RATIONALE RESOLUTION RESULT ANNUAL REPORT 2017 To listen to our clients, to be flexible, fast, simple and convenient, to use modern technologies, and to constantly improve the level of service are the formula for Alfa-Bank’s success. This approach has kept Alfa-Bank at the top of Russia’s private banks for years and results in an increase in its number of clients annually: persons, individual entrepreneurs, and legal entities. ALFA-BANK 2017 Mikhail Fridman Member of the Board of Directors branches and offices 762 employees 25 340 corporate clients 420 000 retail clients 14,4 net profit, USD million* 798 equity, USD million* 6 382 loan portfolio, USD million 28 562 total assets, USD million 44 728 * For the purposes of this report, the term «Alfa- Bank» is used to describe ABH Financial Limited and its subsidiaries. ALFA-BANK’S AWARDS IN 2017 01.2017 03.2017 Move categories, while the Potok Digital online 05.2017 platform, based on the p2b principle of lending, Alfa-Bank named No.1 book-runner amongst Fitch Ratings upgrades outlook on Alfa-Bank’s ranked second in the “Non-Bank of the Year” Moody’s Investors Service upgrades Alfa-Bank’s Russian banks in 2016 ratings from negative to stable category. Baseline Credit Assessment to ba2 from ba3 Alfa-Bank was No.1 book-runner amongst On March 30, 2017, Fitch Ratings upgrad- The Financial Sphere Award consists of 16 On May 24, 2017, Moody’s Investors Service Russian banks and No.4 amongst global actors ed the outlook on Alfa-Bank’s ratings from different nominations for achievements over the upgraded Alfa-Bank’s Baseline Credit Assess- on the CIS syndicated loan market, according negative to stable and affirmed its Long-Term previous year. The award aims to find smart, ment (BCA) and adjusted BCA to ba2 from ba3 to the news agency Bloomberg. Issuer Default Rating at “BB+”. The revision innovative, and progressive solutions to the and affirmed the “Ba2” long-term local- and reflects the agency’s opinion that the pressure standard range of financial toolsand puts them foreign-currency senior unsecured debt and on Alfa-Bank’s asset quality and performance in the spotlight of the professional community. deposit ratings with a “Stable” outlook. 02.2017 has been reduced due to general economic The award recognizes banking and financial The upgrade reflected the agency’s opinion that stabilization in Russia. products as well as solutions and methods for Alfa-Bank’s financial indicators have improved S&P Global Ratings upgrades outlook on Alfa- Alfa-Bank’s ratings, which are the highest their implementation which are either availa- and Moody’s expects them to remain stable in Bank’s ratings from stable to positive amongst Russian private banks, are based ble on the market or designed for banks and the long-term. On February 20, 2017, S&P Global Ratings up- on its well-developed business, substantial financial companies. graded the outlook on Alfa-Bank from stable to clientele, which includes the biggest and most positive and affirmed its “BB” long-term rating. reliable state-run and private companies, strong 05.2017 The agency indicated strengthened capitali- management, and its history of successfully 04.2017 zation of the bank and improved its capital dealing with crises on the Russian market. Alfa-Bank first again in terms of Forex turnover in buffers achieved by the USD 700 mln issue Bank releases best corporate journal, employs best Central and Eastern Europe of perpetual subordinated Eurobonds in late editor Alfa-Bank’s Forex business has been the 2016. The agency believes that Alfa-Bank 04.2017 Alfa-Bank was evaluated positively by corpo- biggest in Central and Eastern Europe for two will demonstrate higher profitability and asset rate media market journals, winning the Best years in a row, according to the annual rating quality than comparable Russian private banks Alfa-Bank leads in Financial Sphere Award Corporate Media 2017 contest. The journal by the Euromoney portal. over the next two years. Alfa-Bank won in 6 categories in the Finan- Alfa-Navigator was elected Best Corporate The bank occupied 23th place in the global cial Sphere Annual Innovations and Financial Journal, and Corporate Media Chief Editor, rating alongside major investment banks and Achievements Award established by the journal Mikhail Ivanov, was named Best Corporate funds. This position reinforces the excellent Bankovskoye Obozrenie (Banking Review). Media Editor. choice made by the bank’s current clients and Mikhail Povaly, ex-member of the Alfa-Bank The contest was hosted by the Russian Associa- offers potential clients new opportunities to Executive Board and Head of Retail Business, tion of Communication Directors and Corporate obtain support from Alfa-Bank for their foreign was named Person of Retail. Alfa-Bank’s Pri- Publishing. More than 150 companies from all economic activity. vate Banking won in the “New Russian Private” over the CIS competed in 20 categories. The The Forex market survey by Euromoney mag- category, which was introduced first time this contest’s expert board comprised authoritative azine is the only acknowledged Forex market year. Irina Elistratova, Director of Alfa-Bank’s BI specialists in the publishing business and rating. Center, was declared the winner in the IT Head corporate PR. category. In addition, Alfa-Bank was victorious in the Reporting Implementation and Marketing ALFA-BANK’S AWARDS IN 2017 ALFA-BANK’S AWARDS IN 2017 06.2017 08.2017 09.2017 09.2017 Private banking clients name Alfa-Private best Expert RA assigns credit rating ruАA to Alfa-Bank Alfa-Bank shareholders, top managers rank highly Alfa-Bank wins Visa international awards for banking brand in 2017, according to Frank On August 29, 2017, RAEX Rating Agency in Top 1000 Russian Managers rating security and focus on clients Research Group (Expert RA) assigned credit rating ruАA to Alfa-Bank’s shareholders and top managers Alfa-Bank won the 2016 Visa Global Service Alfa-Bank was a laureate in the Best Banking Alfa-Bank. The rating outlook is stable. ranked highly in the Top 1000 Russian Manag- Quality Award of the Visa international pay- Brand nomination by private banking clients in This rating more than meets regulatory re- ers rating by the Russian Managers Association ment system for the provision of high-quality 2017, according to the Frank Research Group quirements, including those associated with and the publishing house, Kommersant. operational services to its clients who are research company. the deposition of federal budget funds, which Once again, Member of the Board of Direc- Visa cardholders. For the fourth time in a The survey covered 17 banks controlling 75% requires that a financial entity is rated by both tors, Mikhail Fridman, and Chairman of the row, the bank won in the Best International of the Russian wealth management service. Expert RA and the Analytical Credit Rating Alfa-Bank Group’s Board of Directors ABH Risk Efficiency and Chargeback Effectiveness Frank RG Private Banking Rating is an annual Agency (ACRA). Alfa-Bank was the first sys- Holdings S.A., Petr Aven, were named the categories. Alfa-Bank was named the best one rating of banks offering private banking services temically important bank to receive an ACRA “leading businessmen and managers of strate- among the 21,000 member banks of the Visa in Russia; it is based on a profound analysis rating in November 2016. gic enterprises creating the Russian economy’s international payment system. of major indicators and offers made to wealthy Expert RA believes that Alfa-Bank, a systemi- image.” The Best International Risk Efficiency nomi- clients. A uniform rating of compliance with cally important bank and the largest Russian Alfa-Bank ex-Chief Executive Officer, Alexey nation is based on the minimal ratio of frauds the criteria of the classic wealth management private bank, occupies solid positions in lending Marey, headed the rating of private bank top to the total number of transactions amid the model was presented in 2017. and retail and corporate banking, and surpass- managers. highest number of approved transactions. The es other private banks in terms of individual The Co-Head of Alfa-Bank’s Corporate Invest- winner needs to establish a correct and optimal deposits and retail demand accounts. The ment Bank, Maxim Pershin, ranked second in risk-monitoring mechanism with the best level 07.2017 agency praised the bank’s operating income the relevant rating. of successful transactions. diversification and the high level of operating Leonid Ignat, Alfa-Bank’s ex-Head of Corpo- The Chargeback Effectiveness nomination is Alfa-Bank website named best for small business expenses coverage by net interest and fee and rate Communications, again topped the list based on the processing of client claims relat- by Markswebb commission income. The broad geography of of private bank corporate and public relations ing to transactions and their reimbursement. The Markswebb Rank&Report analytical operations and the bank’s highly diverse cli- directors, and Mikhail Grishin was the best agency assessed the efficiency of Russian entele and corporate loan portfolio by sectors among legal department directors. bank websites as channels for settlement and contributed to the positive rating. The agency Alfa-Bank’s CFO, Alexey Tchoukhlov, ex-Head 09.2017 cash services for small business. The Alfa-Bank also approved of the efficient risk management of Information Technologies, Martin Piletsky, website was recognized as the best for opening system, the high quality corporate governance, ex-Human Resources Director, Shlomit Gru- Alfa-Private named top private bank in Forbes an account. and the positive public credit history, including man-Navot, and Marketing Director, Oksana rating The best website was chosen by three types over a decade of attracting subordinated bonds, Belyayeva, were also listed in the relevant Top Alfa-Bank has been named the top private bank of potential clients: prospective entrepreneurs, as well as perpetual loan participation notes, on 3 ratings.