RosDorBank OJSC

1. RosDorBank OJSC ANNUAL REPORT FOR→2008

2. Board Chairman’s Message RosDorBank Annual report for 2008 → Board Chairman’s Message Dear colleagues and partners, Every time summing up the results of the previous year, we set a goal before ourselves to be as open as possible. It is no secret that our country is facing a new economic situation now and we have no right to ignore this fact. That is why in this report we would like not just to traditionally disclose results of our performance, but to advise you about the course of RosDorBank development in the context of the world financial crisis. It should be noted that in the first half-year 2008 the Russian banking system was developing rapidly, but in the middle of the year the situation worsened suddenly: capital outflow from the country began, securities market declined and the security assets were devaluated. Sharp reduction of the bank resources caused a collapse of confidence among organizations – this is the way we describe the interbank market shutdown. RosDorBankwas quick to response to the situation and reviewed its strategy of development. Frankly speaking, it hurt the Bank Council to take some managerial decisions, enforced personnel reduction coming first. Credit portfolio growth was suspended - the Bank preferred to wait in the situation of overall instability. But we did not assume the role of passive observers, but developed an anti-crisis program, main measures of which became: • review of the credit policy towards strengthening of the risk management role; • optimization of the credit portfolio size; • reduction of the credit issue limit by one borrower. Detailed program is provided in the Strategy of the Bank Development in the Context of the World Financial Crisis section. There were pleasant moments as well – opening of the subsidiary office in Sochi was an important event for all of us. In general, in spite of the crisis, 2008 was a stage of active development, which is confirmed by the key results. Bank assets increased by 12% over 2008 and as of January 1, 2009 amount to 7,115,151 thou. rubles. The assets growth was promoted by increase of the authorized capital and attraction of funds from the Bank of Russia. The average amount of assets in 2008 made 7,006,564 thou. rubles, or 134% as compared to the same ratio in 2007 (2007: 5,233,137 thou. rubles). Balance profit before taxation as of January 1, 2009 amounted to 173,096 thou. rubles. Capital amount calculated according to the Central Bank requirements as of January 1, 2009 made 1,425,185 thou. rubles. At the end of the year 76% Bank’s equity was formed at the expenses of the authorized capital, and 14% - at the expenses of retained profit of previous years, and 10% - at the expense of the subordinated loan. Total income of the Bank in 2008 reached 3,101,529 thou. rubles having increased by 123% as compared with the same ratio for the previous year (in 2007: 1,391,709 thou. rubles). RosDorBankwould like to express its graduate to the clients, shareholders and partners for their support and trust: you help us to look forward with hope and optimism. I am sure that we will overcome any economic difficulties together! Board ChairmanG.Yu. Gurin

3. Corporate Development Basis RosDorBank Annual report for 2008 → Corporate Development Basis Mission RosDorBank is a universal commercial bank whose mission is to support development of small and medium business, to promote economic growth of Russia by way of creation of the reliable and profitable corporate bank with high standards of service. Vision A rapidly developing corporate Moscow Bank having substantial regional presence listed in the top 100 major banks of Russia. Philosophy • Operating in strict compliance with the current laws of the Russian Federation, we strongly counteract money laundering and terrorist organizations financing. • Key principles of RosDorBank are openness and rigid observance of fair competition principles. The Bank guarantees its clients reliable protection of information on all operations. • RosDorBank carries out active outreach activities in the area of the population financial literacy. For this purpose we regularly hold various conferences and seminars. • The bank makes its contribution to the Russian business development, promotes economic growth of the country in the international arena showing the example of constructive cooperation with foreign companies and investment funds. • In relation to its partners RosDorBank implements policy of mutually beneficial and long-term relations. Traditions of the Bank business conduct are based on the principles of transparency, responsibility, trust and social justice. • Client is the main value for the bank. We contribute to our clients’ business prosperity and build our relations on the basis of expertise, reliability and understanding. Cooperation base is individual attention to financial aims of our clients. • Personnel is the key resource of the bank. Over years of work, a close-knit team of like-minded persons has been built in RosDorBank, and confidential and positive atmosphere in the collective contributes to development of potential of each specialist.

4. RosDorBank Annual report for 2008 → Corporate Development Basis Focused Development Strategy In 2006, together with Roland Berger Strategy Consultants consulting company, RosDorBank developed a document defining the development strategy until 2011: mission and vision, Bank positioning in the financial services market, regional presence. The business plan expressly described financial position of the Bank in the five-year perspective and target indices for the balanced ratios card. One of the elements of the development strategy is creation of the structure of RosDorBank products and services in various industries. Special attention is paid to industries experiencing the most acute need in working assets and investment credits. According to the strategy developed, product policy of RosDorBank combines both mass products, and individual solutions: • provision of bank services to medium companies at the high professional level surpassing level of services offered by other banks; • attraction of the maximum number of small and medium enterprises due to simple competitive credit products covering basic financial needs of clients; • expansion of the list of various typical credits on the basis of further specification of standard credits conditions and characteristics; • development of basic “package” and “branch” offers focused on potential needs of clients; • increased loyalty of credit clients, their transfer to cash and settlement service in RosDorBank.

5. RosDorBank Annual report for 2008 → Corporate Development Basis The new development structure pays special attention to specification of the Bank distribution in regions, contents of the marketing policy, definition of stages of the risk management process and requirements to the Bank organizational structure. The business plan provides figures of the RosDorBank strategy and financial position, expressly states target ratios for the developed system of balanced ratios, general structures of income, investment and operating costs models. Results of the income and expenses calculations are reflected in the budgeted balance sheet, as well as in the profit and loss statement. In terms of the four perspectives of the balanced ratios system – finances, clients, processes and personnel – actual strategic targets are stated. To secure clearness of the development dynamics, there have been key performance indicators for various Bank departments developed. Financial ratios are renewed monthly, and ratios reflecting processes with clients and personnel – quarterly. Comparative analysis of the Bank business plan performance in 2008 is set forth in tables No. 1 and No. 2, and ratios of the strategy actual performance in 2008 are calculated on the basis of published stetements data for 2008.

6. RosDorBank Annual report for 2008 →Corporate Development Basis Table №1 Balance sheet

7. RosDorBank Annual report for 2008 → Corporate Development Basis Table №2 Profit and loss statement As is shown in the above tables, development ratios planned by the Bank have been reached in general.

8. Strategy of the bank development in the context of the world financial crisis RosDorBank Annual report for 2008 → Corporate Development Basis RosDorBank strategy has been adjusted in view of the tough economic situation in financial markets in the second half of 2008. In particular,the Bank developed an anti-crisis program providing for: • effective management of income and expenses in terms of costs strategic reduction; • maintenance of the Bank capital and economic standards at the level required for securing stability of the Bank’s activity; • review of the credit policy towards strengthening of the risk management role, optimization of the credit portfolio size, reduction of the credit issue limit by one borrower, application of tariff adjustments at credit issue with view to reduction of the collateral value; • decisions on opening of regional branches of the Bank are taken with view to detailed analysis of the current economic situation in the region and clear business plan of the market access; • maintenance of the open currency position of the Bank close to the zero value for reduction of eventual currency risks.

9. BANK PROFILE

10. Bank profile RosDorBank Annual report for 2008 →Bank Profile Licenses • General License of the CB RF for Performance of Banking Operations No. 1573 dated March 3, 2003 (latest version) • License of the Securities Market Professional Participant for Performance of Brokerage Activity No. 177-03487-100000 dated December 7, 2000 • License of the Securities Market Professional Participant for Performance of Dealer Activity No. 177-03590-010000 dated December 7, 2000 • License of the Securities Market Professional Participant for Performance of Depositary Activity No. 177-04185-000100 dated December 20, 2000 • License of the Securities Market Professional Participant for Performance of the Activity of a Specialized Depositary of Investment Funds, Mutual Investment Funds and Private Pension Funds No. 22-000-1-00027 dated December 29, 2000 • Licenses of the Federal Agency for Government Communications and Information for Performance of Technical Maintenance, Distribution of Cryptographic Devices, Provision of Services in the Area of in the Information Encryption in Electronic Document Flow Systems. RosDorBank is a member and participant of: • Association of Regional Banks of Russia; • Moscow Bank Union; • SWIFT International Interbank Payment System; • Russian National Association of SWIFT members; • Moscow Interbank Currency Exchange; • Master Card InternationalInternational Payment System; • VISA InternationalInternational Association; • National Fund Association.

11. RosDorBank Annual report for 2008 →Bank Profile Auditors Intercom-Audit ZAO PricewaterhouseCoopers Audit ZAO Rating Moody's Investors Service International Agency together with Moody's Interfax Rating Agency (Russia) confirmed the assigned to RosDorBank long-term international credit rating at the B3 level and long-term credit rating according to the national scale at the Baa3 level. Financial stability rating is E+.

12. BOARD. OFFICERS OF THE BANK

13. Board. Officers of the bank RosDorBank Annual report for 2008 →Board. Officers of the bank RosDorBank Board is an executive body performing management of the Bank’s activity and securing performance of resolutions passed by the General Meeting of Shareholders and of the approved strategy of the Bank development until 2011. Board Chairman – Gleb Yurievich Gurin Was born in 1972. In 1994 graduated from the Ordzhonikidze State Academy of Management in the World Economy specialty. Share in the Bank’s authorized capital – 5.04%. First Deputy Board Chairman – Kira Vladimirovna Shapyrina Was born in 1969. In 1995 graduated from the Moscow State Pedagogical Institute in the Mathematics specialty. Has worked in RosDorBank since 2000. Supervises the Client Relations and Affairs Management Department. Deputy Board Chairman – Alexandr Vladimirovich Belyaev Was born in 1974. In 1995 graduated from the Plekhanov Russian Academy of Economics in the Finances and Credit specialty. Has worked in the Bank since 1995. Supervises the Risk Department and the Finances Department. Deputy Board Chairman – Alexey Victorovich Vinogradov Was born in 1972. In 1995 graduated from the Moscow Power Engineering Institute in the Applied Mathematics specialty. Has worked in RosDorBank since 1999. Supervises the Treasury, Operations and Information Technologies Department. Senior Vice-president – Dmitry Vladimirovich Usov Was born in 1958. In 1981 graduated from the Astrakhan Technical Institute of Fish Industry. Has worked in the Bank since 2002. Supervises the Business Development Administration, the Regional Cooperation Administration and Trade Financing Administration. Deputy Board Chairman – Mikhail Victorovich Ushakov Head of the Krasnodar branch. Was born in 1963. In 1984 graduated from the Krasnodar Polytechnic Institute. In 2005 graduated from the Bank Institute of the State University – Higher School of Economics in the MBA-Finances specialty. Has worked in the Bank since 1999.

14. 2008 RESULTS

15. 2008 results RosDorBank Annual report for 2008 →2008 Results Important Events of 2008 March 31, 2008 Department of the Activity Licensing and Credit Organizations Financial Restructuring of the Bank of Russia registered the report on results of the additional issued of RosDorBank shares for the amount of 216,658,380 rubles. Upon issue completion the amount of the Bank’s authorized capital reached 1,085,495,064 rubles. April 15, 2008 RosDorBank obtained a VISA International license for issue of VISA cards and of monetary funds under VISA cards. August 28, 2008 Moody`s Investors Service international agency together with Moody`s Interfax Rating Agency confirmed the assigned to RosDorBank long-term international credit rating at the B3 level and long-term credit rating according to the national scale at the Baa3 level. Financial stability rating is E+. October 14, 2008 RosDorBank opened a Subsidiary Office in Sochi. October 20, 2008 According to the effective Regulation of the Bank of Russia 323-P “On Issuing by the Bank of Russia of Unsecured Loans to Russian Credit Institutions”, RosDorBank got the right to obtain an unsecured credit from the Central Bank of the Russian Federation.

16. KEY PERFORMANCE INDICATORS

17. Key performance indicators RosDorBank Annual report for 2008 →Key performance indicators In 2008, the world crisis considerably influenced the state of the national financial market: the number of operating credit institutions in the Russian Federation reduced from 1,136 to 1,108, their amount being also reduced from 568 to 556 in the Moscow region. In spite of the crisis, in the ranking of the Russian banks developed by the Interfax Economic Analysis Center “Key Performance Indicators of Banks as of January 1, 2009”, RosDorBank occupies the 223rd place in terms of assets, 210th place in terms of equity and 187th place in terms of the profit amount before taxation - perfect results in the context of the general financial instability. Key Performance Indicators* * – here and hereinafter indicators are given with view to post balance sheet events; ** – here and hereinafter indicators for 2007 are recalculated for their comparison with 2008 indicators.

18. RosDorBank Annual report for 2008 →Key performance indicators Over 2008, Bank’s assets increased by 12 % and as of January 1, 2009 made 7,115,151 thou. rubles. Such assets growth was secured by increase of the authorized capital and attraction of funds from the Bank of Russia. The average assets amount for 2008 equals to 7,006,564 thou. rubles or 134% as compared to the same ratio of 2007 (2007: 5,233,137 thou. rubles). Dynamics of the Performance Indicators

19. RosDorBank Annual report for 2008 →Key performance indicators Dynamics of the Bank’s assets in 2008 (mio. rubles) • During 2008, the Bank was active to attract funds in the interbank market from Russian and foreign banks and carried out constant work for expansion of the client base. As the result the amount of the attracted funds was increasing steadily and following results of the third quarter made 6,427,158 thou. rubles showing growth by 21% as compared to the year beginning. • In the forth quarter RosDorBank fulfilled requirements of non-residents to repayment of the borrowed funds attracted in the period as of December 2006 through July 2008. The total amount of the funds repaid to non-residents in this period made 62,560 thou. US dollars (or 1.7 bln. rubles). As of October the Bank began attracted unsecured deposits from the Bank of Russia, • and following year results the amount of the attracted resources increased by 8%. • Increasing its resource base, RosDorBank made investments into income-bearing liquid assets. • The amount of working assets increased by 15%. The investment structure as at January 1, 2009 is as follows: • credits issued - 80% of working assets (2007: 81%); • investments into securities and bills of exchange – 14% of working assets (2007: 18%); • interbank credits – 6% of working assets (2007: 1%).

20. RosDorBank Annual report for 2008 →Key performance indicators Dynamics of the credits issued and reserves in 2008 (mio. rubles) During 2008, the average ratio of reservation under the credit portfolio did no exceed 2%, at the end of the year the reserve for issued credits amounted to 98,939 thou. rubles (2007: 69,041 thou. rubles). In context of the world financial crisis, Bank’s management developed anti-crisis measures, that included review of the crediting policy towards strengthening of the risk management role, optimization of the credit portfolio size, reduction of the credit issue limit by one borrower and application of tariff adjustments at credit issue with view to reduction of the collateral value. Thus, RosDorBank has insignificantly reduced its credit portfolio and with support of the Bank of Russia keeps on crediting the real sector of economy.

21. RosDorBank Annual report for 2008 →Key performance indicators Bank’s Equity The amount of capital calculated in compliance with requirements of the Bank of Russia made 1,425,185 thou. rubles as of January 1, 2009. At the end of the year 76% of the equity amounted to the authorized capital, 14% - to the retained profit of previous years and 10% - to the subordinated loan. Dynamics of the Bank’s Equity in 2008 (mio. rubles) Increase in the Bank’s equity over the reporting year made 344,184 thou. rubles or 32% and was conditioned by additional issue of the Bank’s shares (63%), as well as by net profit received during the year (37%). Net profit for 2008 made 133,612 thou. rubles (2007: 40, 67 thou. rubles). Adequacy of the Bank’s equity as of January 1, 2009 made 20.8% (2007: 18.2%),whik standard of the Bank of Russia being min 10% and the international standard being min 8%. It may be summarized that RosDorBank overcome the crisis financial situation in the country with dignity.

22. RosDorBank Annual report for 2008 →Key performance indicators 2008 Financial Results Total income of the Bank in 2008 made 3,101,529 thou. rubles increasing by 123% as compared to the similar ratio for 2007 (2007: 1,391,709 thou. rubles). Increase of the income and expenses amounts was conditioned by considerable growth of foreign currency rates at the end of the year. This fact resulted in increase of the share of unrealized currency difference in the total amount of the said indicators: increase on income from currency revaluation from 27.2% in 2007 up to 50.5% in 2008, increase of expenses from currency revaluation from 27% in 2007 up to 57.3% in 2008. Structure of Income for 2008 Total expenses of RosDorBank increased by 120% and made 2,967,917 thou. rubles (2007: 1,351,032 thou. rubles). Due to increase of the crediting volume during the reporting year, increase of interest income of the Bank as compared to the 2007 level made 44%, and in interest income for 2008 amounted to 872,080 thou. rubles (for 2007: 603,499 thou. rubles). As compared with 2008, the volume of the net landing receivables increased by 592,489 thou. rubles (2007: 687,621 thou. rubles) or 14% and made 4,863,722 thou. rubles. Net interest income for 2008 reached 504,985 thou. rubles (2007: 259,226 thou. rubles). Commission income (excluding commissions for credits issue and contract maintenance that are considered by the management to be interest income) as compared to the previous year increased by 72% and made 79,943 thou. rubles. A considerable share in the structure of commission income belongs to the following commissions:on cash transactions – 28%; • on currency operations – 27%; • on securities issued – 22%. Net commission income of the Bank made 71,810 thou. rubles (2007: 40,299 thou. rubles).

23. RosDorBank Annual report for 2008 →Key performance indicators Structure of Expenses for 2008

24. RosDorBank Annual report for 2008 →Key performance indicators Bank Profitability To characterize Bank performance the following efficiency ratios are used. RosDorBank management constantly analyses values of the net interest margin characterizing the degree of profitability of assets and net interest spread form credit transactions. Spread is a difference between the average interest rate received under credits and the average rate paid under obligations. Table of the Bank Profitability Assessment The Bank carries out constant analysis of its financial stability using methods described in the regulation of the Bank of Russia dated January 16, 2004 No. 1379-U “On Assessment of the Bank Financial Stability with View of its Stability Acknowledging as Adequate for Participation in the Deposit Insurance System”.

25. RosDorBank Annual report for 2008 →Key performance indicators Table of the Bank Financial Stability Assessment in 2008 According to calculation data, RosDorBank is financially stable in terms of all ratio groups. Based on the regulation of the Bank of Russia No. 2005-U dated April 30, 2008 “On Assessment of the Bank Financial Standing”, RosDorBank is referred to the second category of banks. Banks of this category may attract funds from the Bank of Russia taking part in auctions, both against security in the form of its credits, and without any security.

26. PRIMARY ACTIVITIES OF THE BANK

27. Credit Policy RosDorBank Annual report for 2008 →Primary activities of the bank Current Activity In 2008 the Bank was active to take measures for detection, assessment, minimization and monitoring of the Bank’s aggregate risks, were developed and introduced internal normative and methodical documents on the risk management and mitigation, as well as credit products allowing us to satisfy our clients' needs to the utmost extent possible keeping the risk minimum. Opinions on 71 applications from corporate clients were prepared. It should be noted that in the forth quarter of 2008 due to worsening of the general economic situation and stiffening of the procedure for consideration and analysis of clients' applications, the number of the projects considered was decreased by more than 50%. The Bank developed its own program for small and medium business crediting, simultaneously taking active part in implementation of the similar program of the Russian Bank of Development: provision of credits is performed from early 2009. New methods of the borrowers' financial standing and debt servicing assessment, of determination and calculation of obligatory reserves have been introduced and are applied with success, which is confirmed by results of the thematic inspection by the Bank of Russia. We actively carry out monitoring and assessment of credit risks under current principal receivable. In the second half of 2008, additional procedures for detection and control of bad debts were introduced; their results are considered by the Credit Committee of the Bank. Based on the decisions taken, required measures for minimization of the bad debt in the Bank’s credit portfolio have been implemented.

28. Credit Portfolio Structure as of January 1, 2009 RosDorBank Annual report for 2008 →Primary activities of the bank

29. Credit Portfolio Structure as of January 1, 2009 RosDorBank Annual report for 2008 →Primary activities of the bank

30. By types of Economic Activity RosDorBank Annual report for 2008 →Primary activities of the bank In 2008 7 Principles of the Bank Credit Policy 1. Optimal combination of credit provisioning risks and profitability 2. Balance of the client's and Bank’s interests 3. Complex assessment of risks, their minimization 4. Taking collective decisions on credit conditions 5. Assessment of the projects commercial efficiency 6. Complex analysis of borrowers and proposed projects 7. Building long-term partnership relations with borrowers.

31. Bank Guarantees RosDorBank Annual report for 2008 →Primary activities of the bank To minimize risks at performing international and local settlements, RosDorBank actively uses various forms of documentary operations, in particular bank guarantees. By order of clients the Bank issues and advises the following types of guarantee: • Customs guarantees; • Advance repayment guarantees; • Payment guarantees; • Contract performance guarantees; • Tender guarantees. As well as other types of guarantees stipulated by uniform rules for contract guarantees. RosDorBank is included in the register of banks and other credit institutions entitled to act as guarantors before customs authorities. This is certified by notification of the Federal Customers Service No. 105 dated September 1, 2007. Types of the guarantees issued by the Bank at the request of the Principal in favor of customs authorities: • Bank guarantee at the cargo transit and delivery under customs control; • Bank guarantee of performance of obligations to pay customs fees at exercise by the Principal of activity in the capacity of the customs broker; • Bank guarantee of securing payment of customs fees arising at performance by the Principal of activity in the capacity of the customs carrier; • Bank guarantee of securing payment of customs fees in the name of the temporary storage warehouse owner; • Bank guarantee of securing obligations of the organization to use excise stamps in compliance with their designation; • Bank guarantee at conditional release of goods imported as a contribution to the organization’s authorized capital.

32. Bank Cards RosDorBank Annual report for 2008 →Primary activities of the bank In 2008, RosDorBank keeps on developing its ATM network and installs new ATMs in the places convenient for clients. Now using an ATM they can pay not only for services of mobile operators, but for services of long distance and international communication, as well as services of satellite television and Internet.

33. Leasing RosDorBank Annual report for 2008 →Primary activities of the bank In 2008, the Bank kept on to successfully finance leasing operations. We offered our clients advantageous conditions of import equipment and mechanisms supply with participation of foreign banks and export credit agencies. In the reporting year the total volume of transactions financed by RosDorBank made 1 152 199 thou. rubles. When performing leasing operations, the Bank set as priority clear understanding of the client’s business tasks. Experienced personnel and modern information technologies secured operative processing of all applications received and high reliability of transactions. When performing each leasing transaction, Bank’s employees analyzed wishes and particular aims of the client and offered optimal conditions, forms and guarantees in full compliance with such wishes and aims. We successfully used programs of trade and structured financing and kept on attracting Western financial resources. In 2008, RosDorBank strengthened its relations with various Russian and foreign suppliers of equipment, such as: Benninghoven, Dinopak, Liebherr, Melmix, Bielloni Castella, Kiefel, ABG, CLAAS, SML, KAMAZ, MAZ, GAZ, Rzhev crane plant and other well-known companies. In connection with the Federal Target Program of the transport system development adopted by the Government of the Russian Federation, the Bank developed an actual project of road-building enterprise technical upgrading.

34. Foreign Economic Activity Support RosDorBank Annual report for 2008 →Primary activities of the bank In 2008, non-interest income of the Bank from clients service under currency operations and international settlements made 40 550 thou. rubles. Income was received under the following items: Commissions on currency purchase and sale transactions Commissions on bank guarantees issue and advise Payment for performance of exchange control functions Payment for currency transfers Commissions on trade finance Other income In 2008 the fotal incom of export-import transachory made 1 942 708 thou. rubles. Within the framework of the client-focused approach, highly qualified specialists of the Bank provide consultations that constitute one of the key moments of the foreign economic activity support. Such consultations include: Consultations at contract making at the stage of its preliminary agreement, which allows us to reduce currency, interest, customer and other risks of our clients Consultations on currency laws of the Russian Federation Assistance in correspondence with foreign counterparties. Main correspondiny banks Petrocommerce BANK OAO MDM-bank OAO RBR CB Soyuz JSCB Promsvyazbank OAO Vnesheconombank Unicreditbank ZAO Credito Emiliano S.p.A., UBI Banca, Banca Popolare di Vicenza S.C.p.A., National City Bank Russian Bank of Development OAO Alfa-Bank OAO Landesbank Berlin AG, VTB Bank (Deutschland) AG, VTB Bank (Austria) AG, Raiffeisen Zentralbank Österreich AG, Bank Clariden Leu AG, Banca Monte dei Paschi di Siena S.p.A.,

35. Risk Management RosDorBank Annual report for 2008 →Primary activities of the bank Risk management at the Bank is carried out in strict compliance with approved by the Bank’s Council “Regulation on Organization of the Risk Management System in RosDorBank OJSC” and “Basic Principles of Operating Risk Management”. The Bank performs management of the following types of risks: • Liquidity loss risk; • Credit risk; • Market risk; • Operating risk; • Strategic risk; • Business risk; • Legal risk; • Goodwill loss risk. RosDorBank developed a procedure for internal self-assessment of the risk management system quality. To demonstrate the results obtained, a methodology of assessment of bank risks with application of risk graphical key indicators has been approved. As of January 1, 2009, the share of operating risk in the Bank's risk structure calculated as a proportion of the net interest and non-interest income amounts, made 3.5%. To minimize the operating risk, the Bank implements the following measures: • A number of licensed programs has bee bought; • A transition to the DIASOFT 5NT automated system has been performed; • Sections connected with influence of the human factor are being checked; • Training of employees is carried out; • Protection from unauthorized access to computer systems has been installed; • A responsible employee controls compliance with laws of the Russian Federation. We have also upgraded the special module “Forecast” for calculation of ratios of the Bank's financial stability and the special module “Inek” allowing us to more precisely forecast and calculate possible financial risks of the Bank.

36. RosDorBank Annual report for 2008 →Primary activities of the bank Credit Risks The most substantial risks related to the Bank’s activity. To manage credit risks the following measures are taken: monitoring of information on borrowers, formalization of the procedure for taking decision on credit issue, discussion with shareholders of major credit risks and management of the credit portfolio overall risk. Liquidity Loss Risk This risk significantly influence the Bank’s financial stability and performance efficiency, its ability to bear responsibility under its obligations. RosDorBank has developed and introduced a complex system of liquidity management allowing us to exercise monitoring, assessment and management of liquidity risks. Market Risks Bank’s activity is connected with the following types of market risks: exchange risk, interest risk and fund risk. These types of risk have considerably influenced Bank’s activity due to critical changes in the securities market in the second half 0f 2008. Profit Loss Risk Tough competition in the bank sector makes us pay special attention to this risk. We have developed methods allowing us to manage the following risks: funds non-placement risk, risk of considerable deviation of Bank’s interest rates from market ones, risk of improper assessment of the Bank’s products cost. In terms of the crisis situation we have developed internal documents regulating Bank’s activity during the crisis. We have changed some parameters of calculation of proposed losses in the part of price and exchange risks, reviewed mechanisms of setting limits for funds placement operations under crisis conditions. We have approved methods of assessment of the quality category under investment securities portfolio, developed “crisis modeling” scenarios.

37. CONTACTS

38. Contacts RosDorBank Annual report for 2008 →Contacts Address 86, ul. Dubininskaya, 115093 Moscow Contacts Phone +7 (495) 959 60 00 Fax +7 (495) 959 60 10 Web-site: www.rdb.ru Е-mail: mail@rdb.ru Working hours Monday – Tuesday: 9:00 - 18:00 Friday: 9:00 - 16:45 Saturday, Sunday: weekends Designed by LIN-ART design studio. www.linart.ru