EBRD Financial Institutions Portfolio

Financial Institutions: €6.7 billion *

as at December 2007

* Commitments outstanding

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,0005,5006,0006,5007,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Bank Debt Bank Equity Equity Funds

Non-Bank FI Operating Assets

€ mn

Sector Distribution:

Continuing expansion of

segments and products

EBRD’s Objectives in the Financial Sector

Promote market-based financial institutions and a healthy and efficient financial services industry

Support private and entrepreneurial initiatives of both local and foreign investors and act as a catalyst to transition

Active policy dialogue with operators and authorities to strengthen regulatory/legislative frameworks and institutions

Apply best business practices and corporate governance in institutions

Be the leader in institution building

Bank Equity

Since 1992 EBRD has invested in

101 banks across 27 countries for

a total investment of €2.1bn.

Realised income from EBRD’s bank

equity investments totalled €1.9bn

so far.

As of December 2007, the portfolio

comprised participations in 49 banks

in 22 countries for a total investment

of €982.3m.

The fair market value of this portfolio is

€3.3bn, of which €2.4bn are unrealised

gains.

Cumulative and Outstanding Investments (€m)

0

500

1,000

1,500

2,000

2,500

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Cumulative Investments (€m)

Outstanding Investments (€m)

Number of Investments

0

20

40

60

80

100

120

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Cumulative Number of Investments

Outstanding Investments at Year End

Note: these figures do not include EBRD’s investments in microfinance institutions

Bank Equity Returns 1992 – 2007

Overall money multiple and IRR for all investments have been 3.22x and 28.79% respectively.

The average holding period for investments has been 5.5 years.

€ mill

ion

s

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Investment Cost Total Investment Value

Fully Realised (FR) Partially Realised (PR) Unrealised (UR)

€6,542m

€2,016m

Overall MM 3.22x,

IRR 28.78%

UR 3.66x, 39.60%

PR 3.45x, 29.76%

FR 2.79x, 26.12%

€867m

€393m

€756m

€2,348m

€1,356m

€2,839m

Bank Equity Performance Over Time

Number of exits has remained constant over time,

ranging between 3 and 9 per year. In 2007, the EBRD made

4 exits from existing investments. Money multiple has increased steadily since 2000 reaching

an all-time high of 3.38x in 2006, and 3.23 in 2007 The average holding period for investments has been

5.5 years. IRRs have also increased over time, peaking in 2005 at

45.3% and remaining above average in 2007 at 28.79%.

Number of Exits

0

2

4

6

8

10

12

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Money Multiple

0 x

1 x

2 x

3 x

4 x

5 x

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

IRR

0%

20%

40%

60%

80%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Total Over Period: 52

IRR for the Period: 28.79%MM for the Period: 3.23x

Bank Equity overall Performance and Returns 1992 – 2008 1Q

Overall money multiple and IRR for all investments have been 3.23x and 28.65% respectively.

The average holding period for investments has been 5.5 years.

€ mill

ion

s

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Investment Cost Total Investment Value

Fully Realised (FR) Partially Realised (PR) Unrealised (UR)

€6,545m

€2,024m

Overall MM 3.23x,

IRR 28.65%

UR 3.72x, 39.60%

PR 3.45x, 29.76%

FR 2.71x, 26.12%

€867m

€393m

€764m

€2,347m

€1,356m

€2,842m

Insurance overall Performance and Returns 1992 – 2008 1Q

Overall money multiple and IRR for all investments have been 1.84x and 16% respectively.

€ mill

ion

s

0

100

200

300

400

500

600

700

Investment Cost Total Investment Value

Fully Realised (FR) Partially Realised (PR) Unrealised (UR)

€652.3m

€2,016m

Overall MM 1.84x,

IRR 16%

UR 1.84x, 18%

PR 0.91, -0.36%

FR 1.57x, 14%€60.1m

€42.1m

€281.7m

€94.6m

€38.3m

€519.5m

Equity Fund Returns 1992 – 2006

$2,785m $2,009m

$305m

$1,348m

$5,188m

$2,280m

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

US

D M

illi

on

s

Fully Realised (FR Including WO)

Partially Realised (PR)

Unrealised

Overall 2.03x, 21.07%

FR 2.27x, 20.37%

PR 4.42x, 32.81%

UR 1.39x, 15.98%

Investments at Cost $4,595m

Total Value $9,321mExcluding secondary sales

Investment Criteria

Selection of partners

Commitment to:

– Corporate governance

– Transparency

– Best practices and change

Alignment of interest

Success Factors

Institutional environment:– Rule of law

– Regulatory environment

– Supervision

Alignment of interests of stakeholders– Shareholders

– Management

– Authorities

– Clients

People and commitment to high professional standards Institution + capacity building and adapting to market dynamics