Azerbaijan Banks Association SUMMARY of the BANKING

Azerbaijan Banks Association

SUMMARY OF THE BANKING SYSTEM OF THE REPUBLIC OF AZERBAIJAN

“Qafqaz” Baku 2007

Azerbaijan Banks Association: SUMMARY OF THE BANKING SYSTEM OF THE REPUBLIC OF AZERBAIJAN Baku, Publishing house “Qafqaz”, 2008, 189 pp.

Compilers: Ruslan SADIRKHANOV (head of the group), Farhad ALIYEV , Namik KASUMOV , Latif KENGERLINSKIY , Yunus ABDULOB (executive secretary), Orhan KALBIYEV , Ulviyya HASAYEVA (a technical proof-reader), Soltan MAMMADOV (assistant).

ISBN 9952-432-17-8

This book presents a systematized information on banking sector of Azerbaijan in the context of macroeconomic indicators of the country development.

CONTENTS

USED ACRONYMS AND ABBREVIATIONS...... 1 INTRODUCTION...... 2

BACKGROUND OF THE ABA MEMBER BANKS AND THEIR MAIN DEVELOPMENT INDICATORS IN 2007.... 4 AF-BANK ...... 5 AMRAHBANK...... 8 ATABANK...... 12 ATLANTBANK...... 16 ATRABANK...... 18 AZERBAIJAN CREDIT BANK...... 21 AZERBAIJAN INDUSTRIAL BANK...... 24 AZERDEMIRYOLBANK ...... 28 AZERIGAZBANK...... 33 AZERNEQLIYYATBANK ...... 37 AZER-TURK BANK ...... 40 BANK MELLI IRAN...... 43 BANK OF AZERBAIJAN ...... 46 BANK OF BAKU ...... 50 BANK RESPUBLIKA ...... 55 BANK SILK VEY...... 59 BANK STANDARD ...... 60 BIRLIKBANK...... 64 DEBUT BANK...... 67 DEKABANK...... 71 EUROBANK...... 74 GANDJABANK...... 76 GUNAY BANK ...... 79 INTERNATIONAL BANK OF AZERBAIJAN ...... 83 KAPITAL BANK...... 88 KAUTHAR BANK ...... 92 KREDOBANK ...... 95 MICRO FINANCE BANK...... 99 MUGAN BANK...... 103 NBC BANK...... 107 NIKOIL BANK ...... 111 PAKISTAN NATIONAL BANK...... 114 PARABANK ...... 116 RABITABANK...... 120 ROYAL BANK OF BAKU...... 124 TECHNIKABANK ...... 127 TRANSCAUCASUS DEVELOPMENT BANK ...... 132 TURANBANK ...... 136 UNIBANK...... 140 UNITED CREDIT BANK...... 145 XALQ BANK...... 148 YAPI KREDI BANK AZERBAIJAN...... 152 ZAMINBANK...... 156 AQRARKREDIT...... 160 AZERICARD ...... 162 BAKU INTERBANK CURRENCY EXCHANGE ...... 163 PAREX BANKA...... 164 MAIN INDICATORS OF ABA MEMBER BANKS ...... 165

APPENDIX 1. THE COUNTRY MAIN ECONOMIC INDICATORS...... 167 Table 1.1. Main macroeconomic indicators...... 167 Table 1.2. Major indicators of the State Budget of the Republic of Azerbaijan ...... 168 Table 1.3. Balance of payments of Azerbaijan Republic...... 169 Table 1.4. International investment position of the Republic of Azerbaijan ...... 170 Table 1.5. Operations in internal currency markets...... 171 Table 1.6. Consolidated balance of banks ...... 172 Table 1.7. General information on credit institutions ...... 173 Table 1.8. Grouping of banks according to their cumulative capital ...... 173 Table 1.9. Grouping of banks with respect to foreign capital participation in their charter capital...... 174 Table 1.10. Indicators on selected activities of banks...... 174 Table 1.11. Financial performance of banking ...... 174 Table 1.12. Classification of banks along areas with available branches ...... 175

APPENDIX 2. COMBINED INDICATORS OF AZERBAIJAN BANKS ...... 176 Table 2. 1. Ranking by cumulative capital ...... 176 Table 2. 2. Ranking of banks by assets ...... 178 Table 2. 3. Ranking of banks by total loans ...... 180 Table 2. 4. Ranking of banks by total savings ...... 182 Table 2. 5. Ranking of banks by profit ...... 184

Used acronyms and abbreviations

AZN: Azerbaijani New Manat BEST: Bourse E-System of trade (BEST) bn: billion c.u.: currency unit FCP: foreign capital participation FCP: foreign capital participation GBP: Great Britain Pound GDP: Gross Domestic Product IBA: International Bank of Azerbaijan IBT: Internal Bank Transactions JSC: Joint Stock Company m: million MFBA: Micro Finance Bank of Azerbaijan NBA: National Bank of Azerbaijan NBA: THE NATIONAL BANK OF AZERBAIJAN OJSC: Open Joint Stock Company OpIFEM: Open Interbank Foreign Exchange Market POS: point of sale system ROA: return on assets ROE: return on equity RUR: Russian Rouble SWIFT: Society for World-Wide Interbank Financial Telecommunication Tax ID: tax identification TDB: Transcaucasus Development Bank ths: thousand USD: United States Dollar YKBA: Yapi Kredi bank Azerbaijan

Introduction

Dynamic development of Azerbaijan and its investment attractiveness 1 are directly related to the emergence and performance of an efficient, stable and flexible banking system. Creation of such a system was declared as one of the main goals of market reforms going on since mid-1990s. These reforms are being successfully implemented under guidance of the country president Mr. Ilham Aliyev. Banking sector is the most rapidly developing section of the economy of Azerbaijan 2. As of January 1, 2008, the annual growth rate of banks’ total capital was 90% and reached $1280m. As of December 31, 2007, the total assets of all banks reached AZN 6726m or almost $8bn which is 25% of GDP 3. It is significant that, according to data of the National Bank of Georgia and Central Bank of Armenia 4, as of December 31, 2007, bank assets of these countries were $4.53bn and $2.51bn, respectively. It is therefore noteworthy that banks’ assets in Azerbaijan at the end of 2007, long being the highest among the Central Caucasus, surpassed the aggregate volume of banks’ assets of Georgia and Armenia. Total savings and deposits in 2007 exceeded AZN 3.6bn. Minimal charter capital requirement for banks in Azerbaijan is currently at AZN 10m ($11.8m); return on assets (ROA) and return on equity (ROE) are 2.6% and 17.6%, respectively; net profit reached AZN 129m 5. As of December 2007, total lending made up AZN 4323.2m, up 48% from the previous year, with state-owned banks lending AZN 1725.7m, and private banks lending AZN 2486.5m. Non-banking credit institutions lent the total of AZN 111m. Lending in the non-oil sector had sharp growth rate. The structure of total loans looks as fol- lows: residential construction (35.7%), trade and services (25.9%), transportation and communication (9.0%), manufacturing industry (7.0%), energy, chemistry and natural resources (5.4%), agricultural sector (4.5%), building and real estate (7.3%), other (5.2%). The National Bank of Azerbaijan (NBA) achieved considerable success in the formation and regulation of the banking system. As of June 20, 2008, currency reserves of the NBA reached $5bn. The national currency of Azeri manat is linked to the US dollar more tightly than to the Euro and other currencies. At the same time, since June 1, 2008, the National Bank of Azerbaijan has defined the com- position of dollar to euro in its bi-currency basket as 70% to 30%. According to the NBA’s Principal directions of monetary policy in 2008, sterilization of some $1.7bn was secured by the NBA. These measures helped to restrict the devaluation of manat by about 3 percentage points. Despite a fairly tight regulation of the manat-to-dollar exchange rate, the local currency continues to strengthen and this has a negative impact on the exporting possibilities of the country in the non-oil sector. The development of the banking system arouses a matching interest on the part of its foreign partners. Starting from 2007, the process of gradual liberalization of the export of capital began, whereby the approval basis is replaced by notification basis. Since January 1, 2004, the country has been declared open to foreign banks and all limits on participation were removed. In recent years, a clear trend towards an increasing activity of foreign banks is evident in Azerbaijan. This applies to

1 See Appendix 1.: Tables 1.1 – 1.4. 2 See Appendix 1.: Table 1.7. 3 As of December 2007, USD/AZN=0,85. See also Appendix 1.: Tables 1.5 and 1.6. 4 http://www.nbg.gov.ge/index.php?m=306 http://www.cba.am/CBA_SITE/financial_system_control/banksystem/?__locale=en 5 See Appendix 1.: Tables 1.8, 1.10 and 1.11. 2 “proximate” (former USSR) countries: Parex Bank (Latvia), Bank (Georgia), as well as to financial giants of Citibank (US) and Commerzbank (Germany). Transactions at foreign financial markets continue with an increasing pace. In particular, in 2007, some $1.2bn was acquired by banks in Azerbaijan by way of credit lines or charter capital. As of the beginning of 2008, foreign participation is registered in 21 banks, and in 8 out of these it exceeds 50% 6. The current stage of the banking sector development is characterized by an increased international competition and an intensifying flow of petrodollars into Azerbaijan. This requires, in turn, that local banks be more flexible in such areas as risk management in order to increase the scope of their operations. The primary goals of further development of the banking system of Azerbaijan can be rendered as the increasing transparency and the decreasing risk, the introduction of new banking technology, the involvement of an ever broader economic subjects to non-cash payments, and a spe- cific issue of creating a training center for the enhancement of professional level of top management that would allow them address complex tasks in the framework of increasingly competitive environment. Among typical problems that hamper the efficiency of operations of local banks are: persis- tently high level of expenses, low level of capitalization, imperfection in internal structures, lack of possibility to acquire long term resources from international capital markets (e.g. via syndicated loans, Eurobond issues, diverse structured products), insufficient proliferation of the capital market, inadequate levels of corporate culture. In order to expand the volumes of lending to small and me- dium enterprises, further increase in bank capitals, as well as the creation of prerequisites for cheaper loans will be necessary. Market interest rates show an increase which, in turn, is related to higher inflation rates. As of the year-end 2007, there were 1.8 million savers, of which some 83% had their savings insured; by 2008, the coverage of the insured deposit is limited at AZN 6000 and it is expected to increase in successive years. Principal types of savings are either accumulations for the purchase of residence, or special long-term deposit savings. The low income section of the population is inadequately covered by banking services. In this connection, it will be necessary to intensify such activities as utility payment and other services that do not require supporting balances on accounts. Along these lines, salary disbursements through plastic cards are of significance. In Q3 2007 the number of ATMs exceeded 1230, with 765 located in the capital city. The number of POS terminals is 4242, with 3826 in Baku. Pension payments and plastic cards are among widely used banking services. The spread of banking services is facilitated by about 500 branches 7. Combined indicators in a ranking table form of basic activities of banks in Azerbaijan for 2006 and 2007 are presented in Appendix 2. Detailed information on member banks of ABA presented in this Summary suggests that, despite global financial challenges, dynamic development of Azerbaijan banking system proves its ca- pability to achieve the world standards and competitiveness within a few years.

6 See Appendix 1.: Table 1.9. 7 See Appendix 1.: Table 1.12. 3

BACKGROUND OF THE ABA MEMBER BANKS AND THEIR MAIN DEVELOPMENT INDICATORS IN 2007 8

8 In this chapter, only ABA member banks that provided data are shown. 4

AF-Bank

1. Basic bank information

Bank’s requisite: Bank’s complete name "AF-Bank" Open Joint Stock Company Bank’s short name "AF-Bank" OJSC Address of the head office 34, S.Vurgun st., Baku Tax ID 1400117231 Code 506623 Correspondent account in NBA 0137010053944 SWIFT KONTAZ22 Telephone 490-83-54/56/57/77/78 Fax 490-83-55

Date of establishment and current legal 22.10.1993, OJSC status License 22.10.1993, 162 Bank employees number 27 Types of services All kinds of bank services Number of branches within Azerbaijan 1

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 7815.0 7575.0 Share of foreign capital 7814.60 - Loan portfolio 3971.27 11558.09 Consumer loans, 3750.42 10795.68 including mortgage loan 3743.66 10473.82 Deposit portfolio, 266.34 540.90 including time deposit 91.54 289.93 Deposits of physical persons 143.08 342.89 Return on assets (coefficient ROA) 5.72% 3.83% Return on capital (coefficient ROE) 8.80% 5.99%

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 8122.6 950.84 Mandatory cash balances with the NBA 229.77 52.17 Loans and advances to customers 3971.27 11490.88 Premises and equipment 55.57 255.91 Computer software and licenses 57.37 64.21 Other assets 746.14 67.91 TOTAL ASSETS 13182 .72 12881 .49

LIABILITIES Due to other banks 4227 4000 Customer accounts 206.34 540.90 Current income tax liability 59.14 96.92 Other liabilities 61.29 28.72 TOTAL LIABILITIES 4613 .77 4666 .54

EQUITY Share capital 7815.0 7575 Retained earnings 753.95 639.95 TOTAL EQUITY 8568 .95 8214 .95

TOTAL LIABILITIES AND EQUITY 13182 .72 12881 .49

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 16.91 82.95 Credit instruments 4.07 226.57 Total 20.98 309.52

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 1178.40 1301.64

Interest expense (341.34) (368.59)

Net interest income 837.06 933.05

Provision for loan impairment (528.29) (187.87)

Net interest income after provision for 1365.35 745.18 loan impairment

Fee and commission income 64.86 104.87

Fee and commission expense (56.61) (42.56)

Other operating income 147.55 7.10 Administrative and other operating ex- 563.84 178.64 penses

Profit before tax 957.31 635.95

Income tax expense (203.36) (143.17)

Profit for the year 753.95 492.75

Amrahbank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Amrahbank” Open Joint Stock Company Bank’s short name “Amrahbank” OJSC Address of the head office 10, Y.Safarov st., Baku Tax ID 140064171 Code 506719 Reuters dealing AMRH Correspondent account in NBA 0137010028944 SWIFT AMRAAZ22 Telex 142359 H. I Telephone 497-88-61; 497-88-62 Fax 497-88-63 Web address www.amrahbank.com Main e-mail [email protected]

Date of establishment and current legal 28.12.1993, OJSC status License 171 Bank’s employees number 234 Types of services Payment services, deposits, credits, Deposit safe boxes, utility payments, VISA, Master Card, Western Union, Bistraya Pochta, Migom, Blizko, Azercell, Bakcell Types of services to banks and other Deposits and loans to bank and other financial financial institutions institutions; correspondent accounts services Number of branches within 20 Azerbaijan and abroad Relations with international banking Bank Uralsib, Moskov, Russia, institutions Commerzbank AG, Frankfurt an Main, Germany Parex Banka, Riga, Latvia Banque De Commerce rt de Placements, Geneva, Switzerland

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 9679.6 6779.6 Loan portfolio 43652.6 28353.4 Commercial loans 15992.6 12315.7 Consumer loans, 27614.2 16037.7 including mortgage loan 45.8 - Deposit portfolio, 28018.9 16188.8 including time deposit 18416.3 11623.8 Deposits of physical persons 18136.3 11481.0 Return on assets (coefficient ROA) 2.14% 3.05% Return on capital (coefficient ROE) 8.87% 10.04%

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 3119.2 2812.7 Mandatory cash balances with the NBA 6228.4 1812.7 Due from other banks 502.4 706.6 Loans and advances to customers 38174.55 23386.0 Premises and equipment 202.3 223.7 Computer software and licenses 41.5 36.5 Other financial assets 200.0 200.0 Other assets 1456.4 627.3 TOTAL ASSETS 49924.75 29805.5

LIABILITIES Due to other banks 9160.9 3988.8 Customer accounts 28018.9 4008.3 Other liabilities 687.25 532.88 TOTAL LIABILITIES 37867.05 20729.98

EQUITY Share capital 9679.6 6779.6 Retained earnings 1231.5 1572.7 Other reserves 1146.6 723.22 TOTAL EQUITY 12057.7 9075.52

TOTAL LIABILITIES AND EQUITY 49924.75 29805.5

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31,2006 Guarantees and similar liabilities 572.2 658.2 Credit instruments 384.3 757.4 Total 956.5 1145.6

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 5953.2 4263.9 Interest expense 2681.6 1667.4 Net interest income 3271.6 2596.5 Provision for loan impairment 2131.4 1334.0 Net interest income after provision for loan 1140.2 1262.5 impairment

Fee and commission income 2359.6 1634.8 Fee and commission expense 276.6 251.4 Gains less losses from trading in foreign 198.0 41.2 currencies Other operating income 142.9 107.0 Administrative and other operating expenses 2193.0 952.6

Profit before tax 1371.1 1172.0 Income tax expense 301.6 260.4

Profit for the year 1069.5 911.6

AtaBank

1. Basic bank information

Bank’s requisite: Bank’s complete name “AtaBank” Open Joint Stock Company Bank’s short name “AtaBank” OJSC Address of the head office 102, Shamsi Badalbeyli st., Baku Tax ID 9900006651 Code 507581 Correspondent account in NBA 0137010032944 SWIFT ATAZAZ22 Telex 142310ISA Telephone 497-87-00 Fax 498-74-47 Web address www.atabank.com Main e-mail [email protected]

Date of establishment and current legal 1993, OJSC status License 13.01.1994, 176 Bank employees number 241 Types of services Payments, current accounts, different types of loans, saving accounts, fund transfers, credit cards, documentary operations, investment consulting, stock market brokerage services, etc. Types of services to banks and other fi- Credit lines, correspondent accounts, letter of nancial institutions credits, guarantees Number of branches within Azerbaijan 9 and abroad

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 14376.7 9411.2 Loan portfolio 71353.2 42668.3 Commercial loans, 41047.2 24503.6 including consumer loans 29510.3 17490.9 Deposit portfolio, 93844.4 52588.8 including time deposit 74699.9 37981.8 Deposits of physical persons 45322.9 21160.3 Return on assets (coefficient ROA) 3.15% 1.37% Return on capital (coefficient ROE) 25.60% 8.32%

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 10610.973 9289.139 Mandatory cash balances with the NBA 15520.82 8392.26 Due from other banks 8395.566 7529.420 Loans and advances to customers 62336.197 35112.601 Investment securities available for sale 349.284 460.000 Investment in associates 1474.707 636.158 Premises and equipment 6682.016 3715.887 Current income tax prepayment - 57.782 Other assets 417.258 3246.696 TOTAL ASSETS 110934.705 62695.604

LIABILITIES Due to other banks 209.090 5809.322 Customer accounts 82837.188 39762.635 Borrowings from government and international 12314.827 7409.135 financial institutions Deferred income tax liability - 57.782 Current income tax liability 417.258 3246.696 Other liabilities 296.110 218.729 TOTAL LIABILITIES 96330.157 53302.854

EQUITY Share capital 11500.000 8500.000 Retained earnings 3104.548 892.750 TOTAL EQUITY 14604.548 9392.750

TOTAL LIABILITIES AND EQUITY 110934.705 62695.604

4. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 10933.51 5388.68 Interest expense 5392.86 2666.03 Net interest income 5540.65 2722.65 Provision for loan impairment 1115.55 67.50

Net interest income after provision for loan 4425.09 2655.15 impairment

Fee and commission income 4725.12 1683.21 Fee and commission expense 1119.09 350.95 Gains less losses from trading in foreign curren- 157.21 155.53 cies Other operating income 7900.14 4166.23 Administrative and other operating expenses 4567.29 3494.56 Share of profit of associates - 56.93

Profit before tax 3332.86 666.21 Income tax expense 822.7 139.98

Profit for the year 2510.13 526.23

Atlantbank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Atlantbank” Open Joint Stock Company Bank’s short name “Atlantbank” OJSC Address of the head office 43, Z.Khalilov st., Baku Tax ID 1300079691 Code 506678 Correspondent account in NBA 0137010021944 SWIFT ATLTAZ22 Telephone 434-55-02; 434-55-12 Fax 497-69-89 Main e-mail [email protected]

Date of establishment and current legal 07.12.1993, OJSC status License 169 Bank employees number 44 Types of services All kinds of bank services Number of branches within Azerbaijan 2 and abroad

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 8024.93 6288.93 Loan portfolio 5975.98 6097.40 Commercial loans 681.3 784.4 Consumer loans, 3457.1 3494.3 including mortgage loan 1837.5 1818.7 Deposit portfolio, including 2942.67 805.74 time deposit, 2942.67 751.58 deposits of physical persons - 54.21

3. Bank’s balance sheet ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 1655.45 677.83 Mandatory cash balances with the NBA 292.14 120.42 Loans and advances to customers 5898.00 5992.94 Investment securities available for sale 2978.07 - Premises and equipment 350.02 421.23 Computer software and licenses 6.03 8.84 Other assets 195.70 47.63 TOTAL ASSETS 11357.41 7268.88

LIABILITIES Due to other banks 3.41 0.04 Customer accounts 2942.67 805.79 Other liabilities 145.57 9.60 TOTAL LIABILITIES 3091.65 815.43

EQUITY Share capital 8024.93 6288.93 Retained earnings 159.25 33.72 Other reserves 99.58 130.80 TOTAL EQUITY 8283.76 6453.45

TOTAL LIABILITIES AND EQUITY 11375.41 7268.88

4. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 965.31 745.31 Interest expense (34.02) (6.93) Net interest income 931.29 738.38 Provision for loan impairment (162.10) (306.62)

Net interest income after provision for loan 769.19 431.76 impairment

Fee and commission income 52.61 75.73 Fee and commission expense (7.31) (39.96) Gains less losses from trading in foreign curren- (31.41) (80.67) cies Other operating income 13.89 (44.90) Administrative and other operating expenses (622.15) (467.98)

Profit before tax 160.93 (81.12) Income tax expense 35.40 -

Profit for the year 125.53 (81.12)

Atrabank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Atrabank” Open Joint-Stock Company Bank’s short name “ATRABANK” OJSC Address of the head office 77, R.Behbudov st., Baku Tax ID 9900010231 Code 507525 Correspondent account in NBA 0137010025944 SWIFT ATRAAZ22 Telephone 495-80-93; 441-20-93; 441-43-76 Fax 493-12-16 Web address www.atrabank.az Main e-mail [email protected]

Date of establishment and current legal 25.12.1992, OJSC status License 105 Bank employees number 126 Types of services All bank services Number of branches 10

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 10074.8 7824.8 Loan portfolio 24524.83 22193.72 Commercial loans 17981.09 15359.27 Consumer loans, 6543.74 6834.45 including mortgage loan 17.64 18.70 Deposit portfolio, 4905.4 6240 including time deposit 3470.3 5166 Deposits of physical persons 2880.3 5166 Return on assets (coefficient ROA) 0.002% 0.002% Return on capital (coefficient ROE) 0.005% 0.007%

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 1254.51 356.02 Mandatory cash balances with the NBA 1456.37 834.07 Due from other banks 832.01 1505.65 Loans and advances to customers 23587.57 21765.83 Premises and equipment 3949.61 4094.18 Computer software and licenses 101.24 98.26 Other assets 841.27 1281.13 TOTAL ASSETS 32022.58 29935.14

LIABILITIES Due to other banks 9115.98 9249.70 Customer accounts 4912.21 6244.54 Debt securities in issue 1000.0 1000.0 Borrowings from government and interna- 5968.70 4864.39 tional financial institutions Other liabilities 376.86 248.43 TOTAL LIABILITIES 21373.75 21607.06

EQUITY Share capital 10074.8 7824.8 Retained earnings 102.45 44.13 Other reserves 471.58 459.15 TOTAL EQUITY 10648.83 8328.08

TOTAL LIABILITIES AND EQUITY 32022.58 29935.14

4. Off-balance liabilities

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 322.35 39.15 Credit instruments 49.16 419.45 Total 368.51 458.6

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 3217.19 2463.44 Interest expense (1659.43) (1377.93) Net interest income 1557.76 1085.51 Provision for loan impairment (607.73) (452.36)

Fee and commission income 554.84 632.86 Fee and commission expense (68.43) (70.53) Gains less losses from trading in foreign cur- 23.11 16.21 rencies Foreign exchange translation gains less losses (19.91) (21.94) Other operating income 4.13 7.5 Administrative and other operating expenses (1407.23) (1106.69)

Profit before tax 76.36 90.56 Income tax expense (18.04) (21.19)

Profit for the year 58.32 69.37

Azerbaijan Credit Bank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Azerbaijan Credit Bank” Open Joint Stock Company Bank’s short name “Azkreditbank” OJSC Address of the head office 111, Nizami st., Baku Tax ID 1400543621 Code 505107 Correspondent account in NBA 0137010070944 SWIFT ACJOAZ22 Telephone 598-24-24 Fax 598-24-27 Web address www.azkreditbank.com Main e-mail [email protected]

Date of establishment and current 2005, OJSC legal status License 249 Bank employees number 52 Types of services Opening and maintenance of accounts, Transfers and non-cash inputs, Domestic money transfers, Cash operations, Foreign Currency exchange, Deposit safe boxes, Encashment, Assessment services, Deposits, Other operations Types of services to banks and Transfers, Loans, Exchange, Deposits other financial institutions Relations with international bank- IFC ing institutions Participation in international pro- The Azerbaijan Corporate Governance Project jects (ACGP) of IFC

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 10204.80 8352.00 Loan portfolio 22241.75 10182.85 Commercial loans 12815.97 6775.60 Consumer loans, 9425.78 3202.52 including mortgage loan 3173.68 204.73 Deposit portfolio, 2725.80 588.11 including time deposit 2528.04 233.80 Deposits of physical persons 2527.04 213.80 Return on assets (coefficient ROA) 3.75% 0.78% Return on capital (coefficient ROE) 6.38% 0.86%

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash on hand 379.7 259.4 Due from the National Bank 401.1 132.1 Placements with banks and financial institutions 206 134.2 Loans & advances 21335.9 10054.5 Other assets 6.5 42.9 Investments 219.9 302.1 Intangible assets 79.9 63.3 Property and equipment 109.7 134.9 TOTAL ASSETS 22738.6 11123.3

LIABILITIES Deposits from customers and others 2946.5 589.3 Amounts due to banks and financial institutions 8548.4 2000.3 Deferred Tax Liability 27.7 29.8 Other Liabilities 256.9 69 TOTAL LIABILITIES 11779.4 2688.3

EQUITY Share capital 10204.8 8352 Retained earnings 754.4 83.1 TOTAL EQUITY 10959.2 8435.1

TOTAL LIABILITIES AND EQUITY 22738.6 11123.3

4. Off-balance liabilities (ths AZN )

Liabilities December 31, 2007 December 31, 2006 Total 3091.4 126.5

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 3361.8 904.6 Other income 368.6 231.4 Provision for impairment of loans to customers (1021.3) (313.5) Interest expenses (784.9) (21.3) Expenses on services (42.5) (41.2) Net foreign exchange income 13.2 8.3 General and administrative expenses (996.6) (623.8) Total operating expenses (1009.8) (615.5)

Profit before tax 872 144.6 Profit from ordinary activities for the period (198.3) (61.6)

Profit for the year 673.8 83.1

Azerbaijan Industrial Bank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Azerbaijan Industrial Bank” Open Joint Stock Company Bank’s short name “AIB” OJSC Address of the head office 3, Zarifa Aliyeva Ave., Baku Tax ID 9900007981 Code 509664 Correspondent account in NBA 0137010016944 SWIFT CAPNAZ22 Telephone 493-14-16 Fax 493-84-50 Web address [email protected] Main e-mail www.asb.az

Date of establishment and current 02.09.1996, OJSC legal status License 28.09.1996, 241 Bank employees number 120 Types of services Services for Legal Entities, Individual Private Owners: Current accounts in any currency, Cheque-book, Statements from accounts, Electronic Statements, Statements duplicates, Cash collection, Operations in national currency, Forex operations (USD $, €, Ruble and etc.), Loans, Guarantees, Letters of Credit (LC), Documentary operations, Collection operations. Services for Individual Entities: Current accounts in any currency, Cash collection , Operations in national currency, Foreign currency operations, Exchange Operations, Loans, Plastic Cards. Types of services to banks and Issuing Letters of credit, Foreign currency opera- other financial institutions tions, Repo, Loans Number of branches within Azer- 5 baijan and abroad Subsidiary enterprises (leasing, in- “Azerbaijan Industry Insurance” Ltd., surance, etc.) “Azerbaijan Industry Leasing” Ltd. Relations with international bank- Interbank Currency Exchange (BICE), SWIFT ing institutions KPMG Azerbaijan Limited “Deloitte & Touche” MMC International banking evaluation – TSE–ISO–EN 9000 bank ranking

2. Some financial indicators of the bank ths AZN December 31, 2007 December 31, 2006 Authorized capital 10000 7800 Share of foreign capital 9700 7566 Loan portfolio 40503.75 13949.80 Commercial loans 35295.93 12339,04 Consumer loans, 4471.38 1610.76 including mortgage loan 736.44 - Deposit portfolio, 53770.57 16158.90 including time deposit 20806.18 532.04 Deposits of physical persons 33537.53 1845.35 Return on assets (coefficient ROA) 3% 1% Return on capital (coefficient ROE) 13% 4%

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash 14716.3 3107.21 Invests at the National Bank of Azerbaijan Re- 13084 5870.38 public Invests at the banks and other financial institu- 6684.5 891.21 tions Credits given to customers 39580.1 13591.51 Investments 2806.4 2856.23 Other assets 1661 26.84 Property and equipment 1683.4 1574.41 Non – material assets 0.5 1.57 TOTAL ASSETS 80216.1 27919.36

LIABILITIES Deposits and balances at the banks and other 12674.2 2589.84 financial institutions Current accounts and deposits of customer 51280.3 13570.10 Other liabilities 844.3 163.50 Deferred tax liability 191.5 235.10 TOTAL LIABILITIES 64990.3 16558.54

EQUITY Founder’s shares 10000 7800.00 Revaluation reserve 1622.1 1671.37 Retained earnings 3603.7 1889.45

TOTAL EQUITY 15225.8 11360.82

TOTAL LIABILITIES AND EQUITY 80216.1 27919.36

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Credit lines 1521.4 49.35 Guarantees 1238.8 2146.02 Total 2760.1 2195.37

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 3510.1 1114.44 Interest expense 533.8 -57.23 Net interest income 2976.3 1057.21

Fee and commission income 1108.6 612.16 Fee and commission expense 488.5 -60.07 Net fee and commission income 620.2 552.09 Received dividend 18 - Net foreign exchange 531.1 32.23 Income / (loss) Operating income 549.1 1641.53 Recovery (provision) of impairment losses 620.1 11.08 General administrative expenses 1367.3 -685.91 Operating expenses 1987.4 -674.84

Profit before tax 2158.1 966.70 Income tax expense 443.8 -465.15 Profit for the year 1714.3 501.55

Azerdemiryolbank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Azerdemiryolbank”, Open Joint Stock Company Bank’s short name “Azerdemiryolbank” OJSC Address of the head office 31, Karabakh st., Baku Tax ID 9900001471 Code 509750 Correspondent account in NBA 0137010011944 SWIFT AZERAZ22 Telex 142330DBMMG AI Telephone 444-71-30; 440-71-71 Fax 496-09-77; 441-19-76 Web address www.azerdemiryolbank.com E-mail [email protected]

Date of establishment and current legal 02.09.1989, OJSC status License 23.11.1992, 24 Bank employees number 409 Types of services Services for physical persons: Opening of accounts, Deposits, Deposit safe boxes, Leasing, Credits, Micro credits, Mort- gage credits, Plastic cards, T-bills NBA Notes placement, Remittances, Utility payments. Services for Legal persons: Opening of accounts, Payment services, Depos- its, Deposit safe boxes, Business credits, Letters of credit and guarantees, Plastic cards, Remit- tances, Encashment. Types of services to banks and other fi- Opening of accounts, Deposits, Loans, Docu- nancial institutions mentary operations, Operations with securities Number of branches within Azerbaijan 23 Subsidiary enterprises ADB Broker Relations with international banking insti- USA American Express Bank, Deutsche Bank tutions Trust Company, Americas N.Y. Dresdner Bank AG, Commerzbank AG, Bank Austria, Raiffeisen Zentralbank Oesterreich, Fortis Bank, Netherlands, Den Danske Bank, Banque

28 de Commerce et de Placements, Yapi Kredi Bankasi AS, Akbank Tas, Alfa-Bank, Baltiy- skiy Bank, PromsvyazBank, Impexbank, Russlavbank, Avalbank. International banking evaluation – bank On 17.10.2007, Fitch Ratings confirmed the ranking long-term Issuer Default Rating (IDR) of the Bank as -. The short-term IDR rating was confirmed as , the individual rating as D/E, the support rating as 5, and the support level rating as “no support”. The IDR forecast re- mained Stable. The ratings reflect the bank’s small scale regarding international standards, risks of the increasing loans, the still big con- centration of loans, and certain weak points in the business environment in Azerbaijan. But they also take into account the bank’s good profitability, the adequate quality of its assets and the variety of its financing directions. Local awards and recognition In 2006, “Azerdemiryolbank” was awarded the “Success” National Award on 2 nominations. The greatest success for the bank was to win the confidence of population and of financial institutions. Thus, “Azerdemiryolbank” was awarded “Etimad Bank”. The Second award “on gift given to Social Economical development of Regions” was given to the Bank for its active participation in social and economic development of the regions. The Bank’s PR man- ager, Mr. Zamig Shukurov, was announced the winner in the nomination “Most active PR service in 2006 in the banking system” as a results of the first annual competition “Most Stable Bank” (www.press-release.az).

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 10400 7200 Share of foreign capital 3641 1800 Loan portfolio 104190 57930 Commercial loans 82723 39458 Consumer loans, 23427 19453 including mortgage loan 8437 6499 Deposit portfolio, 38999 23944 including time deposit 4154 2792 Deposits of physical persons 34845 21152 Return on assets (coefficient ROA) 3.4% 2.6% Return on capital (coefficient ROE) 19.3% 16.5%

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents <=<;C: ?AC=: Investment securities >@: >@: Investment property ;=:: AB? Intangible assets =@ <@ Premises and equipment ;:;:A ABAC Other financial assets C;< <<<> Other assets ??C AA? TOTAL ASSETS ;>@>:: BB<=;

LIABILITIES Due to other banks A?;; ; Customer accounts ??=>B =>C:B Securities issued BCC< ;A?B Accrued interest expense >?> Other financial liabilities C Other liabilities ;CA ;C: Subordinated loan liabilities =CA> 7 TOTAL LIABILITIES ;<:C<= A>>==

EQUITY Share capital ;:>:: A<:: Share premium >>=< >BA Retained earnings ?BB@ A?@ ==>B TOTAL EQUITY AA ;=ACB

TOTAL LIABILITIES AND EQUITY ;>@>:: BB<=;

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 16794 11121 Letter of credits 1993 2297 Total 18787 13418

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 17216 7679 Interest expense (8204) (3236) Net interest income 9012 4443 Provision for loan impairment (979) (141) Net interest income after provision for 8033 4302 loan impairment

Fee and commission income 4757 2228 Fee and commission expense (1178) (595) Gains less losses from trading in foreign 1101 603 currencies Foreign exchange translation gains less losses 66 67 Other operating income 250 62 Administrative and other operating ex- (6354) (3630) penses Share of profit of associates 9 45 Revaluation of investment property (299) -

Profit before tax 6385 3082 Income tax expense (1480) (810)

Profit for the year 4905 2272

Azerigazbank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Azerigazbank” Open Joint Stock Company Bank’s short name “Azerigazbank” OJSC Address of the head office 16, Landau st., Baku Tax ID 9900019651 Code 505817 Correspondent account in NBA 0137010017944 SWIFT AZEGAZ22 Telex 142360 AGB JS Telephone 497-50-17; 403-06-50 Fax 498-96-15 Web address www.azerigazbank.com Main e-mail [email protected]

Date of establishment and current legal 09.11.1992, OJSC status License 18.02.2005, 013 Bank employees number 316 Types of services Services for individuals: Opening correspondent accounts, teller services, loans, deposits, plastic cards, packages of AGBank cards, Western Union, Migom, American Express, AGLeasing, “Card to Card” system, Caspian Money. Services for corporate clients: Transfer opening corresponding accounts in foreign and local currency, loans , deposits, teller services, AGLeasing. Types of services to banks and other Opening corresponding accounts in foreign and lo- financial institutions cal currency; Teller services; Documentary operations; Security operations; List of correspondent accounts; Tariffs. Number of branches within Azerbaijan 12 Subsidiary enterprises The leasing company named “AGLeasing” was founded on 04.03.2005. Relations with international banking Deutsche Bank Trust Company Americas, New institutions York, USA; American Express Bank Ltd, New York, USA; Bank of NY Mellon, NY, USA; Citi- bank NY, USA, American Express Bank Ltd, Frankfurt, Germany, Commerzbank AG, Frankfurt,

33 Germany, Dresdner Bank AG, Frankfurt, Germany; Bank Austria Creditanstalt AG, Vienna, Austria; Raiffeisen Zentralbank Österreich AG, Vienna, Austria, Alfa-bank OJSB, Moscow, Russia; Inter- national Bank of Azerbaijan, Moscow, Russia; Promsvyazbank, Moscow, Russia; Vneshtorgbank, Moscow, Russia, Aizkraukles Banka, Riga, Latvia, Lloyds TSB Bank, London, UK, Bank Turanalem, Almaty, Kazakhstan. Local awards and recognition In 2005, AGBank was awarded “Best corporate bank” at the “Caspian Energy Award Ceremony” and in 2006 the bank won the National business award “Ugur” in the nomination “Best bank of the year”. The European Bank for Reconstruction and Development recognized AGBank as the most active bank in the filed of documentary credits under the EBRD-TFP program.

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 12000 9000 Share of foreign capital 2947.32 2861.07 Loan portfolio 109444.84 53603.36 Commercial loans 28464.81 20186.07 Consumer loans, 42093.06 17406.62 including mortgage loan 5507.37 682.83 Deposit portfolio 95420.96 56908.94 Time deposit 62128.33 32432.04 Deposits of physical persons 58215.36 39309.92 Return on assets (coefficient ROA) 2.9% 3% Return on capital (coefficient ROE) 23.2% 28%

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 24305 15056 Mandatory cash balances with the NBAR 4626 3664 Due from other banks 2043 3841 Loans and advances to customers 107866 53332 Investment securities available for sale 386 4082 Investment in associates 296 302 Premises and equipment 9402 6433 Computer software and licences 275 210 Current income tax prepayment 375 - Other financial assets 233 141 Other assets 6971 234 TOTAL ASSETS 156778 87295

LIABILITIES Due to other banks 12902 272 Customer accounts 96115 57442 Debt securities in issue 3295 553 Borrowings from government and interna- 24601 14563 tional financial institutions Deferred income tax liability 275 272 Current income tax liability - 395 Other financial liabilities 774 194 Other liabilities 472 384 TOTAL LIABILITIES 138434 74075

EQUITY Share capital 12000 9000 Retained earnings 4863 2806 Other reserves 1481 1414 TOTAL EQUITY 18344 13220

TOTAL LIABILITIES AND EQUITY 156778 87295

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 11047.07 3880.8 Credit instruments 4901.49 2981.97 Letter of credits 6240.86 957.21 Forwards and future agreements 35827.32 15275.6 Total 58016.74 23095.58

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 15295 8686 Interest expense (6913) (3653) Net interest income 8382 5033 (Provision)/release of provision for impair- (30) 46 ment of due from other banks Provision for loan impairment (1409) (878)

Net interest income after provision for loan 6943 4201 impairment

Fee and commission income 4754 3555 Fee and commission expense (1682) (983) Gains less losses from trading in foreign cur- 1104 554 rencies Foreign exchange translation gains less losses (5) 51 Other operating income 29 86 Administrative and other operating expenses (6689) (4059) Share of profit of associates (6) 8

Profit before tax 4448 3413 Income tax expense (1031) (783)

Profit for the year 3417 2630

Azerneqliyyatbank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Azerneqliyyatbank” Open Joint Stock Company Bank’s short name “Azerneqliyyatbank” OJSC Address of the head office 150/152 Azadlig ave., Baku, AZ1106 Tax ID 1500031691 Code 505099 Correspondent account in NBA 0137010036944 SWIFT AZENAZ22 Telephone 561-73-32; 562-88-97 Fax 563-53-37 Main e-mail [email protected]

Date of establishment and current legal 1989, OJSC status License 119 Bank employees number 101 Types of services Deposits; Money transfer; Mobile communication payments; Loans Number of branches within Azerbaijan 4 and abroad

2. Some financial indicators

ths AZN December 31, 2007 December 31, 2006 Authorized capital 10684.1 9164.1 Loan portfolio 15885.0 13846.4 Consumer loans 15885.0 13846.4 Deposit portfolio, 9297.0 6500.1 Including time deposit 599.2 89.5 Deposits of physical persons 7860.0 6102.8 Return on assets (coefficient ROA) 0.7% 0.7% Return on capital (coefficient ROE) 1.2% 1.0%

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash 406.0 567.2 Due from the NBA 2682.2 1327.9 Placements with banks and other financial insti- 41.1 401.0 tutions Loans to customers 15024.0 12449.0 Other assets 1052.0 1033.5 Property and equipment 1551.0 133.5 Intangible assets 12.6 14.3 TOTAL ASSETS 20768.9 15926.4

LIABILITIES Current accounts and deposits from customers 9297.0 6500.1 Other liabilities 237.1 155.9 Deferred tax liability 27.9 - TOTAL LIABILITIES 9562.0 6656.0

EQUITY Partner’s equity 10684.0 9164.0 Revaluation reserve 382.90 - Retained earnings 140,0 106,4 TOTAL EQUITY 11206.9 9270.4

TOTAL LIABILITIES AND EQUITY 20768.9 15926.4

4. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 2685.0 2316.7 Interest expense (1182.2) (784.7) Net interest income 1503.0 1352.0

Fee and commission income 378.4 209.7 Fee and commission expense (564.4) (459.3) Other operating income 341.7 342.0 General administrative expenses (1136.3) (905.3) Operating expenses (348.1) (404.5)

Profit before tax 174.3 134.6 Income tax expense 41.9 33.9

Profit for the year 132.4 100.7

Azer-Turk Bank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Azer-Turk Bank” Open Joint Stock Company Bank’s short name “Azer-Turk Bank” OJSC Address of the head office 5, Islam Seferli str., Baku Tax ID 9900006111 Code 507699 Correspondent account in NBA 0137010022944 SWIFT AZRT AZ22 Telephone 497-43-16 Fax 598-37-02 Web address www.azerturkbank.biz E-mail [email protected]

Date of establishment and current legal 25.05.1995, OJSC status License 11.07.1995, 234 Bank employees number 71 Types of services Services for individuals: Payment services; De- posits; Loans; Money transfers; Plastic cards. Services for legal entities: Payment services; Money transfers; Plastic cards; Deposits; Loans . Types of services to banks and other finan- Dealing; Loans; Deposits; Bank guarantees cial institutions Number of branches within Azerbaijan and 2 abroad Relations with international banking institu- T.C. Ziraat Bank, Turkey tions

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 10000.00 6970.00 Share of foreign capital 5000.00 3485.00 Loan portfolio 21430.35 14186.30 Commercial loans 14756.96 10825.86 Consumer loans 6673.39 3360.44 including mortgage loan 1019.31 - Deposit portfolio, 20899.89 16583.36 including time deposit 13169.66 8460.59 Deposits of physical persons 11216.94 6811.71 Return on assets (coefficient ROA) 5% 5.2% Return on capital (coefficient ROE) 15% 16.9%

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash on hand 669.44 367.64 Due from the National Bank 1630.22 1372.49 Loans and advances to banks 6403.66 3724.44 Loans to customers 18310.41 12809.39 Available-for-sale assets 280.00 260.00 Held to maturity investments 6.462.32 6188.97 Fixed assets 371.58 305.46 Other assets 384.33 798.13 TOTAL ASSETS 34511.96 25826.52

LIABILITIES Deposits from banks and other financial institu- 6442.46 3503.59 tions Current accounts and deposits from customers 15360.41 13079.77 Other liabilities 1069.13 802.17 Current income tax liabilities 64.70 158.10 TOTAL LIABILITIES 22936.70 17543.63

EQUITY Share Capital 10000.00 6970.00 Retained Earnings 1575.26 1312.89 TOTAL EQUITY 11575.26 8282.89

TOTAL LIABILITIES AND EQUITY 34511.96 25826.52

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 1924.28 903.30 Kredit lines 3873.43 1789.94 Letter of credits - 330.26 Total off-balance liabilities 5797.71 3023.50

5. Profit&loss statement

Year ended Year ended (ths AZN) December 31, 2007 December 31, 2006 Interest income 4053.91 2848.67 Interest expense (1084.67) (539.06) Net interest income 2969.24 2309.61

Fee and commission income 1163.53 895.29 Fee and commission expense (249.46) (180.74) Net fee and commission income 914.07 714.55

Net foreign exchange income/ (loss) 242.84 151.36 Dividend income 14.98 2.26 Other income 3.49 0.22 Operating income 4144.62 3178.00 Reversal of impairment losses/(impairment (24.84) (85.65) losses) General administrative expenses (2092.48) (1513.79) Operating expenses (2117.32) (1599.44) Profit before tax 2027.30 1578.56 Income tax (452.04) (390.14)

Profit for the year 1575.26 1188.42

Bank Melli Iran

1. Basic bank information

Bank’s requisite: Bank’s complete name “Bank Melli Iran” Baku branch Bank’s short name “Bank Melli Iran” Baku branch Address of the head office 14, Nobel Ave., Baku Tax ID 1300036291 Code 509761 Correspondent account in NBA 0137010037944 SWIFT MEL ĞAZ22 Telephone 490-73-41 Fax 496-72-35 Web address www.bmi.ir Main e-mail bmiaz @intrans.az

Date of establishment and current legal 29.01.1993 status License 124 Bank employees number 21 Types of services Money intermediary Types of services to banks and other fi- Bank collection and L/C operations. Guaran- nancial institutions tee letters introduction

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 10001.54 8118.78 Loan portfolio 7850.93 7133.37 Commercial loans 630.86 590 Consumer loans 7220.07 6512.80 Deposit portfolio, 7997.34 5031.93 including time deposit 3980.35 1867.31 Deposits of physical persons 4131.16 2853.63 Return on assets (coefficient ROA) 5.45% 5.03% Return on capital (coefficient ROE) 11.63% 9.40%

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 852.94 327.21 Mandatory cash balances with the NBA 802.30 500.98 Due from other banks 12056.09 7137.02 Loans and advances to customers 7385.66 6631.09 Premises and equipment 68.98 85.06 Computer software and licenses 41.52 47.63 Other assets 135.29 449.45 TOTAL ASSETS 21342.78 15178.44

LIABILITIES Due to other banks 1228.30 1195.74 Customer accounts 8077.33 5031.93 Current income tax liability 172.09 47.75 Other liabilities 700.64 21.25 TOTAL LIABILITIES 10178.36 6296.67

EQUITY Share capital 10001.54 8118.79 Retained earnings 1162.88 762.98 TOTAL EQUITY 11164.42 8881.77

TOTAL LIABILITIES AND EQUITY 21342.78 15178.44

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Credit instruments 16.64 - Total 16.64 -

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2007 Interest income 2536.40 1804.42 Interest expense 284.64 154.24 Net interest income 2251.76 1650.18 (Provision)/release of provision for im- 24.59 22.05 pairment of due from other banks Provision for loan impairment 260.14 282.33 Net interest income after provision for 1967.03 1345.80 loan impairment

Fee and commission income 266.47 206.82 Fee and commission expense 47.34 35.96 Foreign exchange translation gains less -57.04 -90.62 losses Other operating income 38.76 31.20 Administrative and other operating ex- 670.43 476.37 penses

Profit before tax 1497.45 980.87 Income tax expense 334.57 217.89

Profit for the year 1162.88 762.98

Bank of Azerbaijan

1. Basic bank information

Bank’s requisite: Bank’s complete name “Bank of Azerbaijan” Open Joint Stock Company Bank’s short name “Bank of Azerbaijan” OJSC Address of the head office 3, S.Vurgun st., Baku Tax ID 1700018161 Code 506689 Correspondent account in NBA 0137010019944 SWIFT AZEJAZ22 Telephone 498-02-45/47 Fax 498-02-50 Web address www.bank.az Main e-mail [email protected]

Date of establishment and current 01.12.1993, OJSC legal status License 01.12.1993, 166 Bank employees number 350 Types of services Settlement services, consumer, business, enterprise, mortgage loans, documentary operations, deposits, plastic cards, transfers, travelers’ cheques, deposit safe boxes, etc. Number of branches within 18 Azerbaijan and abroad

2. Some financial indicators of the bank ths AZN December 31, 2007 December 31, 2006 Authorized capital 10000 10000 Share of foreign capital 100 100 Loan portfolio 76694.69 49379.38 Commercial loans 49627.87 37756.06 Consumer loans, 22216.42 11623.32 including mortgage loan 4850.4 - Deposit portfolio, 38934.1 27594.33 including time deposit 20014.2 5841.7 Deposits of physical persons 23270.5 7432.2 Return on assets (coefficient ROA) 3.5% 2.8% Return on capital (coefficient ROE) 19.35% 12.74%

3. Bank’s balance sheet

ths AZN December 31,2007 December 31, 2006 ASSETS Cash and cash equivalents 10233.0 1952.0 Mandatory cash balances with the NBA 668.0 236.0 Due from other banks 228.0 1404.0 Loans and advances to customers 74413.5 45955.73 Premises and equipment 2196.0 1939.0 Computer software and licenses 145.0 123.0 Other assets 4117 4549.25 TOTAL ASSETS 92000.55 56158.98

LIABILITIES Due to other banks 10382.5 9528.7 Customer accounts 35652.4 14022.0 Borrowings from government and 28529.0 18065.7 international financial institutions Other liabilities 2281.62 1685.61 TOTAL LIABILITIES 76845.52 43302.01

EQUITY Share capital 10000 10000 Retained earnings 3538 1835 Other reserves 1617.03 1021.97 TOTAL EQUITY 15155.03 12856.97

TOTAL LIABILITIES AND EQUITY 92000.55 56158.98

4. Off-balance liabilities

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 7414 5199 Credit instruments 2115 745 Total 9529 5944

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 8185.0 5307.0 Interest expense 3755.0 1712.0 Net interest income 4430.0 3595.0

Provision for loan impairment -97.0 588.0

Net interest income after provision for -4527.0 3007.0 loan impairment

Fee and commission income 4640.0 1746.0 Fee and commission expense 1982.0 1232.0 Foreign exchange translation 1062.0 1010.0 gains less losses Administrative and other 3036.0 2348.0 operating expenses

Profit before tax 4240.0 1497.0 Income tax expense 1040.0 -

Profit for the year 3200.0 1497.0

Bank of Baku

1. Basic bank information

Bank’s requisite: Bank’s complete name “Bank of Baku” Open Joint Stock Company Bank’s short name “Bank of Baku” OJSC Address of the head office 42, Ataturk Ave., Baku Tax ID 1700038881 Code 506924 Correspondent account in NBA 0137010007944 SWIFT JBBKAZ22 Telex 142318 JBBK AI Telephone 447-00-55 Fax 498-82-78 Web address www.bankofbaku.com Main e-mail [email protected]

Date of establishment and current legal 1994, OJSC status License 18.02.2005, 247 Bank employees number 441 Types of services Local and international clearing, Trade finance services and products including issuing and confirming bank guarantees and letters of credit (confirmed by first class western banks), Forex operations, Money transfers: Travelex, Western Union, Migom, Bis- traya Pochta, Xpress Money, Contact, Pri- vatmoney, Cash handling services, Call and term deposits including liquidity management and retirement products, Commercial and consumer lending products (including mortgage) and overdraft, Commercial and consumer MasterCard products (virtual, debit, salary, credit and hybrid cards), Bank- client, Financial advice, business consulting and market research, Leasing, Amex Travel- ers’ Cheques Types of services to banks and other fi- All types of correspondent services, in addi- nancial institutions tion to deposits, loans, operating accounts in AZN and other currencies for financial institutions Number of branches within Azerbaijan 15 and abroad Subsidiary enterprises BOB Broker LLC

50 Relations with international banking in- Dresdner Bank AG, American Express Bank, stitutions KBC Bank, Alfa Bank, EBRD, International Financial Corporation (IFC), German Development Bank, Sparkasse, USAID/Bankworld, Societe Generale, American Express Co. TBC Bank, Bank of Georgia Participation in international projects March 31, 2001 - German Development Bank: SME Financing; February 13, 2004 - European Bank for Re- construction and Development: SME Financ- ing Trade Financing; June 8, 2004 - International Cooperation Fund of German Saving Banks: Improve- ment of corporate governance in the banking sector; October 20, 2004 - Master Card Int.: Emis- sion and maintenance of international bank cards; 25 January, 2005 - International Financial Corporation: Development of leasing services in Azerbaijan Improvement of corporate governance in the banking sector, USAID/World Bank: International Account- ing Standard; July 22, 2005 - Societe Generale: Trade Fi- nancing

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006

Authorized capital 6800 6800 Share of foreign capital 40% 40% Loan portfolio 122839 47901 Commercial loans 38734 16072 Consumer loans, 84105 31829 including mortgage loan 2063 -

Deposit portfolio, 64452 41781 including time deposit 45309 26017 Deposits of physical persons 49061 26798 Return on assets (coefficient ROA) 2.52% 4.46% Return on capital (coefficient ROE) 16.82% 22.69%

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 12721 9827 Mandatory cash balances with the NBA (6488) (4561) Due from other banks 5125 4430 Loans and advances to customers 118992 46574 Investment securities available for sale 2001 5037 Investment in associates 159 142 Premises and equipment 12079 4206 Computer software and licenses 106 125 Other financial assets 792 834 Other assets 22 18 TOTAL ASSETS 151997 71193

LIABILITIES Due to other banks 16413 2317 Customer accounts 64452 41781 Debt securities in issue 6153 3103 Borrowings from government and international 41468 9917 financial institutions Deferred income tax liability 1945 404 Current income tax liability 263 270 Other financial liabilities 883 428 Other liabilities 1 1 TOTAL LIABILITIES 131578 58221

EQUITY Share capital 6800 6800 Retained earnings 6522 4514 Other reserves 7097 1658 TOTAL EQUITY 20419 12972

TOTAL LIABILITIES AND EQUITY 151997 71193

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 3545 3441 Credit instruments 8036 3184 Other off balance liabilities - 2396 Total 11581 9021

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 17842 8630 Interest expense (7925) (2756) Net interest income 9917 5874

Provision for loan impairment (2537) (862) Net interest income after provision for loan im- 7380 5012 pairment Fee and commission income 3616 2535 Fee and commission expense (1353) (699) Gains less losses from trading in foreign currencies 462 521 Other operating income 227 128 Administrative and other operating expenses (6701) (3961) Share of profit of associates 29 14 Profit before tax 3660 3550 Income tax expense 852 758 Profit for the year 2808 2792

Bank Respublika

1. Basic bank information

Bank’s requisite: Bank’s complete name “Bank Respublika” Open Joint Stock Company Bank’s short name “Bank Respublika” OJSC Address of the head office 21, Khagani st., Baku Tax ID 9900001901 Code 505668 Correspondent account in NBA 0137010014944 SWIFT BRESAZ22 Telephone 598-08-00 Fax 598-08-80 Web address www.bankrespublika.az Main e-mail [email protected] Date of establishment and current legal 22.05.1992, OJSC status License 83 Bank employees number 380 Types of services Payment services, Consumer mortgage, Busi- ness loans, Deposits, Payment cards, Money transfers, Other services Number of branches 15 Subsidiary enterprises Bank Respublika established "Respublika In- vest" operating on the securities market and became the main shareholder of "Baki Sigorta" insurance company in 2007. Relations with international banking insti- Bank Respublika cooperates with EBRD, tutions ADB, IFC, German Investment Company DEG, Netherlands Development Finance Company (FMO), Black Sea Trade and Devel- opment Bank, German-Azerbaijan Fund, Raif- feisen Bank, Commerzbank AG and other financial organizations on business lending and trade financing. Under these programs Bank Respublika acquired credit lines for a total amount of over USD 120 million. International banking evaluation–bank Bank Respublika received long-term B2 rating ranking from Moody's for deposits in national and foreign currency. Bank Respublika is one of the first banks of Azerbaijan to receive an international rating and the rating received is one of the highest in the private bank sector of Azer- baijan.

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 12580 7161 Share of foreign capital 25% 25% Loan portfolio 158044 75428 Commercial loans 94847 51061 Consumer loans, 63197 24367 including mortgage loan 19342 3976 Deposit portfolio, 111673 52366 including time deposit 80546 30436 Deposits of physical persons 69902 39350 Return on assets (coefficient ROA) 2.04% 2.11% Return on capital (coefficient ROE) 25.42% 20.59%

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and balances with the NBA 18342 13488 Gold 5 - Financial assets at fair value through profit 10 14 or loss Due from banks 38471 9297 Loans to customers 158044 75428 Investments available-for-sale 22417 4508 Goodwill 388 - Property and equipment 9605 7018 Intangible assets 293 288 Non-current assets held for sale - 133 Other assets 1916 1092 TOTAL ASSETS 249491 111266

LIABILITIES Due to banks 9777 7002 Customer accounts 111673 52366 Debt securities issued - 3022 Loans received from government agencies 87338 36136 and foreign credit institutions Current income tax liabilities 689 209 Deferred income tax liabilities 541 512 Provision for impairment losses on other 1175 82 operations Obligations under finance lease 160 152 Other liabilities 948 389 Subordinated debt 17172 - TOTAL LIABILITIES 229473 99870

EQUITY Share capital 12580 7161 Property revaluation reserve 1807 1807 Retained earnings 5263 2428 Minority interest 368 - TOTAL EQUITY 20018 11396

TOTAL LIABILITIES AND EQUITY 249491 111266

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 9257 7345 Credit instruments 8375 3701 Letter of credits 7519 995 Total 25151 12041

5 Profit&loss statement

Year ended ths AZN Year ended December 31, 2007 December 31, 2006 Interest income 24721 10773 Interest expense (11692) (4633) Net interest income before provision for im- 13029 6140 pairment losses on interest bearing assets Provision for impairment losses on interest (2062) (802) bearing assets Net interest income 10967 5338 Net (loss)/gain on financial assets and liabili- (4) 14 ties at fair value through profit or loss Net gain on foreign exchange operations 731 415 Net gain on gold operations 60 - Fee and commission income 5125 2983 Fee and commission expense (1677) (917) Insurance premium earned 1355 - Premiums ceded on reinsurance (172) - Other expenses (18) - Other income 39 16 Non-interest income 5439 2511 Gross claims paid (66) - Change in provision for unearned premiums (736) - net of reinsurance Change in loss provision net of reinsurance (225) - Net non-interest income 4412 2511 Operating income 15379 7849 Operating expenses (8663) (4842) Operating profit 6716 3007 (Provision)/recovery of provision for impairment losses on guarantees and other com- (28) 14 mitments

Profit before tax 6688 3021 Income tax expense (1600) (675)

Profit for the year 5088 2346

Bank Silk Vey

1. Basic bank information

Bank’s requisite: Bank’s complete name “Bank Silk Vey” Open Joint Stock Company Bank’s short name “Bank Silk Vey” OJSC Address of the head office 86, Nizami st., Baku Tax ID 9900006241 Code 507473 Correspondent account in NBA 013701002944 SWIFT AZALAZ22 Telex 142574 KANT A Ğ Telephone 498-60-56; 498-97-01 Fax 498-97-01 Web address www.banksilkway.az Main e-mail [email protected]

Date of establishment and current legal 1994, OJSC status License 06.01.1994, 175 Bank’s employees number 138 Types of services All kinds of bank services Types of services to banks and other finan- More than 20 Azerbaijan banks has corre- cial institutions spondent accounts in our Bank Number of branches within Azerbaijan and 8 abroad Correspondent relations Reiffeisen Zentralbank Viena (Austria) Euro Trust Bank (RF) Sber Bank Rossii (RF) Reiffeisen Bank Moscow (RF) Bank EEFC (RF) PromSvyazBank (RF) Ğsh Bankasy (Turkey) Bank Turan Alem (Kazakhstan)

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 10000 -

Bank Standard

1. Basic bank information

Bank’s requisite: Bank’s complete name “Bank Standard” Closed Joint-Stock Company Bank’s short name “Bank Standard” CJSC Address of the head office 4, Azerbaijan Ave., Baku Tax ID 9900006801 Code 505237 Correspondent account in NBA 0137010003944 SWIFT MOSZAZ22 Telex (784) 142458 MOST AI Telephone 497-10-70; 497-10-71 Fax 498-07-78 Web address www.bankstandard.com Main e-mail [email protected]

Date of establishment and current legal 26.12.1995, CJSC status License 30.10.2005, 236 Bank employees number 295 Types of services All kinds of bank services Types of services to banks and other fi- Loro/Nostro correspondent account, deposits, nancial institutions loans Number of branches within Azerbaijan 11 and abroad Relations with international banking in- Raiffeisen Zentralbank, VTB-Europe, Standard stitutions Bank, Credit Suisse, Merrill Lynch, Bank Julios Baer, Morgan Stanley, Citigroup Global Markets Limited, ADB, Black Sea Trade and Develop- ment Bank, BANIF-Banco international do fun- chal, Islam Financial Corporation International banking evaluation – bank B1 Moody’s Rating ranking Category Moody's Rating Outlook Stable Bank Deposits B1/NP Bank Financial Strength E+

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 50 000 15 000 Loan portfolio 423103 144207 Commercial loans 293859 87774 Consumer loans, 129244 56433 including mortgage loan 32047 9764 Deposit portfolio, 289053 147823 including time deposit 209040 109313 Deposits of physical persons 154270 81189 Return on assets (coefficient ROA) 3.40% 2.65% Return on capital (coefficient ROE) 28.70% 21.69%

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 105619 36094 Mandatory cash balances with the NBA 11683 7624 Financial assets held for trading 6054 - Due from other banks 43537 44125 Loans and advances to customers 406017 137019 Investment securities available for sale 2391 200 Investment properties 3549 2659 Intangible assets 263 127 Premises and equipment 23919 16954 Other financial assets 1190 1183 Other assets 6316 955 TOTAL ASSETS 610538 246580

LIABILITIES Due to other banks 3687 13170 Financial liabilities held for trading 2370 - Customer accounts 289053 147823 Debt securities in issue 16209 18811 Term borrowings 216041 36060 Current income tax liability 2885 1015 Deferred income tax liability 3350 2252 Other financial liabilities 857 663 Other liabilities 165 39 TOTAL LIABILITIES 534617 219833

EQUITY Share capital 50000 15000 Retained earnings 14563 3229 Revaluation reserve for premises 10931 8518 Revaluation reserve for available for sale 427 - investments TOTAL EQUITY 75921 26747

TOTAL LIABILITIES AND EQUITY 610538 246580

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Undrawn credit lines 26918 10967 Letters of guarantee 29840 6355 Less: Provision for credit related commit- (256) (256) ments Total 56502 17066

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 54810 17764 Interest expense (31280) (10232) Net interest income 23530 7532 Provision for loan impairment (9898) (2816)

Net interest income after provision for loan 13632 4716 impairment

Fee and commission income 8243 4344 Fee and commission expense (1635) (986) Other operating income - 300 Gains less losses from trading in foreign cur- 5039 1871 rencies Foreign exchange translation gains less losses (484) (315) Gain on trading securities 524 - Revaluation gain on investment properties 890 1088 Provision for losses on credit related commit- - 405 ments Gains on the early settlement of as- 2760 - sets/liabilities at rates above/below market Administrative and other operating expenses (9734) (5395)

Profit before tax 19235 6028 Income tax expense (4485) (1459)

Profit for the year 14750 4569

Birlikbank

2. Some financial indicators of the bank ths AZN December 31, 2007 December 31, 2006 Authorized capital 10000.00 9400.00 Loan portfolio 22409.73 19821.70 Mortgage loan 468.00 468.00 Deposit portfolio, 618.55 659.51 including time deposit 600.00 626.46 Deposits of physical persons 18.55 33.05

3. Bank’s balance sheet ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 4509.296 1470.078 Mandatory cash balances with the NBA 245.621 37.746 Due from other banks 1696.186 0.573 Loans and advances to customers 22409.730 20926.987 Premises and equipment 5470.918 1009.807 Computer software and licenses 14.983 16.923 Current income tax prepayment 0.356 0.374 Other financial assets 1308.110 1134.533 Other assets 680.820 266.261 TOTAL ASSETS 36336.020 24863.282

LIABILITIES Due to other banks 11740.800 4900.000 Customer accounts 750.500 999.433 Borrowings from government and interna- 7166.717 6144.493 tional financial institutions Current income tax liability 37.641 4.552 Other financial liabilities 1308.110 1134.533 Other liabilities 785.020 415.460 TOTAL LIABILITIES 21788.788 13598.471

EQUITY Share capital 10000.000 9400.000 Retained earnings 1773.683 1589.582 Other reserves 2773.550 2454.393 TOTAL EQUITY 14547.232 11264.811

TOTAL LIABILITIES AND EQUITY 36336.020 24863.282

4. Off-balance liabilities

Liabilities December 31, 2007 December 31, 2006 Credit instruments 34500.77 28701.86 Letter of credit 416.35 791.84 Other off balance liabilities 89553.87 65287.77 Total 124470.99 94781.47

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 2667.37 955.543 Interest expense (631.50) (314.670) Net interest income 2035.87 640.873

Fee and commission income 48.97 27.578 Fee and commission expense (226.30) (0.913) Administrative and other operating ex- (84.857) (1257.12) penses

Profit before tax 1773.683 589.582 Income tax expense (390.210) -

Profit for the year 1383.473 589.582

Debut Bank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Debutbank” Open Joint Stock Company Bank’s short name “Debutbank” OJSC Address of the head office 16, Babek Ave., Baku Tax ID 9900000701 Code 507633 Correspondent account in NBA 0137010039944 SWIFT DEBAZ22 Telephone 496-45-51 Fax 496-45-53 Web address www.debutbank.az Main e-mail [email protected]

Date of establishment and current le- 30.12.1994, OJSC gal status License 30.12.1994, 233 Bank employees number 109 Types of services All banking services Number of branches 7

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 8461.90 8461.90 Loan portfolio 27939.84 18303.55 Commercial loans 20580.03 17199.55 Consumer loans, 1808.12 818 including mortgage loan 5551.69 1922 Deposit portfolio , 1853.97 485.18 including time deposit 1192.74 287.60 Deposits of physical persons 1172.74 287.60 Return on assets (coefficient ROA) 0.61% 0.25% Return on capital (coefficient ROE) 1.86% 0.54%

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash 683.86 397.23 Due from the National Bank of Azerbaijan Re- 287.85 121.60 public Placements with banks and other financial in- 78.95 98.28 stitutions Loans to customers 26908.25 17667.63 Investment securities 120.00 120.00 Other assets 513.76 627.33 Property and equipment 2043.69 407.79 Software and licenses 34.54 38.89 TOTAL ASSETS 30670.89 19478.76

LIABILITIES Payments due to other banks 13657.11 6945.8 Deposits from customers 1853.97 485.18 Debts to state and international financial or- 4067.13 2606.00 ganizations Other liabilities 327.54 178.44 TOTAL LIABILITIES 20245.76 10215.42

EQUITY Authorized capital 8461.90 8461.90 Divided profit 325.82 184.34 Other funds 1637.42 617.09 TOTAL EQUITY 10425.14 9263.33

TOTAL LIABILITIES AND EQUITY 30670.90 19478.76

4. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 3550.96 1568.47 Interest expense (1050.83) (319.28) Net interest income 2500.13 1249.19

Provision for loan impairment 812.68 698.18 Operating income 1033.64 491.07 Operating expense 525.57 591.19 Net operating income (expense) 1349.23 1022.36

Profit before tax 209.98 68.21 Income tax expense 22.55 20.04

Profit for the year 187.43 48.17

Dekabank 1. Basic bank information

Bank’s requisite: Bank’s complete name “Dekabank” Open Joint Stock Company Bank’s short name “Dekabank” OJSC Address of the head office 14/169, Khagani st., Baku Tax ID 1700085041 Code 505044 Correspondent account in NBA 0137010040944 SWIFT DEKBAZ22 Telex 142 305 DEKA AI Telephone 498-11-64; 498-11-48; 498-11-57 Faxes 498-11-47 Web address www.dekabank.com Main e-mail [email protected]

Date of establishment and current legal status 09.12.1992, OJSC License 09.12.1992, 62 Bank employees number 69 Types of services Services for individuals: Maintenance of current accounts service, Loans, Deposits, Cards, Western Union, Migom, Payment for mobile services. Services for corporate clients: Maintenance of current accounts service, Loans, Deposits Number of branches within Azerbaijan and 6 abroad Relations with international banking institu- Member of SWIFT (since 2001). tions

2. Some financial indicators of the bank ths AZN December 31, 2007 December 31, 2006 Authorized capital 11558.5 7668.4 Loan portfolio 19164.8 15791.0 Commercial loans 13420.2 14725.4 Consumer loans , 5744.6 - including mortgage loan 5744.6 - Deposit portfolio, 5600.8 3095.4 including time deposit 5600.8 3095.4 Deposits of physical persons 444.2 1251.4

3. Bank’s balance sheet ths AZN December 31, 2007 December 31, 2006 ASSETS Cash 1832.6 0.5 Due from the NBA 2877.4 1468.7 Placements with banks and other financial in- 20.4 29.3 stitutions Loans to customers 17145.2 14340.4 Other assets 3729.5 38.1 Property and equipment 635.4 655.7 Intangible assets 96.6 19.2 TOTAL ASSETS 26337.1 17027.8

LIABILITIES Deposits and balances from banks and other 6134.2 6600.7 financial institutions Current accounts and deposits from custom- 5600.7 3131.1 ers Other liabilities 3283.6 125.3 Deferred tax liability 578.0 319.9 TOTAL LIABILITIES 15596.5 10177

EQUITY Shareholders’ equity 9594.0 6550 Revaluation reserve 672.7 - Retained earnings 473.9 300.8 TOTAL EQUITY 10740.6 6850.8

TOTAL LIABILITIES AND EQUITY 26337.1 17027.8

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees 1005.1 0.6 Total 1005.1 0.6

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 2482.4 1465.4 Interest expense (767.5) (482.7) Net interest income 1714.9 982.7

Provision for loan impairment (1129.5) -

Fee and commission income 668.0 699.6 Fee and commission expense - (43.6) Net fee and commission income 668.0 656.0

Operating income 1253.4 1638.7 Net foreign exchange income/(loss) - (3.4) General administrative expenses 695.4 485.4 Operating expenses (695.4) (488.8)

Profit before tax 558.0 746.0 Income tax expense (385.2) (172.0)

Profit for the year 172.8 523.7

Eurobank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Eurobank” Open Joint Stock Company Bank’s short name “Eurobank” OJSC Address of the head office 21, Plotnikov st., Baku, Tax ID 1300026481 Code 505301 Correspondent account in NBA 0137010026944 SWIFT AZINAZ22 Telex (784)-142325 FARID AI Telephone 449-43-05; 497-43-06 Fax 497-89-07 Web address www.eurobank.az Main e-mail [email protected]

Date of establishment 16.06.1993, OJSC and current legal status License 1006 Bank employees number 29 Number of branches within 1 Azerbaijan and abroad

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 8590.55 8211.78 Loan portfolio 12223.26 9318.42 Commercial loans 12223.26 9318.42 Deposit portfolio - 6.00 Deposits of physical persons - 6.00

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 658.73 100.97 Due from other banks 10.53 63.45 Premises and equipment 2088.70 2914.85 Computer software and licenses 30.82 35.19 Current income tax prepayment 23,29 63.50 Other assets 11278.68 7302.08 TOTAL ASSETS 14090.76 10480.03

LIABILITIES Due to other banks 6500,00 3500,00 Customer accounts 97,67 174,33 Other liabilities 679,50 294,62 TOTAL LIABILITIES 7277,17 3968,95

EQUITY Share capital 8590.55 8211.78 Retained earnings -1802.50 -1726.24 Other reserves 25.54 25.54 TOTAL EQUITY 6813.59 6511.08

TOTAL LIABILITIES AND EQUITY 14090.76 10480.03

4. Off-balance Liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Credit instruments 123.29 125.47 Total 123.29 125.47

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 902.82 328.90 Interest expense 688.71 284.75

Fee and commission income 180.84 148.99 Fee and commission expense 80.65 125.02 Gains less losses from trading in foreign cur- -6.95 25.44 rencies Other operating income 31.13 - Administrative and other operating expenses -414.75 660.71 Profit for the year -76.27 -567.15

Gandjabank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Gandjabank” Open Joint Stock Company Bank’s short name “Gandjabank”OJSC Address of the head office 260, Ataturk Ave., Ganja Tax ID 2300215721 Code 507097 Correspondent account in NBA 0137010034944 SWIFT GANJAZ22 Telex 642084 SAHIB AI Telephone (022) 56-04-93; 56-93-90; 56-81-96 Faxes (022) 56-23-66 Web address www.gandjabank.az Main e-mail [email protected]

Date of establishment 28.02.1994, OJSC License 01.02.2001, 02-10/59 Bank employees number 66 Types of services Opening corresponding accounts in foreign and local currency; Teller services; List of correspondent accounts; Establishment of correspondent relations with domestic and foreign banks; Non-trade operations Types of services to banks and other Account opening, account maintenance/serving, financial institutions charge for conversion Number of branches 3 Relations with international banking Contact, Western Union, Bistraya Pochta, Mi- institutions gom, Privat-Money, Lider, Unistream and Allure International awards and recognition “GOLDEN CROWN” by BID company

2. Some financial indicators of the bank ths AZN December 31, 2007 December 31, 2006 Authorized capital 10000 10000 Loan portfolio 23588.02 16042.68 Commercial loans 15153.04 11092.30 Consumer loans 8434.98 4950.38 Deposit portfolio, 3291.20 1336.06 including time deposit 3064.05 1072.18 Deposits of physical persons 3014.05 1072.18

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash 461.40 199.20 Due from the National Bank of Azerbaijan Re- 256.30 402.50 public Placements with banks and other financial insti- 282.40 147.50 tutions Loans to customers 23588.00 16042.70 Reserves for loans to customers (1575.40) (431.20) Other assets 984.90 367.80 Property and equipment 1150.00 684.40 Intangible assets 84.10 42.90 TOTAL ASSETS 25231.70 17455.80

LIABILITIES Due to other banks 10153.80 4984.60 Current accounts and deposits from customers 3359.60 1336.10 Other liabilities 703.90 297.90 Deferred tax liability 90.30 - TOTAL LIABILITIES 14307.60 6618.60

EQUITY Share capital 10000.00 10000.00 Retained earnings 924.09 837.34 TOTAL EQUITY 10924.09 10837.34

TOTAL LIABILITIES AND EQUITY 25231.69 17455.94

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Deposits on credit 24591.58 144001.03 Guarantees 31.81 252.42 Total 24623.39 144253.45

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 3550.96 1568.47 Interest expense (1050.83) (319.28) Net interest income 2500.13 1249.19

Provision for loan impairment (1151.42) (221.86) Operating income 453.1 278.47 Operating expense 1303.53 584.12 Net Operating income (expense) (850.43) (305.65)

Profit before tax 498.28 721.68 Income tax expense (149.45) (168.67)

Profit for the year 348.83 553.01

Gunay Bank 1. Basic bank information

Bank’s requisites: Bank’s complete name “GunayBank” Open Joint Stock Company Bank’s short name “Gunay Bank” OJSC Address of the head office 5/4,87, Zergerpalan st., Baku Tax ID 1700028531 Code 505594 Correspondent account in NBA 0137010047944 Reuters dealing GUNB SWIFT GÜNAAZ22 Telex 142185 GÜNA Ğ A Ğ Telephone 498-04-55/56/57 Fax 498-14-39 Web address www.gunaybank.com Main e-mail [email protected] Date of establishment and current legal 30.04.1992, OJSC status License 23.11.1992, 23 Bank employees number 35 Client base The number of clients was 2499 persons in 01.12.2007, 264 of them are legal entities and 2235 are individuals Types of services to banks and other finan- Correspondent relations cial institutions Number of branches 1 Subsidiary enterprises Gunay Anadolu Insurance, Gunay Leasing Relations with international banking institu- “GunayBank” has a large network including tions Europe and the CIS countries. The Bank has correspondent accounts with re- liable financial institutions such as: “Com- merzBank” (Frankfurt), Lloyds TSB (Lon- don), Ish Bankasi (Istanbul), European Trust Bank (Moscow). The operations with the foreign financial institutions are conducted at international bank standards and within the framework of the laws of Azerbaijan Membership in different organizations Member of Azerbaijan Banks Association, Baku Stock Exchange

2. Some financial indicators of the bank ths AZN December 31, 2007 December 31, 2006 Authorized capital 10892 8572 Share of foreign capital 340 340 Loan portfolio 18015.89 12762 Loans for judicial entities 6261.00 - Consumer loans 258.16 - Deposit portfolio, 8977.71 8755.75 including time deposit 7548.93 8072.14 Deposits of physical persons 7548.93 8072.14

3. Bank’s balance sheet ths AZN December 31, 2007 December 31, 2006 ASSETS Cash 699.15 531 Due from the National Bank 863.61 1481 of Azerbaijan Republic Placements with banks and 1977.74 1022 other financial institutions Loans to customers 18015.89 12762 Investments 151.06 126 Other assets 823.99 1637 Property and equipment 217.78 987 Intangible assets 4.88 6 TOTAL ASSETS 22754.10 18551

LIABILITIES Deposits and balances from banks and other fi- 2517.39 802 nancial institutions Current accounts and deposits from customers 8977.71 8756 Other liabilities 169.58 417 TOTAL LIABILITIES 11664.68 9975

EQUITY Partner’s equity 10892 8572 Revaluation reserve 565.70 398 Retained earnings 368.28 394 TOTAL EQUITY 11089.42 8576

TOTAL LIABILITIES AND EQUITY 22754.10 18551

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Deposit on Credit 10178 10209 Guarantees - 3 Credit lines 1 14 Total 10179 10226

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 2995.14 2825 Interest expense (1353.18) (1518) Net interest income. 1641.96 1307

Fee and commission income 80.48 57.22 Fee and commission expense (250.95) (291) Net fee and commission income (170.47) (234) Operating income 321.91 359.74 Net foreign exchange income/(loss) 37.98 67.48 General administrative expenses (252.63) (241) Operating expenses (1553.23) (1093)

Profit before tax 25.52 167

Profit for the year 25.52 167

International Bank of Azerbaijan

1. Basic bank information

Bank’s requisite: Bank’s complete name “International Bank of Azerbaijan” Open Joint Stock Company Bank’s short name “IBA” OJSC Address of the head office 67, Nizami st., Baku Tax ID 9900001881 Code 805250 Correspondent account in NBA 0137010002944 Reuters dealing AZBB SWIFT IBAZAZ2X Telex 142159 DOST AL Telephone 493-00-91; 498-91-28 Fax 493-40-91; 498-91-28 Web address www.ibar.az Main e-mail [email protected]

Date of establishment and current 1992, OJSC legal status License 30.12.1992, l Bank employees number 1327 Types of services Bank’s services to corporate clients: Payments and cash services, Cash collection, Safe-deposit boxes, Lending, Factoring, International plastic cards (Ameri- can Express, MasterCard International, Visa Interna- tional), Acquiring, Documentary transactions, Treasury transactions, Internet Banking. Services to individual cliensts: Payments and cash services, International money transfers, Term deposits, Consumer loans, Plastic cards and operations with cards, Traveler’s cheques, Cheque transactions, Certifi- cate of deposit, VIP service, Internet Banking, “Card- Transfer”, “MobilBank”

Types of services to banks and Payments and cash services, Retail services, Ex- other financial institutions port/import related payments, Foreign exchange transactions, Lending

83 Number of branches within Azer- baijan and abroad 36 Subsidiary and associate enter- “IBA Moscow” (100%), “IBA Georgia” (75%), “In- prises ternational Insurance Company” (100%), “Azeri- Card” processing company (100%), “Business Ra- bita” (100%),, “Joint Leasing Company” CJSC (47,69%), “Baku Interbank Currency Exchange” (20%),, “Baku Stock Exchange” (5,55%) Relations with international bank- American Express Bank Ltd, Bank of Tokyo- ing institutions Mitsubishi Ltd, Barclays Bank, Canadian Imperial Bank of Commerce, Citibank NA, Commerzbank AG, Commonwealth Bank of Australia Sydney, Danske Bank A/S, IBA – Moscow, JP Morgan Chase Bank, Nordea Bank AB, “Türkiye I İ Bankası”, UBS AG International banking evaluation – BB+ (Fitch IBCA) bank ranking Baa2 (Moody’s) International awards and recogni- “Best Banks of the World’s Developing Markets” tion (“Global Finance”, for Azerbaijan). “Bank of the Year in Azerbaijan”(The Banker). Fitch Ratings upgraded IBA Long-term Issuer De- fault rating (“IDR”) to ‘BB+’ from ‘BB’, which equals to Azerbaijan’s sovereign rating. IBA was awarded as the “Best Emerging Market Bank” by “Global Finance” (USA, New York) magazine. IBA has become a full member of World Economic Forum’s Community of Global Growth Companies. IBA signed a subordinated $100m loan for 10 years. IBA signed a $140m syndicated loan agreement with 25 world famous financial institutions. The syndi- cate is lead by European banks: Bayern BL, Calyon and UniCredit. ”The Banker” Magazine (UK) recognized IBA the “Bank of the Year in Azerbaijan” for seven consecutive years. Asian Development Bank (ADB) and IBA signed a credit agreement on allocation of subordinated loan of USD 20 million for an eight-year term. Participation in international pro- Financing of Baku-Tbilisi-Kars rail way project via jects “IBA-Tbilisi” subsidiary bank.

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 100000 59320 Assets, 2712.41 1847.43 including loan portfolio 2035.74 1038.41 Liabilities, 2470.12 1706.19 including customer accounts 1850.48 1304.18 Commercial loans 2035.74 - Consumer loans, 130900 - including mortgage loan 14600 - Deposit portfolio, 1603790.58 1253043.76 including term deposit of corporate customers 475727.96 299974.63 Term deposits of physical persons 264934.64 153621.75 Return on assets (coefficient ROA) 2.49% 1.89% Return on capital (coefficient ROE) 23.29% 20.06%

3. Bank’s balance sheet ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 179704 457382 Mandatory cash balances with the National/Central 170347 115454 banks Due from other banks 173591 135440 Loans and advances to customers 2035738 1038416 Investment securities available for sale 12679 - Investment in associates 801 809 Deferred income tax asset 1173 41 Premises and equipment 113023 78896 Intangible assets 7685 2702 Other financial and insurance assets 8722 6271 Other assets 8949 12021 TOTAL ASSETS 2712412 1847432

LIABILITIES Due to other banks 147309 173380 Customer accounts 1850483 1304176 Debt securities in issue 16808 40969 Other borrowed funds 262621 133882 Current income tax liability 2199 6961 Deferred income tax liability 19094 12180 Other financial and insurance liabilities 56134 29285 Other liabilities 13006 5361 Subordinated debt 102470 - TOTAL LIABILITIES 2470124 1706194

EQUITY Share capital 100000 59319 Retained earnings 110383 61512 Revaluation reserve for premises and equipment 27977 17444 Cumulative translation reserve 2377 1435 Net assets attributable to the Bank’s equity holders 240737 139710 Minority interest 1551 1528 TOTAL EQUITY 242288 141238

TOTAL LIABILITIES AND EQUITY 2712412 1847432

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 430410.02 355054.04 Credit instruments 66413.19 35841.58 Letter of credits 856701.62 366831.58 Total 1353524.83 757727.20

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 185141 107728 Interest expense (72825) (38812) Net interest income 112316 68916 Release of/(Provision for) impairment of due from 426 (1939) other banks Provision for impairment of loans to customers (28862) (29214)

Net interest income after provision for loan 83880 37763 impairment

Fee and commission income 87260 62491 Fee and commission expense (7773) (3284) Gains less losses from trading in foreign curren- 24743 19364 cies Foreign exchange translation losses less gains (1821) (2450) Gain on disposal of subsidiaries - 1925 Loss on early settlement of assets/liabilities at (8047) - rates below/above market Gross insurance premiums written 10677 6503 Reinsurance premiums ceded (2729) (1166) Increase of provision for unearned premiums, net (2815) (1649) of reinsurance Net claims incurred (1905) (1360) Other income 477 1217 Administrative and other operating expenses (82767) (66800) Share of (loss)/profit of associates (8) 15

Profit before tax 99172 52569 Income tax expense (24681) (14918)

Profit for the year 74491 37651

Profit is attributable to Equity holders of the Bank 74532 37651 Minority interest (41) -

Profit for the year 74491 37651

Earnings per share for profit attributable to the equity holders of the Bank basic and di- 0.18 0.22 luted (expressed in AZN per share)

KAPITAL BANK 1. Basic bank information

Bank’s requisite: Bank’s complete name "KAPITAL BANK" Open Joint Stock Company Bank’s short name “KAPITAL BANK” OJSC Address of the head office 71, Fuzuli st., Baku Tax ID 9900003611 Code 200004 Correspondent account in NBA 0137010001944 SWIFT AIIBAZ2X Telephone 493-66-30 Fax 493-78-95 Web address www.kapitalbank.az Main e-mail [email protected]

Date of establishment and current le- 2000, OJSC gal status License 28.02.2000, 244 Bank employees number 2458 Types of services Kapital Bank provides a wide range of banking services both for corporate clients and individuals. It has the widest network of branches throughout Azerbaijan, which gives it a competitive advan- tage when serving the customers doing business in Baku and in the regions. Its well-developed regional infrastructure makes it possible to better serve customer needs even remote places. Kapital Bank renders services and provides financing to main branches of the economy: chemical and gas industries, agriculture, transportation, communica- tions, and construction. It is a bank of social im- portance – the agent-bank of the State in major government and social programs. Having flexible approach to the needs of its corporate clients, the Bank offers beneficial and competitive tariffs. As of 01.01.2008, Bank has 232 ATMs and 200 POS terminals. The Bank has signed agreements with shops and service points where 129 POS terminals were installed as of 01.01.2008 on these objects. As a result of expedient activities carried out with the customers, the number of the Bank's plastic cards reached 1335327 as of 01.01.2008 as com-

88 pare to 499,937 last year. Utilities payment is possible for "Azercell", "Bakcell" and "Azerelectric- ity" through plastic cards at the Bank’s ATMs. The Bank was appointed the full member of "VISA International" and ATMs and POS terminals of the Bank accept international "Visa" cards. VISA Chip (VSDC) cards are accepted by ATMs and POS terminals. The Bank is planning to launch the emission of VSDC cards. As further development of relations with “MasterCard Inter- national” the Bank got the permission for "retail acquiring" certification. Number of branches within Azerbai- 88 jan and abroad Relations with international banking One of the Bank’s priorities is international bank- institutions ing. The Bank has established correspondent relations and carries out a wide range of international operations with major foreign credit entities such as Citibank N.A. Bank of New York, American Express Bank Ltd. Commerzbank AG, Commerz- bank (EURASIA) (SAO), KBC Bank N. V. and others. It has close working relations with such leading financial institutions as Commerzbank, Banque de Commerce et de Placements, Raif- feisen bank, etc. International banking evaluation – In 2007 the bank was assigned BB- long-term rat- bank ranking ing by the Fitch, thus becoming one of the three banks with an international rating in Azerbaijan so far. The ratings: Issuer default BB- (up from B+); Short-term B; Support 3 (up from 4); Individual D/E; Stable Outlook. Moody's Investors Service has assigned the following global scale ratings to Kapital Bank: Ba2 long-term and Not Prime (NP) short-term foreign currency deposit ratings, Baa2 long-term and Prime-2 (P-2) short-term local currency deposit ratings and an E+ financial strength rating (FSR). All ratings carry stable outlooks.

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 24000 12000 Loan portfolio 106831 60371 Deposit portfolio, 170740 95764 including time deposit 115174 64351 Deposits of physical persons 55566 31413 Return on assets (coefficient ROA) 1.12% 2.90% Return on capital (coefficient ROE) 9.26% 21.88% Currently, the Bank 100% shares are owned by Xalq Bank, Ata Holding, Azersun Holding and Pasha Holding.

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 75353 50225 Mandatory cash balances with the NBA 13213 7811 Loans and advances to customers 106831 60371 Investment securities available for sale 185 110 Investment in associated enterprises 1557 1573 Other assets 38457 9638 Premises, equipment and intangible assets 65299 21032 TOTAL ASSETS 300895 150760

LIABILITIES Due to other banks 11794 8608 Due to financial institutions (funds) 24548 14830 Customer accounts 170740 95764 Other liabilities 16836 5835 Deferred tax liability 5374 1970 TOTAL LIABILITIES 229292 127007

EQUITY Share capital 24000 12000 Revaluation reserves for premises 16755 3486 Additional capital contribution from share- 20070 - holders Retained earnings 9978 8267 Other 800 - TOTAL EQUITY 71603 23753

TOTAL LIABILITIES AND EQUITY 300895 150760

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 20344 10504 Credit instruments 3460 1879 Letter of credits 3045 1398 Total 26849 13781

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 14979 9233 Interest expense (6158) (2991) Net interest income 8821 6242

Provision for loans impairment (794) (542)

Net interest income after provision for 8027 5700 loan impairment

Fee and commission income 24619 5700 Fee and commission expenses (5071) (2971) Gains less losses arising from trading in for- 943 678 eign currencies Foreign currency translation gains less 126 31 losses Dividend income 47 30 Other operating income 21 46 Operating income 28712 4768 Staff costs (10532) - Administrative and other operating expenses (11467) (13405)

Profit before tax 6713 4752 Income tax charge (1203) (1009)

Profit for the year 5510 3653

Kauthar Bank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Kauthar Bank” Open Joint Stock Company Bank’s short name “Kauthar Bank” OJSC Address of the head office 44/46, B. Mejidov st., Baku Tax ID 1300174701 Code 505174 Correspondent account in NBA 0137010044944 SWIFT KAUTAZ22 Telex 142538USAL AI Telephone 497-30-34 Faxes 497-30-29 Web address www.kauthar-bank.com Main e-mail [email protected] Date of establishment and current legal 10.2002, OJSC status License 21.12.1992, 92 Bank employees number 27 Types of services Services for individuals: Opening an account, Cash and exchange services, Collection services, Money transfers, securities services, Investment services, Deposits, Guarantees, Plastic cards, For- eign exchange, Utilities payments. Services for corporate clients: Opening an account, Cash and exchange services, Cash Collec- tion services, Money transfers, securities services, Investment services, Deposits, Guarantees, Corpo- rate clients, Letters of credit, Foreign exchange. Number of branches within Azerbaijan 2 and abroad Relations with international banking in- Correspondent relations with the financial institu- stitutions tions in Germany, Austria, Turkey, Ukraine, Rus- sia, etc. Participation in international projects At present the Bank actively participates in realiz- ing of large construction projects in Azerbaijan, with involvement of US, UK and German companies.

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 9470 4600 Share of foreign capital 685 685 Deposit portfolio 1303 1377 Time deposit 978 584 Deposits of physical persons 325 793

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash 156.1 157.0 Due from the National Bank of Azerbaijan 477.6 55 Republic Bonds and other securities (at market price) 9401.7 6299.0 Investments 774.4 598.4 Other assets 3428.4 - Property and equipment 230.1 234.0 TOTAL ASSETS 15232.7 9374.2

LIABILITIES Deposits and balances from banks and other 4.2 2178.0 financial institutions Current accounts and deposits from customers 1868.5 2084.0 Other liabilities 3327.8 42.4 TOTAL LIABILITIES 5200.5 4304.4

CAPITAL Partner’s equity 9470.0 4600.0 Revaluation reserve 206.6 206.6 Retained earnings 355.7 263.2 TOTAL CAPITAL 10032.2 5069.8

TOTAL LIABILITIES AND CAPITAL 15232.7 9374.2

4. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Percentage and similar profits 137.2 104.6 Percentage and similar expenses 3.8 - Net percentage profits (expenses) 133.4 -

Operational profits 33.9 215.8 Operational expenses 14.7 215.7 Pure operational profits (expenses) 19.1 0.1 Other profits 51.2 1.8 Other expenses 99.9 74.6 Pure other income (expenses) (48.7) 72.5

Profit before tax 103.9 32.2 The tax from the profit 11.6 0.98

Profit for the year 92.3 31.22

KredoBank

1. Basic bank information

Bank’s requisite: Bank’s complete name “KredoBank” Open Joint Stock Company Bank’s short name “KredoBank” OJSC Address of the head office 185, S.Ragimova st., Baku Tax ID 1400020821 Code 507514 Correspondent account in NBA 0137010029944 SWIFT ANARAZ22 Telex 142518 ANAR AI Telephone 495-93-03; 598-36-36; 495-84-52 Fax 598-42-35 Web address www.kredobank.az Main e-mail [email protected]

Data of establishment and current legal status 28.02.1994, OJSC License 28.02.1994, 228 Bank employees number 109 Number of branches within Azerbaijan and 9 abroad

2. Some financial indicators of the bank ths AZN December 31, 2007 December 31, 2006 Authorized capital 12640.0 9240.0 Loan portfolio 17230 11271 Commercial loans 10605 5311 Consumer loans, 6625 5960 including mortgage loan 1438 1450 Deposit portfolio , 4657 2898 including time deposit 1486 436 Deposits of physical persons 2510 1294 Return on assets (coefficient ROA) 1.58% 0.38% Return on capital (coefficient ROE) 2.84% 0.48%

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 1633 3061 Mandatory cash balances with the NBA 1522 347 Due from other banks 4 1 Loans and advances to customers 15817 10312 Investment in associates 157 - Premises and equipment 3754 1501 Computer software and licenses 8 9 Other assets 2721 467 TOTAL ASSETS 25616 15698

LIABILITIES Due to other banks 7826 3419 Customer accounts 4657 2898 Other liabilities 98 57 TOTAL LIABILITIES 12581 6374

EQUITY Share capital 12640 9240 Retained earnings 395 84 TOTAL EQUITY 13035 9324

TOTAL LIABILITIES AND EQUITY 25616 15698

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 1057.01 477 Credit instruments 1276.71 1246 Total 2333.72 1723

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006

Interest income 2066 1375 Interest expense (699) (525) Net interest income 1367 850 Provision for loan impairment (506) (498)

Net interest income after provision for loan impairment 861 352 Fee and commission income 295 209 Fee and commission expense (16) (15) Gains less losses from trading in foreign currencies (24) 7 Administrative and other operating expenses (731) (480)

Profit before tax 385 73 Income tax expense (74) (27)

Profit for the year 311 46

Micro Finance Bank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Micro Finance Bank of Azerbaijan” Closed Joint Stock Company Bank’s short name “MFBA” CJSC Address of the head office 137, A.Guliyev st., Baku Tax ID 1400057421 Code 505000 Correspondent account in NBA 0137010056944 SWIFT MIFAAZ22 Telex 142307 MFBA AI Telephone 493-07-26 Fax 493-07-96 Web address www.mfba.az Main e-mail [email protected]

Date of establishment and current le- 29.10.2002, CJSC gal status License 245 Bank employees number 1278 Types of services The bank’s main activity is financing micro and small entrepreneurs (businesses). Number of branches within Azerbai- 15 jan and abroad Relations with international banking The bank joined local clearing systems as well as institutions SWIFT, Western Union, PrivatMoney, Travelex, MoneyGram, Bistraya Pochta. The bank maintains correspondent accounts at Privatbank Ukraine, Deutsche Bank in USA and Germany. International banking evaluation – Alpha-neutral (M-Cril Rating Agency). Aüaiting bank ranking rating report from Fitch Ratings (end of July 2007).

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 11000 6713.37 Share of foreign capital 11000 6713.37 Loan portfolio 96818.48 41514.68 Consumer loans 9.659 1.659 Deposit portfolio, 11841.24 3182.42 including time deposit 8421.84 2296.25 Deposits of physical persons 9713.04 2920.07 Return on assets (coefficient ROA) 4.5% -0.7% Return on capital (coefficient ROE) 37.7% -3.9%

100

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash 4700 2150 Claims to National Bank 1785 814.27 correspondent accounts 769 516.07 mandatory reserve funds 1016 298.20 Loans and advances to banks and financial 2228 2463.59 sector, total loans and advances 500 866.97 nostro correspondent accounts 1728 1596.62 Loans and advances to customers 96819 41514.68 Investment and securities 5253 40 Tangible and intangible fixed assets 3587 1620 Other assets 2562 906.46 TOTAL ASSETS 116934 49509

LIABILITIES Loans and advances from banks and financial 85350 38 886 sector, total Loans and advances 85350 38886 Demand accounts 3420 886.17 Time deposits 8421 2296.25 Other liabilities 3959 698.23 TOTAL LIABILITIES 101150 42766.65

EQUITY Paid up shares 11000 6713 Other reserves 1940 837 Retained profit and losses 2844 -808 TOTAL EQUITY 15784 6742

TOTAL LIABILITIES AND EQUITY 116934 49509

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 280871 46207 Total 280871 46207

101

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest and discount income 7206 2989 Interest and discount expense (2143) (935) Net interest income (expenses) 5063 2054

Operating income 91 14 Operating expenses (3063) (2601) Net operating income (expenses) 2091 -533 Other expenses (330) (220)

Profit before tax 1762 -753 Taxation (542) -

Profit for the year 1220 -753

102

Mugan Bank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Muganbank” Open Join Stock Company Bank’s short name “Muganbank” OJSC Address of the head office 4, 28 May st., Baku Tax ID 1400122681 Code 506162 Correspondent account in NBA 0137010018944 SWIFT MUGAAZ22 Telex 142548 SARUR AI Telephone 598-34-11; 598-35-11 Fax 493-14-75 Web address www.muganbank.az Main e-mail [email protected]

Date of establishment and current legal 25.11.1992, OJSC status License 29 Bank employees number 280 Types of services All bank services Number of branches within Azerbaijan and 21 abroad Relations with international banking insti- EBRD, IFC, ParexBanka tutions International awards and recognition Contact Money transfer system Participation in international projects International Bank’s exhibition s and conferences

103

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006

Authorized capital 11000 7800 Loan portfolio 48218 24128 Commercial loans 33316 17385 Consumer loans, 14902 6743 including mortgage loan 1887 - Deposit portfolio, 24682 16576 including time deposit 17412 10792 Deposits of physical persons 7270 5784 Return on assets (coefficient ROA) 2.24% 2.59% Return on capital (coefficient ROE) 10.2% 9.94%

104

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 6916 3322 Mandatory cash balances with the NBA 1770 1217 Due from other banks 11821 5337 Loans and advances to customers 48162 23962 Investment securities available for sale 3402 646 Premises and equipment 7560 5014 Computer software and licenses 83 88 Other assets 599 245 TOTAL ASSETS 80313 39831

LIABILITIES Due to other banks 33644 12696 Customer accounts 24682 16582 Debt securities in issue 4233 - Borrowings from government and international financial institutions 3324 - Deferred income tax liability 258 - Current income tax liability 134 97 Other liabilities 397 259 TOTAL LIABILITIES 66672 29634

EQUITY Share capital 11000 7800 Retained earnings 1939 1496 Other reserves 702 901

TOTAL EQUITY 13641 10197

TOTAL LIABILITIES AND EQUITY 80313 39831

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 2082 5150 Credit instruments 223 469 Letter of credits 495 - Total 2800 5619

105

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 6782 3622 Interest expense (-3247) (-1521) Net interest income 3535 2101

Provision for loan impairment (-808) (-648) 5 Net interest income after provision for loan impairment 2727 1453

Fee and commission income 2088 1570 Fee and commission expense (-288) (-144) Gains less losses from trading in foreign currencies 21 21 Foreign exchange translation gains less losses (35) (-118) Administrative and other operating expenses (-2998) (-1763)

Profit before tax 1585 1019 Income tax expense (-349) (-215)

Profit for the year 1236 804

106

NBC Bank

1. Basic bank information

Bank’s requisite: Bank’s complete name “NBC Bank” Open Joint Stock Company Bank’s short name “NBC Bank” OJSC Address of the head office 27/121, S. Mustaphaev st., Baku Tax ID 1700130681 Code 505345 Correspondent account in NBA 0137010045944 SWIFT NBCBAZ22 Telephone 517-01-16; 517-01-17 Fax 566-94-78 Web address www.nbcbank.az Main e-mail [email protected]

Date of establishment and current legal status 17.12.1992, OJSC License 112 Bank employees number 140 Types of services All bank services Types of services to banks and other finan- All bank services cial institutions Number of branches within Azerbaijan and 6 abroad Subsidiary enterprises NBC Leasing, Star Alliance Relations with international banking institu- USAID (USA), RZB (Austria) tions

107

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 10648.86 8744.07 Loan portfolio 20499.37 6546.67 Commercial loans 2573.75 1405.13 Consumer loans 17925.62 141.54 Deposit portfolio, 7570 2027.76 including time deposit 6462.1 888.38 Deposits of physical persons 2107.56 803.38 Return on assets (coefficient ROA) 1.49% 0.93% Return on capital (coefficient ROE) 4.01% 1.35%

108

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 1013.04 146.76 Mandatory cash balances with the NBA 660.15 178.67 Due from other banks 64.42 584.29 Loans and advances to customers 20499.37 6546.67 Investment securities available for sale 549.91 711.03 Investment in associates 372.56 - Premises and equipment 5640.57 4362.21 Computer software and licenses 69.29 46.29 Current income tax prepayment 0.41 31.86 Other financial assets 230.4 101.65 Other assets 1156.67 272.28 TOTAL ASSETS 30256.76 12981.71

LIABILITIES Due to other banks 9380.21 - Customer accounts 7076.59 2027.76 Borrowings from government and international 0.4 0.4 financial institutions Current income tax liability 96.84 66.1 Other financial liabilities 270.03 123.44 Other liabilities 1807 1493.78 TOTAL LIABILITIES 18631.07 4111.08

EQUITY Share capital 10648.86 8744.07 Retained earnings 577.23 126.56 TOTAL EQUITY 11226.09 8870.63

TOTAL LIABILITIES AND EQUITY 29857.16 12981.71

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 21400 - Credit instruments 454640 - Total 476040 -

109

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 2579.47 982.08 Interest expense (867.8) (59.73) Net interest income 1681.67 922.35 Provision for loan impairment (372.94) (56.61)

Net interest income after provision for loan impairment 1308.73 865.74

Fee and commission income 542.91 299.65 Fee and commission expense (52.35) (27.97) Gains less losses from trading in foreign currencies 55.86 1.64 Foreign exchange translation gains less losses (0.85) (-98.63) Other operating income 145.78 11.14 Administrative and other operating expenses (1456.32) (895.48)

Profit before tax 575.46 156.08 Income tax expense (124.78) (35.99)

Profit for the year 450.68 120.09

110

Nikoil Bank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Nikoil Investment Commercial Bank” Open Joint Stock Company Bank’s short name “Nikoil ICB” OJSC Address of the head office 27, Uzeir Hadzhibeyov str., Baku Tax ID 9900014901 Code 507064 Correspondent account in NBA 0137010042944 SWIFT NICBAZ22 Telephone 498-19-81 Fax 493-55-18 Web address www.nikoil.az Main e-mail [email protected]

Date of establishment and current legal 1994, OJSC status License 1994, 203 Bank employees number 225 Types of services NIKOIL is a universal credit institution providing a complete package of services, including loans, fund transfer, payment, bank to bank and documentary operations, plastic cards, guarantees and other bank operations carried out in national and foreign currency. Types of services to banks and other fi- NIKOIL cooperates actively with foreign nancial institutions banks and international financial structures on the basis of its extensive international correspondent network. Number of branches within Azerbaijan 10 and abroad Relations with international banking insti- EBRD, RZB, Commerzbank, Uralsib tutions

111

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006

Authorized capital 10000.0 8956.25 Loan portfolio 96658.37 51810.29 Consumer loans, 43390.78 31579.14 including mortgage loan 10846.31 497.53 Deposit portfolio, 56659.33 35961.49 including time deposit 19291.75 12860.04 Deposits of physical persons 37367.57 23101.08 Return on assets (coefficient ROA) 1.45% 1.43% Return on capital (coefficient ROE) 11.5% 8.23%

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 2740.59 1992.37 Mandatory cash balances with the NBA 13630.07 11010.86 Due from other banks 220.0 261.42 Loans and advances to customers 96658.37 51810.29 Premises and equipment 2089.96 784.62 Computer software and licenses 327.07 108.51 Other financial assets -1909.94 -981.86 Other assets 3336.67 1264.50 TOTAL ASSETS 117092.79 66250.71

LIABILITIES Due to other banks 1651.22 - Customer accounts 56659.33 35961.49 Borrowings from government and international 41170.07 16853.11 financial institutions Other financial liabilities 604.0 688.89 Other liabilities 2184.52 1223.85 TOTAL LIABILITIES 102269.14 54727.34

EQUITY Share capital 10000.00 8956.25 Retained earnings 2696.94 1407.47 Other reserves 2126.70 1159.65 TOTAL EQUITY 14823.65 11523.37

TOTAL LIABILITIES AND EQUITY 117092.79 66250.71

112

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 833.02 798.28 Credit instruments 8083.67 1352.95 Letter of credits 3217.42 1310.72 Other off balance liabilities 223626.19 65251.04 Total 235760.03 68712.99

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 16149.37 9059.57 Interest expense 14444.04 8111.29 Net interest income 12911.39 6951.26 Provision for loan impairment 2033.09 1072.51

Fee and commission income 3237.98 2108.31 Gains less losses from trading in foreign 1522.98 1085.00 currencies Foreign exchange translation gains less 464.55 304.00 losses Profit before tax 2257.09 1312.09 Income tax expense 551.76 363.81

Profit for the year 1705.33 948.28

113

Pakistan National Bank

1. Basic bank information

Bank’s requisite: Bank’s complete name “National Bank of Pakistan”, Baku Branch Address of the head office 41, Istiqlaliyyet st., Baku Telephone 437-16-40/42/43/44 Fax 437-16-41 Date of establishment 1949 License 30.06.2005, 248 Bank employees number 20 Types of services Opening of different accounts, Money transfers, Deposits acceptance, Long-term and short-term credits, Imports, Exports, Guarantees and other services

Number of branches Pakistan National Bank has 1224 branches worldwide

International banking evalua- Its Credit Entity Rating by JCR-VIS Credit tion – bank ranking Rating Company is: AAA / A- 1+, Stand Alone rating: AA+ / A – 1+, Outlook: stable. Its Financial Strength Rating by Moody’s is D –

114

2. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 192.92 277.63 Balance in accounts with NBA 165.39 37.10 Customers’ credits and advances 131.66 30.44 Investments 10696.61 8203.00 Buildings and property 98.76 103.76 Other assets 40.65 71.54 TOTAL ASSETS 11325.90 8723.47

LIABILITIES Client’s Accounts 1059.18 405.24 Participated capital 9420.00 7600.0 Other resources 846.81 910.47 Gathered deficit - (192.24) TOTAL LIABILITIES 11325.90 8723.47

115

Parabank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Parabank” Open Joint Stock Company Bank’s short name “Parabank” OJSC Address of the head office 60, S.Vurgun st., Baku Tax ID 9900004121 Code 505356 Correspondent account in NBA 0137010013944 SWIFT P 22 Telex 142535 BANK P A Ğ Telephone 447-10-00 Faxes 493-08-82 Web address www.parabank.az Main e-mail [email protected]

Date of establishment and current legal 1991, OJSC status License 1992, 42 Bank employees number 250 Types of services For corporate clients: firms, companies, organizations, also, for physical clients, opening accounts for foreign citizens working in Azerbaijan and making transactions with their accounts; conducting operations in national and foreign currency; providing with cash; foreign exchange; receiving deposits from physical and corporate clients; opening all types of letters of credit on the basis of clients order; giving guarantees, crediting SME. Operations with plastic cards From 2007, “Parabank” issues local plastic cards. In total, 2100 cards were issued and at present, 850 of these cards are in operation. The bank has 5 ATM and 4 POS-terminals. Number of branches within Azerbaijan 10 and abroad Relations with international and local The bank cooperates with German-Azerbaijan financial institutions Fund and Savings Banks Foundation for In- ternational Cooperation (SBFIC). The Bank has correspondent accounts in Commerzbank, Germany, Western Union Bank, Private Bank, Bank of Georgia, Alfabank and Russlavbank, Russia, Raiffaisenbank, Austria, KBC Bank, Belgium, Bank Kreashatik, 116 Ukraine. “Parabank” is an agent bank for Na- tional Fund for Assistance to Entrepreneur- ship at the Ministry for Economic Develop- ment of Azerbaijan. Participation in different projects The bank signed the contract with “Azeri- post” on connecting post offices to the West- ern Union International payment system. Nowadays, within the framework of this project, about 160 post offices are implementing transactions with this system. In 2007, the bank joined “Contact” money transfer system. Membership in different organizations The bank is a member of Azerbaijan Banks Association and Baku Interbank Currency Exchange .

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 9394.20 5570.90 Loan portfolio 21707.48 16899.87 Loans for judicial entities 6348.33 6186.38 Consumer loans 15359.15 10713.49 Deposit portfolio, 18423 9583.94 including time deposit 16577.43 8175.73 Deposits of physical persons 15874.30 8433.30 Return on assets (coefficient ROA) 1.22% 1.16% Return on capital (coefficient ROE) 4.50% 5.96%

117

3. Bank’s balance sheet

min AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 1273.66 841.80 Mandatory cash balances with the NBA 1944.89 1 112,72 Due to other banks 1447.06 1 018.63 Loans and advances to customers 21707.48 16899.87 Investment securities available for sale 1 474.48 0 Other assets 2886.45 4069.24 Investments 400.0 400.0 Intangible assets 77.36 35.7 Premises, equipment and investment property 10145.41 863.89 TOTAL ASSETS 41356.79 25241.85

LIABILITIES Due from Banks 96.47 921.79 Customer accounts 1845.57 1408.01 Other borrowed funds 6616.55 4818.51 Debt securities in issue 10071.99 0 Other liabilities 12164.42 11782.05 TOTAL LIABILITIES 30795.0 18930.36

EQUITY Share capital 9394.2 5570.4 Retained earnings 677.79 389.02 Reserves 489.80 352.07 TOTAL EQUITY 10561.79 6311.49

TOTAL LIABILITIES AND EQUITY 41356.79 25241.85

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 25.66 39.75 Credit instruments 1711.87 1597.02 Letter of credits 711.37 927.36 Forwards and future agreements 952.43 927.36 Other off balance liabilities 1711.87 1577.26 Total 3401.33 3491.49

118

5. Profit&loss statement

ths AZN Year ended Year ended December 31, 2007 December 31, 2006 Interest income 4484.05 3430.46 Interest expense 2874.83 1853.55 Net interest income 1609.22 1576.91

Provision for loan impairment (12.58) (428.02)

Net interest income after provision for loan 1596.64 1148.89 impairment

Gains less losses arising from trading in for- - 121.2 eign currencies Foreign exchange translation (losses less 272.30 17.83 gains)/gains less losses Fee and commission income 1057.92 294.98 Fee and commission expense 778.91 340.24 Other income 147.32 41.83

Operating income 698.63 475.84 General, administrative and other operating 1797.51 1302.17 expenses

Profit before tax 522.92 322.56 Income tax expense 136.95 78.24

Profit for the year 385.97 244.32

119

Rabitabank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Rabitabank” Open Joint Stock Company Bank’s short name “Rabitabank” OJSC Address of the head office 33/35, U. Hajibeyov st., Baku Tax ID 9900001061 Code 506399 Correspondent account in NBA 0137010006944 SWIFT RBTAAZ22 Telex 142453 RSKB AI Telephone 598-44-88; 598-22-03 Faxes 497-11-01 Web address www.rabitabank.com Main e-mail [email protected]

Date of establishment and current legal 30.06.1993, OJSC status License 30.06.1993, 136 Bank employees number 300 Types of services For individual and corporate customers: deposits, consumer and business loans, mortgage loans, money transfers, operations with securities, documentary operations, cash payment operations, currency exchange. Types of services to banks and other fi- Loans, deposits, correspondent account han- nancial institutions dlings Number of branches within Azerbaijan 17 and abroad Subsidiary enterprises Kapital Partners - 100%, Azleasing-100 % Relations with local and international 1994 – A member of Baku Interbank Currency banking institutions Exchange. 1997 – A member of SWIFT; A principle member of Europay International (Master Card). 1998 – The bank started cooperation with In- ternational Finance Corporation. 2002 – Joined Western Union money transfer system.

120 2003 – An agent for the National Fund of State Support for Entrepreneurship. 2004 – Started cooperation with ICD, private sector arm of Islamic Development Bank. 2006 – Signed Agreement with EBRD for 3 million USD Credit; A member of the ADFIMI - Regional Association of Development Fi- nance Institutions (DFIs) in the Member Coun- tries of Islamic Development Bank (IDB). 2007 - Contract signed with IFC that grants IFC an option to acquire up to 20% of the shares of the bank; Associate member with Visa International Payment System; A member of the Deposit Insurance Fund; A member of the State Mortgage Fund; Bonds in the amount of 5 million USD floated in Latvia through to Parex Banka. 2008 - Contract is signed with WBC Invest- ment Company for a $5m credit line for 10 years; Contact Money Transfer System; An- nual Audit Report compiled by Deloitte&Touche for the last 4 years.

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 7003.38 5815 Loan portfolio 49985 29067 Loans for judicial entities 31748 17363 Consumer loans, 18237 11704 including mortgage loan 643 95 Deposit portfolio, 61743 32195 including time deposit 53652 21806 Deposits of physical persons 23703 12588 Return on assets (coefficient ROA) 0.02% 2.0% Return on capital (coefficient ROE) 0.11% 8.69%

121 3. Bank’s balance sheet ths AZN December 31, 2007 December 31, 2006 ASSETS Cash 2447 2179 Requirements to NBA 5196 6023 correspondent accounts 3511 3923 reserve accounts 1685 2100 Requirements to Banks 4827 268 in Azerbaijan 106 37 Abroad 4721 231 Loans to Banks 1195 871 Net loans to Banks 1195 871 Loans to Customers 49985 29067 (purpose reserves) -507 -494 Net loans to customers 49478 28573 Investments: 3083 276 securities 90 122 investments in capital 261 154 other investments 2732 - Fixed assets (excluding out of date) 6244 5038 Intangible assets 52 55 Accrued interests 1432 835 Other assets 1714 219 TOTAL ASSETS 75668 44337

LIABILITIES Current deposits: 7504 8620 physical entities 660 753 legal entities 6844 7867 Term deposits: 28730 13373 physical entities 23703 12588 legal entities 5027 785 Requirements of NBA 0 600 Requirements and deposits of Banks 587 1769 Loans from Banks 6313 497 Other loans: 18609 7336 financial institutions 9461 5523 international organizations 2921 1813 others 6227 - Accrued interests 1069 361 Other liabilities 623 462 TOTAL LIABILITIES 63435 33018

EQUITY Stocks/shares 7003 5815 Unallocated net profit 625 1156 Fixed assets reevaluation 3528 3584 Common reserves 1077 764 TOTAL EQUITY 12233 11319

TOTAL LIABILITIES AND EQUITY 75668 44337

122

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 2755.58 2979.28 Credit instruments 5561.63 2983.10 Forwards and future agreements 1701.5 - Other off balance liabilities 972.09 - Total 10990.80 5962.38

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2006 December 31, 2007 Interest and interest like incomes 6930.45 4256.86 Interest sand interest like costs 3889.51 1903.25 Net interest income (costs) 3040.94 2353.61 operational incomes 1640.23 903.59 operational costs 4029.47 2419.70 Net operational income (costs) 651.7 837.50 other incomes - 1.08 other costs (0.29) - net other incomes (0.29) 1.08 purposeful reserves for covering expected 431.54 220 losses

Profit before tax 219.87 1058.58 Profit tax 206.09 314.27

Profit for the year 13.78 744.31

123

Royal Bank of Baku

1. Basic bank information

Bank’s requisite: Bank’s complete name “Royal Bank of Baku” Open Joint-Stock Company Bank’s short name “RBB” OJSC Address of the head office 5, Huseyn Javid Ave., Baku Tax ID 1400023581 Code 506656 Correspondent account in NBA 0137010041944 SWIFT ROBKAZ22 Telex 142498 ROYAL A Ğ Telephone 497-00-63; 498-38-68 Fax 498-13-17 Web address www.royalbank.az Main e-mail [email protected]

Date of establishment 02.08.1993, OJSC License 158 Bank employees number 256 Types of services all kinds of bank services Number of branches within Azerbai- 16 jan and abroad

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 15964.33 6559.92 Loan portfolio 333392.1 10908.58 Commercial loans 148849.1 5175.92 Consumer loans 18543 5732.66 Deposit portfolio, 26956.4 4225.77 including deposits of physical persons 26956.4 4225.77 Return on assets (coefficient ROA) 0.16% 0.03% Return on capital (coefficient ROE) 0.57% 0.87%

124

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 5854.4 2370.5 Mandatory cash balances with the NBA 1447.4 430.0 Due from other banks 5394.2 170.1 Loans and advances to customers 31239.6 10366.6 Premises and equipment 10973.5 1093.6 Other financial assets 285.1 1647.8 Other assets 979.5 296.5 TOTAL ASSETS 56177.7 16375.1

LIABILITIES Due to other banks 16696.4 1185.4 Customer accounts 22736.1 5357.2 Current income tax liability 124.8 34.5 Other financial liabilities 166.4 47.1 Other liabilities 489.7 3191.0 TOTAL LIABILITIES 40213.4 9815.2

EQUITY Share capital 15411.8 6572.0 Retained earnings (297.22) (384.69) Other reserves 849.75 372.61 TOTAL EQUITY 15964.3 6559.92

TOTAL LIABILITIES AND EQUITY 56177.7 16375.1

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 1679.14 136.12 Credit instruments 2347.37 261.32 Letter of credits 100.20 - Total 4126.71 397.44

125

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 5022.01 1757.84 Interest expense 2576.65 1011.28 Net interest income 2445.36 746.56 Provision for loan impairment 1013.19 53.63

Net interest income after provision for loan 1432.17 692.93 impairment

Fee and commission income 613.57 409.03 Foreign exchange translation gains less losses 64.54 68.18 Other operating income 354.96 148.22 Administrative and other operating expenses 2353.10 1162.82

Profit before tax 112.14 7.32 Income tax expense 24.67 1.61

Profit for the year 87.47 5.71

126

Technikabank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Technikabank” Open Joint Stock Company Bank’s short name “Technikabank” OJSC Address of the head office 1107, Ataturk Ave., Baku Tax ID 9900000681 Code 506872 Correspondent account in NBA 0137010031944 SWIFT TECIAZ22 Telephone 447-77-44; 465-36-13 Fax 493-87-11 Web address www.texnikabank.az Main e-mail [email protected]

Date of establishment and current legal 1993, OJSC status License 198 Foreign correspondent banks The Bank maintains correspondent relations with leading banks of Azerbaijan Republic, Russian Federation, USA, Germany, Austria, Switzer- land, Japan, Ukraine, Kazakhstan and Latvia. Due to increasing demand of international payments the Bank maintains correspondent relations with: Dresdner Bank AG (Germany), Parex Banka (Latvia), Zentralbank Oesterreich AG (Austria), OJCS Uralsib (Russia), Commerzbank AG (Germany), American Express Bank LTD” (USA), Russky Slavyansky Bank (Russia), Wa- chovia Bank New York International Branch (USA), Banque De Commerce Et De Placements S.A. (Switzerland), American Express Bank LTD Tokyo branch (Japan), CreditDnepr Bank (Ukraine), Kazkommertsbank, (Kazakhstan), Bank Turanalem (Kazakhstan). Bank employees number 907 Money transfer services Western Union, MIGOM, Contact, VIP VMT, Private Money, Strana Express, Caspian Money Transfer, Zolotaya Korona, Blizko, Express Money and Bystraya Pochta. Operations with plastic cards Since 2004, the Bank is a member of Interna- tional Visa Association and in 2006 the Bank be- 127 came principal member of this Association. Bank became member of the MasterCard Inter- national. The Bank holds 10% of the shares of Millikart Processing Center. Since 2007, the Bank became the principal member of the MasterCard International payment system and at the same time started issuing of the Cir- rus/Maestro MasterCard Standard and Master- Card Gold plastic cards. In 2007 the Bank real- ized 3 projects with the VISA International payment system: (1) Visa POS Acquiring – by this project the Bank can carry out international processing by the POS Terminals and can create this possibility for other banks. (2) Visa VSDC issuing – by this project the Bank can produce VISA EMV chip cards. (3) Visa Smart Platinum co-brand – by this project the owners of the Platinum cards of the Bank have 10% discount during the purchase by the plastic cards at all the shops of Novco company (Benetton, Sisley, Hilfiger Denim, Chicco, Puma Nike). Number of branches within Azerbaijan 34 and abroad Subsidiary enterprises Capital Management LLC, Technikaleasing and Alfa Insurance offer to their customers brokerage, leasing and insurance services. Relations with international banking in- International Financial Coorporation (IFC), stitutions Kazimir Caspian Fund, CityGroup, Morgan Stanley International banking evaluation – bank Moody’s – B2/NP/E+, B2- Long term deposit ranking rating, NP –, Short term deposit rating, E+ - financial, poverty rating, Fitch – B-/ B / D/E /5 Awards and recognition Caspian Integration Business Club awarded Texnikabank the “Caspian Energy 2008 Integra- tion Award” in the nomination of “The Bank of the year 2007” Participation in international projects Eurobond emission Membership in different organizations Baku Interbank Currency Exchange, Azerbaijan Banks Association, SWIFT, AZIPS, XÖNKS payment systems, agent bank of the National Fund for Support to Entrepreneurship, Baku Stock Exchange, Azerbaijan Entrepreneurs Con- federation, agent bank for using the funds of the Azerbaijan Mortgage Fund, Deposit Insurance Fund, US-Azerbaijan Chamber of Commerce, Caspian Integration Business Club, Azerbaijan Microfinance Association

128

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 26912 11912 Share of foreign capital 2691 - Loan portfolio 243087 71468 Commercial loans 193718 48178 Consumer loans, 49369 23290 including mortgage loan 19306 2353 Deposit portfolio, 205415 80823 including time deposit 125467 34397.76 Deposits of physical persons 92096 37996.02 Return on assets (coefficient ROA) 4.92% 4.37% Return on capital (coefficient ROE) 64.31% 42.7%

129

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 10202 32549.1 Mandatory cash balances with the National Bank of Azerbaijan Republic 20347 6178.1 Due from other banks 46064.1 4764.9 Loans and advances to customers 237188 78721.6 Investment 144.8 750 Other assets 16779 1599.7 Premises and equipment 13847 5988.3 TOTAL ASSETS 346820.2 135378.9

LIABILITIES Due to other banks 15432.7 9566.9 Customer accounts 206895.6 81288 Other liabilities 3772.1 2390 Deferred income tax liability 1341.1 690.9 TOTAL LIABILITIES 311354 112299.2

EQUITY Share capital 26912 11912 Capital surplus 3464 3808 Retained earnings 280.4 3836 TOTAL EQUITY 35466.2 20500.4

TOTAL LIABILITIES AND EQUITY 346820.2 132799.6

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 579.58 35488.6 Credit instruments 64.28 2135 Letter of credits 147.07 1886.2 Total 790.93 39509.8

130

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 28155.8 7076.5 Interest lose (13938.8) (3174) Net interest income 14217.1 3902.6 Lose reserves for the loans 4539.5 1186.7

Net interest income after reserves allocations 9677.5 2715.9

Fees and commissions incomes 12203.4 6098 Fees and commissions costs (1306.1) (698.8) Other operation incomes 10.5 28.1 Net income from the operations in foreign cur- 1908.9 1032.6 rency (without loses) Administrative and other operation costs (8049.4) (4137.1) Operation incomes 22683.3 9116.2

Profit before tax 14774.4 4979.2

Taxes costs for income (3321.8) (1199.1)

Profit for the year 11452.6 3780.1

131

Transcaucasus Development Bank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Transcaucasus Development Bank” Open Joint Stock Company Bank’s short name “TDB” OJSC Address of the head office 98, A.Quliyev st., Baku Tax ID 1300196981 Code 502218 Correspondent account in NBA 0137010043944 SWIFT TDJOAZ22 Telephone 497-32-72; 497-51-51 Faxes 497-12-22 Web address www.tdb.az Main e-mail [email protected]

Date of establishment and current legal 23.04.1996, OJSC status License 07.04.1997, 242 Bank employees number 68 Types of services Collection of deposits and other returnable means from legal and natural person in national and foreign currency, lending on its behalf, to perform payment-cash operation on clients instruction.

132

2. Some financial indicators of the bank min AZN December 31, 2007 December 31, 2006 Authorized capital 10000 8200 Share of foreign capital 12.92% 12.92% Loan portfolio 26142.27 23908.54 Loans for legal persons 16294.93 11468.24 Consumer loans, 1363.34 7190 including mortgage loans 8484 5250.30 Deposit portfolio, including: 1615.51 8512.59 demand deposits of legal persons (including 818.45 7799 all settlement and check accounts); demand deposits of natural persons; 105.12 47.14 time deposits of natural persons; 399.22 383.24 time deposits of legal persons 292.72 283.21

133

3. Bank’s balance sheet ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 559.87 1142.42 Mandatory cash balances with the NBA 108.76 170.38 Due from other banks 1379.91 2088.45 Loans and advances to customers 24950.83 23599.26 Premises and equipment 3005.40 949.25 Computer software and licenses 17.22 18.32 Other assets 1683.5 2586.69 TOTAL ASSETS 31705.49 30554.77

LIABILITIES Due to other banks 16598.63 12204.45 Customer accounts 1615.51 8512.59 Borrowings from government and international 2357.41 630.77 financial institutions Other liabilities 156.24 34.9 TOTAL LIABILITIES 20727.79 21382.71

EQUITY Share capital 10000 8200 Retained earnings 128.83 1.17 Other reserves 848.87 970.89 TOTAL EQUITY 10977.70 9172.06

TOTAL LIABILITIES AND EQUITY 31705.48 30554.77

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 141.91 115.43 Credit instruments 2106.96 1412.61 Letter of credit 897.40 1324.84 Other off balance liabilities 15558.2 14717.31 Total 18704.47 16157.58

134

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 3115.79 2002.91 Interest expense 1693.43 1065.85 Net interest income 1422.36 937.06 Provision for loan impairment 747.72 589.16

Fee and commission income 211.91 297.43 Fee and commission expense 706.86 260.13 Gains less losses from trading in foreign cur- 357.29 91.28 rencies Administrative and other operating expenses 382.39 197.32

Profit before tax 154.59 279.16 Income tax expense 26.93 14.66

Profit for the year 127.66 264.5

135

TuranBank

1. Basic bank information

Bank’s requisite: Bank’s complete name “TuranBank” Open Joint Stock Company Bank’s short name “TuranBank” OJSC Address of the head office 85, Ismayil bay Gutgashinli str., Baku Tax ID 1300016391 Code 507462 Correspondent account in NBA 0137010027944 SWIFT TURAAZ22 Telex 14236 TURAN AI Telephone 497-25-11/92; 510-79-11/22 Fax 497-25-77 Web address www.turanbank.az Main e-mail [email protected] Date of establishment and current le- 12.06.1992, OJSC gal status License 115 Correspondent account in NBA 0137010027944 Bank employees number 166 Types of services to banks and other Account services; FEX operations; Loans; financial institutions Deposits; Plastic Cards; Cheque encashment; Money transfers; Card to Card; Communal payments; GSM operators payments; Consulting; Documentary Operations; Encashment Number of branches within Azerbai- 11 jan and abroad Subsidiary enterprises (leasing, insur- “TuranLeasing” LLC ance, etc.) Relations with international banking BCP, Ziraat Bank, Ziraat Bank Frankfurt, Ray- institutions fazen Bank, Uralsib Bank, MBA Moskva, Rosselxosbank, ĞmpeksBank, RusslavBank, Ev- rotrastBank, PrivatBank, OyakBank, Yapı Kredi Bank, Halk Bank. Participation in international projects IFAD (SME financing project for Mountain and Higest Mountain regions of Azerbaijan Repub- lic), IFAD (Nort-East project), IDA (2nd project for the agriculture development and financing)

136

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 12500 8543 Loan portfolio 48863 33730 Commercial loans 48863 33730 Consumer loans, 17702 12759 including mortgage loan 2778 896 Deposit portfolio, 18241 13657 including time deposit 10030 6404 Deposits of physical persons 13297 10056 Return on assets (coefficient ROA) 4.1% 3.8% Return on capital (coefficient ROE) 22.2% 23.3%

137

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 2513 2791 Mandatory cash balances with the NBA 1718 1313 Due from other banks 2392 931 Loans and advances to customers 47550 32308 Investment securities available for sale 678 525 Premises and equipment 6274 2807 Computer software and licenses 80 92 Other assets 220 1090 TOTAL ASSETS 61425 41857

LIABILITIES Due to other banks 17610 12966 Customer accounts 18247 13362 Borrowing s from government and international financial institutions 8820 4526 Deferred income tax liability 64 207 Current income tax liability 347 187 Other liabilities 248 153 TOTAL LIABILITIES 45336 31401

EQUITY Share capital 12500 8543 Retained earnings 2710 1034 Other reserves 879 879 TOTAL EQUITY 16089 10456

TOTAL LIABILITIES AND EQUITY 61425 41857

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 925 464 Total 925 464

138

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 6451 4150 Interest expense (2439) (1867) Net interest income 4012 2283 Provision for loan impairment 16 (272) Net interest income after provision for loan impairment 4028 2011

Fee and commission income 1109 709 Fee and commission expense (148) (83) Gains less losses from trading in foreign currencies 198 53 Other operating income 94 76 Administrative and other operation expense (2085) (1359) Profit before tax 3196 1407 Income tax expense (466) (305)

Profit for the year 2730 1102

139

Unibank

1. Basic bank information

Bank’s requisite: Bank’s complete name “Unibank” Open Joint Stock Company Bank’s short name “Unibank” OJSC Address of the head office 57, Rashid Behbudov st., Baku Tax ID 1300017201 Code 505754 Correspondent account in NBA 0137010015944 SWIFT UBAZAZ22 Telephone 498-22-44 Fax 498-09-53 Web address www.unibank.az Main e-mail [email protected] Date of establishment and current legal 27.07.1992, OJSC status License 08.01.2003, 73 Bank employees number 564 Types of services Services to individuals: Payment and cash; Exchange; Loans; Deposits; Deposit boxes; Plastic cards; Card to Card; Collection of checks; American Express; Money transfers; Azercell; Consulting; SMS banking (under development); Internet banking. Services to corporate clients: Payment and cash; Exchange; Documentary operations; Loans; Deposits; Deposit boxes; “Bank- Client” System; Salary card projects; Collec- tion of a checks; Collection of payments; Con- sulting; Internet banking. Types of services to banks and other fi- Services to correspondent accounts; Interbank nancial institutions loans; Documentary operations; Collection of payments Number of branches within Azerbaijan 19 and abroad Subsidiary enterprises “Unileasing” Leasing company, “Unicapital” Open Joint Stock Company Relations with international banking in- As a result of successful negotiations between stitutions EBRD and Unibank, on September 5, 2003 an official agreement was signed according to which EBRD has become Unibank’s shareholder by acquiring 20% equity stake. On 31 May, 2005 Unibank CB and DEG signed the

140 agreement under which DEG acquired 8.33% equity stake. Also in order to support the Uni- bank’s position in SME financing DEG provided $3mln long-term loan to Unibank. Cur- rently, the paid-up authorized capital of the Bank amounts to AZN 40mln. International correspondent banks: Wachovia, Deutsche Bank Trust Company, Americas bank, CitiBank, Fortis, Dresdner bank, Com- merzbank, Unicredit, ZAO Vneshtorgbank, Russlavbank, Promsvyazbank, ABN Amro (Netherlands), Bank Hapoalim (Israel), So- ciete Generale (France), Akbank, Turkiye Halk Bankasi Mudurluk binasi (Turkey), Raif- feisenbank, Raiffeisen Zentralbank Osterreich AG (Austria), Sumitomo Mitsui Banking Cor- poration - Japan, Bank TuranAlem - Kazakh- stan, Rietumu Bank, Parex Bank. International banking evaluation – bank Unibank has obtained its first international rat- ranking ing in 2007: Moody’s Investor Service awarded the bank the “positive” B2 rating. In 2008 Fitch Ratings confirmed the above- mentioned rating: long-term IDR B-, short- term IDR "B", individual rating "D/E", support rating "5", and IDR’s long-term forecast stays “Stable”

International recognition 2005: According to January issue of "The Banker", Unibank was among 50 most rapidly growing banks in CIS and Eastern Europe. Unibank was number nine in the list of 50 EBRD-operating banks and the only Azerbai- jani bank among ten leading banks. In July “Euromoney” declared Unibank as “the best bank in Azerbaijan in 2005”. In September "The Banker" declared Unibank as “the Bank of the year 2005 in Azerbaijan”. 2007: On July 15 the “Euromoney" declared Unibank as “the best bank in Azerbaijan in 2007”.

141

2. Some financial indicators of the bank ths AZN December 31, 2007 December 31, 2006 Authorized capital 15000 6600 Share of foreign capital 23.49% 23.49% Loan portfolio 281439 91054 Commercial loans 94627 37497 Consumer loans, 186812 53557 including mortgage loan 34180 3805 Deposit portfolio, 123865 80960 including time deposit 80747 43779 Deposits of physical persons 63829 44600 Return on assets (coefficient ROA) 1.47% 2.67% Return on capital (coefficient ROE) 15.96% 25.92%

142

3. Bank’s balance sheet ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 30417 23712 Mandatory cash balances with the NBA 13007 8657 Due from other banks 25793 4722 Loans and advances to customers 272478 87864 Investment securities available for sale 15053 1312 Current income tax prepayment 46 - Deferred tax asset 150 87 Premises and equipment 8611 3012 Intangible assets 579 314 Other financial assets 138 77 Other assets 20468 10716 TOTAL ASSETS 386740 140473

LIABILITIES Due to other banks 16607 6356 Customer accounts 123865 80960 Debt securities in issue 700 2653 Term borrowings 194369 31578 Current income tax liability 143 525 Other financial liabilities 2128 635 Other liabilities 2316 1329 Subordinated debt 10058 4357 TOTAL LIABILITIES 350186 128393

EQUITY Share capital 15000 6600 Share premium 12076 484 Revaluation reserve for available for sale securities 70 70 Retained earnings 8696 4926 NET ASSETS ATTRIBUTABLE TO THE 35842 12080 BANK’S EQUITY HOLDERS

Minority interest 712 - TOTAL EQUITY 36554 12080

TOTAL LIABILITIES AND EQUITY 386740 140473

143

4. Off-balance liabilities

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 20399 10470 Credit instruments 37776 9437 Letter of credits 5955 1553 Total 64130 21460

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2007 Interest income 36791 14336 Interest expense (19912) (6021) Net interest income 16879 8315 Provision for loan impairment (5771) (1209)

Net interest income after provision for 11108 7106 loan impairment Fee and commission income 6037 3004 Fee and commission expense (1059) (621) Gains less losses from trading in foreign 1706 1049 currencies Foreign exchange translation gains less 138 187 losses Administrative and other operating ex- (12890) (7059) penses Other operating income 200 40

Profit before tax 5240 3706 Income tax expense (1358) (934)

Profit for the year 3882 2772

Profit is attributable to: Equity holders of the Bank 3770 2772 Minority interest 112 -

Profit for the year 3882 2772

144

United Credit Bank

1. Basic bank information

Bank’s requisite: Bank’s complete name “United Credit Bank” Open Joint Stock Company Bank’s short name “UCB” OJSC Address of the head office 49, N. Rafiyev st., Baku Tax ID 2000145231 Code 507763 Correspondent account in NBA 0137010010944 SWIFT UCBXAZ22 Telephone 490-06-41 Fax 490-05-22 Web address www.ucb.az Main e-mail [email protected] Date of establishment and current legal 30.06.1996, OJSC status License 30.04.1996, 240 Bank employees number 84 Number of branches within Azerbaijan 5 and abroad

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 12108.00 8108.00 Loan portfolio 18321.52 10888.52 Commercial loans 9325.15 5345.11 Consumer loans 8996.370 5543.41 Deposit portfolio, 8010.20 3322.79 including time deposit 4523.21 2540.87 Deposits of physical persons 3573.21 1723.45 Return on assets (coefficient ROA) 1.12% 1.69% Return on capital (coefficient ROE) 1.80% 2.99%

145

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 2802.04 1535.90 Mandatory cash balances with the NBA 604.91 343.57 Due from other banks 13.53 18.30 Loans and advances to customers 17415.26 10254.01 Premises and equipment 1892.00 1941.64 Computer software and licenses 88.40 68.72 Current income tax prepayment - 0.18 Other financial assets 63.86 63.86 Other assets 107.70 58.78 TOTAL ASSETS 22987.70 14284.96

LIABILITIES Due to other banks 1690.86 1919.12 Customer accounts 8098.56 3422.19 Deferred income tax liability 78.90 - Current income tax liability 35.42 19.30 Other financial liabilities 30.93 - Other liabilities 70.75 97.30 TOTAL LIABILITIES 10005.42 5457.91

EQUITY Share capital 12108.00 8108.00 Retained earnings 874.28 719.04 TOTAL EQUITY 12982.28 8827.04

TOTAL LIABILITIES AND EQUITY 22987.70 14284.95

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 8922 3369 Credit instruments 36411 26322 Other off balance liabilities 202617 51183 Total 247950 80874

146

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 3040.39 1933.82 Interest expense 854.29 685.45 Net interest income 2186.10 1248.37 Provision for loan impairment (892.66) (465.43) Net interest income after provision for loan impairment 1293.44 782.94

Fee and commission income 648.05 502.25 Fee and commission expense (154.77) (149.46) Gains less losses from trading in foreign currencies 20.72 9.42 Foreign exchange translation gains less losses (202.94) (190.22) Other operating income 76.39 (24.73) Administrative and other operating expenses (1336.24) (949.06)

Profit before tax 344.65 18.88 Income tax expense (189.41) 23.39

Profit for the year 155.24 4.51

147

XALQ BANK

1. Basic bank information

Bank’s requisite: Bank’s complete name “Xalq Bank” Open Joint Stock Company Bank’s short name “Xalq Bank” OJSC Address of the head office 1145, Babek Ave., Baku Tax ID 2000296061 Code 505055 Correspondent account in NBA 0137010067944 SWIFT HAJCAZ22 Telex 142400 XALG AI Telephone 496-81-52/53/54 Fax 496-81-57 Web address www.xalqbank.az Main e-mail [email protected]

Date of establishment and current legal 27.12.2004, OJSC status License 27.12.2004, 246 Bank employees number 204 Types of services For individuals: Current accounts, Saving deposits, Express Money transfers: Western Un- ion, Xpress money, Birstraya Pochta , Loans (car loan, mortgage loan, consumer loan, credit cards), Plastic cards of MC Interna- tional, Depozit safes, American Express Travelers’ cheques, ATM, Azercell Bakcell Azerfon payments, Utility payments. For corporate customers and individual owners: Payment–cash services, Saving deposits, Loans, Financing of international trade operations (import-export letter of credits, documentary collection, domestic and international guaranties), Plastic cards of MC International (corporate cards MC Business, salary cards Maestro), Deposit safe boxes, Acceptance of plastic cards in merchant point of sales. Types of services to banks and other fi- Payment accounts and service, interbank nancial institutions crediting Number of branches within Azerbaijan and 6 abroad Relations with international banking insti- American Express Bank New York; tutions American Express Bank GmbH Frankfurt am 148 Main De; American Express Bank Tokyo; Dresdner Bank AG Frankfurt; Raiffeisen Centralbank Austria; Savings Bank of the Russian Federation; Raiffeisen Moscow; Bank Stolichniy Kredit Moscow

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 53550.0 10000.0 Loan portfolio 159397.57 57813.59 Legal entity loans 148376.54 53407.14 Consumer loans, 11021.03 4406.45 including m ortgage loan 2966.08 15.39 Deposit portfolio, 137320.27 63122.37 including time deposit 85963.26 41074.83 Deposits of physical persons 74629.99 39219.33 Return on assets (coefficient ROA) 0.97% - Return on capital (coefficient ROE) 3.35% -

149

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 3512.76 6324.51 Mandatory cash balances with the NBA 18487.92 4211.16 Due from other banks 12506.59 4328.61 Loans and advances to customers 156232.84 58398.73 Investment in associates 6833.11 42.63 Premises and equipment 4698.03 2807.56 Computer software and licenses 330.08 268.81 Other assets 9506.11 626.55 TOTAL ASSETS 212107.44 77008.56

LIABILITIES Due to other banks 8449.34 3041.73 Customer accounts 137320.27 63122.37 Borrowings from government and interna- 2966.08 15.39 tional financial institutions Deferred income tax liability 278.99 11.02 Other liabilities 1441.79 302.45 TOTAL LIABILITIES 150456.47 66492.96

EQUITY Share capital 53550.00 10000.00 Retained earnings 507.11 -1346.6 Other reserves 7593.86 1862.2 TOTAL EQUITY 61650.97 10515.6

TOTAL LIABILITIES AND EQUITY 212107.44 77008.56

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 13766.05 8163.99 Credit instruments 17699.07 2144.37 Letter of credits 11700.77 - Total 43165.89 10308.36

150

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 17160.22 4368.44 Interest expense 7765.64 2154.76 Net interest income 9394.58 2213.68 Provision for loan impairment 5652.97 2020.25

Net interest income after provision for 3741.61 193.43 loan impairment

Fee and commission income 1985.12 1012.68 Fee and commission expense 3635.59 1040.11 Gains less losses from trading in foreign cur- 2146.42 70.04 rencies Other operating income 120.46 16.61 Administrative and other operating expenses 2295.46 1162.38

Profit before tax 2062.56 -909.73 Income tax expense 208.85 -

Profit for the year 1853.71 -909.73

151

Yapi Kredi Bank Azerbaijan

1. Basic bank information

Bank’s requisite: Bank’s complete name “Yapi Kredi Bank Azerbaijan” Closed Joint Stock Company Bank’s short name “YKB Azerbaijan” CJSC Address of the head office 32/12, C. Cabbarlı st., Baku Tax ID 9900009021 Code 509987 Correspondent account in NBA 0137010012944 SWIFT KABAAZ22 Telephone 497-77-95; 497-79-75 Fax 497-02-76; 497-80-39 Web address www.yapikredi.com.az Main e-mail [email protected]

Date of establishment and current 21.10.1998, CJSC legal status License 11.01. 2000, 243 Bank employees number 81 Types of services Universal bank services, including operations with plastic cards: in order to expand the product range 3 ATM, 22 Pos-terminal were augmented to the banking network and 3,598 plastic cards were issued in 2007. Types of services to banks and Loans, foreign exchange, operations with securities other financial institutions Number of branches within Azer- 2 baijan Subsidiary enterprises (leasing, Yapi Kredi Invest LTD- broker company insurance, etc.) Correspondent banks The Bank has correspondent banking relations in Germany, United States of America, France, Turkey and Russia.

152

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 6349.00 6349.00 Share of foreign capital 100% 100% Loan portfolio 17447.82 12509.91 Loans for judicial entities 13074.47 6014.11 Consumer loans 1583.86 967.53 Deposit portfolio, 83028.66 48211.18 including time deposit 14799.61 7490.51 Deposits of physical persons 1187.15 4172.78 Return on assets (coefficient ROA) 4.00% 4.37% Return on capital (coefficient ROE) 32.52% 25.17%

153

3. Banks balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash 2452 3196 Nostro accounts with NBA 10756 7762 correspondent accounts 3976 5081 mandatory reserves 6780 2681 Loans and advances to banks and other 15218 17963 financial institutions Loans and advances to customers 14313 6631 Investments 55822 22359 Interest accrued 100.26 231 Premises and equipment 426 360 Intangible assets 22 48 Other liabilities 521 2273 TOTAL ASSETS 99630 60823

LIABILITIES Banks deposits 3286 269 Customers deposits 83029 48211 demand 68229 40721 time 14800 7491 Interest accrued 124 86 Other liabilities 651 1695 TOTAL LIABILITIES 87090 50261

EQUITY Paid-in capital (shares) 6349 6349 Other capital reserves 338 523 Net profit (loss) 4079 2659 Retained net profit (loss) 2005-2006 1774 1031 TOTAL EQUITY 12540 10562 3 TOTAL LIABILITIES AND EQUITY 99630 60823

154

4. Off-balance liabilities (ths AZN)

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 4 3 Credit instruments 45937 7657 Other off balance liabilities 152570 61524 Total 198511 69184

5. Profit&loss statement

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 6460 4081 Interest expense (1246) (959) Net interest income (expenses) 1-2 5214 3122

Operation income 2061 2 412 Operation expense (762) (911,44) Net operation income (expense) 3-4 1299 1500

Other income 582 480 Other expense (1825) (1694) Net other income (expense) 5-6 (1242) (1214)

Profit before tax A+B+C 5271 3408,94 Income tax (1192) (749,97) Profit for the year 4079 2659

155

Zaminbank

1. Basic bank information

Bank’s requisite Bank’s complete name “Zaminbank” Open Joint-Stock Company Bank’s short name “Zaminbank” OJSC Address of the head office 59, Fizuli Str., Baku Tax ID 1400009111 Code 505981 Correspondent account in NBA 0137010048944 SWIFT ZAMIAZ22 Telephone 498-81-05; 498-82-94 Fax 493-41-90 Web address www.zaminbank.az Main e-mail [email protected]

Date of establishment and current legal 16.11.1992, OJSC status License 15 Bank employees number 284 Types of services Deposits (in the form of demand deposits, time deposits or other types of deposit) or other repayable funds; loans (whether secured or not by collateral); consumer and mortgage loans; factoring, with or without recourse; forfeiting; financing of commercial transactions; leasing services; current accounts, including correspondent accounts; clearing, cash and payment services, money transfers, securities and payment instruments; issuing payment instruments (including credit and debit cards, travelers’ checks and bank drafts); buying and selling on own or on client account (including underwriting and brokerage services); money market instruments (including checks, bills of exchange, promissory notes and certificates of deposit); foreign currencies, precious metals and precious stones; stocks and other securities; forward contracts, swap agreements, futures, options, and other currency-related derivatives, stocks, bonds, precious metals or interest rates; entering into contingent

156 commitments, including guarantees and letters of credit, for its own account and for the account of customers; professional activity at securities market; financial ad- viser or financial agent services or con- sultant services; providing financial information and services, in connection with credit references and creditworthiness assessment; safekeeping and administering of valuables, including securities (in special cameras or safes); transportation of valuables, including bank notes and coins. Types of services to banks and other fi- Opening and maintaining of correspondent nancial institutions accounts

Number of branches within Azerbaijan and abroad 28

Participation in international projects The founder of International Money Trans- fer System “Caspian Money Transfer”

2. Some financial indicators of the bank

ths AZN December 31, 2007 December 31, 2006 Authorized capital 11194.60 11194.60 Loan portfolio 48774.77 24041.90 Consumer loans 21789.00 8391.38 including mortgage loan 928.12 - Deposit portfolio, 23489.09 10117.01 including time deposit 19502.24 6912.73 Deposits of physical persons 19959.34 6982.74 Return on capital (coefficient ROE) 4.48% 2.32%

157

3. Bank’s balance sheet

ths AZN December 31, 2007 December 31, 2006 ASSETS Cash and cash equivalents 3512.73 6332.22 Mandatory cash balances with the NBA 8333.71 2547.35 Due from other banks 1455.48 1331.88 Loans and advances to customers 48774.77 24041.90 Investment in associates 40.00 40.00 Premises and equipment 6402.53 1673.20 Computer software and licenses 324.23 347.36 Other assets 26513.60 9283.87 TOTAL ASSETS 95357.05 45597.76

LIABILITIES Due to other banks 20668.05 6714.97 Customer accounts 23489.09 10117.01 Borrowings from government and international financial institutions 11366.20 8081.64 Other liabilities 26191.55 7578.34 TOTAL LIABILITIES 81714.89 32491.96

EQUITY Share capital 11194.60 11194.60 Retained earnings 609.33 108.34 Other reserves 1838.23 1802.86 TOTAL EQUITY 13642.16 13105.80

TOTAL LIABILITIES AND EQUITY 95357.05 45597.76

4. Off-balance liabilities

Liabilities December 31, 2007 December 31, 2006 Guarantees and similar liabilities 5726.09 3018.19 Credit instruments 2372.12 600.43 Total 9098.21 3618.62

158

5. Profit&loss statement (ths AZN)

Year ended Year ended ths AZN December 31, 2007 December 31, 2006 Interest income 4328.50 2218.40 Interest expense 2763.90 853.40 Net interest income 1564.60 1365.00 Provision for loan impairment 1428.00 1391.90

Net interest income after provision for loan impairment 136.60 (26.90)

Fee and commission income 3612.50 2792.80 Fee and commission expense 3107.10 2504.90 Profit before tax 642.00 261.00 Income tax expense 141.00 1.00

Profit for the year 501.00 260.00

159

Aqrarkredit 1. Basic information in brief

Requisites: Complete name “Aqrarkredit” Closed Joint Stock Company non-bank credit organization Short name “Aqrarkredit” CJSC Address of the head office 125, Gadirly st., Baku SWIFT ACJTAZ22 Telephone 498-27-30/31 Fax 498-15-17 Web address www.aqrarkredit.az Main e-mail [email protected]

The “Aqrarkredit” was established in 2001. The structural network of the Credit Organization consists of the Head Office in Baku city and 12 branches which are covering services to all regions of the country. Employees’ number: 184. The charter capital is 11.4 million manat where of which 99.8% belongs to the Ministry of Fi- nance. In 2007 “Aqrarkredit” had 4m AZN income and 3.8m AZN expenses which resulted in 0.2m AZN profit. The audit of “Aqrarkredit” for 2005-2006 had been conducted by KPMG. “Aqrarkredit” has cooperation with: World Bank, CICA (International Fund For Development of Agriculture), Turkish “Ziraat Bank” and “Bashak” Insurance Company, is one of the founders of Azerturk Bank and “Bashak-Inam” Insurance Company functioning in Azerbaijan. The “Aqrarkredit” is a member of APRACA, C ĞCA, “Azerbaijan Banks Association”, “Baku In- terbanks Currency Exchange” and “Baku Stock Exchange“, Azerbaijan Microfinancing Associa- tion and Azerbaijan-Turkish Businessmen Union.

160

2. Balance sheet min AZN December 31, 2007 ASSETS Cash on hand 65.5 Balances with National Bank 275.3 Due from other banks 4957.7 Loans and advances to customers 14350.2 Investments 4689.9 Fixed assets 1141.2 Other assets 382.1 TOTAL ASSETS 25861.9

LIABILITIES Current liabilities 2997.9 NFES funds 3207.3 Other liabilities 159.3 TOTAL LIABILITIES 6364.5

EQUITY Share capital 18535.4 Other equity reserves 753.5 Retained earning 208.5 TOTAL EQUITY 19497.4

TOTAL LIABILITIES AND EQUITY 25861.9

161

AzeriCard

1. Basic information about organization

Requisites: Complete name “AzeriCard” Ltd Short name “AzeriCard” Ltd Address of the head office 67, Nizami st., Baku Tax ID 1140031834 Telephone 498-20-05 Fax 493-39-80 Web address www.azericard.com Main e-mail [email protected]

Date of establishment and current legal 09.10.1996, Ltd status Bank employees number 72 Types of services Processing of operations with plastic cards, Certification at international payment systems, Production of plastic cards, Database, Diverse Reporting, Utilities and other payments through ATMs, Telescope system, Internet banking, Mobile Banking, Multicur- rency, Card Transfer, Loyalty, etc.

162

Baku Interbank Currency Exchange

Requisites: Complete name “Baku Interbank Currency Exchange” Closed Joint Stock Company Short name “Baku Interbank Currency Exchange” CJSC Address of the head office 57, Academic Hasan Aliyev st., Baku Telephone 497-78-05; 437-14-40 Fax 465-65-16 Web-site www.bbvb.org Main e-mail [email protected]

Date of establishment and current legal status : 21.06.1993, JSC Relations with international finance institutions : New York, Tokyo, Frankfurt, London, Brussels, and Istanbul stock exchanges, the World Federation of Exchanges (WFE), the Federation Euro– Asian Stock Exchanges (FEAS), the CIS countries International Association of Exchanges (IAEx), Moscow Interbank Currency Exchange, Kazakhstan, Bulgaria, Georgia, Moldova and Istanbul Stock Exchanges. Authorized capital : 1,000 AZN Employees : 32 Member Banks: 44 General results of exchange activities in 2005-2007:

1938 1861 2000

1600

1200 863 mln$ 800

400

0 2005 2006 2007

Date of auctions: 10:00-12:00 - Morning session; 14:15-17:00 - Day time session Exchange fees: 0.03%. Commissions of foreign currency are limited to USD 500. A decrease of tariffs on the sale and purchase of currency has also been applied to clearing services for accounts of non-resident banks. Monthly trading limits are calculated on the basis of bank balances.

163

Parex Banka

1. Basic bank information

Bank’s requisite: Bank’s complete name “Parex Banka” Joint-Stock Company’s Representative office in the Azerbaijan Republic

Bank’s short name “Parex Banka” Representative office in Azerbaijan

Address of the head office Park INN Azerbaijan Hotel, 2nd floor Azadlıq Ave., Baku

Tax ID 1400589241 Code 3152598 Telephone 498-08-38 Fax 496-89-90 Web address www.parex.net Main e-mail [email protected]

Date of establishment and current 26.05.2000, JSC legal status License 1-XN Bank employees number 6 Types of services Representation interests of “Parex Banka” in Azerbaijan Subsidiary enterprises “Parex leasing and factoring”

164 MAIN INDICATORS OF ABA MEMBER BANKS (as of December 31, 2007)

Authorized Assets ROA ROE Loan Deposit Deposits of Profit for Share of Employees Number capital (ths AZN) (%) (%) portfolio portfolio physical the year foreign number of Banks (ths AZN) (ths AZN) (ths AZN) persons (ths AZN) capital branches (ths AZN) (%) IBA 100000.00 2712412.00 2.49 23.29 2035.74 1603790.58 264934.64 74491.00 - 1327 36 Xalq Bank 53550.00 212107.44 0.97 3.35 159397.57 137320.27 74629.99 1853.71 - 204 6 Bank Standard 50000.00 610538.00 3.40 28.70 423103.00 289053.00 154270.00 14750.00 - 295 11 Technikabank 26912.00 346820.20 4.92 64.31 243087.00 205415.00 92096.00 11452.60 10.00 907 34 Kapital Bank 24000.00 300895.00 1.12 9.26 106831.00 170740.00 55566.00 2524.00 - 2458 88 Royal Bank of Baku 15964.33 56177.70 0.16 0.57 333392.10 26956.40 26956.40 87.47 - 256 16 Unibank 15000.00 386740.00 1.47 15.96 281439.00 123865.00 63829.00 3882.00 23.49 564 19 AtaBank 14376.70 110934.71 3.15 25.60 71353.20 93844.40 45322.90 2510.13 - 241 9 KredoBank 12640.00 25616.00 1.58 2.84 17230.00 4657.00 2510.00 311.00 - 109 9 Bank Respublika 12580.00 249491.00 2.04 25.42 158044.00 111673.00 69902.00 5088.00 25.00 380 15 TuranBank 12500.00 61425.00 4.10 22.20 48863.00 18241.00 13297.00 2730.00 - 166 11 United Credit Bank 12108.00 22987.70 1.12 1.80 18321.52 8010.20 3573.21 155.24 - 84 5 Azerigazbank 12000.00 156778.00 2.90 23.20 109444.84 95420.96 58215.36 3417.00 24.60 316 12 Dekabank 11558.50 26337.10 - - 19164.80 5600.80 444.20 172.80 - 69 6 Zaminbank 11194.60 95357.05 - 4.48 48774.77 23489.09 19959.34 501.00 284 28 MFBA 11000.00 116934.00 4.50 37.70 96818.48 11841.24 9713.04 1220.00 100.00 1278 15 Mugan Bank 11000.00 80313.00 2.24 10.20 48218.00 24682.00 7270.00 1236.00 - 280 21 Gunay Bank 10892.00 22754.10 - - 18015.89 8977.71 7548.93 25.52 3.10 35 1 NBC Bank 10648.86 30256.76 1.49 4.01 20499.37 7570.00 2107.56 450.68 - 140 6 Azerneqliyyatbank 10684.10 20768.90 0.70 1.20 15885.00 9297.00 7860.00 132.40 - 101 4 Azerdemiryolbank 10400.00 146400.00 3.40 19.30 104190.00 38999.00 34845.00 4905.00 35.00 409 23 Azerbaijan Credit 10204.80 22738.60 3.75 6.38 22241.75 2725.80 2527.04 673.80 - 52 - Bank Atrabank 10074.80 32022.58 0.00 0.01 24524.83 4905.40 2880.30 58.32 - 126 10 165 Bank Melli Iran 10001.54 21342.78 5.40 11.63 7850.93 7997.34 4131.16 1162.88 - 21 - Azer-Turk Bank 10000.00 34511.96 5.00 15.00 21430.35 20899.89 11216.94 1575.26 50.00 71 2 Azerbaijan Industrial 10000.00 80216.10 3.00 13.00 40503.75 53770.57 33537.53 1714.30 97.00 120 5 Bank Bank of Azerbaijan 10000.00 92000.55 3.50 19.35 76694.69 38934.10 23270.50 3200.00 1.00 350 18 Bank Silk Vey 10000.00 ------138 8 Birlikbank 10000.00 36336.02 - - 22409.73 618.55 18.55 1383.47 - 52 3 Gandjabank 10000.00 25231.70 - - 23588.02 3291.20 3014.05 348.83 - 66 3 TDB 10000.00 31705.49 - - 26142.27 1615.51 504.34 127.66 12.92 68 2 Nikoil Bank 10000.00 117092.79 1.45 11.50 96658.37 56659.33 37367.57 1705.33 - 225 10 Amrahbank 9679.60 49924.75 2.14 8.87 43652.60 28018.90 18136.30 1069.50 - 234 20 Kauthar Bank 9470.00 15232.70 - - - 1303.00 325.00 92.30 7.20 27 2 Parabank 9394.20 41356.79 - - - - - 385.97 - 250 10 Eurobank 8590.55 14090.76 - - 12223.26 - - -76.27 - 29 1 Debut Bank 8461.90 30670.89 0.61 1.86 27939.84 1853.97 1172.74 187.43 - 109 7 Atlantbank 8024.93 11375.41 - - 5975.98 2942.67 - 125.53 - 44 2 AF-Bank 7815.00 13182.72 5.72 8.80 3971.27 266.34 143.08 753.95 99.99 27 1 Rabitabank 7003.38 75668.00 0.02 0.11 49985.00 61743.00 23703.00 13.78 - 300 17 Bank of Baku 6800.00 151997.00 2.52 16.82 122839.00 64452.00 49061.00 2808.00 40.00 441 15 YKBA 6349.00 99630.00 4.00 32.52 17447.82 83028.66 1187.15 4079.00 100.00 81 2 Total 640878.79 6788371.25 2990187.74 3454469.88 1227046.82 153284.59 12734 513

166

APPENDIX 1. THE COUNTRY MAIN ECONOMIC INDICATORS 9

Table 1.1. Main macroeconomic indicators

Gross Domestic Product Nominal income of Nominal average Non-oil GDP Capital investments Consumer Price Index (GDP) population monthly wage Year Total, As % of Total, As % of Total, As % of Total, As % of Total, As % of From the beginning of

m AZN previous m AZN previous m AZN previous m AZN previous AZN previous the year to a relevant

year year year year year period of previous year (%) 1995 2133.8 88.2 - - 228.0 187.0 1314.0 - 13.4 - 84.6 1996 2732.6 101.3 - - 644.5 282.7 1708.2 130.0 18.7 139.5 6.8 1997 3158.2 105.8 - - 910.2 141.2 2473.2 177.8 28.3 151.3 0.4 1998 3440.6 110.0 - - 1102.4 121.1 2849.2 115.2 33.7 119.0 -7.6 1999 3775.0 107.4 - - 928.5 84.2 3227.4 113.2 36.9 109.3 -0.5 2000 4718.2 111.1 3055.8 109.9 967.8 104.2 3511.4 108.8 44.3 120.2 2.2 2001 5315.6 109.9 3195.9 108.7 1129.8 116.7 3876.4 110.4 52.0 126.7 1.3 2002 6062.5 110.6 3693.9 113.8 2058.6 182.2 4234.0 111.4 62.6 121.2 3.3 2003 7146.5 111.2 4447.6 114.9 3561.9 173.0 4841.6 111.4 76.6 121.4 3.6 2004 8530.2 107.0 5242.5 113.6 4839.3 135.9 6009.5 120.7 96.7 126.2 10.4 2005 12522.5 126.4 6055.0 108.3 5424.3 112.7 7792.3 125.7 117.9 121.9 5.4 2006 18037.1 134.5 7079.1 111.8 5963.6 114.8 9949.8 123.4 141.3 119.8 11.4 2007 26815.1 125.0 9533.9 111.4 6774.8 117.8 14305.6 140.3 214.0 142.0 16.7

9 Based on data of the National Bank of Azerbaijan’s website : http://www.nba.az/default.aspx 167

Table 1.2. Major indicators of the State Budget of the Republic of Azerbaijan

Year Public Finance

Budget As a share Budget expen- As a share Budget deficit As a share revenues, of GDP ditures, of GDP (-) surplus (+) of GDP m AZN (%) m AZN (%) (%) 1995 415.6 19.5 428.4 20.1 -12.8 0.6 1996 498.0 18.2 481.9 17.6 16.1 0.6 1997 513.0 16.2 588.7 18.6 -75.7 2.4 1998 465.5 13.5 528.3 15.4 -62.8 1.8 1999 549.7 14.6 641.5 17.0 -91.8 2.4

2000 715.5 15.2 763.8 16.2 -48.3 1.0 2001 783.8 14.7 806.6 15.2 -22.8 0.5 2002 910.2 15.0 931.7 15.4 -21.5 0.4 2003 1225.5 17.1 1234.0 17.3 -8.5 0.2 2004 1481.2 17.4 1501.0 17.6 -19.8 0.2

2005 2055.2 17.3 2140.7 18.0 -85.5 0.7 2006 3381.2 21.9 3789.7 21.4 91.5 0.5 2007 6006.6 23.8 6059.5 24.0 -52.9 0.2

168

Table 1.3. Balance of payments of Azerbaijan Republic (m USD)

Year 2007 Current Account 9019

Foreign Trade Balance 15224

Export of goods 21269

Oil and gas sector 20190 Other sectors 1079

Import of goods -6045

Oil and gas sector -1292 Other sectors -4753

Balance of services -2131

Oil and gas sector -1967 Other sectors -164

Out of total services

Transport 56 Construction -1425

Income -5079

Credit (receipts) 331 Debit (payments) -5410

Current transfers 1005

Capital and Financial account -6121

Direct investments (net) -5103

Into the economy of Azerbaijan 4291 Abroad -286 Repatriation of investments -9108

Oil bonus 68

Portfolio and other investments -1086

Change of reserve assets (-increase ; + decrease) -2898

Balance 0

169

Table 1.4. International investment position of the Republic of Azerbaijan (m USD)

Outstanding as of Flows on operations Outstanding as of Dec. 31, 2006 within the reporting Dec. 31, 2007 period and other adjustments A. ASSETS 10195.0 3992.3 14187.3 Direct investment abroad 4390.8 285.6 4676.4 Oil and gas sector 4356.4 262.9 4619.3 Other sectors 34.4 22.7 57.1 Portfolio investments 119.0 110.9 229.9 Other investments 1316.2 585.6 1901.8 Trade credits 948.5 308.7 1257.2 Loans 77.0 142.3 219.3 Monetary authorities - - - Government 14.5 - 14.5 Banks 58.3 112.3 170.6 Other sectors 4.2 30.0 34.2 Currency and deposits 290.7 134.6 425.3 Monetary authorities - - - Government - - - Banks 290.7 134.6 425.3 Other sectors - - - Other assets - - - Reserve assets 4369.0 3010.2 7379.2 B. LIABILITIES 17247.8 -3694.6 13553.2 Direct investment in 11346.5 -4748.9 6597.6 Azerbaijan Oil and gas sector 9180.7 -5181.4 3999.3 Other sectors 2165.8 432.5 2598.3 Portfolio investments 119.4 84.5 203.9 Other investments 5781.9 969.8 6751.7 Trade credits - 163.1 163.1 Loans 5544.0 729.6 6273.6 Monetary authorities 135.0 -34.4 100.6 Government 1266.2 216.2 1482.4 Banks 258.0 665.1 923.1 Other sectors 3884.8 -117.33 3767.5 Currency and deposits 237.9 77.1 315.0 Monetary authorities - - - Government - - - Banks 237.9 77.1 315.0 Other sectors - - - Other liabilities - - - C. Net international -7052.8 7686.9 634.1 investment position (A-B)

170

Table 1.5. Operations in internal currency markets

Total market volume (ths AZN): 6117034.9 (2004); 7281670.9 (2005); 10909477.8 (2006); 15138970.6 (2007)

USD BEST OpIFEM IBT Year volume average volume average purchase sale rate rate 2004 910973.0 4912.8 736552.9 4905.9 2258692.6 1658734.2 2005 807284.0 4722.0 1130188.7 4733.3 2494496.4 2169938.2 2006 1901289.0 0.8843 1268864.7 0.8942 3865420.3 3344508.6 2007 1775882.0 0.8551 2042940.7 0.8560 5939057.5 4393833.5

EURO BEST OpIFEM IBT Year volume average volume average purchase sale rate rate 2004 557.0 6206.5 25435.1 6128.6 145788.5 158289.7 2005 443.0 6119.3 48515.0 5858.3 258086.1 299504.6 2006 438.0 1.1352 100445.6 1.1293 532442.7 575408.1 2007 23806.0 1.1752 247273.8 1.971 905597.9 1006361.3

Great Britain Pound BEST OpIFEM IBT Year volume average volume average purchase sale rate rate 2004 0.0 0.0000 165.3 8983.3 11788.1 11802.0 2005 0.0 0.0000 5373.3 9205.5 10907.1 15565.8 2006 0.0 0.0000 1260.0 1.6582 12501.9 19741.5 2007 0.0 0.0000 14256.6 1.7082 12881.8 25905.8

Russian Rouble BEST OpIFEM IBT Year volume average volume average purchase sale rate rate 2004 21130.0 171.5 1149532.8 171.6 2080004.2 2752702.7 2005 13103.0 166.5 2491161.4 167.3 2363695.8 3516796.3 2006 762.0 0.0326 2089257.0 0.0302 1961057.4 3395937.2 2007 91.0 0.0334 2836664.0 0.0303 2814204.9 5338931.9

Note: Data since 2006, refer to denominated national currency manat (AZN): one AZN is equal to 5000 old manats (AZM).

171

Table 1.6. Consolidated balance of banks (m AZN)

Dec. 31, 2007 Balance items Amount Share in % Assets 1. Cash 285.90 4.25 2. Correspondent accounts 693.12 10.31 3. Loans and deposits to financial sector 287.26 4.27 4. Loans to customers 4393.94 65.33 5. Investments 472.30 7.02 6. Other assets 593.19 8.82 Total assets 6725.71 100.00

Liabilities

1. Deposits 3437.94 51.12 2. Loans and deposits from financial sector 1720.15 25.58 3. Other liabilities 469.51 6.98 Total liabilities 5627.60 83.67

Capital 1098.11 16.33

Total liabilities and capital 6725.71 100.00

172

Table 1.7. General information on credit institutions (m AZN)

Dec. 31, 2007 1. Number of banks 46 State-owned 2 Private banks 44 2. Bank licenses obtained from beginning of year 2 3. Bank licenses revoked from beginning of year - 4. Local branches of banks, including 485 State-owned 125 Private banks 360 5. Number of banks with local branches 41 6. Number of banking sections 94 7. Local representatives of banks - 8. Local representatives of foreign banks 3 9. Banks in the process of liquidation 1 10. Banks completed the process of liquidation from beginning of year - 11. Credit unions, total 77 Licenses obtained from beginning of year 7 Licenses revoked from beginning of year 7 12. Credit institutions from international humanitarian organizations 18 Licenses obtained from beginning of year 2 Licenses revoked from beginning of year - Branches, total 44 13. Other non-bank credit institutions 1 Licenses obtained from beginning of year - Licenses revoked from beginning of year - Branches, total 12

Table 1.8. Grouping of banks according to their cumulative capital

From 3.5m to 5m AZN From 5m to 10m AZN Over 10m AZN Total number of banks Date Number Share in to- Number Share in to- Number Share in of banks tal bank of banks tal bank of banks total bank capitals, in capitals, capitals, % in % in % Dec. 31, 1 0.5 5 4.4 39 95.1 45 2007

173 Table 1.9. Grouping of banks with respect to foreign capital participation (FCP) in their charter capital

Up to 10% From 10% to 20% From 20% to 50% From 50% to 100% 100% Total number of Number Share Number of Share Number of Share Number of Share Number of Share banks with FCP of banks among banks among banks among banks among banks among Date banks banks with banks banks banks with FCP, % with with with FCP, % FCP, % FCP, % FCP, % Dec. 31, 5 8.9 4 5.7 4 12.9 3 26.3 5 46.2 21 2007

Table 1.10. Indicators on selected activities of banks, in %.

Dec. 31, 2007 1. Share of non-bank standard loans among total loans 8.1 2. Share of special loan loss reserves in amount of non-bank standard loans 42.9 3. Share of special asset loss reserves in total assets 2.6 4. Share of net liquid assets in total deposits 39.0 5. Cumulative capital adequacy coefficient 19.9 6. Return on assets (ROA) 2.6 7. Return on equity (ROE) 17.6 8. Interest margin: (interest income / average profit-making assets) – 5.4 (interest loss / average interest liabilities)

Table 1.11. Financial performance of banking in m AZN (from the beginning of the year, after tax)

Banks Total profit in the Banks working Total loss in the bank system Net profit made by working system at loss (loss-making banks only) the banks Period with profit (profit-making banks only)

Dec. 31, 2007 40 132.77 5 3.65 129.12

174

Table 1.12. Classification of banks along areas with available branches

Economic region Dec. 31, 2007 1. Absheron economic region (including the capital city of Baku) 289 - state-owned banks 41 - private banks 248 2. Ganja - Qazax economic region 47 - state-owned banks 15 - private banks 32 3. Sheki – Zagatala economic region 21 - state-owned banks 8 - private banks 13 4. Lenkaran economic region 23 - state-owned banks 9 - private banks 14 5. Quba - Xachmaz economic region 22 - state-owned banks 8 - private banks 14 6. Aran economic region 61 - state-owned banks 28 - private banks 33 7. Upper Qarabagh economic region 2 - state-owned banks 2 - private banks - 8. Kalbajar – Lachin economic region - - state-owned banks - - private banks - 9. Mountainous Shirvan economic region 10 - state-owned banks 5 - private banks 5 10. Nakhchivan economic region 10 - state-owned banks 9 - private banks 1 11. Total 485

175 APPENDIX 2. COMBINED INDICATORS OF AZERBAIJAN BANKS10

Table 2. 1. Ranking by cumulative capital as of Dec. 31, 2007 (ths AZN; 1$/AZN=0.85)

Rank Bank Total capital Market share Charter Net as- Loans Total liabilities Deposits Savings Profit/ (%) capital sets Loss (+/-)

1 IBA 273830 24.94 100000 2600602 1883187 2316828 1603790 373966 51529 2 Bank Standard 72997 6.65 50000 619576 396345 538637 281699 147096 13537 3 Xalq Bank 56105 5.11 53550 212107 155833 150456 137320 79433 1854 4 Unibank 50249 4.58 15000 389613 274147 346511 123263 63829 3645 5 Texnikabank 39148 3.57 26912 354446 240052 311354 205290 92096 11452 6 Kapital Bank 34229 3.12 24000 249466 107514 209555 169303 119379 3059 7 Azerdemiryolbank 29126 2.65 10400 149525 104681 122263 54911 43394 5032 8 Bank Respublika 23648 2.15 12580 249677 155630 229957 111488 68670 5249 9 MFBA 20389 1.86 11000 116935 96773 101150 11841 9713 3599 9(1) AqrarKredit 19023 18535 25862 14350 6364 863 208 10 AGBank 18918 1.72 12000 159594 109445 138068 95421 58215 3596 11 Bank of Baku 18310 1.67 6800 149248 121585 130006 63178 48291 2608 12 Turanbank 15790 1.44 12500 62506 48188 45348 18241 13297 2243 13 Royal Bank of 15720 1.43 15412 56178 33392 40213 22753 18808 87 Baku 14 AtaBank 14854 1.35 11500 110705 61562 96329 93675 49274 2510 15 Bank of Azerbaijan 14463 1.32 10000 92000 74414 76845 35653 27677 3200 16 Industrial Bank of 14247 1.30 10000 80216 14353 64990 51280 33537 1714 Azerbaijan 17 Mugan Bank 13717 1.25 11000 81335 48190 66673 24224 19529 1236

10 Source of Tables 2.1 – 2. 5: the journal “ ”, 1(18) 2007; 1(23) 2008. 176 18 Nikoil Bank 13673 1.25 10000 117093 94748 102269 56659 40124 1705 19 United Credit Bank 13199 1.20 12108 23800 17499 10001 8010 5431 205 20 Kredobank 13180 1.20 12640 26028 15996 12580 4613 2555 311 21 YKBA 12851 1.17 6349 100067 14610 87428 83029 13985 4079 22 Parabank 12339 1.12 9394 41357 20985 30795 18423 15874 384 23 Zaminbank 12254 1.12 11195 92025 47333 56428 23489 19959 501 24 Azer-Turk Bank 11905 1.08 10000 34512 18310 22395 15360 11289 1573 25 Bank Melli Iran 11347 1.03 10001 21570 7535 10178 7997 4131 1163 26 Azerbaijan Kredit 11199 1.02 10205 23667 21835 11779 2726 2652 674 Bank 27 Amrahbank 11158 1.02 9680 49925 38174 37865 28019 19389 1069 28 Ganja Bank 11158 1.02 10000 25772 23588 14286 3291 3032 498 29 NBCBank 11114 1.01 10649 29075 20499 17447 5968 2397 451 30 Azerneqliyyatbank 11032 1.00 10684 20769 15024 9562 9297 7886 132 31 Atrabank 11023 1.00 10075 31551 23587 21374 4912 4912 58 32 Gunay Bank 10780 0.98 10892 22754 18016 11665 8978 8237 -533 33 TDB 10524 0.96 10000 31705 24951 20728 1615 504 128 34 Dekabank 10333 0.94 9594 26337 17145 15596 5601 2942 173 35 Debut Bank 10056 0.92 8462 30671 25908 20246 1854 1750 187 36 Kovsar Bank 10048 0.92 9375 15159 5110 1864 329 92 37 Rabitabank 10015 0.91 7003 75668 49478 63435 36234 23703 14 38 Atlantbank 8762 0.80 8025 11907 5496 3092 2943 10 487 39 Evrobank 6927 0.63 8590 14291 10635 7112 98 55 76

Notes : ° AqrarKredit – the non-bank credit institution, a member of ABA. Absolute indicators are shown without share in market segments. ° Kovsar Bank works on Islamic banking principles and provides no loans and invests assets in securities and other instruments.

177

Table 2. 2. Ranking of banks by assets as of Dec. 31, 2007 (ths AZN; 1$/AZN=0.85)

Rank Bank Net Growth Market share Capital/Assets Loans Consumer Profit/ assets in 2007 (%) (%) (%) (net) Loans (gross) Loss (+/-) 1 IBA 2600602 46.2 38.67 10.53 1883187 209600 51529 2 Bank Standard 619576 241 9.21 11.78 396345 189596 13537 3 Unibank 389613 276 5.79 12.90 274147 144248 3645 4 Texnikabank 354446 262 5.27 11.04 240052 49369 11452 5 Bank Respublika 249677 224 0.00 9.47 155630 63623 5249 6 Kapital Bank 249466 67.6 3.71 13.72 107514 37723 3059 7 Xalq Bank 212107 275 3.15 26.45 155833 8055 1854 8 AGBank 159594 79.9 2.37 11.85 109445 42093 3596 9 Azerdemiryolbank 149525 66 2.22 19.48 104681 35690 5032 10 Bank of Baku 149248 204 2.22 12.27 121585 82762 2608 11 Nikoil Bank 117093 76.7 1.74 11.68 94748 40857 1705 12 MFBA 116935 236 1.74 17.44 96773 11231 3599 13 AtaBank 110705 76.6 1.65 13.42 61562 30095 2510 14 YKBA 100067 69.2 1.49 12.84 14610 1055 4079 15 Zaminbank 92025 207 1.37 13.32 47333 21789 501 16 Bank of Azerbaijan 92000 63.8 1.37 15.72 74414 20233 3200 17 Mugan Bank 81335 201 1.21 16.86 48190 23634 1236 18 Industrial Bank of Azerbai- 80216 284 1.19 17.76 14353 3927 1714

178 19 Rabitabank 75668 70.7 1.13 13.24 49478 17594 14 20 Turanbank 62506 46.1 0.93 25.26 48188 17702 2243 21 Royal Bank of Baku 56178 343 0.84 27.98 33392 29334 87 22 Amrahbank 49925 67.5 0.74 22.35 38174 27614 1069 23 Parabank 41357 63.8 0.61 29.84 20985 15359 384 24 Azer-Turk Bank 34512 33.6 0.51 34.50 18310 5654 1573 25 TDB 31705 3.8 0.47 33.19 24951 1363 128 26 Atrabank 31551 5.4 0.47 34.94 23587 2985 58 27 Debut Bank 30671 57.4 0.46 32.79 25908 1808 187 28 NBCBank 29075 227 0.43 38.23 20499 17700 451 29 Dekabank 26337 47 0.39 39.23 17145 173 30 Kredobank 26028 63.5 0.39 50.64 15996 4250 311 30(1) AqrarKredit 25862 73.56 14350 208 31 Ganja Bank 25772 44.8 0.38 43.30 23588 8435 498 32 United Credit Bank 23800 59.8 0.35 55.46 17499 8996 205 33 Azerbaijan Kredit Bank 23667 0.35 47.32 21835 6252 674 34 Gunay Bank 22754 22.6 0.27 47.38 18016 -533 35 Bank Melli Iran 21570 40.4 0.32 52.61 7535 7220 1163 36 Azerneqliyyatbank 20769 28.4 0.31 53.12 15024 14680 132 37 Kovsar Bank 15159 61.7 0.23 66.28 92 38 Evrobank 14291 35 0.21 48.47 10635 7067 76 39 Atlantbank 11907 48.1 0.18 73.59 5496 5971 487

179

Table 2. 3. Ranking of banks by total loans as of Dec. 31, 2007 (ths AZN; 1$/AZN=0.85)

Rank Bank Loans Consumer loans Loans / Assets Consumer loans/ Share of loans Share of consumer (net) (gross) (%) Loans (%) market (%) loans (%)

1 IBA 1883187 209600 72.41 11.13 41.91 17.22 2 Bank Standard 396345 189596 63.97 47.84 8.82 15.58 3 Unibank 274147 144248 70.36 52.62 6.10 11.85 4 Texnikabank 240052 49369 67.73 20.57 5.34 4.06 5 Xalq Bank 155833 8055 73.47 5.17 3.47 0.66 6 Bank Respublika 155630 63623 62.33 40.88 3.46 5.23 7 Bank of Baku 121585 82762 81.47 16.28 2.71 6.80 8 AGBank 109445 42093 68.58 38.46 2.44 3.46 9 Kapital Bank 107514 37723 43.10 35.09 2.39 3.10 10 Azerdemiryolbank 104681 35690 70.01 34.09 2.33 2.93 11 MFBA 96773 11231 82.76 11.61 2.15 0.92 12 Nikoil Bank 94748 40857 80.92 43.12 2.11 3.36 13 Bank of Azerbaijan 74414 20233 80.88 27.19 1.66 1.66 14 AtaBank 61562 30095 55.61 48.89 1.37 2.47 15 Rabitabank 49478 17594 65.39 35.56 1.10 1.45 16 Mugan Bank 48190 23634 59.25 49.04 1.07 1.94 17 Turanbank 48188 17702 77.09 36.74 1.07 1.45 18 Zaminbank 47333 21789 51.43 46.03 1.05 1.79

180 19 Amrahbank 38174 27614 76.46 72.34 0.85 2.27 20 Royal Bank of Baku 33392 29334 59.44 87.85 0.74 2.41 21 Debut Bank 25908 1808 84.47 6.98 0.58 0.15 22 TDB 24951 1363 78.70 5.46 2.05 0.11 23 Ganja Bank 23588 8435 91.53 35.76 0.52 0.69 24 Atrabank 23587 2985 74.76 12.66 0.52 0.25 25 Azerbaijan Kredit 21835 6252 92.26 28.63 0.49 0.51 Bank 26 Parabank 20985 15359 50.74 50.50 0.47 1.26 27 NBCBank 20499 17700 70.50 86.35 0.46 1.45 28 Azer-Turk Bank 18310 5654 53.05 30.88 0.41 0.46 29 Gunay Bank 18016 79.18 0.00 0.40 0.00 30 United Credit Bank 17499 8996 73.53 51.41 0.39 0.74 31 Dekabank 17145 65.10 0.00 0.38 0.00 32 Kredobank 15996 4250 61.46 26.57 0.36 0.35 33 Azerneqliyyatbank 15024 14680 72.34 97.71 0.33 1.21 34 YKBA 14610 1055 14.60 7.22 0.33 0.09 35 Industrial Bank of 14353 3927 17.89 27.36 0.32 0.32 Azerbaijan 35(1) AqrarKredit 14350 55.49 36 Evrobank 10635 7067 74.42 66.45 0.24 0.58 37 Bank Melli Iran 7535 7220 34.93 95.82 0.17 0.59 38 Atlantbank 5496 5971 46.16 108.64 0.45 0.49

181

Table 2. 4. Ranking of banks by total savings as of Dec. 31, 2007 (ths AZN; 1$/AZN=0.85)

Rank Bank Time deposits Savings / Liability (%) Capital / Savings Market share (%) 1 IBA 264935 11.44 1.03 23.40 2 Bank Standard 121098 22.48 0.60 10.70 3 Texnikabank 75790 24.34 0.52 6.70 4 Xalq Bank 74630 49.60 0.75 6.59 6 Unibank 55056 15.89 0.91 4.86 7 Kapital Bank 54326 25.92 0.63 4.80 8 AtaBank 45323 47.05 0.33 4.00 9 Bank of Baku 42373 32.59 0.43 3.74 10 AGBank 40825 29.57 0.46 3.61 11 Nikoil Bank 37367 36.54 0.37 3.30 12 Azerdemiryolbank 35565 29.09 0.82 3.14 13 Rabitabank 23703 37.37 0.42 2.09 14 Bank of Azerbaijan 20659 26.88 0.70 1.83 15 Zaminbank 19281 34.17 0.64 1.70 16 Amrahbank 18136 47.90 0.62 1.60 17 Industrial Bank of Azerbai- 17900 27.54 0.80 1.58 jan 18 Bank Respublika 16262 7.07 1.45 1.44 19 Parabank 15457 50.19 0.80 1.37 20 Mugan Bank 14714 22.07 0.93 1.30

182 21 Turanbank 8628 19.03 1.83 0.76 22 Azerneqliyyatbank 7860 82.20 1.40 0.69 23 Gunay Bank 7549 64.71 1.43 0.67 24 MFBA 7368 7.28 2.77 0.65 25 Azer-Turk Bank 7077 31.60 1.68 0.63 26 United Credit Bank 3573 35.73 3.69 0.32 27 Atrabank 3472 16.24 3.17 0.31 28 Royal Bank of Baku 3182 7.91 4.94 0.28 29 Ganja Bank 3014 21.10 3.70 0.27 30 Bank Melli Iran 2636 25.90 4.30 0.23 31 Azerbaijan Kredit Bank 2528 21.46 4.43 0.22 32 Dekabank 2498 16.02 4.14 0.22 33 NBCBank 2107 12.08 5.27 0.19 34 Kredobank 1699 13.51 7.76 0.15 35 YKBA 1187 1.36 10.83 0.10 36 Debut Bank 1173 5.79 8.57 0.10 37 TDB 399 2.43 20.88 0.04 38 Kovsar Bank 325 6.36 30.92 0.03

183

Table 2. 5. Ranking of banks by profit as of Dec. 31, 2007 (ths AZN; 1$/AZN=0.85)

Rank Bank Profit Share in total profit (%) 1 IBA 51529 38.81 2 Bank Standard 13537 10.20 3 Texnikabank 11452 8.63 4 Bank Respublika 5249 3.95 5 Azerdemiryolbank 5032 3.79 6 YKBA 4079 3.07 7 Unibank 3645 2.75 8 MFBA 3599 2.71 9 AGBank 3596 2.71 10 Bank of Azerbaijan 3200 2.41 11 Kapital Bank 3059 2.30 12 Bank of Baku 2608 1.96 13 AtaBank 2510 1.89 14 Turanbank 2243 1.69 15 Xalq Bank 1854 1.40 16 Industrial Bank of Azerbaijan 1714 1.29 17 Nikoil Bank 1705 1.28 18 Azer-Turk Bank 1573 1.18 19 Mugan Bank 1236 0.93 20 Bank Melli Iran 1163 0.88 21 Amrahbank 1069 0.81 22 Azerbaijan Kredit Bank 674 0.51 23 Zaminbank 501 0.38 24 Ganja Bank 498 0.38 25 Atlantbank 487 0.37 26 NBCBank 451 0.34 27 Parabank 384 0.29 28 Kredobank 311 0.23 28(1) AqrarKredit 208 29 United Credit Bank 205 0.15 30 Debut Bank 187 0.14 31 Dekabank 173 0.13

184 32 Azerneqliyyatbank 132 0.10 33 TDB 128 0.37 34 Kovsar Bank 92 0.07 35 Royal Bank of Baku 87 0.07 36 Evrobank 76 0.06 37 Atrabank 58 0.04 38 Rabitabank 14 0.01 39 Gunay Bank -533 -0.40

185