H1 2014 IFRS Results

Time-proved client loyalty

Conference Call

August 27, 2014

2

7,7 7,4

2,7 1,4

5,5

1,6

15,9

10,4

8,5%

5,6%

Q1 2014 Q2 2014

Loans from CBR underrepo agreements

Interbank funding withmaturity less than 1 year

Interbank funding withmaturity over than 1 year

13 13 13 12 13

150 155 156 158 152

12 14 12 7 12

6,4 1,9 1 1 1 1 1

40 33 29 26 31

216 217 211 211 210

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Cash andequivalents

Due from banks

Invest. securitiespledged under repos

Securities

Net loans

Other assets

8,5% 5,6%

Assets and liabilities

Assets stable across the year Diversified funding structure

Market funding replaced by customer resources L/D ratio down to targeted range

RUB bln RUB bln

RUB bln

167 173 168 172 166 169 171 162 153 158

99% 102% 104%

112% 105%

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Gross loans Customer funds L/D

21 22 22 23 23 7 5 4 4 3 1 1 4 1 1

9 9 10 14 14

169 171 162 153 158

5,5 1,6 8 9 9 10 9

216 217 211 211 210

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Due to other banks

CBR funds underrepos

Client funds

Securities issued

Other liabilities

Subordinated loans

Equity

3

20 18 19 16 18

87 91 87 89 93

107 109 106 104

110

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Retail deposits

Retail accounts

26,0 24,9 24,3 19,8 20,1

35,8 36,8 31,2

28,8 27,7

62 62 55 49

48

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Corporate accounts

Corporate deposits

Customer funds

Retail funds saw a strong inflow Rebound of corporate deposits

RUB bln

-1.7% +5.6%

RUB bln

53 50 47 46 42 42 45

4 5 6 5

5 7 5

57 54 54

51 47

49 50

Dec Jan Feb Mar Apr May Jun

RUB Corporate FX Corporate

Corporate funds monthly dynamics (RAS)

79 77 76 75 79 80 83

25 27 29 28 28 27 26

105 104 105 103 108 107 109

Dec Jan Feb Mar Apr May Jun

RUB Retail FX Retail

Retail funds monthly dynamics (RAS)

24% 10%

4

Loan portfolio

Loan portfolio developments Industry diversification – whom we limit?

RUB bln

51 52 51 52 50

79 81 74 76 72

25 28 30 31 31

12 13 13 13 13

166,9 173,2 168,2 171,6 166,1

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Large corporates SMEs

Mortgages Consumer, car loans, and cards

As of June 30, 2014

Rub 122,1

billion

SMEs dynamics decomposition

*Loan portfolio before provisions for impairment

-3.2%

51,6 49,9

Q1 2014 Q2 2014

Large corporates dynamics decomposition

76,2 72,2

Q1 2014 Q2 2014

RUB bln

RUB bln

Loans to new clients

Loans to existing clients

Recoveries Migration between

SMEs and large corps

+1,1 +4,3 -9,9 +0,5

Loans to new clients

Loans to existing clients

Recoveries Migration between

SMEs and large corps

0,0 +0,5 -1,7 -0,5

36%

0% 26%

1%

11%

5%

4%

8% 9%

Construction

(+0,1%)

Manufacturing

(-0,7%)

Agriculture

(-0,3%)

Wholesale & retail trade (+1,0%)

Administrations

(-0,2%)

Other

(+0,3%)

Transport

(+0,1%)

Real estate

(-0,1%)

5

1 102 1 810 1 350 1 730 1 863

3,7% 3,2%

1,9% 2,0% 2,2%

3,00%

4,47%

3,17% 3,94% 4,23%*

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Retail

Credit quality management

15

2,30% 2,10%

0,57%

3,11%

3,12%

2,20% 2,10% 2,30%

2,90%

2,79%

Q2 2014Q1 2014Q4 2013Q3 2013Q2 2013

Charges to provisions to avg gross loans, QoQ

Charges to provisions to avg gross loans, YtD

+Rub 744 mln new NPLs

-Rub 234 mln recoveries

-Rub 73 write-offs

+Rub 1 123 mln new NPLs

-Rub 990 mln recoveries

no write-offs

17 270 18 616 12 385 13 129 13 699

10,13% 10,46%

7,36%

7,70% 8,53%

10,35% 10,75%

7,36%

7,65% 8,25%

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

NPLs, Rub mlnProvisions, % of total portfolioNPLs, % of total portfolio

*

no new NPLs

no recoveries

no write-offs

NPLs categorization

Annualized cost of risk NPLs dynamics*

* 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

*2,2% of which is overdue less than 30 days

7 939 8 671 3 518 3 882 4 319

10,6% 11,1%

5,3% 5,3% 6,0% 10,0% 10,8%

4,7% 5,1% 6,0%

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

SMEs

8 229 8 135 7 517 7 517 7 517

14,1% 15,2%

14,8% 16,1% 17,8% 16,2% 15,6%

14,6% 14,6% 15,1%

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Large corporates

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

6

Credit quality

As of June 30, 2014 Large

corporates SMEs Mortgages Other

retail Total

Gross loans, including 49,898 72,192 30,722 13,336 166,148

Current loans 84.9% 94.0% 97.1% 92.7% 91.8%

Past-due but not impaired, including - 0.5% 2.4% 2.5% 0.8%

Less than 90 days - 0.3% 2.2% 2.5% 0.7%

Over 90 days - 0.2% 0.2% 0.0% 0.1%

Impaired, including 15.1% 5.5% 0.5% 4.8% 7.4%

Less than 90 days - 0.5% - 0.6% 0.3%

Over 90 days 15.1% 5.0% 0.5% 4.2% 7.1%

Total NPLs 15.1% 6.0% 2.9% 7.3% 8.2%

Provisions -17.7% -6.0% -1.0% -4.9% -8.5%

Net Loans 41,057 67,835 30,403 12,687 151,982

Provisions to

NPLs Ratio

103.4%

Provisions to

90 days+ NPLs

117.4%

Rescheduled

Loans

6.4%

NPL - the whole amount of loans with principal overdue for more than 1 day as well as loans with any delay in

interest payments.

RUB mln

7

Financial highlights

As of June 30, 2014 2Q14 1Q14 QoQ 1H14 1H13 YoY

Interest income 4,949 5,063 -2.3% 10,012 9,097 +10.1%

Interest expense (2,554) (2,472) +3.3% (5,026) (4,680) +7.4%

Fee and commission income 1,149 1,101 +4.4% 2,250 2,587 -13.0%

Fee and commission expense (172) (185) -7.0% (357) (265) +34.7%

Other operating income 270 138 +95.7% 408 418 -2.4%

Total operating income b.p. 3,642 3,645 -0.1% 7,287 7,157 +1.8%

Operating expense (2,178) (2,187) -0.4% (4,365) (4,226) +3.3%

Provisions for loan impairment (973) (893) +9.0% (1,866) (2,275) -18.0%

Provisions for impairment of other

assets 46 (9) - 37 2 x18.5

Taxation (106) (128) -17.2% (234) (137) +70.8%

Net profit 431 428 +0.7% 859 521 +64.9%

RUB mln

8

4,2% 4,5%

4,9% 4,9% 4,6%

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

NIM in line with target despite funding costs growth

Interest income & expense breakdowns NIM decomposition

Spread Interest rates

3,3 3,1

1,6 1,7

0,2 0,2

-1,5 -1,6

-0,4 -0,4 -0,5 -0,6

2,6 2,4

Q1'14 Q2'14

Int. income from corp. loans

Int. income from retail loans

Other int. income

Int. expense from retail deposits

Int. expense from corp.deposits

Other int. expense

RUB bln

6,4% 6,7% 6,9% 6,6% 6,2%

11,5% 11,8% 11,8% 11,9% 11,7%

5,0% 5,1% 4,9% 5,3% 5,5%

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Spread (net)

Yields on earning assets (net)

Cost of funds

-0,31% -0,13% +0,07% +0,02%

Loans Deposits Other Base effect

7,7% 7,6% 6,7% 7,3%

8,1%

6,5% 6,8% 6,7% 7,0% 7,0%

10,9% 11,2% 11,4% 11,4% 11,3%

15,0% 15,3% 15,3% 15,4% 15,4%

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Corporate term deposits Retail term deposits

Yields on corporate loans Yields on retail loans

9

8

11

14

17

20

23

1 215 1 247

940 916 977

1 137 1 145 1 169

2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014

Net fee incomeNet fee income with corrected gradual accruals of one-off reclass

2,2 2,4 2,6 2,6 2,4

1,2 1,2 0,9 0,9 1,0

0,22 0,14 0,10 0,14 0,27

3,7 3,8

3,7 3,6 3,6

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Net interest income Net fees Other income

Operating results

…supported operating income on a stable level …amid seasonally high business activity…

Fee income dynamics… …with all components growing in Q2..

RUB bln

RUB mln

-0.1%

+6.7%

-0.7%

-14.1%

238 241

274 295

219 225

185 216

916 977

1Q 2014 2Q 2014

Settlements Cards Cash transactions Other

RUB mln

2012 2013 2014

H1 2012

86.8

H1 2013

90.0 H1 2014

91.6

Balances on debit card accounts, RUB bln

Credit turnover of card accounts, RUB bln

10

1 321 1 279 1 360 1 300 1 307

328 336 404 436 329 176 181

203 170 194 310 338

450 281 348

2 135 2 134 2 417 2 187

2 178

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Rent and costs relating to premises, equipment and depreciation of intangible assets

Taxes other than income tax and contributions to the State Deposit Insurance Agency

Administrative and other expenses

Staff costs

Costs

Operating model optimization project development

Costs structure C/I ratio

RUB mln

-0,4%

58,2% 56,0%

65,6%

60,0% 59,8%

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Cost to Income Ratio, %

Stage

Centralisation:

Internet-Bank client support service

Work with orders and requests of Federal Tax Service Requests - done

Orders - Dec14

AML/FT control Moscow region

Controller for the service of regular payments for the mobile

and internet-bank

FRAUD-analysis and payment controller function

Automation of Internet-client payment processing on Rub payments

Optimisation of individuals’ incoming payments processing

Uniting cashier and teller functions Moscow region

Work with orders and requests of Federal Bailiff Service Requests - done

Orders - Oct14

Stage

HR documentation handling Moscow region – Dec14

Security Administrators function Moscow region – Oct15

Accounts opening / online client profiles Moscow region -

Mar15/Dec15

Handling internal payrolls Moscow region – Jan15

FX control Moscow region – Mar15

Fixed cash collection routs planning Part of Moscow region –

Oct14

Credit middle and back office Moscow region – Dec14

Credit operations with large clients Moscow region – Dec14

Credit turnover/ reissue of bank cards on payrolls 2015

Establishing IT Help Desk/Service Desk 2015

11

11,7% 11,4% 12,0%

8,8% 9,7% 9,9%

14,6%

13,2% 13,8%

11,2% 11,6% 12,3%

Q2 2013 Q3 2013 Q4 2013 Q4 2013 Q1 2014 Q2 2014

Tier 1

Tier 1 + Tier 2

Statutory Capital (Н1.0)

Statutory common equity Tier (Н1.1)

Net profit – the main source of capital support

…and net profit Stable provisioning allowed for steady operating

profit…

Capital adequacy

Basel I

Basel III

RUB bln

188 247

724

428 431

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Net profitRUB mln

+0.7%

+129%

28,8% 31,2%

23,0% 25,8% 25,5%

3,5% 4,6%

13,2%

7,6% 7,5%

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Operating profit before provisions and taxation / Average equity

ROE

-1,3 -1,3 -0,4

-0,9 -0,9

1,5 1,7 1,3 1,5 1,5

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Provisions Operating profit before provisions and taxes

+0.4%

-4.4%

ROE, %

12

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

13

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.