Kazan, June, 2015. Investor presentation Kazan, June, 2015 2 Board of Directors Igor G. Avanesyan CEO of ZAO United Leasing Company Center-Capital Sergey

Kazan, June, 2015

Investor presentation Kazan, June, 2015 2

Board of Directors

Igor G. Avanesyan

CEO of ZAO United Leasing Company Center-

Capital

Sergey V. Alexeev

First Deputy CEO of OAO Svyazinvestneftehim

Farida R. Volkova

Head of the State Legal Board of the President of the Republic of

Tatarstan

Alexandr P. Lavrentiev

President of The Association of Enterprises and Entrepreneurs of

the Republic of Tatarstan

Yury L. Levin

Managing Partner at BVM Capital Partners Ltd

Robert K. Minnegaliev

Chairman of the Management Board of AK BARS BANK

Valery Y. Sorokin

CEO, Svyazinvestneftehim

Chairman of the Board of Directors

Vladimir A. Terentyev

Deputy CEO, Svyazinvestneftehim

.

Yevgeny A. Tikhturov

Head of Finance management division, member of the

Management Board of OAO Tatneft

Arthur N. Khairullin

Deputy CEO, Svyazinvestneftehim

Sergey V. Shibayev

Director of Kafa Finance Inc, Canada

Investor presentation Kazan, June, 2015


Management board

Investor presentation

Robert K. Minnegaliev

Chairman of the Management Board

Zufar F. Garaev

First Deputy Chairman of the Management

Board

Marat F. Shagitov

First Deputy Chairman of the

Management Board

Ilfan E. Gubaidullin

Deputy Chairman of the Management

Board

Bulat S. Davletshin

Deputy Chairman of the

Management Board

Radik I. Salyakhutdinov

Deputy Chairman of the Management Board

Airat K. Bayazitov

Chief Accountant

Gulnara R. Sattarova

Director, Risks Department


Key investment highlights

#1 Bank In Tatarstan with extensive local and federal network across Russia headquartered in Kazan, Tatarstan Listed among TOP-20 Russian banks

PROFESSIONAL SERVICES for private and corporate clients

ЕFFECTIVE INFRASTRUCTURE for investment assets and properties (asset management and unit funds)

ВEST EXPERTISE of the local and Russian markets

SERVICES FOR INTERNATIONAL CLIENTS large correspondent network, trade finance operations

TAILOR-MADE CLIENTELE APPROACH

RATINGS: MOODY`S: B1, FITCH: BB-



Key Strengths

REPUBLIC OF TATARSTAN – ONE OF THE MOST ECONOMICALLY DEVELOPED REGIONS IN RUSSIA

Tatarstan is one of the most economically developed regions of Russia

Gross regional product (GRP) growth rate of 1,3% in 2014 vs. 0,6% (GDP) in Russia as a whole

DOMINANT MARKET POSITION IN THE REPUBLIC OF TATARSTAN

The Leading bank in the Republic of Tatarstan, representing 37,88% of the total assets and 41,67% of the total capital in the banking sector of the Republic (1)

Top-20 bank in Russia: 19th by assets and 20th by equity (2)

STRONG RELATIONSHIP WITH THE GOVERNMENT OF TATARSTAN

As of 1 January, 2015 the Tatarstan Republic, through ministries, government agencies and related companies ultimately controlled the Bank.

Authorized agent of the government of the Republic of Tatarstan for servicing the budgetary accounts and implementation of the social policy of the Republic

EXTENSIVE BRANCH NETWORK INTATARSTAN AND ACROSS RUSSIA

The Bank has a broad geographic footprint in 30 regions in Russia

AK BARS Bank has the 11th largest distribution network in Russia with 32 branches and 321 other offices (3)

30

ATTRACTIVE PROSPECTS FOR THE RUSSIAN BANKING MARKET

The banking market remains underpenetrated, compared to Central and Eastern European countries

(1) National Bank of Tatarstan, as of 1 January, 2015.(2) Profile magazine, as of 1 April, 2015.(3) Central Bank of Russian Federation, as of 1 June, 2015, excluding Sberbank network.



Corporate 77%

Retail 23%

AK BARS Bank at a Glance

AK BARS BANK PLAYS AN IMPORTANT ROLE IN THE IMPLEMENTATION OF TATARSTAN’S REGIONAL POLICY

Economic Importance

AK BARS Bank services the largest companies in Tatarstan (Tatneft, Svyazinvestneftekhim, Nizhnekamskneftekhim)

The Bank cooperates closely with the local business community, providing quality service and support

Financial Importance

Continuous increase in a number of clients indicates a growth of confidence in the Bank. Clients from Tatarstan account for 74% of banks’ customer accounts

Reputational Importance

The Cabinet of Ministers of Tatarstan singled out the Bank as the backbone in the region

LOAN PORTFOLIO COMPOSITION AS PER GROUPBUSINESS SEGMENTS AND INDUSTRY AS OF31 DECEMBER, 2014 (1)


(1) Source: IFRS accounts, 2014


OJSC Investments & Consulting 11,5%

Osmand Holding Limited (Tatneft) 11,6%

Ministry of Land and Property Relations of Tatarst 20,6%

Iks-luch 13,6%

OJSC Svyazinvestneftehim 18,5%

Garant- Management, LLC 9%

Sinek Investments and Development Ltd 9,2%

Others 6%

7

2009 2010 2011 2012 2013 2014

Branches and other offices 326 327 362 387 399 381

Corporate clients 44 241 47 149 49 053 51 074 53 343 62 131**

Retail clients (thousand) 2 059 2 196 2 249 2 525 2 935 2 974**

Loans (Gross) USD mln 3 063 2 888 3 452 4 001 4 350 5 223

Total assets USD mln 3 797 4 103 5 100 5 643 6 170 7 701

Deposits USD mln 1 644 2 249 2 907 3 116 3 613 3 801

Total liabilities USD mln 3 312 3 579 4 624 5 137 5 623 7 163

Key Rations 2009,% 2010,% 2011,% 2012,% 2013,% 2014,%

Net loans / deposits 164,5 112,4 107,6 116,5 110,1 128,6

Provisions / gross loans 11,7 12,5 9,4 9,3 8,6 6,4

Deposits / assets 43,3 54,8 57,0 55,2 58,5 49,4

Equity / assets 12,8 12,8 9,3 9,0 8,9 7,0

Tier 1 capital ratio 14,1 13,1 9,4 9,1 9,7 7,5

Total capital ratio 17,6 16,2 11,8 13,6 14,5 11,2

AK BARS Bank at a Glance

THE BANK’S SHAREHOLDERS AS OF 17 MARCH, 2015

SUCCESSFUL TRACK RECORD*

*Source: IFRS accounts. FX RUB/USD = 56.2584 as of 31 December, 2014** As of May, 2015 - 63 656 corporate and more than 3,1 mln. retail customers



Key Milestones

1993 ‒ 2002

1993: The Bank is established by the Government of Tatarstan

1998: Cabinet of Ministers of Tatarstan singles out the Bank as the authorised bank of the Government

2003

Branches are opened outside Tatarstan

2005

The Bank issues its first Eurobond and raises another international syndicated loan

2006

The Bank issues rouble bonds and raises two international syndicated loans

Share capital increases to USD 886 mln

2007

The Bank issues a Eurobond in the amount of USD 250 mln

The Bank raises international syndicated loans

2008

The Bank raises international syndicated loan

Repays syndicated loans in the amount of USD 285 mln

2009

The Bank pays back a syndicate loan in the amount of USD 200m

The Bank’s share capital increased by USD 300m to USD 932m

The Bank issues Eurobond in the amount of USD 280m

2010

The Bank redeems a Eurobond issue in the amount of USD 176 mln

Resumes loan disbursement under government program of concessional auto lending

2011

The Bank is listed in TOP-100 most reliable banks of Russia by Forbes magazine

Closes the syndicated Murabaha financing contract in the CIS in the amount of USD60 mln

General Partner of Universiade 2013 in Kazan

2012

The Bank issues the largest ever Eurobond in its history in the amount of USD 600 mln

The Bank issues USD 500m 8.75 per cent Eurobonds due 2015

The Bank issues 5 bln. Rub. bonds

2013

AK BARS issues RUB bonds in total amount of 10 bln.

Becomes Strategic Partner of SEZ «Innopolis»

The Bank closes second syndicated Murabaha deal

2014

The Bank receives the status of a Participating Financial Institution in accordance with the FATCA

The Bank closed its mortgage portfolio securitization deal within the issue of RUB $2.5 bln. mortgage-backed bonds

The Bank issues 5 bln. Rub. bonds



7242

18300

4562

14583

861

2066

8472

22367

Borrow edFunds

Loans Equity Assets

AK BARS Bank Tatarstan Banking system

AK BARS Bank is the Largest Bank in Tatarstan

AK BARS BANK’S SHARE (%) AND RANK AMONG TATARSTAN’S BANKS (1)

BANK’S SHARE IN THE BANKING SERVICESMARKET OF TATARSTAN (USD MLN) (1)

40% 31% 42% 38%

AK BARS Bank is the largest bank in TatarstanThe Bank has the leading role among the region’s banks

(1) Source: National Bank of Tatarstan, According to RAS statements as of 1 January, 2015.



77017551

7274

6625

0,0

7800,0

10

595

546 538

471

0,0

595,0

AK BARS Bank: Peers comparison

PEER COMPARISON BY TOTAL ASSETS (USD MLN) AS OF 31 DECEMBER, 2014 (1)

PEER COMPARISON BY EQUITY (USD MLN)AS OF 31 DECEMBER, 2014 (1)

(1) Source: IFRS accounts. FX RUB/USD = 56.2584 as of 31 December, 2014



AK BARS Bank’s Key Operating Region is Tatarstan

TATARSTAN

TATARSTAN PROFILE

• International ratings Ba2/BBB-

• One of the most economically developed regions of the Russian Federation, with vast crude oil reserves (Tatarstan produces 33.8 million tones of crude oil per year and has estimated oil reserves of more than 1 billion tons).

• Leading industries include: oil refinery and production, chemicals and petrochemicals, machinery construction, agriculture.

• Among the Top-10 leading subjects of Russia by macroeconomic indicators (on per capita basis): commission of housing, retail trade turnover, manufacturing agricultural produce, amount of capital investments, volume of industrial output.

• Gross regional product (GRP) growth rate of 1,3% in 2014 vs. 0,6% (GDP) in Russia as a whole.

• Population: 3.8mln (as of 1 January 2015). The territory of the Republic covers 67,836 sq. km.

• 1st place in the ranking of regions on the evaluation of the performance of executive authorities of subjects of the Russian Federation (the Government of the Russian Federation, May 2014).

• #1 within the rating of Russian Innovative Regions (Association of Innovative Regions of Russia together with the Russian Presidential Academy of National Economy and Public Administration, July 2014).



Broad Distribution Network

KAZAN

In Russia by equity(3)

In Russia by assets(3)In Russia by regional network

(1)

Bank in Tatarstan by assets(2)#1

#19#11

#20

(1) Comparison composed by AK BARS Bank as of 1 June, 2015, excluding Sberbank network.(2) According to National Bank of Tatarstan, as of 1 January, 2015(3) According to Profile magazine as of 1 April, 2015



Diversified Lines of Business

RETAIL LENDING

RETAIL BUSINESS CORPORATE BUSINESS

Retail business is the most dynamically growing segment – over 2.9mln clients as of 1 January 2015

The Bank’s largest business is corporate banking – representing 40 % of total revenues (1)

DEPOSITS

Offers a wide range of deposits tailored to serve all account-holder segments

PLASTIC CARDS OPERATIONS

Principal member of the international MasterCard payment system and the VISA payment system, participant of Unified settlement system

1 004 523 plastic cards issued as of 1 January, 2015

1269 ATMs, 8404 POS terminals, 217 information kiosks, over 700 cash advance terminals as of 1st January, 2015 respectively

LENDING BUSINESS

Loans to corporate customers represent 77% of the Bank’s total loans and advances to customers

70% of the corporate portfolio is represented by companies from construction, trade and finance sectors

DEPOSITS

AK BARS’ corporate customer accounts represent 62% of total customer accounts

State and public organizations are the largest depositors: 55% of total term deposits

AK BARS Bank had over 62,000 customers

(1) Source: IFRS accounts as 31 December, 2014

Among Russia’s 30 largest retail banks

Retail portfolio represents almost 23% of the total loan book and

advances to customers before provision (as of 31 December, 2014)

Predominantly focused on consumer and mortgages lending – 43,9%

and 47,0% of retail portfolio respectively



Diversified Lines of Business

INVESTMENT BUSINESS


AK BARS investment business institutions are represented by AK BARS BANK, AK BARS FINANCEand AK BARS CAPITAL.

AK BARS Bank Investment banking services consists of Structured Finance, Promissory Notes, Trading Operations, Brokerage

Services, Bonds, Eurobonds and Alternative Finance.

The Bank is represented on MOEX, Bloomberg and Reuters platforms and is considered a trusted borrower on the domestic

debt market. Since 2005, the Bank has been an active and trusted participant on the international Eurobonds market.

As of June 2015, bonds outstanding:

- 4 ruble-denominated bonds - a total of 20 billion rubles

- 2 Eurobonds issues - $ 1.1 billion in total

The Bank (the 1st Bank in Former USSR) raised Sharia compliant financing (Murabaha) twice in total amount of US$ 160 mln.

АK BARS Bank Bloomberg ‹BBG000PG2V69›

AK BARS Finance Investment Company Bloomberg ‹BBG001BBN3T7›

AK BARS CAPITAL Management Company Bloomberg ‹BBG004TTLGM3›


229155

2704

64286359

264408

2527

54553

297

277456

3128

61

841

337

294471

3640

69539

640

317211

3978

17

947

700

614

178

4887

64

1222

736

2009 2010 2011 2012 2013 2014

Other assets Investment properties Loans to customers Due from other banks Securities Cash and cash equivalents

Strong Asset Base and Growth Profile

ASSET STRUCTURE AS OF 31 DECEMBER, 2014 (USD MLN / %) (1)

Assets have grown steadily over the last periods Assets growth in 2014 was due to the increase of securities and loans to customers by 29% and 23% respectively vs. 2013 Loans and advances to customers represent the largest part of assets structure (63%) as of the end of 2014

(1) IFRS accounts. FX RUB/USD = 56.2584 as of 31 December, 2014

9%

8%

2%

71%

4%

6%

7%

14%

1%

62%

10%

6%

7%

17%

1%

61%

9%

5%

12%

10%

64%

8%

1%

5%

11%

15%

65%

1%

3%

5%

10%

16%

1%

63%

2%

8%



37974103

51005643

6170

7701

2009 2010 2011 2012 2013 2014

16

87%

13%

87%

13%

84%

16%

80%

20%

77%

23%

77%

23%

2009 2010 2011 2012 2013 2014

Loans to Corporates Loans to individuals

PORTFOLIO INDUSTRY BREAKDOWN AS OF DEСEMBER, 2014, %

CORPORATE VS. RETAIL LOANS, %

AK BARS Bank net loan portfolio is diversified across key sectors of Tatarstan’s

Economy TOP - 40 borrowers account for 46% of the total loan portfolio

Diversified Loan Portfolio

ASSET GROWTH AS OF 31 DECEMBER, 2014 (USD MLN)

Source: IFRS accounts. FX RUB/USD = 56.2584 as of 31 December, 2014

CAGR=15,2% (2009-2014)

10%

32%10%

7%8%23%

5%

15%


10%

7%8%23%

5%

15%

32%


2009 2010 2011 2012 2013 2014

2704 25273128

36303978

4887

Total loans

17

TOTAL LOANS (USD MLN) (1)

Diversified Loan Portfolio

CAGR=12.6% (2009-2014)

LOAN PORTFOLIO MATURITY PROFILE AS OF

31 DECEMBER, 2014 (USD MLN) (1)




CORPORATE LOANS SECTOR BREAKDOWN, AS OF 31 DECEMBER, 2014 (USD MLN / %)

Corporate and Individual Loans By Sector*

LOANS TO INDIVIDUALS SECTOR BREAKDOWN, AS OF 31 DECEMBER, 2014 (USD MLN / %)


(1) Source: RAS accounts. FX RUB/USD = 56.2584 as of 31 December, 2014


OVERDUE LOANS AND PROVISIONS AS % OF

TOTAL LOANS AS OF 31 DECEMBER, 2014

LARGEST BORROWERS AS % OF GROSS LOAN PORTFOLIO

The Bank’s management does not foresee any further significant

impairments on the existing loan book

Overdue loans to total loans decreased by 1,1% during 2014

Loans impairment provision to total loans decreased by 2,2% during

2014

31 largest clients with loan amount >USD

21,3 mln 38%

Other 62%31 December, 2013

40 largest clients with loan amount >USD

21,3 mln 46%

Other 54%31 December, 2014

Source: IFRS accounts. FX RUB/USD = 56.2584 as of 31 December, 2014

Loan Portfolio Quality and Provisioning

7,9%

11,7%

7,1%

12,5%

5,3%

9,4%

7,3%

9,3%

6,6%

8,6%

5,5%

6,4%

2009 2010 2011 2012 2013 2014

Overdue customer loans to total loans (NPLs) Provisions to total customer loans



1 month 1-6 month 6-12 month 1-5 years 5 years

339

1020

612

1537

293

3312 3579

46245137

5623

7163

2009 2010 2011 2012 2013 2014

Total loans

Sustainable Funding Model Focused on Deposits

Liabilities Composition as of 31 December, 2014 (%)


CAGR=16.7% (2009-2014)

TOTAL LIABILITIES GROWTH (USD MLN) (1)

CUSTOMER DEPOSIT MATURITY PROFILEAS OF 31 DECEMBER, 2014 (USD MLN) (1)

50%

11%

22%

12%

4%1%

63%

5%

19%

9%3%

1%

63%

15%

14%

4%

3%

1%

61%

13%

14%

5%

6%

1%

64%

9%

15%

5%

6%1%

53%

12%

18%

7%

9%

1%

2009 2010 2011 2012 2013 2014

Customer accounts Due to other banks Debt securities in issue

Eurobonds Subordinated debt Other



TOTAL SHAREHOLDERS EQUITY AS OF 31

DECEMBER, 2014 (USD MLN) (1)

Adequate Capitalisation Levels

CAGR 2009-2014 = 2.1%

CAPITAL RATIOS AS OF 31 DECEMBER, 2014 (%)

As of 31 December, 2014 the total capital ratio of Bank amounted to 11.2 %

14,1%

17,6%

13,2%

16,2%

9,4%

11,8%

9,1%

13,6%

9,7%

14,5%

7,5%

11,2%

2009 2010 2011 2012 2013 2014

Tier 1 Capital Adequacy Ratio Total Capital Adequacy Ratio



Balance sheet, USD in millions 2009 2010 2011 2012 2013 2014 Growth 2009-2014

Cash and equivalents 359 297 337 640 700 736 205,2%

Securities portfolio(including direct repo)

286 553 841 539 947 1,222 427,7%

Due from other banks 64 54 61 69 17 64 100,1%

Gross loans 3,063 2,888 3,452 4,001 4,350 5,223 170,5%

Provisions (359) (361) (324) (371) (372) (336) 93,6%

Net loans 2,704 2,527 3,128 3,630 3,978 4,887 180,7%

Investment properties 155 408 456 471 211 178 114,9%

Other assets 229 264 277 294 317 614 267,7%

Total assets 3,797 4,103 5,100 5,643 6,170 7,701 202.8%

Due to other banks 379 193 718 666 491 865 228,1%

Customer accounts 1,644 2,249 2,907 3,116 3,613 3,801 231,1%

Murabaha facility and Eurobonds 404 313 186 271 293 500 123,8%

Securities issued 728 673 659 711 843 1,290 177,0%

Subordinated debt 121 120 120 335 361 620 513,7%

Other liabilities 36 31 34 38 21 87 245,8%

Total liabilities 3,312 3,579 4,624 5,137 5,622 7,163 216,3%

Equity 485 524 476 505 548 538 110,9%

Total liabilities and equity 3,797 4,103 5,100 5,643 6,170 7,701 202,8%

(USD in millions, at constant RUB/USD exchange rates)

Note: Exchange rate used: RUB/USD = 56.2584 as of 31 December, 2014.

Financial Highlights



Profit and Loss Statement, USD in millions

2009 2010 2011 2012 2013 2014

Net Interest Income 115 99 69 114 135 134

Net fee and Commission income 20 18 19 23 27 29

Other Income 66 25 (38) 86 77 0

Operating profit 201 142 50 223 239 163

Operating expenses (71) (90) (113) (126) (138) (151)

Total profit before Provisionsand Taxes

130 52 (63) 97 101 12

Provision for loan impairment (129) (5) (11) (55) (51) (36)

Profit before tax 0 47 (74) 42 50 (24)

Income tax 0 (8) 13 (6) (8) 4

Net profit 0 39 (61) 36 42 (20)

*Only interest-earning assets are taken into account

(USD in millions, at constant RUB/USD exchange rates)

Note: Exchange rate used: RUB/USD = 56.2584 as of 31 December, 2014.

Financial Highlights (cont’d)



Key Ratios 2009 2010 2011 2012 2013 2014

Net loans / deposits 164,5% 112,4% 107,6% 116,5% 110,1% 128,6%

Provisions / gross loans 11,7% 12,5% 9,4% 9,3% 8,6% 6,4%

Deposits / assets 43,3% 54,8% 57,0% 55,2% 58,5% 49,4%

Equity / assets 12,8% 12,8% 9,3% 9,0% 8,9% 7,0%

Tier 1 capital ratio 14,1% 13,2% 9,4% 9,1% 9,7% 7,5%

Total capital ratio 17,6% 16,2% 11,8% 13,6% 14,5% 11,2%

Key ratios 2009 2010 2011 2012 2013 2014

Net interest margin* 3,9% 3,4% 2,1% 2,9% 3,0% 2,5%

RoAA 0,0% 1,0% (1,3%) 0,7% 0,7% (0,3%)

RoAE 0,1% 7,7% (12,3%) 7,2% 8,0% (3,6%)

Financial Highlights (cont’d)



Notable Projects

National Partner of 16th FINA World

Championship 2015 in Kazan

Special Economic Zone «Innopolis»

Strategic Partner

Special economic zone

Alabuga Partner

Universiade 2013

Investment and venture fund of the

republic of tatarstan

partner

kazan federal university

strategic partner

Social card

Founder & Partner

Universal Electronic Card

Founder



Notable Projects

AK BARS BankRuble bondRUB 5 000 000 000

Issuer2012

AK BARS BankEurobond (LPN) $ 500 000 000 (11.2012)

Issuer2012

AK BARS BankEurobond (Subordinated Loan)$ 600 000 000 (07.2012)

Issuer2012

AK BARS BankRuble bondRUB 5 000 000 000 (03.2013)

Issuer2013


Issuer2013


Issuer2014

Murabaha Second Shariah compliant syndication $ 100 000 000 BorrowerHonorable mention under «Europe Deal of the Year 2013»

Borrower (Purchaser), 2013

AK BARS BankSecuritization within the issue of mortgage-backed bonds RUB 2 500 000 000 (12.2014)

Originator2014

AK BARS BankEurobond$ 300 000 000

Issuer2008

AK BARS BankSyndicated loan$ 200 000 000

Borrower2008

AK BARS Bank Eurobond(issuance and exchange)$ 280 000 000

Issuer2009

MurabahaShariah compliant syndication,First transaction in CIS$ 60 000 000

Borrower 2011 Europe’s Best Deal 2011


Documents

Kazan, June, 2015. Investor presentation Kazan, June, 2015 2 Board of Directors Igor G. Avanesyan CEO of ZAO United Leasing Company Center-Capital Sergey