1. Mordovia with capital city of Saransk is located in the center of the European part of Russia

2. Mordovia’s largest regional bank

3. Branch Network 43 branches in Mordovia 43 branches in Mordovia 3 branches in Penza (neighboring region) 3 branches in Penza (neighboring region)

4. ATMs and Financial Services Kiosks 54 ATMs 105 financial services kiosks Functions: Paying routine bills, fees and taxes (utilities, phone, Internet, legal fees, taxes etc.)

5. Up-to-day ‘Gorod’ Transaction System for utilities’ payments processing. Up-to-day ‘Gorod’ Transaction System for utilities’ payments processing. Utilities’ payments market share in Saransk: 80+% Utilities’ payments market share in Saransk: 80+% Utilities’ Payments

6. Welfare Accounts KS BANK holds 230K+ special subsidizing welfare accounts

7. “Mobile Bank" system is a brand new service for card accounts’ management Mobile Bank

8. School Card 3. School canteen checkout 2. Crediting personal account using financial services kiosk 1.Issue of a “school card”

9. Investments in Energy Conservation KS BANK takes part in utility submetering investment program (as a loan granter) which provides for energy efficient water and gas meters installation in apartments

10. Risks Control Structure Board of Directors Executive BoardPresident (CEO) Credit Committees Liquidity Committee Limiting Committee Assets and Liabilities’ Management Committee Security and Operational Risks’ Committee ADMINISTRATION FOR ECONOMIC ANALYSIS AND RISK ASSESSMENT Risk Assessment Dept. Financial Analysis Dept. Shaareholders’ General Meeting

11. Setting up credit risk limits; Setting up credit risk limits; Сredit securing (collaterals, warranties and guarantees); Сredit securing (collaterals, warranties and guarantees); Preliminary (before loan granting) appraisal of a borrower’s creditworthiness: analysis of financial accounts, documents, shareholders structure, credit history, borrower’s business and industry risk; Preliminary (before loan granting) appraisal of a borrower’s creditworthiness: analysis of financial accounts, documents, shareholders structure, credit history, borrower’s business and industry risk; Collective decision on loan granting; Collective decision on loan granting; Loan loss reserves; Loan loss reserves; Monitoring of financial status of a borrower, performance of loan liabilities and other credit risk factors within the period of loan; Monitoring of financial status of a borrower, performance of loan liabilities and other credit risk factors within the period of loan; Monitoring of loan’s securing. Monitoring of loan’s securing. Methods for Credit Risk Management

12. Using databases: Using databases: Own database of utilities’ services Own database of utilities’ services Database of The National Credit Reference Bureau Credit Risk Management / Private Loans

13. As of January 1 st, 2012 problem loans of the Bank was 16,1 million RUR (approx. 0.5 million USD), which amounts to 0.3% of the Bank’s loan portfolio. As of January 1 st, 2012 problem loans of the Bank was 16,1 million RUR (approx. 0.5 million USD), which amounts to 0.3% of the Bank’s loan portfolio. Credit Risk Management KS BANK Loan Portfolio KS BANK Loan Portfolio

14. Liquidity risk – Liquidity Committee Interest rate risk – Executive Board Operational risk –Heads of departments. Information security risk – IT Security Dept. Market and Operational Risk Management

15. Partnership with IFC KS BANK is a partner in a joint program with International Finance Corporation (IFC) and Russian Regional Banks Association. IFC deals with process, methods and risk management evaluation of the Bank before granting funds. KS BANK’s risk management system considered adequate and sufficient by IFC professionals.