ANNUAL REPORT 2013 · A Letter From Management For more than 20 years TransCapitalBank has progressed and ... We also express our gratitude to the TransCapitalBank team for their

Wings of opportunitiesANNUAL REPORT 2013

We got wings 20 years ago by founding the Bank. Now we made them the symbol of our renewal. They give us strength to fly and see more than others from the height. They provide speed and freedom of manoeuvres. They fill us with confidence and drive. They present an opportunity to look far ahead. We welcome you to share the exciting feeling of flying with us! Because our Bank is the wings that allow people to rise above the circumstances, to plan and open new horizons.

What is the most important thing in business? Intelligence? Willpower? Heart?

W I N G S

1

4 A LETTER FROM MANAGEMENT 10 KEY FINANCIAL FIGURES 12 TransCapitalBank AT THE FINANCIAL SERVICES MARKET 13 KEY EVENTS IN 2013 16 2014 Development Strategy 19 RISK MANAGEMENT 24 CORPORATE BUSINESS 30 WORK WITH SMALL AND MICRO BUSINESSES 32 RETAIL BUSINESS 40 INTERNATIONAL BUSINESS 44 COOPERATION WITH FINANCIAL INSTITUTIONS 48 TransCapitalBank IN THE SECURITIES MARKET 50 REGIONAL DEVELOPMENT 52 INFORMATION TECHNOLOGIES 53 HR POLICY 56 SOCIAL RESPONSIBILITY 60 FINANCIAL STATEMENTS 66 BRANCHES AND OFFICES

Wings of opportunitiesANNUAL REPORT 2013

Dear stakeholders!

Welcome to the TransCapitalBank 2013 Annual Report. You will undoubtedly notice that this report differs quite significantly from our traditional approach. This report not only presents the results and achievements of the last year – it also introduces our new brand, which is a reflection of the Bank’s plans and how we view our future.

TransCapitalBank’s rebranding is far more than just a new logo. This is an important new stage of our growth, one that requires constant improvement and renewal. It is the synergies between the our years of experience, new possibilities, ambitious goals and breathtaking possibilities. Finally, it is a continuation of the changes (improvements!) that are taking place on a daily basis in our Bank.

A Letter From Management

For more than 20 years TransCapitalBank has progressed and grown together with its clients. We intend to maintain this same vector of development in the future, which is why we never rest on our laurels and are constantly looking for new possibilities. Three years ago we took our first steps into the mass retail market, while in our traditional corporate banking business we started to assign clients to different segments and develop our small- and micro-sized business banking practice. Our bank has consistently expanded its client audience, offering new solutions and relevant products. We made important achievements in our regional business, in information technologies, in client service and marketing, to name just a few. These were all major changes that required significant changes in our business processes, in our operating model, and in service standards. Rebranding is the next logical step in this process, as it represents a further advance through constant change.

Olga Gryadovaya,Chairman of the

Management Board

Boris Kazakov,Chairman of the

Board of Directors

TRANSCAPITALBANK 2013Wings of opportunities

54

What does TransCapitalBank’s new logo signify? It is based on the image of a bird, which symbolises flight and upward movement. In developing this logo, we sought to reflect our current values of creativity, momentum and inspiration, while at the same time underscoring our readiness to conquer new heights. We already have all the necessary resources at hand to continue our successful flight and to reach higher altitudes: diversified funding sources, a broad product offering for various client segments, a team of professionals, experience and drive. Our long-term universal banking strategy involves strengthening those areas that hold the greatest potential for growth: small- and medium-sized business banking, mortgage lending, as well as fee and commission and other products. We continue to refine our banking technology and offer our clients relevant solutions that are comfortable for them, that help our clients achieve their goals while the bank grows together with them. Year after year, in any situation, no matter what the weather.

Our confidence in our future success and possibilities goes well beyond words. Our results, including for the last year, prove that we have chosen the right strategy and that we are on the right track. In 2013, despite the challenging economic situation, TransCapitalBank has once again confirmed its position as one of the most successful non-state banks in the country that enjoys continued sustainable growth. We have many interesting and important events to talk about. In this report, we will tell you about what we achieved from a financial standpoint, but we will also focus on other achievements that are of principle importance for our continued growth.

We look forward to the new challenges and goals that the Bank faces in 2014. Despite the natural limitations presented by the

absence of economic growth, we plan to continue to develop all of our core business lines and intend to solidify our position among Russia’s top-50 banks.

On behalf of the Bank we want to thank our shareholders, clients and partners for their trust, cooperation and support. We also express our gratitude to the TransCapitalBank team for their professionalism and commitment. We are confident that together we can achieve all of our plans and fulfil the goals we have set for 2014.

Olga Gryadovaya,Chairman of theManagement Board

Boris Kazakov,Chairman of the Board of Directors


76

98

Wings of opportunities

T H E W I N G S G I V E U S C O N F I D E N C E

2011 2012 2013

Structure of intereSt income, %

Loans and advances to customers 90,2 92,4 92,6

Due from other banks 0,6 0,7 0,5

Debt trading securities 9,2 6,9 6,8

Held-to-maturity investments 0,0 0,0 0,1

Structure of intereSt expenSe, %

Clients’ accounts 57,0 60,7 59,0

Issued securities 14,7 10,1 12,5

Term placements of other banks 18,3 20,1 20,4

Subordinated debt 10,0 9,1 8,1

Structure of Bank assets as of 01.01.2014 (%)

2011 2012 2013

51,5

51,6

55,6

Key Financial Figures

Structure of Bank’s borrowed funds as of 01.01.2014 (%)

01.01.12 01.01.13 01.01.14

83,1

98,0

Loan portfolio, (%) (billion roubles)

Assets (billion roubles)

Operating expenses to income ratio, (%)

Client funds, (%) (billion roubles)

108,

3

11 %

01.01.12 01.01.13 01.01.14

67,0

69,8

88,3

27 %

Share capital and total capital (billion roubles)

01.01.12 01.01.13 01.01.14

102,

2

115,6

140,

9

22 % Share capital Total capital

01.01.12

2,4

15,8

01.01.13

2,4

19,5

01.01.14

2,5

21,1

8 %

3 %

Loans and advances to customers Cash and cash equivalents Trading securities Fixed assets Other

Customer accounts Due from other banks Debt securities in issue Subordinated debt Equity Other

72,312,9

12,3

0,81,7

14,411,3

11,4

4,757,8

0,4


1110

Key Events in 2013

TransCapitalBank was ranked among the top-1000 banks in the world by Basel capital standards (source: The Banker).

Expert RA raised TransCapitalBank’s credit rating to A++ “Exceptionally high (highest) level of creditworthiness” with a stable outlook.

Moody’s Investor Service confirmed TransCapitalBank’s long-term credit rating of B1 / Stable. TransCapitalBank’s national scale long-term credit rating was also confirmed at A1.ru.

The Bank won “Bank of the year for mortgage lending” at the Financial Elite of Russia awards ceremony.

The Bank completed its debut securitisation of mortgage loans totalling RUB 4.4 billion, becoming the first bank in Russia to use a new excess mortgage insurance scheme.

The Bank launched TCB Express – a new mobile and internet-bank for retail clients.

The Bank became a principal member in the MasterCard system.

The Bank signed a loan agreement with the European Bank for Reconstruction and Development (EBRD) to attract medium-term financing as part of the Russian Sustainable Energy Financing Facility (RuSEFF) to the amount of RUB 1,160 million, including RUB 750 million that TransCapitalBank will use to provide its first ever loans to energy efficient projects in the housing sector (The RuSEFF Programme «Warm Life»).

Corporate Business

Bank loans to large and medium-sized businesses Documentary operations Trade and project financing Deposits and cash management services Leasing Factoring

Small and micro business

Micro and small business lending Special programmes for lending to individual entrepreneurs and business owners Cash management services Overdrafts Acquiring Cash collection Consulting

Retail business

Retail lending Deposits Debit and credit cards Payments Internet and mobile banking Brokerage and custody services Private Banking

TransCapitalBank is a full-service bank providing a wide range of banking services to legal entities and individuals in 20 regions of the Russian Federation.

TransCapitalBank at the Financial Services Market


12

TransCapitalBank 2013

13

The Bank started to cooperate with the Housing Construction Finance Agency (a subsidiary of the Mortgage Housing Credit Agency) as part of a housing construction and purchase stimulus programme.

The Bank regularly receives various professional awards and ratings:

The International Finance Corporation (IFC) mobilized a EUR 20 million loan from the International Investment Bank (IIB) for TransCapitalBank to finance energy efficient projects. This was the first time that the IIB participated in lending to a private Russian bank.

The Bank signed a USD 50 million loan agreement with the International Finance Corporation (IFC) to develop lending to energy efficient projects for SMEs, and to finance female entrepreneurship (the first such project in Russia).

With the support of the International Finance Corporation (IFC) the Bank attracted a EUR 116.5 million syndicated loan from a consortium of 15 foreign banks to provide working capital financing to SMEs in Russia’s regions.

The Bank successfully placed its BO-02 series exchange-traded bonds with a par value of RUB 2 billion a one-year put option. The coupon rate was set at 9.7% per annum.

Industrial and Commercial Bank of China (ICBC), the largest bank in the world in terms of market capitalization and assets, established a limit for TransCapitalBank to conduct interbank lending transactions and to arrange for trade financing transactions.

TransCapitalBank was included in the l Russian Federation Government’s list of banks where starting from 1 January of 2014 the operator of an electronic trading platform opens accounts to register monetary funds deposited by purchasing participants as bid collateral.

The Bank considerably increased the volume of its cooperation with SME Bank under the government programme for SME lending. Three loans for «Refinancing of non-commercial sector» amounting to RUB 515 million, three loans for «FIM Tzelevoi» (Targeted Financial Instrument) amounting to RUB 515 million and two loans for «MSP Maneuver» (SME Maneuver) amounting to RUB 300 million were issued. A credit line of RUB 400 million was opened for the «Factoring-Bank» product.

Top 5 issuer of mortgage loans collateralized by the borrower’s existing real estate (source: RBC)

Top 10 most reliable among Russia’s largest 100 banks (Prof ile magazine)

Top 10 large bank lending to small- and medium-sized enterprises (sources: Expert RA and RBC)

Top 15 bank by volume of mortgages issued and size of mortgage loan portfolio (source: RBC)

Top 15 by size of factoring portfolio (sources: Association of factoring companies, Prof ile magazine)

Top 15 by number of owned payment terminals in Russia (source: RBC)

Top 15 by volume of cash collections (source: Interfax research on cash collection services sector in Russia)

Top 30 by corporate lending (sources: Prof ile and Expert)

1514

TransCapitalBank 2013Wings of opportunities

• Continue to grow assets in line with Russian banking sector asset growth.

• Increase corporate loan portfolio, with a focus on high-quality borrowers.

• Expand lending to micro-enterprises by implementing new technologies and optimising product line to meet needs of this audience.

• Grow retail loan portfolio, including mortgages and consumer loans, by continuing to expand product line while actively promoting the Bank’s products. The main

growth driver for retail lending will continue to be mortgage lending.

• Open the Bank’s first Mortgage Centre in Moscow.

• Expand line of mortgage products to meet the needs of a wider range of clients.

• Continue to develop securitisation of mortgage loans.

• Maintain programme to purchase mortgage portfolios from other credit organisations that was launched in 2013.

2014 Development Strategy

In 2014 TransCapital Bank will continue to develop its core businesses by expanding the products and services that we offer. The key areas for growth that the Bank has identif ied include micro-, small- and medium-sized business banking, as well as further developing our retail banking business – primarily in mortgage lending. Our traditional priority remains developing business in Russia’s regions.

• Continue development of bank guarantee business for business involved in foreign trade and for stable enterprises working on domestic markets: payment guarantee; contract fulfilment guarantee; tender and customs guarantees, including for SMEs.

• Maintain high growth rate for factoring portfolio, securing presence on this market by expanding regions where product

is offered and growing client base, as well as by developing services offering, increasing product line and improving IT platform. The Bank will develop its existing factoring business of recourse factoring, non-recourse factoring and electronic factoring, as well as promising new types.

• Continue to support financing of energy efficient projects for Russian businesses together with the IFC and EBRD.

• Continue cooperation with MCP Bank for long-term financing and factoring services for SMEs.

Main goals:

Implement new mortgage product for potential partner banks, offering ref inancing with mandatory buyout.

Raise international f inancing through the EBRD’s Trade Facilitation Program to develop factoring operations.


1716

• Continue to develop leasing business, including by increasing share of operations with leasing subsidiary.

• Expand scope of plastic card services and products while minimising card transaction risks.

• Optimise regional network costs by centralising certain functions and processes.

The major task of the risk management in TransCapitalBank is to provide for the set relation between profitability, stability and liquidity. For this purpose TransCapitalBank worked out a system of regulations and procedures to manage banking risks identified by the Bank. Besides, the system of decision-making and delineation of authority was built to provide for the appropriate work of the risk management system. Risk management is performed at all management levels: by the Board of Directors, Chairman of the Management Board of the Bank, the Management Board of the Bank, collective bodies of the Bank – committees, Risk Management Service, Internal Control Service and divisional managers.

The Board of Directors, executive bodies, collective bodies (committees) of the Bank receive, on a regular basis, necessary and sufficient information about risk levels, their influence upon capital adequacy, the facts of excess of risk over the established risk levels: violation of limits and restrictions, established procedures, stress-testing results.

According to risk management strategy, to enhance control and dynamic response to the whole range of internal and external

Risk Management

Management of banking risks (risk management) is one of the major instruments to implement TransCapitalBank’s development strategy. Risk Management System embraces all lines of the Bank’s activities, applies to decisions taken at all levels: from strategic decisions to operative tasks.

Launch new programme for financing of female entrepreneurs together with IFC.

Expand functionality of distance banking services to provide maximum level of comfort for clients. The Bank will offer new functions for depositors and borrowers through the TCB Express internet and mobile banking system. We plan to start offering money transfers through our terminal network, as well as the option to open or close deposits and an expansion of the list of payment recipients.


1918

risks on the part of TransCapitalBank’s shareholders, the Board of Directors includes two committees: the Audit and Risk Committee and the Corporate Governance and Remuneration Committee.

The following committees have been created and are operating on a permanent basis in TransCapitalBank:

participates in management of credit risks (in terms of the overall assessment of the credit process, regulation of branch and regional diversification of loan portfolio), market risks, operating risks and liquidity risk;

is authorized to develop and implement current and long-term credit policy and performs the following basic functions:

• taking a decision to issue (extend) loans;

• taking a decision to form the structure of the loan portfolio;

• taking a decision on bad loan indebtedness and loans with deteriorating financial position;

• taking a decision on enforcement of pledge;

• taking a decision to grant loans to borrowers in branches.

Part of the Credit Committee’s functions are assigned to small credit committees and credit commissions;

The Risk Management Committee

The Credit Committee

generates and implements the credit risk management policy for issuing banks and counterparties;

is authorized to arrange and coordinate the budget process to complete strategic and operational targets for capital management;

provides the implementation of a unified tariff policy;

is authorized to develop and implement information security strategies;

is purposed to improve the IT infrastructure and business processes.

In the course of formation and improvement of the bank risk management system, TransCapitalBank takes into account the requirements and recommendations of the Bank of Russia; the shareholders, including the European Bank for Reconstruction and Development (EBRD), DEG (Deutsche Investitions und Entwicklungsgesellschaft mbH) and International Finance Corporation (IFC); the best world practice in the field of risk management; and recommendations of the Basel Committee on Banking Supervision.

TransCapitalBank seeks to perform qualitative and quantitative evaluation of all risks and aggregate quantitative assessments of indentified risks to specify the total volume of risk.

The Limit Committee

The Budget Committee

The Tariff Committee

The Information Security Committee

The Technological Committee


2120

2322


T H E W I N G S G I V E U S P E R S P E C T I V E S

The dynamics of the Bank’s corporate loan portfolio in 2013 was stipulated by the complicated market situation against the background of the high level of competition, including competition on the part of national banks. The past year trends, which included decreasing consumer demand for borrowed funds and increasing costs of credit resources for all types of borrowers, were supplemented with the trend of transfer of major corporate clients to TOP-5 banks. This phenomena occurred, inter alia, due to consolidation of companies and toughening of requirements for account banks.

Despite the tough market conditions and decreasing market volume, the increase of the Bank’s corporate loan portfolio amounted to 4% and reached 84,5 billion roubles according to the results of the year. The major growth occurred thanks to corporate clients, including SME clients making more than 50% of the portfolio.

Corporate Business

The list of main tasks of TransCapitalBank’s corporate business in 2013 included the selective growth of the loan portfolio and planned improvement of its quality, arrangement of complex work with current clients, and attraction of new clients capable of cross-selling. According to the results of the year the number of Bank’s corporate clients exceeded 37,5 thousand companies.

Structure of corporate clients’ loan portfolio by industry as of 01.01.2014

Trade (38,2 %) Industry (21,2 %) Autodealing, repair and servicing (7,6 %) Construction (6,9 %) Energy (5,7 %) Development (5,6 %) Service companies (4,4 %) Construction of infrastructural objects (3,1 %) Leasing companies (2,4 %) Agricultural (1,8 %) Transport and communications (1,5 %) Investment companies (0,7 %) Other (1 %)

21,2

7,6 6,9 5,75,64,43,1

38,2

29,8

33,7

Number of corporate clients (thousand items)

37,5

2011

2011

2012

2012

2013

2013

24,6

30,6

Guarantees to corporate clients (billion roubles)

31,7

Loan portfolio of Bank’s corporate clients (billion roubles)

Loans to large corporate clients Loans to SMEs Loans to legal entities (total)

Borrowed funds of Bank’s corporate clients (including issued securities) (billion roubles)

20,5

20,7

22,1

20,4

26,5

45,9

43,2

54,7

Current/settlement accounts Term deposits Funds of entities

3 %

11 % 27 %

4 %

7 %

10 %

43 %

01.01.12 01.01.13 01.01.14

33,2

38,4

71,6

01.01.12

35,4

46,1

81,5

01.01.13

38,8

45,7

84,5

01.01.14

18,5


2524

Development of non-credit products to meet diverse client demand was among the Bank’s major priorities. One of the key directions was granting of bank guarantees. In 2013 the portfolio of corporate clients’ bank guarantees exceeded 31.7 billion roubles.

To preserve the high quality of the loan portfolio, the Bank traditionally used all the available instruments: building up of collateral security, suretyship, guarantee, agreement to transfer turnovers and to make settlements via Bank accounts; imposing financial covenants and restrictions and exercising control over the fulfillment and observance thereof. The Bank performed planned work to decrease bad or potentially bad debt within the framework of standard procedures for early detection, prevention and settlement of such obligations. As a result, during the whole accounting period the quality of the corporate loan portfolio was sustainably improving.

48.6 billion In the accounting period, corporate funds increased by 24% and amounted to 48.6 billion roubles by the end of the year 2013, including term deposits that showed higher-than-anticipated growth as compared to overall market trends, - the share thereof increased up to 54%.

In 2013, factoring portfolio grew by 36% up to 4 billion roubles. The income of the Bank increased by 14% up to 0.4 billion roubles. Factoring was developed through attracting new clients as well as increasing the limits for the current clients.

Factoring

Cross-sells to the Bank’s clients served as one of the major attraction channels. This direction was also developed due to expansion of regional presence. As the low level of client awareness of the factoring opportunities in the regions is the main factor that holds its development, the Bank popularizes it steadily in the regions. In 2013, the Bank started to cooperate with the companies, located in the Altai region, the Republics of Mordovia and Komi, in the Kursk, Novosibirsk, Leningrad and Bryansk regions.

In 2013, the Bank’s client portfolio was significantly diversified in terms of factoring. Traditionally the majority of clients belonged to the trade sector. At the same time, the Bank developed factoring in the industrial sector (in particular, in metallurgy industry and food industry), construction (engineering and operation of power facilities, construction of oil-transfer pumping stations) and in other spheres.

During the reporting period, the amount of factoring to SMEs essentially increased and the amount of the factoring portfolio for transactions with SMEs almost doubled, from 0.7 billion roubles at the end of 2012 to 1.2 billion roubles at the end of 2013, accordingly.


2726

In 2013, the Bank successfully implemented electronic factoring, enabling suppliers and purchasers to switch to electronic flow of documents using electronic digital signature that is relevant in law. The technology makes it possible to reduce the time limits for document circulation and to receive financing within several days or even several hours; to essentially reduce costs of production, circulation and further custody of documents; to provide for the genuineness of documents owing to the use of the qualified digital signature. Factoring of lease payments and reverse factoring were also successfully introduced in the Russian market where reverse factoring has the potential.

In the accounting period the Bank joined the «Factoring-Bank» programme of SME Bank for financing of SMEs within the credit line of 300 million roubles.

Cash Collection

In the past year, cash collection became one of the most important commission directions of the Bank activities and the essential factor of the Bank’s successful business with trading companies.

In 2013, the Bank entered the market of outsourcing services for credit institutions and their clients. According to the results of the year, the amount of cash collection doubled, which placed the Bank among TOP-15 credit institutions involved in cash collection in Russia.

1. 1 billion Diversif ication of the factoring products enabled the Bank to increase the non-recourse factoring turnover, which in 2013 grew up to 6.9% and amounted to 1. 1 billion roubles.


2928

The Bank grants loans with a wide range of opportunities for the use of funds – from special-purpose loans for acquisition of real estate or transport to loans for investments in business development. Lending is provided in different forms - from one-time loan granting to opening of a credit line and overdraft lending.

To completely satisfy the demand for borrowed funds, in 2013 small businesses were offered a new product line that envisaged unsecured express credits, working capital loans and the group of special-purpose loans for acquisition and modernization of fixed assets. These offers already proved the demand among the target audience, in the accounting period 57% of loans were granted to acquire fixed assets.

Special attention was paid to the development of microlending in the regions. The entrepreneurs can go to any branch of the Bank, and, according to the results of the year 2013, transactions executed outside Moscow made 87% of the loan portfolio of small and micro businesses.

Along with granting loans to micro and small businesses, the Bank offers servicers in the sphere of guarantees, leasing, factoring, international business (in particular, trade and project financing), cash and settlement service, acquiring, cash collection and consulting.

Work with Small and Micro BusinessesWork with small and micro businesses is one of the major directions of the Bank’s strategy. A wide range of products and services aimed at the solution of the maximum number of business tasks is offered to entrepreneurs.

To optimize technological processes, in 2013, the Bank switched to the new operating model that envisages different approaches to rendering services and analyzing financial condition of small and micro clients. The model enabled the Bank to considerably improve the quality and velocity of services rendered to clients.

In 2013, the Bank implemented the new module Oracle Siebel CRM - the credit conveyor was launched for small and micro enterprises and enabled the Bank to essentially facilitate loan application procedure and to make cooperation between related divisions more efficient. These changes give the Bank new opportunities for implementation of mass lending technologies.

In the accounting period the Bank continued to cooperate with SME Bank that implements the programme for state support of SMEs over the whole country and provides, inter alia, a long-term fixed-rate financing. The programme envisages as well an opportunity to use guarantees of SME Bank, which makes it easier for enterprises to obtain loans in commercial banks.

At the same time, the Bank continued to cooperate with regional funds for entrepreneurship support that can act as guarantors of liabilities undertaken by micro and small businesses.

Structure of loan portfolio for small and micro businesses by industry as of 01.01.2014 (%)

Structure of loan portfolio for small and micro businesses by intended purpose as of 01.01.2014 (%)

Trade Construction and real estate Production Transport services Other

Acquisition of fixed assets Replenishment of working capital Express-credit

54,3

17,011,17,1

10,5

34,7

8,0

57,3


3130

Number of clients – individuals (thousand items)

01.01.12

212,

6

01.01.13

246,

4

01.01.14

282,

5

15 %

Considerable attention was paid to the development of remote banking service. In 2013, the Bank put into operation TCB Express - system of Internet and mobile banking. Using TCB Express, the clients can make payments and transfers, manage their loans and deposits, control their personal accounts in the Bank, make a number of other operations on-line around-the-clock. In future functions of TCB Express will be systematically enlarged.

Retail Business

In 2013, the Bank made substantial progress in the development of retail business in all regions of its presence. According to the results of the year, the increase of the retail loan portfolio amounted to 44% or 7.32 billion roubles. In addition, the average market index reached 28.7%. The total number of clients – individuals increased by 15% as compared to the year 2012 and amounted to 282 500.

Loan portfolio of Bank clients – individuals (billion roubles)

01.01.12

11,5

01.01.13

16,5

01.01.14

23,8

44 %

Borrowed funds of Bank clients – individuals (billion roubles)

01.01.12

21,0

01.01.13

26,4

01.01.14

32,9

25 %

Twenty-four-hour contact centre of the Bank enlarged the list of services that can be provided in real time mode. Now it includes execution of preliminary loan application procedures, complete support to users of TCB Express and a number of other options. Besides, in the past year the Bank updated its Internet website and made it more informative and easy-to-use. For the clients’ convenience on-line application forms for credit products and forms of feedback were added to the website.

Retail Lending

Priority attention is paid to the development of mortgage, which is a flagman product in TransCapitalBank’s retail business strategy. Mortgage products have been the principal driver of Bank’s retail loan portfolio growth in 2013.

During the year, the Bank continued to improve client offers thorough analysis of the demand, the market situation, price and other parameters of credit programmes, etc. As a result, the mortgage line of the Bank was balanced according to the results of the year so that it should satisfy practically all demands of a potential borrower. The Bank grants loans to acquire real estate at the primary, secondary and out-of-town residential markets; to purchase a whole apartment (house) or a separate room.

53 %During the accounting period, the mortgage portfolio increased by 53%, while the average market f igure amounted to 34%. The lending amount increased by 30%. Consequently, in the accounting period the Bank managed to considerably enhance its positions among TOP-15 leading banks in the national mortgage market.


3332

01.01.13

24,3

26,42,1

To additionally stimulate client demand, in 2013 the Bank launched «12Х24» offer, under which a mortgage is provided for the term up to 24 years with the interest rate of 12% per annum in roubles with minimum down payment of 20%. The offer was made in all regions of the Bank’s presence.

In December 2013, the Bank performed a debut securitization of its mortgage portfolio for the total amount of 4.4 billion roubles. It enabled the Bank to additionally diversify the funding base. The borrowed funds were used for further development of mortgage lending.

In 2013, the Bank piloted the project for the purchase of mortgage loans of other banks, and the Bank plans to develop this project in 2014.

Apart from mortgage, the Bank continued to work with other credit products and enlarged the assortment and adjusted it to the changing needs of the clients.

In 2013, the Bank started to grant consumer unsecured express credits to all retail clients. The loan approval is made within an hour. Another new offer was the «Educational loan» for the first and the second university education.

The car lending line was supplemented with «Autopilot» programme, under which a loan is issued in cash to acquire a car in any car dealership. The loan is granted at the interest rate of a consumer credit and after the client submits the vehicle registration certificate, the interest rate is reduced to the level of the car loan.

Consumer lending Mortgage lending Car lending

Dynamics of consumer, mortgage and car loan portfolio of individuals (billion roubles)

53 %

29 %

01.01.14

4,9

17,6 1,0

01.01.13

3,8 11,5 1,1

01.01.12

5,0 5,4 1,0

Borrowed funds of Bank clients - individuals (billion roubles)

25 %26 %

7 %

Current/demand accounts Term deposits Funds of individuals01.01.12

18,9

21,02,

101.01.14

30,6

32,92,

3


3534

Deposits

By the end of 2013, the total amount of retail customer accounts increased up to 32.9 billion roubles. Dynamics of 25% growth as compared to the year 2012 exceeded the average market rate, which amounted to 19.1%.

Such results could be achieved due to the balanced marketing approach and the quality of offered products. Within the year, the Bank quarterly furnished its potential depositors with a new seasonal offer with the up-to-date interest rate and favourable terms, including the option between monthly interest accrual or capitalization, an opportunity to replenish the account or to partially withdraw money without loss of interest.

Plastic cards

Issue. In 2013 the Bank actively issued pay cards, overdraft cards and overdraft cards with a grace period. The Bank continued to launch the projects aimed at the implementation of new technologies. To promote card products, the corporate sales channel was actively used, salary and wages projects and projects with insurance companies were developed. At year-end 2013, the amount of plastic cards increased by 26% and exceeded 115 thousand items.

In 2013, the Bank started to issue plastic cards with contact and non-contact chip within Visa International Payment System. The technology makes it possible to provide for additional level of security when payments are made in sales and service networks and when money is withdrawn from ATMs.

In the reporting period TransCapitalBank became the first Russian credit institution that implemented the innovative service – insurance co-brand on the basis of prepaid cards.

In 2013, the Bank became a Principal Member of MasterCard system, and completed integration in Visa International System. Joint projects with insurance companies were further developed: at year-end 2013 TransCapitalBank served most of 10 largest insurance companies in the country.

Bank Acquiring. In 2013 bank acquiring operations turnover increased by 34% as compared to thу year 2012.

Self-service network: ATMs and POS-terminals

During the year 2013, the Bank’s own network of plastic card terminal devices increased by 30% as compared to the previous year and amounted to 631 units. TransCapitalBank was ranked the 11th in the «Rating of banks for the number of bank’s own transaction and payment terminals in Russia as of 1 July 2013» according to RBC.

01.01.12

78,1

01.01.13

92,1

Number of issued bank cards (thousand items)

01.01.14

115,6

26 %

01.01.12

5 43

5

01.01.13

8 47

3

Trade acquiring turnovers (million roubles)

01.01.14

11 35

1

34 %

Payments to more than 750 payees were accepted through the terminal network of the Bank, turnover increased four-fold compared to the previous year.


3736

3938


T H E W I N G S G I V E U S F R E E D O M

In addition, the European Central Bank, being afraid of the recession in the Euro-zone economies, continued to carry out measures of quantitative mitigation (LTRO) and to implement policy of low interest rates. As a result, the volatility at the international financial markets increased to a great extent, and the capital outflow from developing economies, including Russia, began to show an upward trend. The year 2013 was characterized by the overall economic growth retardation in emerging markets (and, as a consequence, decline in demand for credit resources from corporate sector) and revival of hopes for renewal of economic growth in the developed countries.

Despite the tough scenario, in 2013, the international business of TransCapitalBank carried on to develop successfully.

The reputed international financial institutions, including Citibank, Deutsche Bank AG, RBS, BNP-Paribas, UBS AG, Commerzbank AG, Credit Suisse AG, Nordea Bank, Intesa Sanpaolo SpA, UniCredit Group, Standard Chartered, ING Bank N.V., Raiffeisen Bank International AG and others, support the TCB’s activity in the Trade Finance area.

In 2013, Industrial and Commercial Bank of China (ICBC) and Societe Generale Group which are the members of the major world banks community - joined the aforesaid financial institutions. They are ready to take up the Bank’s

uncovered risk in financing of the foreign trade transactions of TransCapitalBank’s clients.

To enhance the competitiveness of its own products in the Trade Finance area, TransCapitalBank signed a bilateral framework loan agreement with Citibank to attract the short-term loans in russian roubles for the further financing of the foreign trade operations of the Bank’s clients.

The cooperation with the national export credit agencies (ECA) from OECD countries, including German Euler Hermes, Italian SACE, Austrian OeKB, Polish KUKE, Dutch ATRADIUS, Swedish EKN, Canadian EDC, American US Ex-Im Bank and others, was maintained to support the development of the real economy sector in Russian regions through the long-term financing of actual investment projects and the production modernization.

In 2013, the amount of the loan proceeds granted to implement the projects that envisage import of durable means of production, construction and reconstruction of the production facilities under insurance coverage of export credit agencies from Italy, Sweden and Poland amounted to USD 28 million.

The total amount of the Trade Finance transactions in 2013 amounted to USD 339 million.

In 2013, the TransCapitalBank’s shareholders and partners - the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) – continued to carry out active support of the Bank’s activity.

International Business

The year 2013 was a tough year for international f inancial markets. By the middle of the year the Federal Reserve System (FRS) signalized to the markets about the possible cutting of the Tapering Programme (QE3) waiting for GDP growth revival in the USA, that generated the investors’ concerns about the possible reduction of the available liquidity on a global scale.

Structure of trade financing portfolio as of 01.01.2014 (%)

Nachinery, equipment and transport Agricultural, food industry, food products Construction of production facilities Nonfoods (perfumery, garments, footwear, pharmaceuticals, textile/fabrics, printing trades)

Electronics and household appliances

3627

18

109


4140

The loan was attracted for the tenor of 1 year at the interest rate of 2.1% per annum + Euribor. Commerzbank AG, VTB Bank (Deutschland) AG, Standard Chartered Bank and Raiffeisen Bank International AG were all named as mandated lead arrangers and bookrunners in the transaction.

In December 2013, TransCapitalBank signed the loan agreements with the European Bank for Reconstruction and Development (EBRD) for financing for the total amount of 1,160 million roubles for a term of 4.5 years within the Russian Sustainable Energy Financing Program (being known as “RUSEFF”), where 750 million roubles will be directed to the financing of energy efficiency projects in residential sectors (RUSEFF-Residential) and 410 million roubles – to the financing of energy efficiency projects of SME clients (RUSEFF-Industrial). Both programmes envisage the consulting, technical and marketing support for the financed projects.

At the same time, International Finance Corporation (IFC) granted a five-year loan to TransCapitalBank for the amount of USD 50 million to develop the energy efficient projects of SMEs and - for the first time in Russia - to encourage the female entrepreneurship. Besides, International Finance Corporation (IFC) mobilized a 20 million euro loan from the International

Investment Bank (IIB) for TransCapitalBank to finance energy efficient projects.

The successful implementation of the aforesaid loan transactions is an example of the joint efforts of the Bank and its shareholders to support the economic growth, ensure gender equality and advance energy-efficient and eco-friendly technologies in Russia.

In total, during the year, the aggregate amount of funds attracted by TransCapitalBank from the international banks amounted to USD 604 million (15% of the Bank’s liabilities by the end of the accounting period (information from financial statements under IFRS)).

TransCapitalBank entered the list of TOP 1000 World banks in terms of Tier 1 Capital, set out by Basel’s Bank for International Settlements (BIS). The Bank was ranked the 975th. («The Banker», UK-based financial magazine).

116,5 millionIn May 2013, with the support of International Finance Corporation (IFC), TransCapitalBank attracted a syndicated loan for the amount of 116.5 million Euros from the consortium of 15 international banks to support the foreign trade transactions of its clients – small and medium-sized businesses located in the Russian regions.

Balance of trade financing (TF) portfolio by products (USD million)

Classical TF ECA Purpose loans01.01.12

176

581301.01.13

273

14910

01.01.14

209

81 57


4342

The Bank continued to use trading internet-platforms of JP Morgan, Credit Suisse, FCStone, BCP Geneva in the interbank foreign exchange market.

In 2013, the Bank maintained its positions in the banknote market, it focused on geographical expansion of cash currency operations and the increase in the number of counterparties. Banknotes were delivered to the new areas of the country – Omsk, Ufa, Kaliningrad.

In 2013, the Bank continued to develop its correspondent network. In the accounting period correspondent accounts were open in such banks as CITIBANK N.A., New York and LANDESBANK, Berlin. At present the correspondent network of TransCapitalBank comprises 30 leading international financial institutions, including Deutsche Bank Trust Company Americas (New York), Standard Chartered Bank. (N.Y.), Commerzbank, VTB Bank (Deutschland), Raiffeisen Zentralbank, Svenska Handelsbanken, BNP Paribas, ROYAL BANK OF SCOTLAND PLC, Ceskoslovenska obchodni banka, Industrial and Commercial Bank of China (ICBC).

In 2013, the Bank increased significantly cooperation with SME Bank under the national SME lending programme

Cooperation with Financial Institutions

In 2013, the total amount of limits to conduct interbank operations reached 46 billion roubles, having increased by 57% as compared to the year 2012. At present the Bank has limits in all major Russian and a number of leading foreign banks. The total amount of counterparty banks in the interbank market at the end of 2013 amounted to 270.

A new stage in cooperation with SME Bank was opening of a credit line for the amount of 400 million roubles under the product «Factoring-Bank» and conclusion of the Framework Agreement and Agency Agreement that specify basic terms and conditions under which SME Bank gives bank guarantees in favour of TransCapitalBank to medium-sized enterprises as for the recovery of less than 50% of the principal debt on loans attracted to implement investment projects.

In 2013, the Bank started to cooperate with Housing Financing Agency (subsidiary of Agency for Housing Mortgage Lending) as part of the Programme to encourage lending of construction and real estate purchases («Stimul»).

2011 2012 2013

680

910

Dynamics of limits on DEPO/FOREX operations set for the Bank (USD million)

1 430

To grant loans to SMEs located in the regions of the Bank’s presence, the Bank attracted 3 loans under the product « Refinancing of non-commercial sector» for the total amount of 515 million roubles, 3 loans under the product «FIM Targeted» (Targeted Financial Instrument) for the total amount of 515 million roubles and 2 loans under the product «SME Manoeuver» for the total amount of 300 million roubles.


4544

4746


T H E W I N G S G I V E U S H E I G H T

Progressive growth of the Bank’s funding base and efficient risk management created prerequisites for the enlargement of bank operations in the securities market.

Such a considerable increase occurred at the expense of investment grade bonds included in the Lombard list of the Bank of Russia. The growth of securities portfolio was, in the first place, stipulated by the necessity to flexibly manage liquidity and by the increase in the scope of business on the whole.

As of 31 December 2013, the amount of bonds accepted as collateral for REPO transactions with the Bank of Russia exceeded 90% of the Bank’s bond portfolio. Under the circumstances of high volatility, the liquidity buffer enabled the Bank to comfortably live through the period of high interest rates and liquidity shortage at the market as the Bank attracted monetary funds by means of REPO operations with the Bank of Russia. According to the results

TransCapitalBank in the Securities Market

In 2013, the Bank was actively present in all segments of the Russian securities market. Notwithstanding the high volatility of the market, the Bank completed the year with a good income.

of the year 2013, bank turnovers at the formal securities market decreased considerably mostly due to the growth of operations with the Russian Eurobonds.

The Bank successfully closed the debut transaction on securitization of part of its mortgage portfolio and placed the bond issue with mortgage coverage within the Programme №2 of Agency for Housing Mortgage Lending. The amount of the senior tranche made 4.1 billion roubles. The transaction was the first one at the Russian mortgage securitization market to include LMI (lenders mortgage insurance). The total amount of securitization reached 4.4 billion roubles.17,3 billion

At year- end 2013, the amount of the Bank’s investments in securities exceeded 17.3 billion roubles, which is almost 6 billion roubles more than the similar rate at the end of 2012.

2 billion In the course of constant work for diversif ication of the funding base, TransCapitalBank successfully placed BO-02 domestic bonds at the nominal value of 2 billion roubles with the put date of 1 year from the date of placement. The coupon rate was established at the level of 9.7% per annum.


4948

Development and implementation of new information systems

To provide the retail clients with high-quality payment services, the Bank put into operation TCB Express - a system of internet and mobile banking. The single platform enables the clients to manage their funds with similar comfort using personal or portable computers and almost all mobile devices (mobile phones, smart phones, tablets PC) – the interface of the system is implemented for most popular operating systems - iOS and Android.

To automate the processing of loan applications from large corporate and SME clients, two front-office subsystems were put into operation on the basis of Oracle Siеbel CRM: for corporate business and credit conveyor for SMEs.

The Bank launched the project for implementation of the Credit Risk Management System on the basis of the «FORECAST. Credit risk» software package to provide assessment of financial condition of counterparties with information and analytical support, to specify internal credit ratings, to specify risk-parameters for the transaction and portfolios, to specify the cost of risk and to improve credit risk assessment.

At the beginning of 2013, a new version of the Bank’s site was designed and implemented – both in Russian and English.

Information Technologies

The year 2013 was fruitful for the Bank in terms of IT development. Main efforts were focused on implementation of new decisions and improvement of the existing processes required to complete business tasks.

Payment technologies

The issue and maintenance of bank chip cards makes it possible to extend the range of offered products and services and to reduce bank risks for operations with cards, and the implementation of Visa Pay Wave and MasterCard Pay Pass (non-contact interface) technologies reduced considerably the processing time in case of purchase to the amount not exceeding 1 000 roubles in trading networks. For this purpose the Bank launched the projects to implement the issue and maintenance of chip cards (acquiring) with contact and non-contact interface with VISA International and MasterCard Worldwide international payment systems.

To extend the functionality, the Bank introduced the opportunity to pay for about 750 local services in its self-service network. During the year 2013, the turnover of onetary funds in this network amounted to almost 4 billion roubles and more than 850 000 operations were processed.


5150

In the accounting period the Bank pursued kid-glove policy for opening of new offices and optimized the work of the existing branches. In 2013, additional offices were opened in new cities of presence - Zhukovsky and Armavir, a new additional office «Levoberezhny» was opened in Novosibirsk and a new operational office was opened in Belgorod.

Simultaneously the regional network developed the infrastructure not related to physical presence. Considerable efforts were made to increase the amount of freelance agents, extend the network of payment terminals (the total amount of which in the network increased almost two-fold and amounted to 175 units), POS-terminals in the trading network (during the year the amount thereof increased by 317 units up to 906 units), and to promote the opportunities of remote banking service channels.

Regional Activity

Despite the high level of competition and tough economic situation, in 2013, Bank’s regional branches achieved high performance results. Following the general policy, the regional branches continued active work with existing clients and simultaneously attracted new customers through implementation and promotion of the appropriate programs and services.

According to the results of the year 2013, the regional network of the Bank was present in 19 subjects of the Russian Federation and included 18 branches, 3 operational off ices, 28 additional off ices and 7 out-of-the-off ice cash counters.

Energy efficient projects

Social responsibility of the Bank does not only involve Bank’s participation in certain projects and actions, but also involves a number of its products and services for corporate and retail clients. Thus, the Bank has programmes for financing of energy efficient projects of the Russian companies and offers individuals a loan with a lower interest rate for repairs using energy efficient technologies and solutions. Such projects are implemented together with the International Financial Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) and are aimed at completing a set of tasks. Those, first of all, include environmental improvement, energy efficiency and energy cost reduction. Besides, the results of such projects help the enterprises and companies to significantly reduce energy consumption costs, to enhance the competitiveness of their production and to increase their investment appeal, which have positive influence on the economy on the whole.

Social Responsibility

In 2013, the Bank continued to support different projects in the sphere of corporate social responsibility. During the whole year the Bank rendered assistance in implementation of different social and charity projects in all regions of its presence – from support in arrangement of city celebrations and sports events to assistance to veterans organizations and financing of publication of literature on history. Support to orphanages and educational institutions, projects in the sphere of culture and art, ecological initiatives are among the key directions of the Bank’s business in social responsibility


5352

Gender finance

Culture, art, historical heritage

The programme for support of modern artists in all regions of the Bank’s presence has existed in Transapitalbank for many years. The Bank renders material support to talented persons and helps them to find their audience and admirers. Their works of art are exhibited in the Bank’s branches and offices, where visitors and guests can not only admire paintings, but also buy them. Besides, the Bank arranges regularly private viewing during Bank’s significant events. In 2013, such exhibition was held when an additional office was opened in Zhukovsky city.

Traditionally, the Bank renders support to «Golden Mask» project. This Russian national award and festival is one of the most significant events in the modern cultural life of the country and hundreds of thousands of theater-lovers in Moscow and other cities are looking forward to this event every year. In 2013, cooperation with «Golden Mask» was continued. Besides, the Bank continued to support orchestra of Tchaikovsky Moscow Conservatory and finance restoration works in the Church of the Holy Sign of the Icon of the Mother of God outside Petrovsky Gate in Moscow.

Aid to orphanages

The Bank tries to render possible support to other children’s homes. In 2013, the Bank organized again the event «Be kind to children”, which became traditional. Within the framework of this event the Bank acquired gifts for children from different orphanages in all towns of its presence. The Bank’s employees also supported the project and collected various presents for children,

which included games, books, toys, creative work sets and sport kits. These New Year presents helped to make happy more than a thousand children. In a number of cities Bank’s employees helped to organize New Year performances and children’s matinees for supported children’s homes.

For several years TransCapitalBank has been supporting orphanage #59 located in Moscow. Administration of the orphanage seeks to create warm, home-like atmosphere for inmates and makes considerable efforts for the children to be adopted. The Bank renders material support and sponsorship in acquisition of the required inventory and furniture, etc.

In 2013, the Bank paid serious attention to the development of another socially-focused programme for lending of female entrepreneurs. According to the results of the preparatory work, in 2014 the Bank plans to launch a new product which will provide concessional financing for small business owned and managed by women.


5554

During the year 2013, the number of Bank’s employees increased by 9%. The growth occurred owing to the overall business development and steady increase in the client inflow.

HR Policy

Traditionally, TransCapitalBank pays special attention to the development of its professional team, as further development and success mostly depend on it. The Bank seeks to provide the employees with the best professional opportunities: interesting tasks, adequate incentives, training and growth options. The Bank adheres to the tolerance principle in terms of gender policy, age and prevents religious and political discrimination. All employees have equal rights and opportunities for development because professional skills and leadership potential are the governing factors, which are stated in the Equality Policy Declaration adopted by the Bank management.

By the end of 2013, more than 2400 people worked at the Bank, including 1130 employees in regional divisions. 78% of Bank’s employees have university degrees, the average age is 38 years old.

To attract new employees to occupy vacant posts, the Bank searched for young talented experts. The Bank interacted with core educational institutions and offered the students apprenticeships and internships in different divisions where they could gain practical experience and show their potential.

The Bank continued to pay special attention to regular and systematic training of its employees. Training courses were provided by the Corporate University of the Bank that offers a wide range of full-time and remote programmes, which make training available for everyone. Besides, in 2013, the Bank’s employees attended more than 40 conferences and 150 external trainings and seminars to enhance their professional level. 2400


5756

5958


T H E W I N G S G I V E U S S T R E N G T H

Financial Statements*

31.12.2013 31.12.2012

ASSetS

Cash and cash equivalents 18 228 991 10 479 733

Mandatory cash balances with CBRF 968 049 1 060 146

Due from other banks 210 241 150 795

Trading securities 17 296 493 10 115 748

Loans and advances to customers 101 911 406 90 553 197

Repurchase receivables related to trading securities – 1 336 840

Investment securities held to maturity 97 258 –

Investment in associate – 69 718

Deferred tax asset 159 680 229 730

Intangible assets 186 209 170 292

Premises and equipment 898 229 932 108

Other financial assets 462 199 55 768

Other assets 468 244 440 830

totAl ASSetS 140 886 999 115 594 905

31.12.2013 31.12.2012

liAbilitieS

Due to other banks 20 350 409 21 932 653

Customer accounts 81 498 089 65 580 171

Debt securities in issue 15 864 534 7 415 678

Current income tax liability 16 089 47 303

Deferred income tax liability 79 824 77 984

Other financial liabilities 128 000 211 370

Other liabilities 300 326 268 191

Subordinated debt 6 629 913 6 846 770

totAl liAbilitieS 124 867 184 102 380 120

equity

Share capital 2 533 352 2 448 128

Share premium 4 566 362 4 012 406

Translation reserve – (5 520)

Retained earnings 8 920 101 6 759 771

totAl equity 16 019 815 13 214 785

totAl liAbilitieS And equity 140 886 999 115 594 905

Consolidated Statement of Financial PositionIn thousands of Russian Roubles

Group of Joint-Stock Commercial Bank “TransCapitalBank” (Closed Joint Stock Company)

O.V.GryadovayaChairperson of the Board

S.M.GolovanovaChief Accountant

Approved for issue and signed on 31 March 2014.

The consolidated financial statements, from which the above summarized consolidated financial statements have beenderived, are available from Joint-Stock Commercial Bank «TransCapitalBank» (Closed Joint Stock Company) located at 27/35Vorontsovskaya st., 109147 Moscow upon request.


6160

2013 2012

Interest income 13 110 917 11 142 891

Interest expense (6 725 464) (5 462 101)

net intereSt income 6 385 453 5 680 790

Provision for loan impairment (790 185) (777 867)

net intereSt income After proviSion for loAn impAirment 5 595 268 4 902 923

Fee and commission income 1 831 951 1 540 310

Fee and commission expense (385 050) (289 246)

(Losses, net of gains)/gains less losses from trading securities (201 836) 252 048

Gains less losses from trading in foreign currencies 407 867 476 385

Losses, net of gains from financial derivatives (101 416) (707 746)

Foreign exchange translation (losses, net of gains)/gains less losses (188 997) 24 275

Release of provision/(provision) for credit related commitments 600 (600)

Release of other provisions/(other provisions) 60 066 (37 761)

Share of result and impairment of associate (76 618) (23 295)

Other operating income 40 009 121 426

Administrative and other operating expenses (4 286 729) (3 649 505)

profit before tAx 2 695 115 2 609 214

Income tax expense (534 785) (526 458)

profit for the yeAr 2 160 330 2 082 756

other comprehenSive income*:

Exchange differences on translation to the presentation currency 6 900 (3 870)

Income tax recorded directly in other comprehensive income (1 380) 774

other comprehenSive income/(loSS) for the yeAr 5 520 (3 096)

totAl comprehenSive income for the yeAr 2 165 850 2 079 660

*Items that may be reclassified subsequently to profit or loss.

Consolidated Statement of Profit or Loss and Other Comprehensive IncomeIn thousands of Russian Roubles

Consolidated Statement of Changes in Equity In thousands of Russian Roubles

ShA

re

cA

pitA

l

ShA

re

prem

ium

ret

Ain

ed e

Ar

nin

gS

trA

nSl

A-t

ion

reS

erv

e

totA

l

no

n-c

on

tro

l-li

ng

inte

reS

t

totA

l eq

uit

y

bAlAnce At 1 JAnuAry 2012 2 444 642 4 012 406 4 677 142 (2 424) 11 131 766 579 11 132 345

Profit for the year – – 2 082 756 – 2 082 756 – 2 082 756

Other comprehensive income – – – (3 096) (3 096) – (3 096)

Total comprehensive income for 2012 – – 2 082 756 (3 096) 2 079 660 – 2 079 660

Disposal of subsidiary – – (127) – (127) (579) (706)

Acquisition of treasury shares (4 600) – – – (4 600) – (4 600)

Sale of treasury shares 8 086 – – – 8 086 – 8 086

bAlAnce At 1 JAnuAry 2013 2 448 128 4 012 406 6 759 771 (5 520) 13 214 785 – 13 214 785

Profit for the year – – 2 160 330 – 2 160 330 – 2 160 330

Other comprehensive income – – – 5 520 5 520 – 5 520

Total comprehensive income for 2013 – – 2 160 330 5 520 2 165 850 – 2 165 850

Share issue 85 224 553 956 – – 639 180 – 639 180

bAlAnce At 31 december 2013 2 533 352 4 566 362 8 920 101 – 16 019 815 – 16 019 815




6362

2013 2012

cASh flow from operAting ActivitieS

Interest received 12 919 181 11 150 913

Interest paid (6 712 336) (5 522 421)

Fees and commissions received 1 777 460 1 643 816

Fees and commissions paid (389 194) (287 429)

Losses, net of gains received from trading securities (41 676) (49 976)

Income received from trading in foreign currencies 407 867 476 385

Losses, net of gains from FX financial derivatives (108 616) (617 840)

Other operating income received 54 719 96 480

Administrative and other operating expenses paid (4 067 913) (3 433 204)

Income tax paid (496 652) (345 894)

cASh flowS from operAting ActivitieS before chAngeS in operAting ASSetS And liAbilitieS 3 342 840 3 110 830

Net (increase)/decrease in:

- mandatory cash balances with the CBR 92 097 (162 058)

- trading securities and repurchase receivables related to trading securities (5 690 933) 1 271 087

- due from other banks (50 157) (984)

- loans and advances to customers (10 382 037) (16 565 058)

- held to maturity investments (71 933) –

- other assets (456 078) (30 134)

Net increase/(decrease) in:

- due to other banks (2 791 661) 5 615 162

- customer accounts 14 418 425 4 308 865

- debt securities in issue 8 390 432 (250 811)

- other liabilities 2 496 (20 494)

net cASh from/(uSed in) operAting ActivitieS 6 803 491 (2 723 595)

2013 2012

cASh flowS from inveSting ActivitieS

Acquisition of premises, equipment and intangible assets (221 666) (237 814)

Proceeds from disposal of premises and equipment 39 006 1 296

net cASh uSed in inveSting ActivitieS (182 660) (236 518)

cASh flowS from finAncing ActivitieS

Proceeds from subordinated debt – 2 250 201

Repayment of subordinated debt (572 000) –

Issue of ordinary shares 639 180 –

Disposal of subsidiary – (705)

Acquisition of treasury shares – (4 600)

Disposal of treasury shares – 8 086

net cASh from finAncing ActivitieS 67 180 2 252 982

Effect of exchange rate changes on cash and cash equivalents 1 061 247 (151 048)

net increASe/(decreASe) in cASh And cASh equivAlentS 7 749 258 (858 179)

cASh And cASh equivAlentS At beginning of the yeAr 10 479 733 11 337 912

cASh And cASh equivAlentS At the end of the yeAr 18 228 991 10 479 733

Consolidated Statement of Cash FlowsIn thousands of Russian Roubles


The consolidated financial statements, from which the above summarized consolidated financial statements have beenderived, are available from Joint-Stock Commercial Bank «TransCapitalBank» (Closed Joint Stock Company) located at 27/35Vorontsovskaya st., 109147 Moscow upon request.


6564

MOSCOW AND THE MOSCOW

REGION

Additional Office «Altufevsky»

9, Gostinichnaya Street, Moscow 127106

Tel.: (495) 797-32-00

Additional Office «Baumansky»

24, bldg.1, Radio Street, Moscow 105005

Tel.: (495) 797-32-00

Additional Office «Central»

5, bldg. 3, Dokuchaev Lane,

Moscow 107078

Tel.: (495) 797-32-00

Additional Office «Kolomensky»

293, Oktyabrskoy Revolutzii Street,

Kolomna, the Moscow region 140408

Tel.: (496) 610-16-15

Additional Office «Korolevsky»

12/14, Gagarin Street, Korolev,

the Moscow region 141070

Tel.: (498) 646-58-48

Additional Office «Kuntsevsky»

5, bldg. 1, Ryabinovaya Street,

Moscow 121471

Tel.: (495) 797-32-00

Additional Office «MPI-Palikha»

13/1, bldg.2, Palikha Street,

Moscow 127055

Tel.: (495) 797-32-00

Additional Office «Petrovsky»

6, bldg.3, 1st Kolobovsky Lane,

Moscow 127051

Tel.: (495) 797-32-00

Additional Office «Pokrovka»

24/2, bldg.1, Pokrovka Street,

Moscow 105062

Tel.: (495) 797-32-00

Additional Office «Schelkovsky»

1а, Talsinsky Street, Shchelkovo,


Тел.: (496) 569-82-49

Additional Office «Sergievo-

Posadsky»

15, Zeleny Lane, Sergiev Posad,


Tel.: (496) 549-21-30

Additional Office «Sushchevsky

Val»

17, bldg. 2, 2nd Vysheslavtsev Lane,

Moscow 103055

Tel.: (495) 797-32-00

Additional Office «Universitetsky»

64/2, Leninsky Prospect, Moscow 117296

Tel.: (495) 797-32-00

Additional Office «Voykovsky»

2/1, 1st Novopodmoskovny Lane,

Moscow 125171

Tel.: (495) 797-32-00

Additional Office «Zhukovsky»

2, Energeticheskaya Street, Zhukovsky,


Tel.: (495) 556-91-39

BRANCHES AND OFFICES

IN THE REGIONS

BRyANSK BRANCH

1, Proletarsky Street, Sovetsky district,

Bryansk 241050

Tel.: (4832) 72-33-10

Additional Office # 1

20, Burov Street, Bryansk 241035

Tel.: (4832) 68-67-59

KALININGRAD BRANCH

58-60, Mira Prospect, 2, Cosmonaut

Leonov Street, Kaliningrad, 236022

Tel.: (4012) 91-94-80

KALUGA BRANCH

2, Kropotkin Street, Kaluga 248000

Tel.: (4842) 57-60-05

Opertaional Office «Obninsky»

13, Gagarin Street, Obninsk,

the Kaluga region 249034

Tel.: (484 39) 6-61-77

KRASNODAR BRANCH

169, Frunze Street, West District,

Krasnodar 350000

Tel.: (861) 210-45-42

Additional Office «Labinsky»

25/1 Krasnaya Street, Labinsk,

the Krasnodar district 352500

Tel.: (86169) 3-01-21

Additional Office «Armavirsky»

107, Komsomolsky Street, Armavir,

the Krasnodar district 352900

Tel.: (86137) 2-88-04

NIZHNy NOVGOROD BRANCH

42/15, Genkina Street,

Nizhny Novgorod 603024

Tel.: (831) 296-98-00

NOVOSIBIRSK BRANCH

43, Bolshevistsky Street, Oktyabrsky

district, Novosibirsk 630102

Tel.: (383) 206-01-06

Operational Office «Altaisky»

39, Profinterna Street, 103-a, Lenin

Street, Barnaul 656002

Tel.: (385-2) 28-92-45


35, Kommunistichesky Street,

Novosibirsk 630007

Tel.: (383) 266 07 30

Additional Office «Levoberezhny»

31, Titov Street, Novosibirsk 630054

Tel.: (383) 206 37 11

PERM BRANCH

2, Sibirsky Street, Perm 614000

Tel.: (342) 212-50-55


68, Sovetskaya Street, Dobryanka,

Dobryansky region,

the Perm district 618740

Tel.: (34265) 2-58-18

Additional Office of the Perm

Branch in Kungur

the Perm district, 48, Pugachev Street,

Kungur, the Perm district 617400

Tel.: (34271) 2-40-44


8, Matrosov Street, Solikamsk,


Tel.: (34253) 4-00-95


21, Sovetsky Street, Krasnovishersk,


Tel.: (34243) 3-00-90


14, Shkolnaya Street, Krasnokamsk,


Tel.: (34273) 7-41-57

PODOLSK BRANCH

46, Komsomolsky Street, Podolsk,


Tel.: (4967) 55-65-14

Additional Office «Serpukhovsky»

57, Voroshilov Street, Serpukhov,


Tel.: (4967) 76-13-66

ROSTOV BRANCH

98-100, Pushkin Street, the Kirov

district, Rostov-on-Don 44002

Tel.: (863) 287-07-07

Additional Office «Severny»

10, Kosmonavtov Prospect,

Rostov-on-Don 344092

Tel.: (863) 274-50-01

RyAZAN BRANCH

110, Yesenin Street, Ryazan, 390046

Tel.: (4912) 45-02-69


6, Yablochkova Street, Ryazan 390011

Tel.: (4912) 45-34-52

Additional Office «Pervomaysky»

62a, Pervomaysky Prospect,

Ryazan 390013

Tel.: (4912) 95-37-20

SAINT-PETERSBURG BRANCH

22, Zvenigorodsky Street, Saint

Petersburg 191119

Tel.: (812) 334-40-04

Additional Office «Svetlanovsky»

33, bldg.1, letter A, Engels Prospect,

Saint-Petersburg 194156

Tel.: (812) 325-10-75

Additional Office «Lanskoy»

10, letter B, Studenchesky Street,


Tel.: (812) 332-46-17

Additional Office «Moskovsky»

13, letter A, Aviatsionnaya Street,


Tel.: (812) 334-66-48

SAMARA BRANCH

52, Stara Zagora Street, Samara 443090

Tel.: (846) 933-82-33


187, Galaktionovskaya Street / 7,

Yarmarochnaya Street, Samara 443001

Tel.: (846) 337-36-34

SyKTyVKAR BRANCH

2, Bumazhnikov Prospect,

Syktyvkar 167026

Tel.: (8212) 29-34-68


20/2, Pushkin Street, Syktyvkar 167000

Tel.: (8212) 29-34-75

Additional Office «Ukhtinsky»

21, Oktyabrsky Street, Ukhta, Komi

Republic 169300

Tel.: (8216) 76-04-33

TyUMEN BRANCH

196а, Republic Street, Tyumen 625035

Tel.: (3452) 52-00-55

Branches and Offices


6766


4, Malygin Street, Tyumen 625048

Tel.: (3452) 52-02-99

VORONEZH BRANCH

21-а , Krasnoarmeisky Street,

Voronezh, 394006

Tel.: (473) 239-52-10

Back Office «Belgorodsky»

111, Narodny boulevard, Belgorod, the

Belgorod region 308015

Tel.: (4722) 20-14-92

yAROSLAVL BRANCH

26, Tchaikovsky Street, Yaroslavl 150014

Tel.: (4852) 58-70-95


28/86, Svobody Street, Yaroslavl 150000

Tel.: (4852) 58-70-92

Additional Office «Rybinsky»

120. Krestovaya Street, Rybinsk, the

Yaroslavl region 152903

Tel.: (4855) 29-20-00

yEKATERINBURG BRANCH

16, Chernyshevsky Street,

Yekaterinburg 620014

Tel.: (343) 310-39-50

Additional Office «Severny»

13, letter «Ж», Zavokzalnaya Street,


Tel.: (343) 287-11-45

Additional Office «Tagansky»

19, Technicheskaya Street,


Tel.: (343) 253-50-49


Documents

ANNUAL REPORT 2013 · A Letter From Management For more than 20 years TransCapitalBank has progressed and ... We also express our gratitude to the TransCapitalBank team for their