1. H1 2011 IFRS Results
From volumes to returns
Conference Call
August 18, 2011

2. Key takeaways
Inflationary environment was steady in Q2 – just 0.0-0.1% weekly level
with distinct downward trend from 9.4% YoY by the end of June
 CBR kept refinancing rate at 8.25% in May managing liquidity in the
Despite low interest
system with deposit (+25bps to 3.5%) and repo rates (5.5%). Excessive
rate environment… liquidity in banking system is gradually shrinking
 Average corporate loan rates continued to fall in April (to 8,3%) and May
(to 8.0%) hiking in June to 8.7%
 LTD ratio stood at solid 98.1% with interest earning assets comprising
…solid and high- 77% of total assets
profitable balance Loan portfolio share increased from 62% a year ago to 69% driven by
sheet structure… loans expansion in retail (40% YoY) and SME (30% YoY)
 Though IEA grew, the bank kept adequate liquidity cushion of 24%
 Interest income grew by 12% QoQ on the back of reasonable interest
rate policy and healthy lending growth
Interest expenses contracted by 6% QoQ driven by eliminating “sticky
…results into material
deposits” effect following next 39bps cost of funds reduction from 4.69% to
margin growth 4.3%
NII boosted by 36% resulted in long-awaited NIM rebound by 106 bps
from 3.2% in Q1 to 4.3% in Q2
2

3. Financial highlights
Q2’11 Q1’11 Q2’10 QoQ YoY
NIM 4.3% 3.2% 3.7% +1.1 pps +0.6 pps
Net interest income 1,857 1,364 1,379 +36.1% +34.7%
Net fee income 1,192 1,006 975 +18.5% +22.3%
Operating expenses (2,091) (1,798) (1,679) +16.3% +24.5%
Net income 395 317 121 +24.6% +226%
ROE 9.1% 7.5% 2.9% +1.6 pps 6.2 pps
Gross loan portfolio 132,729 126,036 102,474 +5.3% +29.5%
Customer accounts 135,288 136,874 118,075 -1.2% +14.6%
L/D 98.1% 92.1% 86.8% +6.0 pps +11.3 pps
NPLs 11,030 11,061 10,814 -0.3% +2%
NPLs as % of loan portfolio 8.3% 8.8% 10.5% -0.5 pps -2.2 pps
Capital adequacy 13.6% 14.1% 17.2% -0.5 pps -3.6 pps
3

4. Impressive NIM rebound
+0.4% - Interest income grew +0.4% on a year-on-year
+12.1% basis first time since the beginning of the
Interest Expenses
Interest Interest Income crisis as a result of yields stabilization and
loan growth. During the quarter interest
Income and income gained 12.1% versus 5% QoQ growth
Interest 3,5 3,2 3,3 3,1 3,5 of the loan book.
Expenses, - Efforts on funding costs optimization resulted
-1,8 -1,7 in interest expenses decline for the 4th quarter
RUB bln -2,1 -2,0 -1,9
in a row (-6.2% QoQ) due to retail deposits re-
pricing.
-6.2%
-19.4%
Q2’10 Q3’10 Q4’10 Q1’11 Q2’11
+52 bps
NIM
- Net interest margin on total average assets
NIM hiked by 106 bps QoQ driven by loan book
growth and contraction of interest expenses
evolution 4,3%
3,7% 3,3% 3,5% 3,2%
Q2’10 Q3’10 Q4’10 Q1’11 Q2’11
4

5. Sizeable fee-income supports revenue expansion
Net interest income
Net fees - Fee-generating products demonstrated
+28.3% excellent performance, net fees grew by 22%
+24.6%
Operating 0,1 0,2 0,1 0,2
0,1 YoY while total non-interest income increased
by 20% YoY. This resulted in solid 41% share
1,2
Income and 1,0 1,0 1,1 1,0 of non-interest income in total operating
1,4 1,4 1,4 1,9 income before provisions. Total revenue was
Expenses, 1,3
up 24.6% QoQ driven by stronger fees from
-1,7 -1,7
RUB bln -2,3 -1,8 -2,1 settlements and cash transactions coupled
with healthy loan growth.
+16.3% - Operating expenses increased by 16.3% QoQ
+24.5%
primarily resulted from to the growth of
Q2’10 Q3’10 Q4’10 Q1’11 Q2’11 personnel expenses as we accrued provisions
for payment of annual bonuses for 2011 across
-2.16 pps 2-4th quarters in equal parts.
Personnel expenses
- Cost to income ratio declined by 4.75 pps QoQ
Other expenses 86%
Cost to 69% 71%
due to accelerated revenue growth in the
second quarter.
68% 66%
Income 50,9%
36,2% 36,5% 41,9%
before 40,2%
provisions,% 31,9% 32,9% 35,3% 28,9% 25,9%
Q2’10 Q3’10 Q4’10 Q1’11 Q2’11
5

6. Provisioning policy in line with expectations
+36.3%
+44.9% - Cost of risk accounted for 1.8% in the second
Operating Operating profit before provisions
Provisions
quarter compared to 1.2% in Q1 2011 and 2.7%
in Q2 2010, the level that implied by the
profit and financial plan for 2011. Charges to provisions
1,1 amounted to Rub 576 mln in Q2 and this
provisions, 0,8 2,3 0,7 allowed to improve total NPL coverage ratio to
0,4
RUB bln -0,003 -0,4
109%. For the NPLs with overdue more than 90
days coverage ratio was at the level of 142%
-0,7 -0,6 -0,6
- Revenue boost resulted in operating profit
growth of 44.9% QoQ
Q2’10 Q3’10 Q4’10 Q1’11 Q2’11
+226% - Bottom-line growth of 24.6% was supported by
+24.6% solid NII increase coupled with robust net fees
Net profit
dynamic.
Net profit,
RUB bln 0,4
0,3
0,2 0,2
0,1
Q2’10 Q3’10 Q4’10 Q1’11 Q2’11
6

7. Assets
Balance sheet remains stable… …while loan portfolio gains momentum
RUB bln SME Individuals Administrations Large corporates
174 +29.5%
166 174 Cash and
147 156 equivalents
+5.3%
34 30
33 Due from
28 34 14 banks 35,1
6 17 34,2
1 14 16 19 Securities 30,7
18 19 16 24,4 25,9 5,5
14 8,5 20,1
13 8,4 7,3 8,1 17,5
Retail 16,6
loans 14,4 15,2
88 98 102 Corporate
79 79 72,0
loans 55,4 59,8 65,9
57,2
Other
assets
9 9 9 8 9
Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11
IEA share increased to 77% of total assets LTD ratio improving
RUB bln
Other assets
Cash and Gross loans Customer funds
equivalents
5%
18% 98%
87% 88% 92%
0% 84%
Due from other 8%
banks
Securities 11%
58%
Corporate loan 106 125 115 130 126 137
Retail loan 102 118 133 135
portfolio
portfolio
Q2'10 Q3'10 Q4'10 Q1'11 Q2'11
7

8. Loans
SMEs drive growth in corporate… …and mortgages in retail segment Total Loans
Rub bln Rub bln
VZRZ Sector
108,6 112,6
Administrations 5,5 -35.2% 20,1 YoY +31.5% +17.8%
8,5
17,5 +3.9%
35,1 +2.6% Cards
2,2 QoQ +5.4% +6.0%
34,2 Large clients 2,1
Consumer and 5,8 +20.1%
4,8 auto loans
Corporate Loans
65,9 SME
72,0 +9.3% 12,1 +15.2%
VZRZ Sector
10,5 Mortgages
YoY +29.5% +16.0%
QoQ +3.6% +5.2%
КВ1 2011 КВ2 2011 КВ1 2011 КВ2 2011
Moscow oblast remains the key region Breakdown by industry Retail Loans
*as of 30.06.2011 Other *as of 30.06.2011
Moscow Oblast Transport
VZRZ Sector
(41%) Agriculture 3% 11% YoY +43.0% +24.0%
4% Manufacturing
53 521 25%
Construction 8% QoQ +16.2% +8.6%
RUB RUB
132,729 6% 132,729
56 382
mln mln
Other 24% 15%
22 826 regions 4% Individuals
Moscow (17%) (42%) Wholesale &
retail trade Administrations
8

9. Credit quality management
NPLs dynamics Annualized cost of risk
NPLs, RUB mln * Charges to provisions to
Provisions, % of total portfolio avg gross loans, QoQ
NPLs, % of total portfolio Charges to provisions to
10,98%
2,70% 2,51% avg gross loans, YtD
10,48%
10,55%
10,44%
9,15% 9,09% 2,66% 1,83% 1,80%
10,68% 9,71% 2,22%
1,16%
12078
8,78% 8,31% 1,50%
11592
10 814 11061 11030 1,16%
0,01%
Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011
* 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
NPLs categorization: improvements in SMEs
SMEs Large corporate Retail RUB mln
- 857 recoveries
- 332 recoveries
+657 new NPLs +2 new NPLs 9,5% +469 new NPLs
13,9% 9,3% 8,4%
12,9% 12,1% 8,0%
11,6% 7,0% 7,1% 6,9%
11,0% 6,4% 6,4% 6,2%
6,4%
12,9% 13,4% 7,2%
12,1% 11,2% 6,4% 5,6% 7,0% 5,3%
10,4% 6,2%
8 605 4,6% 1 359
8 155 8 117 8 195 8 025 3,2% 2 936 4,6% 1 277 1 242 1 379
2 160 1 025
1 624 1 626
850
Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011
NPLs, RUB mln Provisions, % of total loans NPLs, % of total loans
9
15

10. Credit quality
Large SMEs Mortgages Other Total % of
as of 30.06.2011 corporate retail total
loans Provisions to
NPLs Ratio
Gross loans, including
109%
35,109 77,491 12,138 7,991 132,729 100.0%
Current loans 33,483 69,466 11,428 7,322 121,699 91.69%
Past-due but not 0.60%
impaired, of them 0 112 504 187 803
Less than 90 Provisions to
days - 112 444 172 728 0.55% 90 days+
NPLs
Over 90 days - - 60 15 75 0.5%
Impaired, of them
Less than 90
days
1,626
776
7,913
995
206
-
482
34
10,227
1,805
7.71%
1.36%
142%
Over 90 days 850 6,918 206 448 8,422 6.35%
Total NPLs Rescheduled
1,626 8,025 710 669 11,030 8.31%
Loans
Provisions
6.1%
- 2,455 - 8,540 - 476 - 599 -12,070 9.09%
Net Loans 32,654 68,951 11,662 7,391 120, 658 -
the whole amount of loans with principal overdue for more than 1 day as well
NPL - as loans with any delay in interest payments.
10

11. Liabilities and capital
Stable funding base… …with strengthening long-term retail resources
RUB bln Less than 1 month
166 174 174 Retail deposits Q1 2011 1-6 months Q2 2011
147 156
Retail accounts 6-12 months
70 69 Over 12 months
69 Corporate
28% 24% 24%
66 deposits
63 34%
Securities issued
15 17
17
15 14 Due from other
31 30
26 28 banks
24
17 21 20 Subordinated
17 18 6 6 7 loans 27% 23%
4 5 8 8 21%
5 4 4 4 4 Equity 19%
16 17 17 17 18
Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011
Maturity gap not higher than 5% of the balance Capital position reflects business development
60 Rub bln
Total assets Tier 1 Tier 1 + Tier 2 CAR
50 Total libilities under CBR rules
17,2% (N1)
16,3%
40 15,2%
14,1% 13,5% 14,1% 13,6%
12,8% 12,0% 12,7%
11,8%
30
20 11%
MIN
10
0
On demand and From 1 to 6 From 6 to 12 More than Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 30.06.11
less than 1 months months 1 year
month
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12. Key factors of NIM recovery
Quarterly NIM rebound… …resulted in cumulative NIM recovery
NIM +12bps
Interest Spread
NIM Interest Spread
6,5%
6,3%
5,6% 5,8% 6,3% 5,7%
5,1% 5,1%
+106bps
3,7% 4,3%
3,3% 3,5% 3,2% 3,6% 3,2% 3,7%
Q2’10 Q3’10 Q4’10 Q1’11 Q2’11 2010 3M’11 6M’11
… and upward spread development
Interest Spread
Yield on earning assets (net)
0,00% 0,07% Cost of funds
0,30%
12,9%
0,82% 11,6% 11,0% 10,60%
9,8%
4,26% 6,49% 6,30%
5,59% 5,79% 5,14%
3,20% +106 bps 6,42% 6,00%
5,21% 4,69% 4,30%
Q1 NIM Loans Deposits Other Base Q2 NIM Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011
effect effect effect
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13. Fees and commissions
Strong non-interest income based on long-term
relations with customers
Net fee income distribution
Settlements Cash transactions Other Cards RUB mln
Share of non-interest
vbank +22.3%
income in total operating
income b.p. peer 1 +18.5%
41% peer 2 1 192
37% 1 044 1 089 1 006
peer 3 975 335 335
308
292
25% 23% 292
226
170 190 196
159
262 291
248 277 230
Net fee margin
276 304 287 288 340
2,7%
0,0% 1,0% 2,0% 3,0% 4,0%
* Vbank data as of 2Q’11, Peer1, Peer2, Peer 3 - FY2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011
Non-interest income breakdown by segments Key points
Vbank’s share of net fee income in total operating income
Q1 2011 Q2 2011 before provisions remained one of the highest among Russian
Corporate banks and stood at 38% in Q2 2011 while fee margin was 2,7%
Financial Corporate Others business which is also higher than for our peers.
business Financial
3%
3%1% Fees and commissions demonstrated robust growth
of 22% YoY and remained well-diversified across different
26% banking products with main contribution from settlements
25%
Cards and banking cards.
Cards 57% 57%
Corporate business continued to be the driver of fee income
14% 14% with 57% of fees generated followed by 25% from banking
Retail business Retail business cards business and 14% from retail segment.
13

14. Costs
Operating expenses breakdown Staff evolution
RUB mln Average headcount per quarter (people) 80,0
24.5%
Staff costs per average employee ('000 RUB) 70,0
+16.3% 2 091
1 798 60,0
Non- HR
1 679
39% 50,0
820
735 40,0
786 6 146 6 146 6 164 6 164 6 211
30,0
1 271 20,0
893 1 063
HR 10,0
53%
0,0
Q2 2010 Q1 2011 Q2 2011 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011
Cost-to-Income ratio Costs summary
Since Q2 the bank started to accrue provisions for
2011 bonuses scheduled to be paid at year-end that
72,3% 72,6%
68,20% resulted into higher personnel costs.
62,70%
52,7%
Given new accruals overall cost growth was 24.5%
48,7% YoY. However notwithstanding of adverse impact on
cost growth stemming from social tax changes in
2011, overall cost growth on the same basis was only
14.2% YoY and moderate 6.7% QoQ
Cost to income ratio for H1 2011 declined to 68.2%
2006 * 2007 2008 2009 2010 H1 2011
from 72.6% for FY 2010
*2006 - less extraordinary items
14

15. Earnings generation capability
ROE, % ROA, %
9,1%
7,5% 0,91%
0,74%
4,3% 4,4%
0,47% 0,46%
2,9% 0,33%
Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011
Value generation Key points
* % of average assets
We kept improving our value generation capacity even
3,0% -1,3% in the environment of low interest rates supporting the
-2,9% revenues with non-interest income. In Q2 core
revenues recovered contributing to healthy bottom-
4,3% line.
-1,9%
Profitability is on track with all the components
-0,2% demonstrating robust dynamic, though going forward
0,9%
our mid-term target for ROE of 20% is still to be
achieved.
NIM Non-interest Provisions HR costs Non-HR Tax Net profit
income costs
15

16. Questions and answers
Elena Mironova Andrey Shalimov
IR manager Member of the Management Board
+7 495 620 90 71 Head of Treasury
E.Mironova@voz.ru A.Shalimov@voz.ru
investor@voz.ru http://www.vbank.ru/en/investors
16

17. Disclaimer
Some 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.
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