Business overview and outlook

1
Businessoverview and outlook

• June 2006

2
Agenda

• Profile
• Shareholders
• Financial highlights, capital
• Assets / Liabilities structure / revenue /
  overall performance
• Branch network
• International business development
• Ratings
• Bank structure
• Contact list

3
Profile

• As of 1 January 2006
• Total Assets USD 1 314 Mln.
• Tier I Capital ( 100 capital) USD 235,5 Mln.
• Tier I CAR (Basel) 23,5
• Loan Portfolio USD 1 153 Mln.
• LLP as of January 2006 USD 32 Mln. (4,2)
• Past due loans as of January 2006 USD 2,3 Mln
  (0,27 )
• Related parties transactions as of January
  2006Loans to customers 6.76 (of total loan
  portfolio)
• Customer accounts 6.51 (of total customer
  accounts)

• International auditsince 1995 (PWC, Deloitte
  Touche)
• FitchRating (November 2005)Long-term B-
  Outlook StableShort-term B National Long-term
  BB
• SP rating (April 2006)Long-term B-, Outlook
  Stable Short-term C National Long-term BBB
  -
• Admittance into the Deposit Insurance Programof
  the Central Bank of the Russia Federation
  (December 29, 2004)
• Number of employees, July 2006 1867
• 20 regional and 15 Moscow owned branches,16
  regional outlets, 7 Rep. offices

4
B.I.N.BANK Group

• President Mikail O. Shishkhanov
• Belongs to top 30 Russian banks
• Figures as of 31/12/2005 Assets USD 1 314
  Mln., Capital USD 235,5 Mln., Net Profit
  USD 9,25 Mln.
• B.I.N.BANK has one subsidiary (consolidated in
  IAS) the daughter bank Vyatka Bank,
  headquartered in Kirov, Russia
• As of 26/01/2006
• Total Equity USD 13,15 Mln., Total Assets
  USD 56,54 Mln., loan portfolio USD 45,97 Mln.
  focused on retail and mid-sized corporate
  customers.

5
General Information

• Licenses
• Central Bank of the Russian Federation General
  License to conduct Banking Operations No. 2562.
• Central Bank of the Russian Federation License
  to conduct Precious Metals Operations.
• Federal Securities Commission Licenses as a
  Professional Member of the Securities Market for
  Brokerage activity, Dealer activity, Asset
  management, Depositary

Services for Individuals Deposits Plastic
cards / Credit cards Bank transfers Currency
exchange transactions Safe deposits Loans Overdraf
ts Development of round-the-clockautomated desks
network Car loans Mortgage
6
Agenda

• Profile
• Shareholders
• Financial highlights, capital
• Assets / Liabilities structure / revenue /
  overall performance
• Branch network
• International business development
• Ratings
• Bank structure
• Contact list

7
B.I.N.BANK Shareholders
8
Agenda

• Profile
• Shareholders
• Financial highlights, capital
• Assets / Liabilities structure / revenue /
  overall performance
• Branch network
• International business development
• Ratings
• Bank structure
• Contact list

9
Financial Information
10
Share Capital Trend
The equity injection took place in November 2005.
Next capital increase is planned in the period up
to 2008 (profit capitalization in 2007 2008 and
new emission in 2008)
Declared plans
11
Growth of Business
12
Strategic Outlook
13
Agenda

• Profile
• Shareholders
• Financial highlights, capital
• Assets / Liabilities structure / revenue /
  overall performance
• Branch network
• International business development
• Ratings
• Bank structure
• Contact list

14
Assets
Core Business is Providing Loans to Customers
Assets Structure
Assets Dynamic

• Broad industry diversification with focus on oil
  and commercial real estate businesses
• 90 of loans are collateralized by such pledges
  as real estate, land, stock and etc.

Less provisions
15
Liabilities
Liabilities Structure and Dynamic
Liabilities Structure
Liabilities Dynamic

• B.I.N.BANK expects to continue to diversify
  liabilities structure (i.e. increase of capital
  markets borrowings)
• In 2008 Bank plans to have well-balanced
  liabilities structure 1/3 funding from the
  financial and capital markets 1/3 individuals
  deposits 1/3 corporate customers deposits

16
Loans
Low Portfolio Concentration and Related Party
Lending
Related Party Lending Trend
Bad Loans and Loss Provisioning
Related Party Lending

• The lowest level of non-performing and written
  off loans historically
• Positive related party lending trend during last
  years

17
Loans
Diversified and High Quality Loan Portfolio
Concentration by Largest Borrowers
Concentration by Industry
Top 5 Largest Borrowers

• B.I.N.BANK continues to diversify Loan portfolio
  obtaining customers in new developing and
  profitable economic sectors and regions
• At the same time B.I.N.BANK continues to decrease
  concentration in real estate sector

18
Major Corporate Clients

• Among major corporate clients are such large and
  well known companies as
• OAO GNK Nafta Moskva (Invesment company), ZAO
  Chaika Plaza (One of the most significant
  Russian operators of the international top-class
  business-centers markets), NK RussNeft (7th
  largest Russian oil company), Mostelecom
  (Telecommunication company), Sitronics (computer,
  computer spare parts other techniques trader),
  ZAO Russ (wholesale trade, real estate), ZAO
  VEGETTA (wholesale and retail trade, real
  estate), OOO Petrol House (wholesale trade of
  mineral oil), Agrotrastmarket (wholesale trade
  of agricultural production), ZAO Danaya (real
  estate), OAO Petrovsky Passage (real estate),
  OOO Finproekt (trading services), Sibresurs
  (wholesale trade of mineral oil), ZAO
  Geos-Remstroy (real estate, construction,
  repair), OAO Sadko Hotel (real estate),
  Velariks (real estate), First Insurance
  Company (insurance), OOO Agrarny Alliance
  (wholesale trade of agricultural production),
  Baltic Investment Corporation (construction),
  Kaliningrad Investment Corporation
  (construction), OAO MSS, Formoza Group.
• B.I.N.BANK also serves Regional governments
  (municipalities) of Kaliningrad, Novgorod,
  Samara, Ulan-Ude, Kostroma and other regions.
• Major regional clients of the Bank include
• OOO Rusavtoprom (Samara), OAO Izhmash, ZAO SMARTS
  (Samara), ZAO Aviation Company Volga-Dnieper
  (Ulyanovsk), GUP Medtekhnika (Velikiy Novgorod),
  OAO Mortgage Corporation (Republic of Buryatia),
  OAO Kostroma River Port, M. Gorky Printing House
  (Kostroma), OAO Brewing Company Baltika,
  Ulyanovsk Sugar Plant.
• Tenor of the loans to corporate clients 1-2
  years, up to 7 years(long-term finance under ECA
  cover)B.I.N.BANK average margin 3,85Very
  high quality of credit portfolio
• LLP 4.21
• Past due loans (more than 90 days) 0.27
• Collateral Liquid assets (Usually something
  that might be easily and fast realized in the
  market in case of default of the client land
  (Ex. In Moscow, real estate, buildings, modern
  equipment), deposits, securities, majority
  shareholdings, goods in turnover etc.

19
Balances on Customer Accounts
20
Private Customer Deposits
21
Revenue Breakdown
About 50 of B.I.N.BANK's revenues come from
corporate lending strategically main revenue
source about 15 comes from trade finance and
other fees about 3 - from retail loans (this
direction of business is nowadays being developed)
22
Stable performance during crisis
2004 During the 2004 summer banking mini-crisis
depositors withdrew a total of 1.4bln RUB over
the course of just two months. But due to good
image and trust from the customer side
B.I.N.BANKs liquidity was stable.

• 1998
• External factors
• Devaluation of state debt securities
• Devaluation of shares of Russian companies
• Inflation
• Devaluation of Russian currency
• Refusal of repayments on state and corporate
  bonds and debts
• The Bank
• Has sold ALL investments into securities issued
  by Russian Financial Ministry and ALL investments
  into corporate securities before the crisis
• Has made significant loan loss provisions to
  cover possible losses

It all and very cautious attitude of shareholders
to risk taking helped B.I.N.BANK to survive and
profit during the crises 1998 as one of few
Russian banks.
23
Admittance into the Deposits Insurance Program

• B.I.N.BANK has been admitted into the Deposits
  Insurance Program of the Central Bank of the
  Russian Federation in December 2004.
• To qualify for the Deposit Insurance Program, the
  Bank had to meet very stringent financial and
  performance benchmarks established by the Central
  Bank of Russia.
• This Program insures customer deposits with state
  and private Russian banks in case of a bank
  bankruptcy.

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Agenda

• Profile
• Shareholders
• Financial highlights, capital
• Assets / Liabilities structure / revenue /
  overall performance
• Branch network
• International business development
• Ratings
• Bank structure
• Contact list

25
Distribution Network Russia

• Large customer base
• Corporate customer base
• ca. 15 900 customer accounts
• Retail customer base ca. 85 000 customer
  accounts
• Modern banking technologies
• 171 ATM
• 20 Self-service terminals
• Ca. 100 thousand Payment cards
• Quick-Broker
• iBank
• Elecsnet
• Rapida
• ExperianScorex
• IP-Telephony

Headquartered in Moscow with 15 outlets in the
capital 20 Regional branches (with 16
sub-branches) in Aginski, Volgograd,
Ekaterinburg, Izhevsk, Kaliningrad, Kostroma,
Mari-El, Nizhniy Novgorod, Novosibirsk,
Orekhovo-Zuevo, Perm, St.Petersburg,
Rostov-Na-Donu, Saratov , Samara, Stavropol,
Ulan-Ude, Ulyanovsk, Izhevsk, Yaroslavl (?) 7
Representative offices Tomsk, Chelyabinsk,Omsk,
Chita, Tumen, Saransk, Ufa (?) Currently opening
branches in Ufa, Kirov, Kazan, Penza, Togliatti,
Kemerovo, Barnaul, Cheboksary(?)
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Agenda

• Profile
• Shareholders
• Financial highlights, capital
• Assets / Liabilities structure / revenue /
  overall performance
• Branch network
• International business development
• Ratings
• Bank structure
• Contact list

27
Trade Finance

• 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 (USA),
• Bank Austria Creditanstalt (Austria),
  Commerzbank AG (Germany),
• Bankgesellschaft Berlin (Germany),
  Donau Bank (Austria),
• Banca Agricola Mantovana (Italy),
  Kazkommertsbank (Kazakhstan),
• Banque de Commerce et de Placements
  (Switzerland),
  Raiffeisen Zentralbank AG (Austria),
• Bank Turanalem
  (Kazakhstan),
  UBS AG
  (Switzerland), etc.
• Completed deals
• Total volume of transactions over USD 75 Mln.
  as of January 2006

Main Clearing Banks and FX/MM Partners

• Agricultural Bank of China (China)
• American Express Bank (USA)
• American Express Bank GmbH. (Germany)
• Belvnesheconombank (Belarus)
• Bank TuranAlem (Kazakhstan)
• Banque de Commerce et de Placements (Switzerland)
• Commerzbank AG (Germany)
• Donau-Bank AG (Austria)
• ING Belgium SA/NV (Belgium)

Kazkommertsbank (Kazakhstan) Ost-West Handelsbank
AG (Germany) Privatbank (Ukraine) Raiffeizen
Zentralbank AG (Austria) Sberbank
(Russia) Vnesheconombank (Russia) Vneshtorgbank
(Russia) UBS AG (Switzerland) UBS AG (USA)
Kazkommertsbank (Kazakhstan
28
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-Gesellsc
haft
Bayerische Hypo- und Vereinsbank
Banca Agricola Mantovana Banca Nazionale del
Lavoro Bank Austria Creditanstalt DnB Nord
Polska Bankgesellschaft Berlin Sachsen LB
and others Banco Bilbao Vizcaya Argentaria


Trade transactions with ECA cover Total volume
as of June 2006 more than USD 115 Mln. Tenor of
the transactions 3 7 years Atradius
(Netherlands, amount of transactions ca. USD 4.5
Mln.), EULER HERMES (Germany, amount of
transactions ca. USD 77.9 Mln.), ERG
(Switzerland, amount of transactions ca. USD 3
Mln.), KUKE (Poland, amount of transactions ca.
USD 20.6 Mln.), OeKB (Austria, amount of
transactions ca. USD 4,5 Mln.), SACE (Italy,
amount of transactions ca. USD 3,1 Mln.), US
Ex-Im Bank (USA,amount of transactions ca. USD
4,6 Mln.), etc.
29
International and Domestic Funding

• Successfully completed deals
• RUB nominated bonds issue in 2004 (expired April
  2006 )
• Amount RUB 1 Bln.
• Tenor 2 years
• Arranger Company AVK
• Syndicated loan in 2002
• Amount USD 10 Mln.
• Tenor 1 year
• Arranger Citibank N.A.
• LPN Program, July 2005
• Total amount - USD 50 Mln.
• Tenor up to 2 years
• First tranche USD 11,5 Mln., maturity - August
  2006, 1 year
• Second tranche USD 13 Mln., maturity December
  2006, 1 year
• Syndicated Trade Related Loan, April 2006
• Purpose financing of trade finance transactions
  of major Banks customers
• Amount USD 40 Mln.
• Tenor 1 year prolongation option for 1 year

Eurobonds Amount USD 200 Mln. Tenor 3 years,
maturity May 2009 MLAs Merrill Lynch,
Commerzbank AG RUB syndicated loan, 5 July
2006 Amount- RUB 536 mln. Tenor-1 year Arrangers-
Vneshtorgbank and International Moscow Bank LPN
Program, third tranche, June 2006 Amount- Euro
5.5 Mln., tenor - 2 years
30
International Financial Organizations

• After the crises in 1998 B.I.N.BANK was one of
  the first Russian banks started working with
  USAID (US Agency for International Development).
  B.I.N.BANK had successfully participated in the
  2,0 Mln USAID Microenterprise and Small Business
  Loan Portfolio Guarantee Program from September
  2000. Plans for the future
• Make an application for participation in the
  Trade Facilitation Programme (TFP) of EBRD to
  finance foreign trade transactions of its clients
  being able to work with wide range of first class
  international banks located in beneficiaries
  countries.
• Cooperation with the International Finance
  Corporation (IFC), Black Sea Trade Development
  Bank, DEG etc.

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Agenda

• Profile
• Shareholders
• Financial highlights, capital
• Assets / Liabilities structure / revenue /
  overall performance
• Branch network
• International business development
• Ratings
• Bank structure
• Contact list

32
Ratings
Ratings reflect high capitalisation, recent
strong growth in its customer funding base, its
improved liquidity position and its low level of
market risk compared with many CIS banks
33
Russian Business Assessment

• Stable position in the market among 30 leading
  Russian banksof the Russian Federation, as of
  January 2006

34
Agenda

• Profile
• Shareholders
• Financial highlights, capital
• Assets / Liabilities structure / revenue /
  overall performance
• Branch network
• International business development
• Ratings
• Bank structure
• Contact list

35
Bank Organization Structure
36
Membership in Professional Organizations

• Association of Russian Banks (ARB)
• Association of North-West Banks (NWAB)
• Moscow Interbank Union (MBS)
• Moscow Interbank Currency Exchange (MICEX)
  Currency, State Bondsand Securities Sections
• Russian Trade System (RTS)
• Moscow Stock Exchange (MFB)
• National Association of Securities Market
  Participants (NAUFOR)
• Association of Promissory Notes Market
  Participants (AUVER)
• MasterCard Europe, Principal Member
• VISA International, Principal Member
• National Association of S.W.I.F.T. Members,
  Russia
• National Russian Manager Association

37
Advantages

• Backed by strong industrial group
• cash-generating rapidly developing oil
  production company
• high revenue real estate company, market maker
  in Moscow
• Geographical distribution in wide range of
  important industrial regions of Russia
• Bank's controlling shareholder (64,58) is also
  President of the Bank and works full-time at the
  Bank
• Banks senior executives enjoy a solid
  professional reputation in banking circles.
• Majority beneficiary ownership is stable and
  didnt change during the Banks history
• Conservative risk and credit policies
  (demonstrated by high provision compared to low
  past-due loans)
• Strong growth potential from regions and retail
  banking
• Stable positions in the market and long history
  in terms of the Russian banking market (over 12
  years), including 1995, 1998 and 2004 crisis)
• Growth of the international business volumes
• Stable growth of the Banks share in the market
• The Bank competes successfully in several markets
  including retail banking, corporate lending,
  trade finance, etc.
• In 2005 a new strategic partner Nafta Moscow
  became the Bank shareholder with ca. 19,99
  shares of the Bank
• B.I.N.BANK was the first Russian bank with which
  the American development agency USAID resumed
  operations following the August 1998 crisis under
  its Guarantee Programme for SME loans.

38
Summary

• Principal achievements during 2005
• Increase of the Capital by the end 2005 by
  another USD 100 Mln. (total capital amounts now
  up to USD 235 Mln.)
• Increase of the international ratings by SP
  and Fitch Ratings agencies
• LPN Program for USD 50 Mln.
• Goals for 2006
• Diversification of the loan portfolio and
  customer base and list of services for both
  corporate and retail customers, including SMEs
• Future regional expansion and projected growth in
  retail banking, car loans, credit cards, mortgage
  lending
• Future development and broadening of the
  International business including Trade Finance,
  Long Term Finance and International Funding
• International Funding up to 20 of banks
  liabilities

39
Agenda

• Profile
• Shareholders
• Financial highlights, capital
• Assets / Liabilities structure / revenue /
  overall performance
• Branch network
• International business development
• Ratings
• Bank structure
• Contact list

40
Contact List

• International Business
• Mr. Yuri D. Amvrossiev
• Head of International Business Division
• E-mail amvrossiev_at_msk.binbank.ru
• Joint-Stock Bank B.I.N.
• 5a Grodnenskaya str.,121471 Moscow, Russia
• Tel. [phone] 755 50 75 7 800
  200 50 75Fax [phone]
• www.binbank.ru,
• Telex 414 235 BIN RU, SWIFT BINORUMM

• Financial Markets, Financial Institutions,
  International Business
• Mr. Oleg Kharitonov
• Senior Vice-president
• Member of the Board
• E-mail okharitonov_at_binbank.ru
• International Business
• Financial Institutions Department
• Dr. Irina A. Komarova
• Vice President, Department Director
• E-mail ikomarova_at_binbank.ru