Presentation November 2008. 2 (In billion roubles) B.I.N.BANK AT A GLANCE * Converted here and throughout the presentation at USD/RUB rate of 24.60 B.I.N.BANK

Presentation November 2008

2

(In billion roubles)

B.I.N.BANK AT A GLANCE

*Converted here and throughout the presentation at USD/RUB rate of 24.60

B.I.N.BANK AT A GLANCE

Full service bank with the focus on SME and retail businessEstablished in 1993Strong regional presence –115 branches and outlets covering regions with more than 90% of total GDP High quality of the loan portfolio and conservative risk management

One of the most transparent Russian banks according to Standard & Poor's Transparency and Disclosure Survey (2nd – 2006 and 6th – 2007)IRFS accounts audited since 1995 (PWC, Deloitte)In Top-50 Russian private banks with a clear strategy to be amongst 40 largest by 2009According to adopted Strategy till 2011 the Bank’s Total Assets will double

December 31, 2005 December 31, 2006 December 31, 2007

Assets

Capital

Loans to customers

Net profit

ROE

Cost to income ratio

ROA

CAR (Tier I)

Branch network

38 (USD 1,5 bln.) 57(USD 2,3 bln.) 64,3 (USD 2,6 bln.)

8,4 (USD 341 mln.)7,2 (USD 292 mln. )6,7 (USD 272 mln.)

38,7 (USD 1,6 bln.)38,6 (USD 1,5 bln.)23,3 (USD 947 mln.)

1,3 (USD 53 mln.)0,4 (USD 16 mln.)0,3 (USD 12 mln.)

16,1%5,64%7%

2%0,8%1,2%

69,6%82,6%75%

14,5%15,4%23,5%

1186421

September 30, 2008

66,9 (USD 2,7 bln.)

8,76 (USD 356 mln.)

42,3 (USD 1,72 bln.)

September 30, 2007

0,358 (USD 14 mln.)

0,961 (USD 39 mln.)

3

OWNERSHIP

OWNERSHIP

Ownership structureOwnership structure

Legal shareholders

Share

31 June 2008

31 December 2008

LLC "TradeWest" 87.07% 19.99%

LLC "UK BIN-Bank" 8.92% 0.00%

Envikey-Emcy Investment Limited 3.23% -

LLC "Business Centre "Zubarevsky" - 17.88%

CJSC "Chaika Plaza" - 9.20%

GNK "TITON" - 19.99%

CJSC "Universal Assets" - 19.99%

OJSC "IK Nadezhnost" - 3.23%

LLC "Spetspromavtomatika" - 2.96%

CJSC "PFK BIN" - 2.96%

CJSC "Rossiysky Neftyanoy Export" - 2.93%

Others 0.78% 0.87%

Total 100.00% 100.00%

Ultimate shareholders Share

Shishkhanov Mikail Osmanovich (Beneficail owner) 99.22% 87.07%

Gutseriev Sait-Salam Safarbekovich

- 6.19%

Other 0.78% 6.74%

Total 100.00% 100.00%

4

ACHIEVEMENTS IN 2007 AND 2008

Operating and financial performance in 2007

Operating and financial performance

in 3Q2008

• Total assets of the Bank have increased by 13% as compared with 31 December 2006 (RUB 64,3 bln. Vs. RUB 57 bln.).

Operating income grew by 76% and as of 31 December 2007 amounted to RUB 5,7 bln. (2006 - RUB 3,2 bln.).

• Net profit for 2007 has more than tripled (increased by 225%) and amounted to RUB 1,3 bln. against RUB 0.4 bln. in 2006.

• Net interest income as of 31 December 2007 significantly increased and constituted RUB 3 bln. vs. RUB 1,7 bln. as of 31 December 2006.

• Total equity has also increased more than 17% and comprised RUB 8,4 bln.

• The Bank has stable position notwithstanding the market disruption which occurred in September. The Bank has successfully mobilized its financial and human resources and showed decent result in the 3rd quarter of 2008.

• Total assets increased up to RUB 66,9 bn. from RUB 64,3 bn. as of December 31, 2007.

• Net profit comprised RUB 358 mln. and was mostly pressured by the Bank’s measures to accumulate substantial liquidity reserve as well as increased operating expenses.

• Loans to customers increased by 9% and comprised RUB 42,3 bn. versus RUB 38,7 bn. as of December 31, 2007.

BUSINESS AND FINANCIAL HIGHLIGHTS

5

CREDIT RATINGS HAVE ROOM FOR IMPROVEMENT…

…BUT TRANSPARENCY STANDARDS ARE ON THE HIGHEST LEVEL

B B -

BC

BB+

International credit ratings: STANDARD&POOR’S FitchRatings

National ratings: RusRATING

STANDARD&POOR’S

STANDARD&POOR’S

National ratings: Moody’s Interfax

BB (rus)BBB (rus)

A3.ru

StableOutlook

Negative StableOutlook

Long-term credit rating

Short-term credit rating

Long-term National rating

Short-term credit rating Long-term credit rating

Ratings reflect high capitalisation, recent strong growth in the Bank’s customer funding base, its strong liquidity position and its low level of market risk compared with many CIS banks. Recent outlook downgrade by S&P evidences of the total tense situation in international financial market which makes rating agencies be wary of Russian banking system as a whole.

According to CBR ranking as of October 1, 2008 B.I.N. BANK is included in TOP-30 Russian major banks which keeps its stable market position under conditions of the present economic instability.

2-nd place among Russian Banks by Transparency ( Oct’ 2006)


6-th place among Russian Banks by Transparency ( Oct’ 2007)

6

BRANCH NETWORK IS GROWING IN HIGH GEAR

• In 2007-2008 the Bank’s branch network has significantly expanded from 64 up to 115 outlets. Currently the network includes 19 sub branches in Moscow, 52 sub branches in regions, 29 branches, 6 rep offices and 9 operating and currency exchange points.

• In October 2007 a well-known Russian business journal “Company” awarded the Bank with a nomination of “The most dynamic bank of the year” for active development of the regional network.

• Modern banking technologies allow the Bank to expand its branch network without loss in control, management and information flow efficiency.


7

ASSETS’ GROWTH PROVES STABLE

Assets structure 2007

6.90%

15.70%

14.80%60.40%

2.20%

Cash and cashequiv alents

Due f rombanks

Trading/Inv estment securitiesLoans tocustomers

Others

Mln rub.

0

20000

40000

60000

80000

100000

2005 2006 2007 3Q2008


Assets structure 3Q2008

5.90%

16.10%

11.60%

63.10%

3.30%

Cash andcashequivalentsDue frombanks

Tradingsecurities

Loans tocustomers

Others

Bank assets forecast (unconsolidated IAS)

0

20000

40000

60000

80000

100000

120000

140000

160000

2008 2009 2010 2011

Assets Mln rub.

As of January 01, 2012 the Bank will achieve the following figures: Net assets – RUB 150 bln.ROA – 2%ROE – 13.5%

8

LOAN PORTFOLIO MAINTAINS PRIME QUALITY

• Loan portfolio (loans to customers) of the Bank as of 30 September 2008 amounted to RUB 42,3 bln.

• Share of NPLs in the structure of the loan portfolio is quite moderate - about 3.99%. Growth of NPLs against the end of 2007 (about 1%) is related to the increased share of retail business.

• In 2009 The Bank expects further growth of the loan portfolio up to RUB 70 bln.

0

20000

40000

60000

80000

2005 2006 2007 3Q2008

Loan portfolioMln rub.


0

20000

40000

60000

80000

100000

120000

140000

2008 2009 2010 2011

Loan portfolio forecast (unconsolidated IAS)

Mln rub.

9

LOAN PORTFOLIO IS DIVERSIFIED AND WELL BALANCED

Loan portfolio industry concentration

•The level of real estate industry concentration continues to decrease and makes the loan portfolio more adjusted.

•In the beginning of 2009 share of individuals in the loan portfolio will reach 40%.


30.90%

20.20%

8.30%

2.90%

2.90%

4.90%

8.90%

3.20%

17.80%

Individuals

Retail trade

Construction

Manufacturing

Services

Financial activities

Office propertyholding

Hotel business

Other

Q32008

34.40%

33.30%

7.50%

6.80%

2.70%

2.70%

2.40%

2.10%

8.10%

Individuals

Retail trade

Construction

Manufacturing

Services

Financial activities

Office propertyholding

Hotel business

Other

2007

10

LOAN PORTFOLIO DIVERSIFICATION AMONG REGIONS


2006

71.85%

28.15%

Moscow

Regions

2007

36.20%

63.80%

Moscow

Regions

In 2007 the share of regions in the total loan portfolio doubled. In 2008 the regional share has also increased demonstrating the further expansion of the Bank’s network.

3Q2008

33.62%

66.38%

Moscow

Regions

11

RETAIL LOAN PORTFOLIO TENDS TO FURTHER GROWTH

• Retail loan portfolio of the Bank as of 30 September 2008 exceeded RUB 15 bln. (against RUB 12 bln. as of 31 December 2007).

• Total share of retail business in loan portfolio reached 34% compared with 30% at the beginning of the year.

• The major part of loans are to be approved according to the scoring system – Transact SM developed by Experian Decision Analytics.

2007

Consumer loans, 27%

Car loans, 27%

Mortgage loans, 25%

Credit cards, 3%

Other, 18%

RETAIL LOAN PORTFOLIO STRUCTURE


3Q2008

Consumer loans, 36%

Car loans, 26%

Mortgage loans, 23%

Credit cards, 4%

Other, 11%

12

CONCENTRATION BY LARGEST BORROWERS AND DECREASE OF RELATED PARTY LENDING

0%

10%

20%

30%

40%

50%

60%

2005 2006 2007 3Q2008

Top 20 largest borrowers

Top 10 largest borrowers

Related parties lending


Concentration by largest borrowers

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

2005 2006 2007 3Q2008

Credit risk exposure is moderate (about 3.99% of the total loan

portfolio as at 30 September 2008)

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

2007 3Q2008

NPL/total loan portfolio

13

LIABILITIES HAVE PROGRESSED…

0

10000

20000

30000

40000

50000

60000

2005 2006 2007 3Q2008

LiabilitiesMln rub.

Period

Liabilities structure as at 30 September 2008

57.5%

12.7%

5.1%24.7%

retail customer accountsand term deposits

other liabilities(including debtsecurities issued)due to banks

corporate customeraccounts


WITH THE FOCUS ON CUSTOMER ACCOUNTS

14

EQUITY CONTRIBUTION – PRIMARY TASK HAS BEEN SUCCESSFULLY IMPLEMENTED

• As of the 1st August 2008 the Bank has raised and registered in the Central Bank of Russia a 10-year US$100 mln. subordinated loan from the major shareholder Mikail Shishkhanov in the form of Tier II capital .

• 100% capitalization of dividends.

0

2000

4000

6000

8000

10000

12000

2005 2006 2007 3Q2008

EquityMln rub.

Period


Capital forecast (unconsolidated IAS)

8514

15297

194052350

2350

2350

2350

11614

0

5000

10000

15000

20000

25000

2008 2009 2010 2011

Tier II

Tier I

Mln rub.

As of September 30, 2008 the Bank’s equity has increased by 4% compared to December 31, 2007.

15

NET PROFIT DYNAMICS

In 2007 net profit of the Bank has more than tripled compared with the figure of 2006. Mostly, the Bank has benefited from the expanded branch network.

0

300

600

900

1200

1500

2005 2006 2007

Net profit dynamics

Mln rub.

Period


In 3Q2008 profitability was slightly pressured

0300600

90012001500

3Q2007 3Q2008

As at 30 September 2008 net profit comprised RUB 358 mln. and was mostly pressured by the Bank’s measures to accumulate substantial liquidity reserve as well as increased operating expenses. Operating expenses have grown in proportion to increased personnel recruitment in relation with massive branch network expansion. Nevertheless, we consider the Bank’s result positive under current market conditions and its liquidity position is one of the most solid among the market peers.

16

INTERNATIONAL CAPITAL MARKET ACCESS SHOWED THE RESULTS…

…AND WILL BE EXPANDED IN 2008-2009

During 2005-2007- several tranches under LPN private placement program (total amount is about USD 36 mln.) Last tranche was repaid in June 2008.

Syndicated loans (about USD 20-50 mln., denominated in US dollars and rubles, 1-2 years)

Eurobonds (Exchange option/New issue/New Programme, USD 150 mln., 3-5 years)

RUB bonds (1-3 bln., 1.5-3 years)

STN/CLN, Structured products, private placements, bilateral facilities (USD 50 – 150 mln., 1 year-2 years)

PLANNED PROGRAMS

In May 2007 the Bank redeemed USD 100 mln. (put option) of its Eurobond placement (amount USD 200 mln. with coupon 9.5% and tenor – 3 years). MLAs – Merrill Lynch and Commerzbank Capital Markets AG.


In March 2007 the Bank extended and increased the syndicated trade-related loan from USD 40 mln. up to USD 52 mln. Tenor – 1 year. MLAs – LandesBank Berlin AG, Raiffeisen Zentralbank Osterreich AG&JSC VTB (Repaid in April 2008 )

2009 2010 2011

$100 mln. (May)

$27 mln. (August)

0 0

Existing debt financing maturity

In August 2008 Bank raised new USD 27 mln. Syndication (1 year, at LIBOR + 2.5%). MLAs- LandesBank Berlin AG, JSC VTB

17

TRADE FINANCE IS OUR STRONG POINT

Throughout 2007 and 9m of 2008 the Bank has progressed in its trade finance operations. As of November 2008 total volume of guarantees and L/Cs of B.I.N.BANK confirmed by major international financial institutions is about USD 130,78 mln.

The Bank realized a number of long-term trade transactions related to import deliveries of goods & equipment under ECAs cover. As of 3Q 2008 total volume of the deals exceeds USD 90 mln.

In 2008 the Bank expands its trade finance activity and continues establishing cooperation with banks and ECAs from countries of Northern Europe, Middle East and Asia-Pacific Region.


18

CURRENT TRADE FINANCE TRANSACTIONS


Guarantees and Letters of Credit issued by B.I.N.BANK are being confirmed by major international financial institutions, that have granted clean credit lines for Trade Finance operations for B.I.N.BANK such as:

American Express Bank Ltd. USA) Kazkommertsbank (Kazakhstan) Banca Agricola Mantovana (Italy) Landesbank Berlin AG (Germany), Banque de Commerce et de Placements (Switzerland) RZB-Austria AG (Austria)Bank Austria Creditanstalt AG (Austria), VTB Bank (Austria) AG (Austria) Bayerische Hypo- und Vereinsbank AG (Germany) UBS AG (Switzerland), etc. Commerzbank AG (Germany)

Total current volume exceeds USD 130,78 Mln.

MAIN CLEARING and FX/MM PARTNER-BANKS

Agricultural Bank of China (China)American Express Bank Ltd. (USA)American Express Bank GmbH. (Germany)Belvnesheconombank (Belarus)Bank TuranAlem (Kazakhstan)Banque de Commerce et de Placements (Switzerland)Commerzbank AG (Germany)ING Belgium SA/NV (Belgium)Kazkommertsbank (Kazakhstan)Privatbank (Ukraine)

RZB-Austria AG (Austria)Sberbank (Russia)Standard Chartered Bank (UK)Vnesheconombank (Russia)VTB (Russia)VTB Bank (Austria) AG (Austria)VTB Bank (Deutschland) AGUBS AG (Switzerland)UBS AG (USA)

19

LONG- TERM FINANCE


• Long-term financing of import of equipment and related services, as well as “turn- key” projects, guaranteed by foreign Export Credit Agencies (ECAs),

• Letters of credit with postfinancing or deferred payment confirmed by the first-class foreign banks under ECA-cover

Main foreign partners :AKA Ausfuhrkredit-Gesellschaft Bayerische Hypo- und Vereinsbank Banca Agricola Mantovana Banca Monte dei Paschi di Siena S.p.ABanca Nazionale del Lavoro Banco Bilbao Vizcaya ArgentariaBank Austria Creditanstalt Bank DnB NORD Polska S.A.Landesbank Berlin AG Landesbank Baden-Wuerttemberg and others

Trade transactions with ECA cover:Tenor of the transactions: 3 – 7 yearsAs of November 2008 total volume of the deals exceeds USD 90 mln.

Atradius (Netherlands, amount of transactions ca. USD 1,8 Mln.)

EULER HERMES (Germany, amount of transactions ca. USD 64,9 Mln.)

EFIC (Australia, amount of transactions ca. USD 1,7 Mln )

KUKE (Poland, amount of transactions ca. USD 18,4 Mln.)

SACE (Italy, amount of transactions ca. USD 1,9 Mln.)

US Ex-Im Bank (USA,amount of transactions ca. USD 12,4 Mln.), and others.

20

THE BANK IS CONSERVATIVE IN MANAGING LIQUIDITY RISKS

RISK MANAGEMENT

Statutory liquidity ratio trend in 2007

15.0%25.0%35.0%45.0%55.0%65.0%75.0%85.0%95.0%

105.0%115.0%

min 15%

•The Bank monitors future cash flows and liquidity on a daily basis, makes an assessment of expected cash flows and collateral available to secure additional funding if required.

•Maintains a significant portfolio of highly marketable and diverse assets that can be easily liquidated.

•Has committed lines of credit that it can assess to meet liquidity needs. 15.0%45.0%75.0%

105.0%135.0%165.0%195.0%225.0%

min. 15%

-2,000,000,0004,000,000,0006,000,000,0008,000,000,000

10,000,000,00012,000,000,00014,000,000,00016,000,000,00018,000,000,000

High liquid assets

Average liquid assets

Investments in liquid securities

Statutory liquidity ratio trend in 2008

Opportunities to draw liquidity:

•Participation in auctions for loans without collateral from CBR for banks rated “B-” at least (CBR Regulation 323-П dated October 16, 2008 ” On granting uncovered credits to Russian credit organizations by the Bank of Russia")

•Participation in auctions for refinancing by CBR of 1 and 2 category loans to corporate customers (CBR Regulation 312-П dated November 12, 2008 “On procedure for granting asset covered loans to credit organizations by the Bank of Russia”).

•Subordinated loan from Vnesheconombank (50/50 with the shareholder or a third party).

•Other opportunities currently introduced by the government or CBR.

21

CONSERVATIVE CREDIT AND MARKET RISK POLICIES IN PLACE

RISK MANAGEMENT

Credit risk

Interest rate risk

Currency risk

Liquidity risk

Operational risk

Credit Risk Policy adopted and implemented according to the best international practice. Decision making in 3 levels of Credit committees (small CC– up to RUB 20 mln. per one borrower; CC -up to RUB 100 mln. and large CC - over RUB 100 mln. plus limits on banks).

All loans are collateralized. Internal rating classification of the categories and provisions measured and minimized according to BASEL.Good balanced interest rate structure.

Currency Risk Management Policy aimed on restriction, supervising and managing currency risk by the system of limits.

Historically low liquidity risk even in the period of the deterioration in the banking market. Liquidity management policy authorise Management Board to make adequate decisions and match and/or control mismatch of asset and liability maturity periods and interest rates.

Operational Risk Management policy adopted and includes advanced measures and analysis of operational risks facts realization and assessment of capital adequacy for losses coverage. We use TSA (the standardized approach recommended by BASEL) and will use advanced measurement approach (AMA) – in the future.

22

STRATEGY FOR 2008-2011 INCLUDES…

• Additional investments into the capital for further growth from the major shareholder (subordinated loan amounted to RUB 2.3 bln was registered as Tier II capital as of August 2008);

• Adherence to the basic strategies throughout several last years and stable top-management team;

• Strengthening of the Bank’s position in the international market in order to keep good credit track-record for future international funding deals;

• Expansion and diversification of the Bank’s client base;

• Introduction of standards of corporate management according to the best international practice;

• Maintenance of high level of the Bank’s transparency;

• Achievement of the better efficiency factors among competitors;

…WITH AN OBJECTIVE TO CREATE A NATIONAL LEVEL BANK

STRATEGY

23

IFRS BALANCE SHEET (FORECAST)IFRS Balance Sheet 2005 2006 2007 2008 2009 2010 2011

unconsolidated Actually Actually Actually Plan Plan Plan Plan

ASSETS

Cash and balances with the Central Bank of the Russian Federation

3260 4854 4035 4816 6390 8332 10548

Financial assets at fair value through profit or loss 898 1844 9365 9977 11979 12969 14083

Due from banks 9898 10949 10335 3670 2170 2170 2170

Loans to customers 22116 36388 35350 52679 71510 95196 120591

Fixed assets 224 550 1019 1802 2306 2814 3011

Current income tax assets 17 22 0

Other assets 80 121 526

TOTAL ASSETS 36493 54728 60630 72944 94355 121480 150403

LIABILITIES

Due to banks 1387 3613 3468 4837 7666 9289 12224

Customer accounts 25357 35480 44188 52753 67934 87057 109553

Debt securities issued 3262 8796 4875 4490 4791 7487 6872

Other provisions 22 31 37

Other liabilities 5 44 214

Total liabilities 30032 47963 52782 62080 80391 103833 128648

EQUITY

Tier 1 Capital 6461 6765 7849 8514 11614 15297 19405

Tier 2 Capital 0 0 0 2350 2350 2350 2350

Total equity 6461 6765 7849 10864 13964 17647 21755

TOTAL LIABILITIES AND EQUITY 36493 54728 60630 72944 94355 121480 150403

STRATEGY

24

PROFIT & LOSS ACOUNT (FORECAST)

2005 2006 2007 2008 2009 2010 2011

Unconsolidated Actually Actually Actually Plan Plan Plan Plan

Interest income 3811 5418 8068 8534 11550 15265 19411

Interest expense -2014 -2686 -3998 -4185 -5321 -6732 -8177

NET INTEREST INCOME BEFORE PROVISION FOR IMPAIRMENT LOSSES ON INTEREST BEARING ASSETS

1797 2733 4070 4349 6229 8533 11234

Initial recognition adjustment on interest bearing assets -458 -248 0 0 0 0 0

Provision for impairment losses on interest bearing assets -213 -557 -223 -492 -979 -1312 -1528

NET INTEREST INCOME 1126 1928 3848 3857 5250 7222 9706

Net gain on financial assets and liabilities at fair value through profit or loss

46 16 406 0 0 0 0

Net gain on foreign exchange operations 337 264 518 495 725 794 1139

Fee and commission income 509 893 592 815 1237 2044 2833

Fee and commission expense -77 -182 -240 0 0 0 0

Dividends received 1 27 2 0 0 0 0

Other income 26 40 210 0 0 0 0

NET COMMISSION INCOME 840 1058 1488 1310 1962 2838 3972

OPERATING RESULT 1967 2986 5336 5167 7212 10060 13677

NON-OPERATING EXPENSES -1654 -2525 -3845 -4359 -6109 -8054 -10183

FINANCIAL RESULT 312 461 1491 808 1103 2005 3495

Provision for impairment losses on other transactions 22 -9 -10 0 0 0 0

PROFIT BEFORE INCOME TAX 335 452 1480 808 1103 2005 3495

Income tax expense -98 -148 -396 -250 -265 -482 -839

NET PROFIT 237 304 1084 559 838 1524 2656

STRATEGY

25

WHAT MAKES B.I.N.BANK ATTRACTIVE?

THE BANK HAS A NUMBER OF KEY ADVANTAGES:

Successful introduction of brand-new IT system.

Very strong brand and business reputation;

Young and professional team of top-managers;

Branch network with 115 branches and outlets;

Wide range of products and services as well as advanced banking technologies;

Well-run system of risk management;

KEY ADVANTAGES

Very strong capitalization;

Documents

Presentation November 2008. 2 (In billion roubles) B.I.N.BANK AT A GLANCE * Converted here and throughout the presentation at USD/RUB rate of 24.60 B.I.N.BANK