial performance indicators (i.e. gearing, profi tability, etc.); the quality of the issuer assessed in accordance with internal rating methodology should not be worse than the quality of the borrower entitled to receive the unsecured loan for the term similar to the term to maturity of the security, and the holding companies are also obliged to present audited consolidated fi nancial statements. Additional criteria taken into account in the course of liquidity analysis are the volume of transactions on the organised exchange markets, spread between sale and purchase prices and spread between the security prices and risk-free assets of the same currency and maturity. The limits for trading securities are opened only if the investment plan stipulates the sale of the security within 12 months and its liquidity allows to sell it within 1-3 months without decrease in value.

Bank Petrocommerce | 2012 40 3. RISK MANAGEMENT SYSTEM

The Bank uses the VaR (value-at-risk) methodology for the majority of the trading positions and stress tests for non-liquid fi nancial instruments. The VaR method is a method of evaluating potential losses that may occur on risk positions as a result of a change in market rates and prices within a certain period of time based on the assumed confi dence interval. The VaR model used by the Bank is based on a 99% confi dence level and stipulates a 1- to 10-day holding period depending on the item category. The VaR model represents forecasting based on historical data. The model builds probability future development scenarios based on historical data of market quotations with consideration of interdependence between diff erent markets and instruments. Potential changes in market prices are calculated with reference to market data for the last 12 months. Although the VaR methodology is an important instrument for evaluation of the probable market risk value, it has several constraints, especially in respect of low liquid markets: using historical data as the basis for determining future events may not refl ect all possible scenarios; using a 1- to 10-day holding period stipulates that the Bank considers to sell or hedge the positions within 1 to 10 days. In practice, this is always the case. However, in case of exceptionally low market liquidity even a 10- day period may not be suffi cient; a confi dence interval of 99% does not consider losses that may occur beyond this level; probability distribution of losses that may occur beyond the 99% level is not evaluated; since the VaR amount is calculated based on the closing trading sessions data, it does not always refl ect intraday fl uctuations. Constraints inherent in the VaR method are corrected by revising limits on open positions set with consideration of instruments’ liquidity, limits on volumes of transactions in respect of each trading portfolio. In addition, the Bank also uses stress tests for modelling possible fi nancial eff ect of certain exceptional market scenarios for certain types of the Bank’s capital position.

LIQUIDITY RISK Liquidity risk is the risk of diffi culties arising with repayment of the Bank’s fi nancial liabilities. The Bank is exposed to daily calls on its available cash resources from overnight deposits, current accounts, maturing deposits, loan drawdowns, guarantees and from margin and other calls on cash-settled derivative instruments. The Bank does not maintain cash resources to meet all of these needs as experience shows that a minimum level of reinvestment of maturing funds can be predicted with a high level of certainty. The objective of liquidity management is to establish and maintain such condition of the Bank’s asset and liability structure by type and basic maturity that would enable the Bank to timely fulfi ll its obligations to creditors, to satisfy the demand of Bank’s clients and counterparties for cash borrowings and to maintain the Bank‘s reputation as a reliable fi nancial institution that is paying special attention to liquidity risk regulation. The Bank seeks to maintain a diversifi ed and stable structure of sources of fi nance consisting of issued debt securities, long-term and short-term deposits of banks, deposits of major corporate and retail clients as well as a diversifi ed portfolio of highly liquid assets so that the Bank could be able to promptly react to unforeseen liquidity requirements. The Bank’s liquidity management policy comprises: daily projecting of cash fl ows by major currencies and calculation of the required level of current liquidity which compiles these cash fl ows;

Bank Petrocommerce | 2012 41 3. RISK MANAGEMENT SYSTEM

maintaining current liquidity in the amount suffi cient for coverage of the liabilities with maturity within 30 days; maintaining diversifi ed structure of the sources and structure of fi nancing; management of the concentration and structure of borrowed funds; development and implementation of debt fi nancing plans; development of backup plans for liquidity and specifi ed fi nancing level maintenance; control over the compliance of the Bank’s balance sheet liquidity ratios with statutory ratios; establishing of limits and rates for attraction/placement of funds by instruments and of transfer rates. Monitoring of current and projected current liquidity position is done daily on the basis of preparation of payment schedule and forecast of short-term resources requirements. Monitoring of structural liquidity position is done by means of regular preparation of current and projected reports on assets and liabilities gaps (GAP-report). The Bank Petrocommerce and its Russian subsidiaries calculate liquidity ratios on a daily basis in accordance with the requirement of the CBR. These ratios include: instant liquidity ratio (N2), which is calculated as the ratio of highly liquid assets to liabilities payable on demand; current liquidity ratio (N3), which is calculated as the ratio of liquid assets to liabilities maturing within 30 calendar days; long-term liquidity ratio (N4), which is calculated as the ratio of assets maturing after one year to regulatory capital and liabilities maturing after one year. During 2012, the Bank’s liquidity ratios complied with the statutory level promptly and consistently.

OPERATIONAL RISK The sources of operational risk (risk of losses incurred due to incompliance of the internal procedures with the nature and scope of operations of a credit organization and/or the requirements of the Russian law, violation of the internal procedures by the staff and/or other persons (due to incompetence, unintentional or willful acts or omission), incompatibility (lack) of functional capabilities (characteristics) information, technological and other systems applied by a credit organization and/or failure (disruption) of such systems and exogenous events) are internal processes, acts of the staff , default or disruption of automated systems and software as well as adverse exogenous eff ect. Operational risk may deteriorate both the Bank’s fi nancial performance and reputation. With the view of reducing operational risks, ensuring security and reliability of transactions as well as preventing adverse consequences of probable events, the Bank identifi ed sources of operational risks and monitors them on a regular basis in order to take measures to keep operational risks at an acceptable level, which does not jeopardize the Bank’s fi nancial stability, the interests of its lenders and depositors, shareholders, employees and counterparties. A formalized approach to bank operations and transactions as well as multilevel system of control at all stages of their performance allows to reduce risk levels. The Bank has a system of collection of the information of identifi ed cases of operational losses. A centralized database of loss data is maintained. The information contained in the database makes it possible to perform a qualitative

Bank Petrocommerce | 2012 42 3. RISK MANAGEMENT SYSTEM evaluation of operational risk indicators, including breakdown by risk types and business areas. The operational risk remains in the focus of the Bank’s management, and it had no material infl uence on the Bank’s performance in 2012.

ENSURING ONGOING CONCERN The Bank’s operations are exposed to the risk of being disrupted due to an emergency such as downtime for technical reasons, failure of electrical power supply or communication means, adverse acts of third parties, force majeure circumstances, etc. The Bank is aware of the necessity to protect its core resources – everything at its disposal ensuring its operations and attainment of its objectives – as an important obligation towards its shareholders, employees, clients and counterparties. In order to deal with emergencies in a prompt and effi cient manner, to ensure safety of its employees and clients, safekeeping of business information, uninterrupted operations and to comply with the going concern principle, the Bank implements the System of Uninterrupted Operations Management (hereafter reff ered to as “System”). The System allows to expose, identify and analyze potential threats of interruption of the Bank’s operations, to assess possible adverse eff ect on the Bank’s operations if such threats materialise, to develop technological solutions and to take management decisions, which contribute to minimising risks of operations disruption. The System also lays the foundation for ensuring the Bank’s capabilities to restore its operations and to respond effi ciently to emergency situations. The Bank has approved the Plan of Ensuring Uninterrupted Operations, which comprises several separate parts governing the procedures to be followed by the Bank’s employees in case of emergency. The list of the Bank’s operations exposed to this type of risk, indicators of their restoration upon disruption as well as types and nature of possible emergencies, which might have an impact on the Bank’s uninterrupted operations, is covered by the Bank’s internal documents prescribing procedures aimed at ensuring uninterrupted operations. The Bank’s management realizes the ultimate importance and necessity to ensure ongoing concern and promotes constant improvement of the System, in particular allocates funds for its maintenance.

LEGAL RISK

Legal risks mean the risk of losses arising from: incompliance with the requirements of the applicable law as well as the contractual terms and conditions; legal mistakes made in the course of business (wrong legal counseling or incorrect drafting of documents, including in the process of litigation by judicial proceedings); imperfection of the legal system (contradictory legislation, lack of regulatory norms for certain issues arising in the course of business); breach by counterparties of the applicable law as well as the contractual terms and conditions. To minimize this risk, the Bank examines compliance of the concluded contracts with the applicable law requirements; legal contradictions are identifi ed and settled; solutions are developed to ensure the reduction of probability of legal confl icts with partners.

Bank Petrocommerce | 2012 43 3. RISK MANAGEMENT SYSTEM STRATEGIC RISK Strategic risk means the risk of losses caused by errors (defects) arising in the decision-making process in respect of the Bank’s strategy and development. The Bank’s strategy is the conceptual basis of its business determining the priority goals and objectives and the ways of achievement thereof. The Bank’s strategy is a landmark for making key decisions in respect of the future market operations, products, organisational structure, profi tability and risk profi le for the Bank’s managers at all levels. The strategy is based on a fi ve-year planning horizon and envisages consideration of the Bank’s core business areas by applying traditional methods of analysis. The analysis of the exogenous conditions of the Bank’s activity is based on the data of the Federal Service of State Statistics, the Ministry of Economic Development, the Association of Russian banks, and other professional associations and expert organisations. The materials of independent information and analytical agencies as well as marketing researches are also used. This allows to identify the main political and economic factors and trends of economic development, determine the prospects of corporate and retail segments as well as key technological areas. The analysis of trends prevailing in the banking sector allows to determine the structure of the competitive environment and key competitive groups by identifying the factors of their advantages and drawbacks. The choice of alternative scenarios of the Bank’s development strategies is based on the understanding of exogenous conditions, the Bank’s potential and the imperative to comply with the target performance indicators set by the shareholders. The choice of the most preferable scenario is based on the basis of multicriterial analysis comprising indicators determining the growth of the Bank’s potential market capitalisation and indicators characterising risks connected with development. Strategic risk is minimised by using the principle of collegiate decision-making on strategic issues. The results of the project are considered and approved by the Bank’s Board of Directors. On-going control, analysis, monitoring of strategic risk management are ensured by the Bank’s authorised management bodies.

REPUTATIONAL RISK Reputational risk is regarded by the Bank as a risk of occurrence of losses due to the reducing number of clients caused by deterioration of the Bank’s reputation, quality of services and fi nancial stability. Reputational risk is managed on the basis of the complex approach providing for dealing with the following matters: revealing, assessing and monitoring of reputational risk as well as its controlling and minimizing. The Bank’s priority remains to ensure high quality of services and uninterrupted operation. Besides, the Bank focuses on maintaining an image of a transparent company. The Bank’s fi nancial statements and information of important events are mandatorily disclosed. The Bank has a corporate web-site, which is one of the main instruments of informing a large spectrum of clients, counterparties and business partners. The Bank’s Corporate Communication Department is responsible for effi cient communication with the mass media and publicity.

Bank Petrocommerce | 2012 44 3. RISK MANAGEMENT SYSTEM COUNTRY AND REGIONAL (GEOGRAPHICAL) RISK Geographical risk is the risk of occurrence of losses with the credit organization resulting from failure of foreign counterparties (legal entities and individuals) of their obligations due to economic, political and social changes as well as arising from the fact that the currency of the monetary obligations may be inaccessible to the counterparty for local legal reasons (irrespective of the fi nancial position of the counterparty itself). The main volume of the Bank’s operations with foreign counterparties is comprised of operations with the banks from economically developed countries, with not only sovereign but also counterparty ratings usually having the investment grade. The probability of risk arising from the fact that the currency of the monetary obligations may be inaccessible to the counterparty for local legal reasons is low. In accordance with the Bank’s risk management policy, country risk is not regarded as a separate risk for the purposes of management, but is taken into account for decision-making in respect of transactions with foreign counterparties. The Bank may establish country limits on the volumes of operations with counterparties, being residents of certain countries. With the view of limiting regional and country risks when determining network development strategy, the Bank examines situation in the regions from the point of view of political and economic stability as well as reliability of the most promising potential counterparties. Regional segmentation of the Bank’s operations is constantly being monitored.

Bank Petrocommerce | 2012 45 CORPORATE SOCIAL RESPONSIBILITY AND CHARITY

Bank Petrocommerce | 2012 4. CORPORATE SOCIAL RESPONSIBILITY AND CHARITY HUMAN RESOURCES In 2012, Bank Petrocommerce continued to develop the system of material and non-material motivation, which was commenced in 2010-2011. As for the system of bonus payment, the Bank developed and implemented approaches to incentivisation for 11 categories of personnel based on KPI. These changes aff ected 1.2 thous. employees. In terms of non-material motivation, in 2012, the Bank developed the system of incentivisation and approaches to holding professional contests. Overall, the Bank held 15 professional contests among all business units in 2012, and 228 employees were rewarded. In respect of social policy and corporate spirit, the Bank formed basketball and mini-football teams and launched the “Bank to Employees” information resource on the basis of the intranet portal. In 2012, the Bank completed building of the HR training and development system: complex training programmes for all business units were developed and launched in compliance with the Bank’s strategy;

Changes in Personnel Number

2,500 2,000 1,500 1,000 1,895 2,084 1,285 1,489 500 Moscow Region, people 0 Branches, people 2011 2012

Personnel Composition by Length of Employment as at YE2012

63% Less than 5 years 26% 5-10 years 10% 10-15 years 1% Over 15 years

Personnel Composition by Education as at YE2012

87% Higher education 9% Vocational secondary education 4% Other

Банк «Петрокоммерц» | 2012 47 4. CORPORATE SOCIAL RESPONSIBILITY AND CHARITY

the Bank developed guidelines for employees involved in the sales of retail banking services and products; the Bank launched the system of employee evaluation throughout its branch network serving as basis for further training; the Bank pro-actively developed innovative formats of Internet education based on the Web Tutor system. In 2012, 8,323 tests were held. Trainings were held in accordance with the approved plan based on the needs of the units.

Personnel Composition by Age as at YE2012

36% From 30 to 40 35% Over 40 29% Below 30

Personnel Composition by Sex as at YE2012

68% Men 32% Women

Personnel Development and Training System in 2012

80 72 60 40 20 Full-time 24 26 33 0 Distance learning Number of educational Number programmes/courses of training events

Number of Employees Trained in 2012

1,500

1,450 1,461

1,400 1,400 Moscow Region, people 1,350 Branches, people

Bank Petrocommerce | 2012 48 4. CORPORATE SOCIAL RESPONSIBILITY AND CHARITY SOCIAL RESPONSIBILITY Aid to underprivileged citizens is an imperative for the modern socially respon- AND CHARITY sible society and an integral part of corporate culture. Being aware of the above, Bank Petrocommerce has been following this principle for many years by rendering material assistance to socially challenged citizens on permanent basis as well as individual targeted aid. In 2012, Bank Petrocommerce fi nanced social programmes of supporting or- phanages, veterans, handicapped people, state clinics, non-profi t organisations and social funds, and sponsored events arranged for the most deprived layers of the population. The total volume of charity funding exceeded RUR 6 mln, over 90% thereof accounting for Russian regions.

ECOLOGY AND Bank Petrocommerce follows a socially responsible approach to environmental ENVIRONMENTAL PROTECTION protection. Therefore, a special emphasis is made on preventive measures, in particular, those aimed at minimising negative impact on the environment. In 2012, the Bank continued to apply a rational policy of using resources fi rst and foremost energy. Therefore, it took a number of measures for this purpose aimed at optimising consumption, in particular: inventory of electrical energy metering devices; regular inspection of metering devices and the state of water supply and heating systems; measures aimed at optimising consumption of heat and electrical energy, cold and hot water; replacement of ordinary lamps with energy saving ones as well as replacement of outdated lighting devices; increasing the level of the employees’ awareness of effi cient use of electrical energy. Besides, with the view of ensuring reliability and safety of electrical supply, the Bank’s employees are held responsible for turning off electrical equipment at the end of the business day, or if the latter is not used.

INFORMATION ON ENERGY ENERGY RESOURCES Moscow Region Branches TOTAL RESOURCES CONSUMED Heat Power (Gcal) 2,539 4,279 6,818 Heat Power (RUR) 3,414,417 4,939,716 8,354,133 Electrical Energy (kWt/h) 3,021,639 4,314,846 7,336,485 Electrical Energy (RUR) 13,681,675 17,011,652 30,693,327 Car petrol (l) 130,299 661,999 792,297 Car petrol (RUR) 3,843,126 17,429,394 21,272,520 Diesel Fuel (l) 12,562 58,129 70,691 Diesel Fuel (RUR) 373,309 1,286,773 1,660,082 Natural Gas (m3) - 158,873 158,873 Natural Gas (RUR) - 754,442 754,442 Water (m3) 17,195 532 17,727 Water (RUR) 859,130 13,144 872,274 TOTAL (RUR) 22,171,657 41,435,121 63,606,778

Bank Petrocommerce | 2012 49 FINANCIAL STATEMENTS 5. FINANCIAL STATEMENTS AUDITOR’S REPORT To the Shareholders of Open Joint-Stock Company Commercial bank Petrocom- merce:

AUDITED ENTITY Open Joint-Stock Company Commercial bank Petrocommerce. Mail address: 24, bldg. 1, Petrovka Street, Moscow 127051, Russian Federation. Registered by the Central Bank of the Russian Federation on 22 March 2000. Registration number: 1776. Certifi cate of State Registration № 009.919 dated 3 April 2002.

AUDITOR Closed Joint-Stock Company PricewaterhouseCoopers Audit (ZAO PwC Audit), having its registered offi ce at 10, Butyrsky Val, Moscow, Russian Federation 125047. State Registration Certifi cate № 008.890 issued by Moscow Registration Cham- ber on 28 February 1992. Certifi cate of Record in the Unifi ed State Register of Legal entities (for legal entities registered before 01 July 2002) № 1027700148431 issued on 22 August 2002 by Interregional Inspectorate No. 39 of Moscow of the Ministry of Taxes and Du- ties of the Russian Federation. Member of the Russian Chamber of Audit, a self-governing organization of auditors (recorded in the register of members under number 870). Main Registration Number of Record 10201003683 in the register of auditors and audit fi rms.

We have audited the accompanying fi nancial statements of Open Joint-Stock Company Commercial bank Petrocommerce (hereinafter, the “Bank”) which comprise the balance sheet (published form) as of 1 January 2013, the income statement (published form) and the statement of cash fl ows (published form) for 2012, the report on capital adequacy, provision for impairment of loans and other assets (published form) as of 1 January 2013, the mandatory ratios (published form) as of 1 January 2013 and explanatory notes prepared in accordance with Regulation No. 2089-У “On preparation of annual fi nancial statements by credit organisations” issued by the Bank of Russia on 8 October 2008 (together referred to as the “fi nancial statements”). The fi nancial statements were prepared by the Bank’s management on the basis of accounts prepared in accordance with the requirements of the Russian law and the regulations of the Bank of Russia. The fi nancial statements diff er materially from the fi nancial statements prepared in accordance with the International Financial Reporting Standards, in particular, in terms of evaluation of assets and equity, recognition of liabilities and disclosure of information.

BANK`S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS The Bank`s management is responsible for the preparation and fair presentation of these fi nancial statements in accordance with the Russian Reporting Stan- dards and for the internal control system relevant to the preparation and fair presentation of fi nancial statements that are free from material misstatement, whether due to fraud or error.

Банк «Петрокоммерц» | 2012 51 5. FINANCIAL STATEMENTS AUDITOR’S RESPONSIBILITY Our responsibility is to express an opinion on these fi nancial statements based on our audit. We conducted our audit in accordance with federal standards on auditing and International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the fi nancial statements are free from material misstatement. An audit involved performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, we considered internal control relevant to the entity’s preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the eff ectiveness of the entity’s internal control. An audit also included evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation of the fi nancial statements. We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.

OPINION In our opinion, the accompanying fi nancial statements present fairly, in all material respects, the fi nancial position of Open Joint-Stock Company Commercial bank Petrocommerce as of 1 January 2013, its fi nancial performance and its cash fl ows for 2012 in accordance with International Russian Reporting Standards.

Director ZAO PricewaterhouseCoopers Audit

Olga Kucherova

29 March 2013

Bank Petrocommerce | 2012 52 5. FINANCIAL STATEMENTS

Code of the credit organization (branch) Code of territory under the Code under the Official Russian Main State Official Russian Classification of Registration Classification of Companies Registration BIC Administrative and Territorial Objects number and Organizations Number 45286585000 09308343 1027739340584 1776 044525352

BALANCE SHEET (published form) as of 1 January 2013

Сredit institution Open Joint-Stock Company Commercial bank Petrocommerce (Bank Petrocommerce)

Mail address: 24, bldg. 1, Petrovka Street, Moscow 127051 Form 0409806 (in thousands of Russian Roubles)

As of 1 January As of 1 January Line-item No. 2013 2012

I ASSETS 1 Cash 7,844,814 6,982,424 2 Due from the Central Bank of the Russian Federation 10,348,779 8,881,141 2.1 Mandatory reserve deposits 2,514,144 2,071,591 3 Due from other banks 1,138,238 3,891,280 4 Net investment in trading securities at fair value through profit or loss 8,000,426 5,483,015 5 Net loan exposure 153,863,731 130,969,433 6 Net investment in securities and other financial assets available for sale 28,609,471 27,005,790 6.1 Investments in subsidiaries and affiliates 7,530,863 7,606,929 7 Net investment in securities held to maturity 0 0 8 Fixed assets, intangible assets and material stock 5,379,206 3,185,120 9 Other assets 10,809,845 9,661,402 10 Total assets 225,994,510 196,059,605 II TOTAL LIABILITIES Loans, deposits and other funds from the Central Bank 11 00 of the Russian Federation 12 Due to other banks 13,055,617 21,542,044 13 Customer accounts (other than banks) 160,255,415 137,696,281 13.1 Individuals' deposits 74,992,715 66,005,009 14 Financial liabilities at fair value through profit or loss 0 0 15 Debt in issue 21,424,672 10,088,276 16 Other liabilities 2,542,944 1,686,257

Bank Petrocommerce | 2012 53 5. FINANCIAL STATEMENTS

(in thousands of Russian Roubles) Provision for impairment of contingent credit related commitments, 17 611,862 262,481 other possible losses and operations with offshore residents 18 Liabilities 197,890,510 171,275,339 III SOURCES OF EQUITY 19 Shareholders' (members') equity 6,701,754 6,701,754 20 Treasury shares 0 0 21 Share premium 5,298,246 5,298,246 22 Reserve fund 2,000,000 2,000,000 23 Fair value reserve for investment securities available for sale 85,144 -455,320 24 Revaluation of fixed assets 1,861,228 331 25 Retained earnings of previous years (non-repaid losses of previous years) 11,239,305 10,600,874 26 Profit (loss) for the year 918,323 638,381 27 Total sources of equity 28,104,000 24,784,266 IV OFF-BALANCE SHEET EXPOSURE 28 Non-cancellable commitments 47,413,016 32,450,694 29 Guarantees issued 12,435,167 13,645,533 30 Noncredit related contingent liabilities 40 25,435

President Bank Petrocommerce Vladimir Nikitenko

Chief Accountant Bank Petrocommerce Ekaterina Funtova

29 March 2013

Bank Petrocommerce | 2012 54 5. FINANCIAL STATEMENTS

STATEMENT OF INCOME (published form) for 2012

Сredit institution Open Joint-Stock Company Commercial bank Petrocommerce (Bank Petrocommerce)

Mail address: 24, bldg. 1, Petrovka Street, Moscow 127051 Form 0409807 (in thousands of Russian Roubles) Line-item For 2012 For 2011 No. 1 Total interest income, including: 17,035,924 13,204,957 1.1 from placements with banks 793,625 1,173,285 1.2 from loans to customers (other than banks) 14,806,101 10,015,996 1.3 from lease services 0 0 1.4 from securities 1,436,198 2,015,676 2 Total interest expense, including: 10,209,490 7,102,084 2.1 from due to other banks 728,460 421,953 2.2 from customer accounts (other than banks) 7,898,515 5,652,567 2.3 from debt in issue 1,582,515 1,027,564 3 Net interest income (negative interest margin) 6,826,434 6,102,873 Total change in provisions for loan impairment, 4 loans and loan equivalents, due from correspondent banks -2,214,900 -166,085 and interest income, including: 4.1 Change of provisions for losses from interest income -553,991 147,507 Net interest income (negative interest margin) after provisions for 5 4,611,534 5,936,788 impairment 6 Net income from trading securities at fair value through profit or loss -207,602 -184,632 7 Net income from securities available for sale -20,772 -509,146 8 Net income from securities held to maturity 0 0 9 Net gains from trading in foreign currencies -1,643,164 -385,292 10 Net gains from foreign exchange translation 3,101,768 1,584,070 11 Dividends 1,743,340 43,161 12 Fee and commission income 2,268,863 1,868,443

Bank Petrocommerce | 2012 55 5. FINANCIAL STATEMENTS

(in thousands of Russian Roubles) 13 Fee and commission expense 855,324 583,231 14 Change of provisions for losses from securities available for sale -14,715 145,338 15 Change of provisions for losses from securities held to maturity 0 0 16 Change of provisions for other losses -476,363 -341,612 17 Other operating income 647,262 617,162 18 Net income (expenses) 9,154,827 8,191,049 19 Operating expenses 7,612,461 6,916,256 20 Profit (loss) before tax 1,542,366 1,274,793 21 Tax accrued (paid) 624,043 636,412 22 Profit (loss) after tax 918,323 638,381 23 Total payments out of profit after tax, including: 0 0 23.1 Dividends to shareholders (members) 0 0 23.2 Charge to reserve fund 0 0 24 Retained profit (loss) for the year 918,323 638,381

President Bank Petrocommerce Vladimir Nikitenko

Chief Accountant Bank Petrocommerce Ekaterina Funtova

29 March 2013

Bank Petrocommerce | 2012 56 5. FINANCIAL STATEMENTS

CASH FLOW STATEMENT (published form) for 2012

Сredit institution Open Joint-Stock Company Commercial bank Petrocommerce (Bank Petrocommerce)

Mail address: 24, bldg. 1, Petrovka Street, Moscow 127051 Form 0409814 (in thousands of Russian Roubles) Cash flows Cash flows Line-item No. for 2012 for 2011 1 Cash flows from / used in operating activities Total cash flows from / used in operating activities before changes in 1.1 -429,321 -1,113,927 operating assets and liabilities, including: 1.1.1 Interest received 16,440,979 12,891,188 1.1.2 Interest paid 9,402,986 7,253,100 1.1.3 Fees and commissions received 2,266,527 1,865,693 1.1.4 Fees and commissions paid 841,027 570,124 Gains less losses from operations 1.1.5 -157,173 -1,307,107 with financial assets available for sale at fair value through profit or loss 1.1.6 Gains less losses from operations with securities held to maturity 0 0 1.1.7 Gains less losses from operations with foreign currency -1,643,164 -385,292 1.1.8 Other operating income received 722,398 761,910 1.1.9 Operating expenses 6,959,700 6,477,087 1.1.10 Income tax paid 855,175 640,008 Total decrease/increase in net cash 1.2 -49,977 -476,922 from operating assets and liabilities, including: 1.2.1 Net decrease/increase in mandatory reserves with the Bank of Russia -442,553 -1,038,688 Net decrease/increase in trading securities at fair value through profit or 1.2.2 -2,308,953 843,251 loss 1.2.3 Net decrease/increase in loans and advances to customers -25,484,833 -18,838,803 1.2.4 Net decrease/increase in other assets -924,825 -371,006 Net decrease/increase in loans, 1.2.5 00 deposits and other funds from the Bank of Russia 1.2.6 Net decrease/increase in due to other banks -7,920,773 -6,721,742 1.2.7 Net decrease/increase in customer accounts (other than banks) 25,904,877 28,966,819 Net decrease/increase in financial liabilities 1.2.8 00 at fair value through profit or loss 1.2.9 Net decrease/increase in debt in issue 11,151,257 -3,115,891 1.2.10 Net decrease/increase in other liabilities -24,174 -200,862 1.3 Total for section 1 (line-item 1.1 + line-item 1.2) -479,298 -1,590,849

Bank Petrocommerce | 2012 57 5. FINANCIAL STATEMENTS

(in thousands of Russian Roubles) 2 Net cash from/used in investing activities Acquisition of investment securities 2.1 -50,274,144 -30,570,280 and other financial assets available for sale Proceeds from disposal and repayment of investment securities 2.2 49,020,971 36,786,338 and other financial assets available for sale 2.3 Acquisition of securities held to maturity 0 0 2.4 Proceeds from disposal of securities held to maturity 0 0 2.5 Acquisition of premises, equipment and intangible assets -401,681 -296,566 2.6 Proceeds from disposal of premises, equipment and intangible assets 89,455 85,573 2.7 Dividends received 1,569,123 382 2.8 Total for section 2 (sum of line-items from 2.1 to 2.7) 3,724 6,005,447 3 Net cash from/used in financing activities 3.1 Contributions to shareholders' (members') equity 0 0 3.2 Acquisition of treasury shares 0 0 3.3 Disposal of treasury shares 0 0 3.4 Dividends paid 0 0 3.5 Total for section 3 (sum of line-items from 3.1 to 3.4) 0 0 4 Effect of exchange rate changes on cash and cash equivalents -116,711 128,303 5 Increase/use of cash and cash equivalents -592,285 4,542,901 5.1 Cash and cash equivalents at the beginning of the reporting year 17,390,277 12,847,376 5.2 Cash and cash equivalents at the end of the reporting year 16,797,992 17,390,277

President Bank Petrocommerce Vladimir Nikitenko

Chief Accountant Bank Petrocommerce Ekaterina Funtova

29 March 2013

Bank Petrocommerce | 2012 58 5. FINANCIAL STATEMENTS

REPORT ON CAPITAL ADEQUACY, PROVISION FOR IMPAIRMENT OF LOANS AND OTHER ASSETS (published form) as of 1 January 2013

Сredit institution Open Joint-Stock Company Commercial bank Petrocommerce (Bank Petrocommerce)

Mail address: 24, bldg. 1, Petrovka Street, Moscow 127051 Form 0409808 annual As of 1 Increase (+)/ As of 1 Line-item January decrease (-) No. January 2013 2012 for the year 1 Total equity (capital), thousands of Russian Roubles, including: 21,560,225 1,415,604 22,975,829 1.1 Share capital, including: 6,701,754 0 6,701,754 1.1.1 Par value of registered ordinary shares 6,701,754 0 6,701,754 1.1.2 Par value of registered preference shares 0 0 0 1.2 Treasury shares 0 0 0 1.3 Share premium 5,298,246 0 5,298,246 1.4 Reserve fund 2,000,000 0 2,000,000

1.5 Retained earnings (non-repaid losses): 10,482,568 1,613,000 12,095,568

1.5.1 of previous years 10,691,941 528,799 11,220,740 1.5.2 for the reporting period -209,373 1,084,201 874,828 1.6 Intangible assets 160 -98 62 1.7 Subordinated loan (credit, deposit, bond issue) 4,829,415 -273,510 4,555,905 Sources (part thereof) of equity formed with improper assets by 1.8 00 0 investors

2 Statutory capital adequacy ratio (per cent) 10 Х 10

3 Actual capital adequacy ratio (per cent) 12.0 Х 10.6

Total actually formed provisions for impairment of assets and possible 4 18,978,049 2,648,805 21,626,854 losses, thousands of Russian Roubles, including: 4.1 loans and loan equivalents 18,126,064 2,535,309 20,661,373

4.2 other assets and other possible losses 589,504 -235,885 353,619

contingent credit related commitments and derivative financial 4.3 262,481 347,198 609,679 instruments 4.4 operations with offshore residents 0 2,183 2,183

Bank Petrocommerce | 2012 59 5. FINANCIAL STATEMENTS

Notes:

1. (Additional) provisions for impairment of loans and loan equivalents (RUR, 000), total of 22,821,120, including due to: 1.1. new loans 6,938,765; 1.2. changes of loans quality 7,379,188; 1.3. changes of the official exchange rate established by the Bank of Russia 3,039,909; 1.4. other reasons 5,463,258.

2. Reestablishment (reduction) of provisions for impairment of loans and loan equivalents (RUR, 000), total of 20,285,811, including due to: 2.1. write-off of bad loans 109; 2.2. repayment of loans 8,782,333; 2.3. changes of loans quality 4,273,700; 2.4. changes of the official exchange rate established by the Bank of Russia 3,292,209; 2.5. other reasons 3,937,460.

President Bank Petrocommerce Vladimir Nikitenko

Chief Accountant Bank Petrocommerce Ekaterina Funtova

29 March 2013

Bank Petrocommerce | 2012 60 5. FINANCIAL STATEMENTS

MANDATORY RATIOS (published form) as of 1 January 2013

Сredit institution Open Joint-Stock Company Commercial bank Petrocommerce (Bank Petrocommerce)

Mail address: 24, bldg. 1, Petrovka Street, Moscow 127051 Form 0409813 per cent Actual value Statutory Ratio as of 1 as of 1 No. No. value January January 2013 2012 1 Capital adequacy ratio (N1) Min 10% 10.6 12.0 Capital adequacy ratio of a non-banking credit organization authorized 2 to make transfers without opening bank accounts and performing related ХХ Х bank transactions 3 Instant liquidity ratio (N2) Min 15% 51.4 62.2 4 Current liquidity ratio (N3) Min 50% 79.2 74.3 5 Long-term liquidity ratio (N4) Max 120% 77.5 86.2 Max 22.5 Max 22.6 6 Maximum exposure per borrower or group of related borrowers (N6) Max 25% Min 0.7 Min 1.5 7 Maximum large exposures (N7) Max 800% 294.2 349.4 Maximum amount of credits, guarantees and sureties issued by the bank 8 to its members (shareholders) (N9.1) Max 50% 0.0 0.0 9 Aggregate exposure to insiders (N10.1) Max 3% 1.6 1.4 10 Own investments in shares of other legal entities (N12) Max 25% 7.2 6.2 Liquid assets with maturity up to 30 calendar days to aggregate liabilities 11 of non-banking credit organisation (N15) ХХ Х Liquidity of non-banking credit organisation authorised to make transfers 12 without bank accounts and to perform other bank transactions connected ХХ Х therewith (N15.1) Maximum aggregate loans to customers involved in settlement for 13 completion of settlement (N16) ХХ Х Loans to borrowers, other that those involved in settlement made 14 available by non-credit banking organisation on its behalf and for its ХХ Х account (N16.1) 15 Minimum ratio of mortgage-covered loans to own equity (capital) (N17) Х Х Х Maximum ratio of mortgage cover and mortgage-covered bonds in issue 16 (N18) ХХ Х Maximum ratio of aggregate liabilities of issuing credit organisation to 17 lenders ranking in priority to liabilities to holders of mortgage-covered ХХ Х bonds in accordance with federal laws to own equity (capital) (N19)

President Bank Petrocommerce Vladimir Nikitenko

Chief Accountant Bank Petrocommerce Ekaterina Funtova

29 March 2013

Bank Petrocommerce | 2012 61 ФИНАНСОВАЯ ОТЧЕТНОСТЬ

GENERAL INFORMATION

BankБанк Petrocommerce«Петрокоммерц |» |2012 2012 62 6. GENERAL INFORMATION LICENCES General licence № 1776 for the carrying out of banking operations dated 17 May 2012 issued by the Central Bank of the Russian Federation valid for an unlimited period Licence № 1776 for deposit-taking and placement of precious metals dated 18 August 2008 issued by the Central Bank of the Russian Federation valid for an unlimited period Professional securities market participant licence for brokerage operations № 177-05414-100000 dated 19 July 2001 issued by the Federal Service for Financial Markets valid for an unlimited period Professional securities market participant licence for dealing operations № 177-05422-010000 dated 19 July 2001 issued by the Federal Service for Financial Markets valid for an unlimited period Professional securities market participant licence for securities management № 177-05429-001000 dated 19 July 2001 issued by the Federal Service for Financial Markets valid for an unlimited period Professional securities market participant licence for depositary operations № 177-05501-000100 dated 01 August 2001 issued by the Federal Service for Financial Markets valid for an unlimited period Licence of commodities exchange broker № 1459 for futures and options transactions in exchange business dated 20 October 2009 issued by the Federal Service for Financial Markets valid for an unlimited period Licence № 6966 X for the maintenance of encryption (cryptographic) facilities dated 02 April 2009 issued by the Centre for Licensing, Certifi cation and Protection of State Secrets of the Federal Security Service of Russia valid till 03 March 2013 Licence № 6967 P for the distribution of encryption facilities dated 02 April 2009 issued by the Centre for Licensing, Certifi cation and Protection of State Secrets of the Federal Security Service of Russia valid till 03 March 2013 Licence № 6968 У for the provision of encryption facilities for information dated 02 April 2009 issued by the Centre for Licensing, Certifi cation and Protection of State Secrets of the Federal Security Service of Russia valid till 03 March 2013 Licences NN 78-78/15 of the Federal Tax Service of Russia dated 01 June 2010 to act as a guarantor to the customs authorities issued to Bank Petrocommerce, including its regional branches in Arkhangelsk, Volgograd, Kaliningrad, Kogalym, Krasnodar, Novorossiysk, Nizhny Novgorod, Novosibirsk, Perm, Rostov-on-Don, Saratov, St. Petersburg, Chelyabinsk, Ufa and Ukhta valid till 01 June 2013

Банк Bank « ПетрокоммерцPetrocommerce» | 2012 63 6. GENERAL INFORMATION MEMBERSHIP ASSOCIATION OF RUSSIAN BANKS

ASSOCIATION OF PROMISSORY NOTES MARKET PARTICIPANTS

NATIONAL STOCK EXCHANGE ASSOCIATION

ASSOCIATION OF REGIONAL BANKS OF RUSSIA

NATIONAL ASSOCIATION OF SECURITIES MARKET PARTICIPANTS

NONPROFIT PARTNERSHIP FOR FINANCIAL MARKET DEVELOPMENT RTS

VISA ASSOCIATION

RUSSIAN NATIONAL S.W.I.F.T. ASSOCIATION

MOSCOW INTERNATIONAL FOREX ASSOCIATION

NATIONAL FOREX ASSOCIATION

RUSSIAN EUROPAY MEMBERS ASSOCIATION

SOCIETY FOR WORLDWIDE INTERBANK FINANCIAL TELECOMMUNICATION

ASSOCIATION OF FACTORING COMPANIES

Bank Petrocommerce | 2012 64 6. GENERAL INFORMATION CONTACTS 24, bldg. 1, Petrovka Street, HEAD OFFICE Moscow 127051 tel.: (495) 411-6-411, (800) 200-6-411 fax: (495) 623-36-07 e-mail: [email protected] www.pkb.ru

MOSCOW REGION Yakimanka Business Centre Kapital Business Centre 4 Malaya Yakimanka Street, Moscow Additional Offi ce 109180 6 Krasnopresnenskaya nab., tel.: (499) 973-77-21 Moscow 123100 fax: (499) 973-77-29 tel./fax: (495) 411-87-90

Sretenka Additional Offi ce Olympiysky Prospect Business 11 Sretensky Boulevard, Moscow Centre 101000 5, bldg 1, Olympiysky Prospect, tel.: (499) 973-76-55 Moscow 129110 fax: (499) 973-76-51 tel.: (495) 228-36-03 fax: (495) 933-16-94 Kutuzovskoye Additional Offi ce 2, bldg 2, Pobedy Square, Moscow Mytishchi Additional Offi ce 121293 2, bldg. 3, Komarov Street, Mytishchi tel./fax: (495) 780-19-00 141002 tel.: (495) 411-80-14 Krasnopresnenskoye Additional Offi ce Podolsk Additional Offi ce 38 Krasnaya Presnya Street, Moscow 5-b Sverdlov Street, Podolsk, 123022 Moscow region 142100 tel.: (495) 780-19-07 tel.: (4967) 58-65-20/21/22/23 fax: (495) 780-19-09 Leninsky Prospect Prospect Mira Additional Offi ce Business Centre (Mortgage 180 Prospect Mira, Moscow 129366 centre) tel.: (495) 780-19-03 11, bldg. 1, Leninsky Prospect, fax: (495) 780-19-05 Moscow 119049 tel: (495) 221-36-78/75 Yamskoye Pole Additional Offi ce 15, bldg 2, Yamskogo polya 1st Kalanchevskoe Additional Offi ce Street, Moscow 125124 2/4, bldg.1, Zhivarev Side Street, tel./fax: (495) 221-30-12 Moscow 129090 tel: (495) 646-18-84 Pokrovka Additional Offi ce 3, bldg 1, Pokrovsky Boulevard, Sushchevskoe Additional Offi ce Moscow 109028 1, bldg. 5, Skladochnaya Street, tel./fax: (495) 221-30-31 Moscow 127018 tel./fax: (495) 228-32-04 Electrostal Additional Offi ce 17a Nikolayev Street, Electrostal, Moscow Region 144000 tel./fax: (495) 221-30-36

Bank Petrocommerce | 2012 65 6. GENERAL INFORMATION REGIONAL NETWORK Kogalym Cash Offi ce No. 10 3, offi ce 3, Molodezhnaya Street, Kogalym Branch Kogalym, Tyumen Region 628485 11a Pribaltiyskaya Street, Kogalym, tel.: (34667) 2-32-28 Tyumen Region 628486 tel.: (34667) 9-10-01 Cash Offi ce No. 11 fax: (34667) 2-19-15 24, ap. 2, Molodezhnaya Street, Kogalym, Tyumen Region 628484 Uray Additional Offi ce No. 1 tel.: (34667) 2-56-65 118 Lenin Street, Uray, Tyumen Region 628485 Rostov-on-Don tel.: (34676) 2-02-66 Rostov-on-Don Branch Pokachi Additional Offi ce No. 2 59/17 Budenovsky Avenue, 11 Mira Street, Uray, Rostov-on-Don 344011 Tyumen Region 628661 tel./fax: (863) 291-77-31 tel.: (34669) 7-22-65 Taganrog Additional Offi ce Tyumen Additional Offi ce No. 3 17 Grecheskaya Street/24 28 Kirov Street, Tyumen 625003 1-Krepostnoy per., Taganrog, tel.: (3452) 45-00-66 Rostov Region 347922 fax: (3452) 45-00-56 tel.: (8634) 31-38-03 fax: (8634) 39-31-49 Surgut Additional Offi ce No. 4 45B Mayakovsky Street, Surgut, Aksay Additional Offi ce Tyumen Region 628400 40 Lenin Avenue, Aksay, tel./fax: (3462) 32-70-02 Rostov Region 346720 tel.: (86350) 5-00-28, 4-21-61 Langepas Additional Offi ce No. 5 32 Lenin Street, Langepas, Cash Offi ce No. 2 Tyumen Region 628672 59/17 Budenovsky Avenue, tel.: (34669) 2-02-74 Rostov-on-Don 344011 fax: (34667) 2-02-43 tel.: (863) 291-77-31

Cash Offi ce No. 6 Volgodonsk Additional Offi ce 12, ap.46 Stepana Povkha Street, 102a Morskaya Street, Volgodonsk, Kogalym, Tyumen Region 628485 Rostov Region 347360 tel.: (34667) 2-63-60, 2-63-30 tel.: (86392) 7-03-01/02

Cash Offi ce No. 7 Novocherkassk Additional Offi ce 30, ap. 36, Molodezhnaya Street, 155b Prosveshcheniya Street, Kogalym, Tyumen Region 628484 Novocherkassk, tel.: (34667) 2-94-95 Rostov Region 346428 tel.: (86352) 4-45-76 Cash Offi ce No. 8 18, ap. 3, Druzhby Narodov Street, Kogalym, Tyumen Region 628485 tel.: (34667) 2-56-61

Bank Petrocommerce | 2012 66 6. GENERAL INFORMATION

Kaliningrad Volgograd

Kalinigrad Branch Volgograd Branch 11 Kuybyshev Street, 18 Krasnoznamenskaya Street, Kaliningrad 236016, Volgograd 400066 tel.: (4012) 35-53-00, fax: (4012) 35- tel.: (8442) 56-20-50/22 53-56 fax (8442) 56-20-21

Additional Offi ce No. 1 Volgograd Additional Offi ce 10-12 Mira Avenue, 40 pr. Geroev Stalingrada, Kaliningrad 236000 Volgograd 400026 tel.: (4012) 95-05-01, 93-05-03 tel.: (8442) 56-20-61

Perm Frolovo Additional Offi ce 44/4 Komsomolskaya Street, Perm Branch Frolovo, Volgograd Region 403540 21 Popov Street, Perm 614068 tel.: (84465) 2-44-87 tel.: (342) 239-99-90/38 fax: (342) 239-99-09 Zhirnovsk Additional Offi ce 32 Sovetskaya Street, Zhirnovsk, Perm Additional Offi ce No. 1 Volgograd Region 403791 84 Promyshlennaya Street, tel.: (84454) 5-26-63, 5-19-37 Perm 614055 tel.: (342) 220-29-13 Kotovo Additional Offi ce 173 Mira Street, Kotovo, Chernushka Additional Volgograd Region 403805 Offi ce No. 3 tel.: (84455) 4-55-26 5 Yubileynaya Street, Chernushka, Perm Region 617830 Krasnooktyabrsky Additional tel.: (34261) 4-37-00 Offi ce 102 pr. Lenin, Volgograd 400005 Osa Additional Offi ce No. 4 tel.: (8442) 56-20-55, 56-20-57 93 Gorky Street, Osa, Perm Region 618120 Kamyshin Additional Offi ce tel.: (34291) 2-10-30 28 Lenin Street, Kamyshin, Volgograd Region 403874 Perm Additional Offi ce No. 5 tel.: (84457) 9-29-99, 9-26-69 49 Sovetskoy Armii Street, Perm 614022 Astrakhan Cash Offi ce tel.: (342) 220-12-07, 223-48-41 7-9 Natashi Kachuyevskoy Street, Astrakhan 414000 Perm Additional Offi ce No. 6 tel.: (8512) 39-02-31 12 Parkovaya Street, Polazna, fax (8512) 44-31-84 Dobryansky District, Perm Region 618703 Yuzhny Additional Offi ce tel.: (34265) 40-100 55, 40 let VLKSM Street, Volgograd 400029, Perm Additional Offi ce No. 7 tel.: (8442) 56-20-52, 56-20-54 34 Druzhby Street, Perm 614990 tel.: (342) 261-95-95, 282-46-29 Volzhsky Additional Offi ce 54B Mira Street, Volzhsky, Volgograd Region 404131, tel.: (8443) 58-35-55

Bank Petrocommerce | 2012 67 6. GENERAL INFORMATION

Novorossiysk Togliatti Cash Offi ce 10A Frunze Street, Novorossiysk Branch Avtozavodsky district, Togliatti, 49/12 L.Schmidt/Serov Street, Samara Region 445037 Novorossiysk, Krasnodar Region tel.: (8482) 35-99-77, 35-99-20 353905 tel.: (8617) 63-00-32 fax: (8617) 63-03-79 Nizhny Novgorod Eysk Additional Offi ce No. 2 45 Armavirskaya Street, Eysk, Nizhny Novgorod Branch Krasnodar Region 353680 9 Sergiyevskaya Street, Nizhny tel.: (86132) 2-55-11, 2-56-65 Novgorod 603109 tel.: (831) 421-48-88 Sochi Additional Offi ce No. 3 4/1 Krasnoarmeyskaya Street, Sochi, Kstovo Additional Offi ce No. 1 Krasnodar Region 354000 20 Zelenaya Street, Kstovo, Nizhny tel.: (8622) 54-76-95 Novgorod Region 607650 fax: (8622) 54-76-93 tel.: (83145) 7-64-55, 7-58-03

Timashevsk Nizhny Novgorod Additional Additional Offi ce No. 4 Offi ce No. 3 5 micro-district Industrialny, 30 Gruzinskaya Street, Nizhny Timashevsk, Krasnodar Region Novgorod 603000 352747 tel.: (831) 439-71-01 tel.: (86130) 5-56-33 fax: (831) 433-55-58 fax: (86130) 5-52-17 Nizhny Novgorod Additional Saratov Offi ce No. 4 11 Yuly Fuchik Street, Nizhny Privolzhsky Branch Novgorod 603016 81 Moskovskaya Street, tel.: (831) 259-50-48 Saratov 410012 fax: (831) 256-85-98 tel./fax: (8452) 73-46-31 Cheboksary Cash Offi ce Penza Regional Centre 26, ap. 24 Maxim Gorky Avenue, 10A B. Radishchevskaya Street, Cheboksary 428026, Chuvash Penza 440000 Republic tel.: (8412) 68-74-68 tel.: (8352) 41-33-43 fax: (8352) 41-20-10 Balakovo Additional Offi ce 21 Trnavskaya Street, Dzerzhinsk Additional Offi ce No. 5 Balakovo, Saratov Region 413840 15 Tsiolkovsky Street, Nizhny tel.: (8453) 33-86-88 Novgorod Region 606025 tel.: (8313) 26-01-48, Engels Additional Offi ce fax: (8313) 26-08-34 18 Lenin sq., Engels, Saratov Region 413100 Kirov Cash Offi ce tel.: (8453) 56-94-62/64/66 12a Komsomolskaya Street, Kirov 610001 Samara Regional tel.: (8332) 67-50-26 Centre Cash Offi ce fax: (8332) 67-07-44 19 Myagi Street, Samara 443079 tel.: (846) 279-10-80 Arkhangelsk fax: (846) 279-10-83 Arkhangelsk Branch 168 Troitsky pr-t, Arkhangelsk 163001 tel.:/fax: (8182) 24-27-18

Bank Petrocommerce | 2012 68 6. GENERAL INFORMATION

Severodvinsk Additional Novosibirsk Offi ce No. 1 6/34 pr. Lenin, Severodvinsk, Novosibirsk Branch Arkhangelsk Region 164500 86 Frunze Street, Novosibirsk tel.: (8184) 50-08-10, 58-86-53 630005 tel.: (383) 335-85-45 Naryan-Mar Additional Offi ce No. 2 Tomsk Cash Offi ce 35b Lenin Street, Naryan-Mar, 22 Trifonov Street, Nenetsky Autonomous District Tomsk 634050 166000 tel.: (3822) 51-27-60 tel.:/fax: (81853) 4-59-49

Krasnodar Lipetsk

Krasnodar Branch Lipetsk Branch 11 Zakharov Street, Krasnodar 22 Oktyabrskaya Street, Lipetsk 350007 398059 tel.: (861) 268-79-00 tel.: (4742) 22-19-98, 22-15-40 fax: (861) 267-72-71

Krasnodar Additional Offi ce No. 1 Chelyabinsk 143/1, ap. 13, Krasnaya Street, Krasnodar 350020 Chelyabinsk Branch tel.: (861) 267-76-82, 259-21-36 11 Vorovsky Street, Chelyabinsk 454092 Novokubansk Additional Offi ce tel.: (351) 211-18-00, 211-01-34 No. 3 42 Voykov Street, Novokubansk, Krasnodar Region 352240 Ufa tel.: (86195) 3-12-71 fax: (86195) 4-15-35 Ufa Branch 25 Oktyabrya Avenue, Sovetsky district, Ufa, Republic of St. Petersburg Bashkortostan 450009, tel./fax: (347) 282-00-00 St. Petersburg Branch 2b, liter A, Suvorovsky pr., St. Petersburg 191036 Ukhta tel.: (812) 332-37-17 Ukhta Branch Murmansk Cash Offi ce 14 Oktyabrskaya Street, Ukhta 7 Komintern Street, Murmansk 169300, Komi Republic 183038 tel.: (8216) 70-08-78 tel.: (8152) 45-72-82 fax: (8216) 77-43-50

Vyborg Cash Offi ce Usinsk Additional Offi ce No. 1 31 Leningradskoye Highway, 7/3 Lenin Street, Ukhta, Republic Vyborg, Leningrad region 188800 of Komi 169710 tel.: (81378) 9-50-20 tel.: (82144) 5-25-24

Leninsky Additional Offi ce Ukhta Additional Offi ce No. 2 151, lit. A, Leninsky pr., St. 40 Lenin Ave., Ukhta, Republic of Petersburg 196247 Komi 169300 tel.: (812) 332-34-88 tel.: (8216) 72-65-86

Grazhdansky Prospekt Ukhta Additional Offi ce No. 3 Additional Offi ce 9 Shakhtinskaya Street, Yarega, 121/100, lit. A, premises 6N, Ukhta, Republic of Komi 169300 Grazhdansky prospekt, St. tel.: (8216) 75-41-10 Petersburg 195299 tel.: (812) 332-06-67, 332-06-68

Bank Petrocommerce | 2012 69 6. GENERAL INFORMATION

Sosnogorsk Additional Voronezh Offi ce No. 4 1 Lenin Sq., Nizhny Odes, Voronezh Branch Sosnogorsk, Republic of Komi 10 Uritsky Street, Komintern District, 169300 Voronezh, Voronezh Region 394061 tel.: (82149) 2-22-05 tel.: (473) 250-50-41/45 fax: (473) 250-50-42 Syktyvkar Additional Offi ce No. 5 19 Babushkin Street, Syktyvkar, Yekaterinburg Republic of Komi 167000 tel.: (8212) 20-60-61 Yekaterinburg Branch 50-b, pr-t Lenin, Ekaterinburg, Pechora Additional Offi ce No. 6 Sverdlovsk Region 620075 18 Bulgakova Street, Pechora, tel.: (343) 351-01-20 Republic of Komi 169600 fax: (343) 351-01-19 tel.: (82142) 7-18-41

SUBSIDIARY BANKS PJSC Bank OJSC Komi Regional Bank Petrocommerce-Ukraine Ukhtabank 20 Bolshaya Zhitomirskaya Street, 14 Oktyabrskaya Street, Kiev 01025, Ukraine Ukhta, Komi Republic 169300 tel./fax: + 38 (044) 494-18-01 tel.: (8216) 75-23-26 www.pcbu.com.ua fax: (8216) 76-37-83 wap.pcbu.com.ua www.ukhtabank.ru

OJSC Stavropolpromstroybank 88a Krasnofl otskaya Street, Stavropol 355041 tel.: (8652) 30-60-30 fax: (8652) 94-52-30 www.psbst.ru

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