Q1 2012 IFRS ResultsConsistent performance in low season

Conference CallMay 22, 2012

2

Net interest income was Rub 2,149, up 58% YoY

Net fees and commissions grew by 11.9% YoY to RUB 1,126 mln

NIM stood at 4.7% versus 3.2% in Q1 2011

Spread was 6.9%, up 171 bps YoY

ROE improved to 11.2% up from 7.5% in Q1 2011

Sufficient capital base (CAR: 13.4%, core Tier 1: 11.8% ), exceeding

regulatory requirements

Q1 2012 HighlightsGood start of the year: NI of RUB 526 mln, up 65.9%YoY Assets remained flat at RUB 183 074 mln

Share of IEA increased to 79% from 73% in Q4 2011

Loan portfolio b.p. stood at RUB 143 952 mln, up 4,8% QoQ vs 1,5% for sector

Corporate portfolio rose to RUB 118 035 mln, up by 4.5% QoQ vs 0% for sector

Retail portfolio was RUB 25 917mln, up by 6.4 % QoQ in line with sector +6.2%

Client funds was RUB 142 969 mln down by 1.5% QoQ

Loan/deposit ratio improved by 606 bps QoQ to 100.7%

NPL ratio stood at 8.68%, coverage ratio for 1day+ overdue 107%

3

Financial highlights

Q1’12 Q4’11 Q1’11 QoQ YoY

Interest income 3 769 3 694 3 146 +2.0% +19.8%

Interest expense (1 620) (1 481) (1 782) +9.4% -9.1%

Fee and commission income 1 218 1 486 1 092 -18% +11.5%

Fee and commission expense (92) (118) (86) -22% +6.9%

Other operating income 127 178 169 -28.7 % -24.9%

Total operating income 3 402 3 759 2 539 -9.5% +34.0%

Operating expenses (2 042) (2 405) (1 798) -15.0% +13.6%

Provisions (358) (658) (350) +2.3% -45.6%

Provisions on non-core assets (313) (83) 5 +277% -

Tax (163) (142) (79) +14.8% +106.3%

Net profit 526 471 317 +11.7% +65.9%

4

3.2%4.3% 4.6% 4.9% 4.7%

NIM

-1,782.0 -1,671.0 -1,569.0 -1,481.0 -1,620.0

3,146.0 3,528.0 3,591.0 3,694.0 3,769.0

Interest ExpensesInterest Income

Q4’11Q1’11 Q2’11

+19.8%

Q3’11

+2.0%

-9.1%

Interest Income and

Interest Expenses, RUB bln

NIM evolution

+148 bps

Q4’11Q1’11 Q2’11 Q3’11

Q1’12

Q1’12

+9.4%

- Interest income keeps recovering on the back

of higher interest rates across the loan book

and portfolio growth even though major part

of loans were issued in the end of the period.

In Q1 2012 it was up 2% QoQ to Rub 3.8 bln.

- After recordly low levels achieved in Q4 2011

interest expenses started to increase reflecting

higher interest rates on deposits introduced in

H2 2011, cost of funding rose by 29 bps, still

remaining on a comfortable level of 4.0%.

- Net interest margin on total average assets

stood at 4.7%, 23 bps lower than in Q4 due to

outpacing growth of interest expenses.

Compared to the same period of 2011 NIM

showed significant improvement from 3.2%.

NIM maintained at sufficient level supported by stronger interest income

-22bps

5

29% 26% 24% 28% 23%

42%40%

36%36%

37%

Personnel expensesOther expenses

Stronger operating efficiency offsets seasonally low revenues

1,364.0 1,857.0 2,022.0 2,213.0 2,149.01,006.0

1,192.0 1,256.0 1,368.0 1,126.0169.0116.0 148.0 178.0 127.0

-1,798.0 -2,091.0 -2,059.0 -2,405.0 -2,042.0

Net interest income Net fees Other incomeOperating Expenses

Q1’11 Q2’11 Q3’11 Q4’11

+13.6%

+34.0%-9.5%

Operating Income and Expenses, RUB bln

Cost to Income before

provisions,%

-10.8 pps

Q1’11 Q2’11 Q3’11 Q4’11

-15.1%

Q1’12

Q1’12

- First quarter is normally characterized by

subdued economic activity resulting into lower

non-interest income, while on a YoY basis net

commission income grew by 11.9% driven by

settlement and cash operations and operations

with banking cards. On a year-on-year basis

improved interest and non-interest revenues

contributed to 34% hike in total operating

income before provisions.

- Operating expenses were down 15% QoQ due

to seasonality and cost control. On a YoY basis

administrative expenses were maintained at

the same level, while 14% growth is mostly

attributed to accruement of bonuses to be paid

in the end of the year in Q1 2012.

- Cost to income ratio declined by 395 bps QoQ

and improved to 60% due to lower level of

operating expenses.

60%64%

60%66%

71%

6

317.000

395.000

411.000

471.000

526.000

Solid net income growth due to maintained operating profit coupled with lower level of provisioning

-350.0 -576.0 -720.0 -658.0 -358.0

741.01,074.

0

1,367.0

1,354.0

1,360.0

Operating profit before provisionsProvisions

+83.5%

Q1’11 Q2’11 Q3’11 Q4’11

+11.7%+65.9%

Operating profit and

provisions, RUB bln

Net profit, RUB bln

+0,4%

Q1’11 Q2’11 Q3’11 Q4’11

Q1’12

Q1’12

- Operating profit was maintained at the level of

Q4 2011 and totaled Rub 1.4 bln supported by

tighth cost control.

- Bottom-line is gradually expanding for the 8th

quarter in a row. Thus, net profit for Q1 2012

surged by 66% YoY and 12% QoQ.

- The bank charged Rub 358 mln to provisions

for the quarter that lower than in the previous

quarter but in line with the comparable quarter

of 2011. However, general provisioning policy

of the bank remains conservative. Coverage

ratio remained sufficient at 107% for 1 day+

overdue and 146% for 90 days+ overdue.

Net profit

7

Q4'11 Q1'12

124 131

9 141.0 0.4

Loans Securities Due from banks

Reliable balance sheet…

Assets

RUB bln

Q1'11 Q2'11 Q3'11 Q4'11 Q1'12

126 133 137 137 144137 135 138 145 143

92% 98% 99% 95% 101%

Gross loans Customer fundsRUB bln

IEA share comprises 79% of total assets

5%

58%14%

7%0%

16%

LTD ratio at optimal levels

Corporate loan portfolio

Retail loan portfolio

Other assets

Due from other banks

Cash and equivalents

Securities

…enhances revenue generation capacity

Q1'11 Q2'11 Q3'11 Q4'11 Q1'12

9 9 9 10 10

88 102 103 101 106

16 19 21 23 2517 14 17 9 1434 30 27 40 28

174 174 177 184 183

Cash and equivalents

Due from banks

Securities

Retail loans

Corporate loans

Other assets

73%79%

RUB bln

8

25,015

59,346

59,591

Loans…and mortgages in retail…

… in Moscow oblast - key region of presence

Moscow Oblast (41%)

Moscow (18%)

Other regions(41%)

*as of 31.03.2012

Breakdown by industry

Healthy growth with focus on SMEs…Rub bln

RUB143,952

mln

28%

18%2%

23%

3%

7%

6%4%

9%

*as of 31.03.2012

Construction Manufacturing

Agriculture

Wholesale &retail trade

Administrations

Other

Finance

Transport

Individuals

RUB143,952

mln

Q1'12Q4'11Q3'11Q2'11Q1'11

73.670.172.372.065.9

25.924.422.520.117.5

3.32.73.95.58.5

41.240.238.135.134.2

SME Individuals Administrations Large corporates

+14,2%

+4,8%

Q1'11 Q2'11 Q3'11 Q4'11 Q1'12

10.5 12.1 13.6 15.4 17.0

4.85.8

6.56.8

6.8

2.12.2

2.32.2

2.2

Mortgages Consumer and auto loans Credit cards

+48,3%+6,4%

9

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

1,242 1,379 1,399827 827

6.2%5.3%

5.0%4.4% 4.3%

7.1% 6.9%6.2%

3.4% 3.2%

Retail

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

8,195 8,025 8,464

7,769

8,263

11.6%11.0%

11.3% 11.5%11.1%

11.2%10.4% 11.1% 10.7%

10.8%

SMEs

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

1,624 1,626 1,6251,980

3,400

5.6%

7.0%7.6%

8.7% 8.9%

4.6%4.6% 4.3% 4.9%

8.3%

Large corporates

NPLs, RUB mln Provisions, % of total portfolio NPLs, % of total portfolio

Credit quality management

NPLs categorization: mild rise in NPL ratio due to one large loan impairment

NPLs dynamics

15

Annualized cost of risk

* NPL includes the whole principal of loans at least one day overdue either on principal or interest as well as not overdue loans with signs of impairment

Q1 2012Q4 2011Q3 2011Q2 2011Q1 2011

1.02%

1.92%2.14%

1.78%

1.16%1.02%

1.77%1.71%1.48%

1.16%

Charges to provi-sions to avg gross loans, QoQ

+ Rub 721 mln new NPLs- Rub 227 mln recoveries + Rub 94 mln new NPLs

- Rub 94 mln recoveries

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

11,061 11,030 11,488

10,576 12,490

9.15% 9.09%9.26% 9.44%

9,25%

8.78% 8.31% 8.40%7.70%

8.70%

NPLs, RUB mlnProvisions, % of total portfo-lio

*

RUB mln

+ Rub 1,635 mln new NPLs- Rub 215 mln recoveries

10

Credit qualityas of 31.03.2012 Large

corporateSMEs Mortgages Other

retailTotal % of total

loans

Gross loans, including 41,211 76,824 16,972 8,945 143,952 100.0%

Current loans 37,811 68,561 16,717 8,373 131,462 91,3%

Provisions (1,459) (1,258) (245) (164) (3,126)Past-due but not impaired, of them - 52 63 86 201 0.15%

Less than 90 days - 52 29 70 151 0.10%

Over 90 days - - 34 16 50 0.05%

Provisions - - (37) (21) (58)

Impaired, of them 3,400 8,211 192 486 12,289 8.5%

Less than 90 days 2,558 658 - 27 3,243 2.2%

Over 90 days 842 7,553 192 459 9,046 6.3%

Provisions (2,189) (7,306) (192) (450) (10,137)

Total NPLs 3,400 8,263 255 572 12,490 8.7%

Provisions (3,648) (8,564) (474) (635) (13,321) 9.3%

Net Loans 37,563 68,260 16,498 8,310 130,631 -

Provisions to NPLs Ratio

NPL -

106.7%

Rescheduled Loans

4.2%

the whole amount of loans with principal overdue for more than 1 day as well as loans with any delay in interest payments.

Provisions to 90

days+ NPLs

146%

11

… with high share of interest-free fundingFunding base remains reliable…

Liabilities and capital

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

17 18 18 18 194 4 4 4 48 8 9 8 77 8 6 7 821 20 19 20 2231 30 32 33 3115 17 16 20 18

70 69 71 72 72

174 174 177184 183

Retail deposits

Retail accounts

Corp. accounts

Corp. deposits

Securities issued

Due to other banks

Other Liabilities

Subordinated loans

Equity

RUB bln

Matched FX structure Capital position in line with requirements

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 31.03.12

12.0% 11.8% 11.6% 11.9% 11.8%

14.1% 13.6% 13.4% 13.8% 13.4%11.6%

Tier 1 Tier 1 + Tier 2 CAR under CBR rules

(N1)

11%MINRUB

81%

USD12%

EUR7%

Other0%

RUB80%

USD13%

EUR7%

Other0%

Assets Liabilities

Data as of March 31, 2012

RUB bln

+4.45%

-1,5%

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

21 20 19 20 22

70 69 71 72 72

15 17 16 20 1831 30 32 33 31

Corporate deposits Retail deposits Retail accounts Corporate accounts

34%

12

4.91%

0.10% -0,19%

-0,06% -0,12%

4.68%

NIM: repricing on both sides of the balance sheet

3.2%4.3% 4.6% 4.9% 4.7%

5.1%

6.3% 6.4%7.1% 6.9%

NIMInterest Spread

Q3 2011Q1 2011 Q2 2011 Q4 2011 Q1 2012

NIM development Spread composition

Key points

Yields on earning assets kept increasing due to higher interest rates on loans and securities book, despite major part of new loans was attracted in the end of the quarter restraining further growth

Cost of funds rose to 4,0% after a bottom in Q4’11 as higher deposit rates started to filter through P&L

NIM composition improved for the year to 4,7% from 3,2% in Q1’11. It peaked in Q4’11 and mildly decreased in Q1’12 due to outpacing growth of interest expenses

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

9.8% 10.6% 10.4% 10.7% 10.8%

4.7% 4.3% 4.0% 3.7% 4.0%

5.1%6.3% 6.4% 7.1% 6.9%

Yield on earning assets (net)Cost of funds

13

53%

17%

26%

4%

Share of non-interest income in total operating income b.p.

64%13%

20%

3%Chart Title

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

288 340 353 414 326

230291 310

337256

196226 245

253

219

292335 348 364

3251,006

1,192 1,2561,368

1,126

Settlements Cash transactions Other Cards

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%

25%

19%20%

24%

37%vbank

peer 1

peer 2

peer 3

Net fee margin

Fees and commissions

Key points

Net fee income distributionRUB mln

Despite subdued business activity in the beginning of the year net fee margin of the bank remained one of the highest among peers and stood at 2.5% in Q1 2012

Net fee income delivered 11,9% growth versus comparable period of 2011 on the back of higher fees from cash and settlement operations as well as operations with banking cards

After enormous structure of non-interest income is back to normal: corporate business contributed 53%, banking cards business delivered 25% and 17% was delivered by retail segment

Non-interest income breakdown by segments

Cards

Financial

Corporate business

Retail business

Strong non-interest income based on long-term relations with customers

Cards

Financial Corporate business

Retail business

Q1 2012 Q4 2011

* Vbank data as of 1Q’12, Peer1, Peer2, Peer 3, Peer 4 – FY2011

-17.7%+11.9%

14

Project on optimization of operational model: key steps

Costs

2007 2008 2009 2010 2011 Q1 2012

62.7%

52.7%48.7%

72.5%

64.8%60.0%

Operating expenses breakdownRUB mln

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

1,063 1,271 1,224 1,352 1,258

735820 835

1,053784

Personnel expensesNon-personnel expenses

Cost-to-Income (CIR) ratio

-15.1%

+13.6%

Optimization of branch activity

Development of the product line

Centralization of back-office

Adjustment of IT infrastructure

Target: CIR below 50%

• Define standardized formats of branches• Focus on front-office operations• Monitoring and optimization of man-loading • Elimination of operating risks

• Establishment of several regional centers with back-office functions

• Launch of a centralized back-office

• Create optimal IT-infrastructure to streamline processes between branches and back-office

• Centralize IT-budget

• Focus on most popular products and their development to find room for efficiency improvement

• Shift towards internet and mobile channels of sale

15

ROE, % ROA, %

Earnings generation capability

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

7.5%

9.1% 9.3%10.4%

11.2%

Value generation* % of average assets

4,7%

2,7%-1,5%

-2,7%

-1,7%

-0,4%1.1%

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

0.74%0.91% 0.94%

1.05%1.15%

Key points

Profitability kept rebounding on the back of increased efficiency and improved - ROE for Q1 2012 reached 11,2%, up from 7,5% in Q1 2011

Responsible management of funding base with focus on most attractive lending segments supported by higher operating efficiency contributes to further improvement of revenue generation

16

Questions and answers

investor@voz.ru http://www.vbank.ru/en/investors

Elena Mironova

Deputy Head of IR

+7 495 620 90 71

E.Mironova@voz.ru

Andrey Shalimov

Deputy Chairman of the Management Board

A.Shalimov@voz.ru

17

DisclaimerSome of the information in this presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of Bank Vozrozhdenie (the Bank). Such forward-looking statements are based on numerous assumptions regarding the Bank’s present and future business strategies and the environment in which the Bank will operate in the future. The Bank cautions you that these statements are not guarantees of future performance and involve risks, uncertainties and other important factors that we cannot predict with certainty. Accordingly, our actual outcomes and results may differ materially from what we have expressed or forecasted in the forward-looking statements. These forward-looking statements speak only as at the date of this presentation and are subject to change without notice. We do not intend to update these statements to make them conform with actual results.

The Bank is not responsible for statements and forward-looking statements including the following information:- assessment of the Bank’s future operating and financial results as well as forecasts of the present value of future cash flows and

related factors;- economic outlook and industry trends;- the Bank’s anticipated capital expenditures and plans relating to expansion of the Bank’s network and development of the new

services;- the Bank’s expectations as to its position on the financial market and plans on development of the market segments within which the

Bank operates;- the Bank’s expectations as to regulatory changes and assessment of impact of regulatory initiatives on the Bank’s activity.

Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include:- risks relating to changes in political, economic and social conditions in Russia as well as changes in global economic conditions;- risks related to Russian legislation, regulation and taxation;- risks relating to the Bank’s activity, including the achievement of the anticipated results, levels of profitability and growth, ability to

create and meet demand for the Bank’s services including their promotion, and the ability of the Bank to remain competitive.Many of these factors are beyond the Bank’s ability to control and predict. Given these and other uncertainties the Bank cautions not to place undue reliance on any of the forward-looking statements contained herein or otherwise. The Bank does not undertake any obligations to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable laws.