2009 ANNUAL REPORT the heart of a real work is reflected not so much in the cool and grey figures ........ ................................ as in the vivid, bright, interesting and rich life hidden behind them. 2009ОГЛАВЛЕНИЕ ANNUAL REPORT Annual report of Banking Group ZENIT 2009 CONTENTS 1 ............................................................................................. Statement from the Chairman of the Board of Directors ............... 7 2 ............................................................................................. BaNkiNg grOup ZENiT today ....................................................... 7 2.1 .......................................................................................... Banking group ZENiT — key facts .................................................... 7 2.2 .......................................................................................... History of the Banking group ZENiT ................................................ 9 3. ............................................................................................ COrpOraTE gOvErNaNCE ............................................................ 13 3.1 .......................................................................................... Shareholders .................................................................................... 13 3.2 .......................................................................................... group structure ............................................................................... 14 3.3 .......................................................................................... Corporate governance structure .................................................... 15 3.4 .......................................................................................... Board of Directors ............................................................................ 16 3.5 .......................................................................................... Management Board ......................................................................... 18 4. .................................................................................... OpEraTiONS Of THE BaNkiNg grOup ....................................... 19 4.1 .......................................................................................... Strategy of the Banking group........................................................ 20 4.2 .......................................................................................... review of the russian economy and banking sector in 2009 ...... 25 4.3 .......................................................................................... Summary of the Banking group ZENiT development in 2009 ...... 29 4.4 .......................................................................................... Overview of the group business in 2009 ........................................ 32 4.5 .......................................................................................... Development of the Banking group's regional network ............... 33 4.6 .......................................................................................... Corporate banking ........................................................................... 35 4.7 .......................................................................................... investment banking ......................................................................... 42 4.8 .......................................................................................... retail banking................................................................................... 44 4.9 .......................................................................................... private Banking ................................................................................ 46 4.10 ........................................................................................ risk management ............................................................................ 47 4.11 ........................................................................................ Charity and sponsorship projects ................................................... 49 5. .................................................................................... iT DEvElOpMENT ............................................................................ 52 6. .................................................................................... OrgaNiSaTiONal DEvElOpMENT ................................................ 54 7. .................................................................................... rEfErENCE iNfOrMaTiON ........................................................... 56 7.1........................................................................................... Main foreign partner banks............................................................. 57 7.2........................................................................................... list of licences and participation in associations, ..............................................................................................partnerships and organisations...................................................... 58 ....................................................................................... OJSC Bank ZENiT.............................................................................. 58. ....................................................................................... JSB Devon-Credit (OJSC) ................................................................. 60 ....................................................................................... OJSC lipetskkombank...................................................................... 61. ....................................................................................... Bank ZENiT Sochi llC...................................................................... 62 ....................................................................................... OJSC Spiritbank................................................................................ 62 8. .................................................................................... fiNaNCial STaTEMENTS ............................................................... 63 8.1 .......................................................................................... Consolidated Statement of income ................................................ 64 8.2 .......................................................................................... Consolidated Balance Sheet............................................................ 65 8.3 .......................................................................................... Consolidated Statement of Changes in Equity ............................... 66 8.4 .......................................................................................... Consolidated Statement of Cash flows .......................................... 68 9. .................................................................................... liST Of SuBDiviSiONS Of THE BaNkiNg grOup ZENiT........... 70 9.1 .......................................................................................... OJSC Bank ZENiT ............................................................................. 71 9.2 .......................................................................................... JSB Devon-Credit (OJSC) ................................................................. 75 9.3 .......................................................................................... OJSC lipetskkombank ..................................................................... 77 9.4 .......................................................................................... Bank ZENiT Sochi llC ..................................................................... 79 9.5 .......................................................................................... OJSC Spiritbank ............................................................................ 80 Annual report of Banking Group ZENIT 2009 Dear shareholders, partners and colleagues! Presenting the Banking Group ZENIT 2009 Annual Report, Securing of these funds presented the opportunity to re- I am pleased to note that despite all of the challenges faced ceive a subordinated loan from Vnesheconombank under by the national and global financial systems, the position the Federal law “On additional measures to support the of the Group remains solid. We managed not just to retain financial system of the Russian Federation”. our customer base and strengthen our market positions, but we also successfully improved them in a number of cases. Twice, in March and November 2009, the rating agency STaTEMENT Such a positive assessment is applicable to the activities Fitch Ratings confirmed the Long-Term Issuer Default Rating of every participating bank of the Banking Group ZENIT. and National Long-term Rating at the level “B+”/”A—(rus)”. In April 2009, the rating agency Moody’s Investors Services In summary, I can note that 2009, just as previous years, confirmed the “Ba3” Long-term global local and foreign was profitable — the net profit of the Group increased by 77% currency deposit ratings. frOM THE and amounted to 2.1 billion rubles. The total capital of the Banking Group increased significantly — by 30% — reaching The Group mainly focused