1 New opportunities of communications in retail banking promotion Deputy CEO, VTB24 Mikhail Kozhokin

2 Overview of VTB24  531 branches/outlets  Approx ATMs  Nationwide branch network that is significantly larger than those of most competitors Profile Market Position Business Lines Distribution Network Regions Clients  Very strong position in all Russia’s regions: 69 regions – 86% coverage  Focus on major cities  Over 7.8M individuals clients with 6.9M active clients  Approx SME clients with active  Leading Russian retail bank with full range of banking products and services for individuals and SME  Second largest retail bank in Russia  Fifth largest bank in Russia by assets  Retail loans market share – 10,6%  Retail deposits market share – 6,4%  Loan and deposits for individuals  SME lending and services  Private Banking  Cards  Investment products for individuals Total Asset Growth (in RUB mln)* CAGR = 42% Net Income Growth (in RUB mln)* CAGR = 100% *IAS, standalone VTB data preliminary, non-audited

3  SET UP  Acquisition of Guta Bank in Russia  Based on Guta Bank, a specialized retail bank, VTB24, was created, focusing on serving and providing loans for retail customers and small businesses as a part of VTB.  Product lines and sales process were set and launched 2004 – – – 2011  ACCELERATED EXPANSION  Significant growth of VTB24’s business volumes and market share evidenced by branch network expansion across the country and creating new office forms and bank products sales modules.  Retail customers’ migration from VTB and VTB North-West The strategic focus is further leading growth with client-oriented and segment-based approach to ensure profitability and high efficiency  ACNOWLEDGED LEADER  The second largest retail bank in Russia  Wide branch network throughout Russia  Developed retail infrastructure, including front office, processing center and internet banking  Significant retail client base  Leader in customer service*  VTB24 actively develops its retail business and product line, leading banking service technologies and cross-selling, and steadily grows its share on the retail market. Retail Banking – History of VTB24 * Awards granted in 2010 presented on next slides

4 Business Growth Supported and Customer Loyalty by Efficiency Improvement Number of clients Branches and ATMs Average time of operationStructure of client-flow by time in queue

5 - EPSI (Quality assessment to meet European standards) – Annual research «Customer saticfaction’2010» – VTB24 is recognized as absolute leader for customer satisfaction and loyalty - «The Retail Finance» magazine – 1 st place by results of 2010: «The best retail bank», «The best service quality» - SPEAR’S Russia Wealth Management Awards - in 2010 VTB24 Private Banking is recognized as the best Russian bank, providing private banking services and wealth management Rising Customer Satisfaction Contribute to Stable Growth #1 Private Banking SberbankVTB24 Alfa-BankOther banks Industry average VTB24 Alfa-Bank Raiffeisen Bank 1 st place 3 rd 2 nd

6 Segment-oriented approach and the Internet VTB24 implemented a segment-oriented approach in client attraction. Key target segments are High/Ultra High Net-Worth’s, mass affluent and the upper mass segment. The upper mass segment is characterized by high level of activity in the Internet, especially in social networks: 52% of the respondents access the Internet every day, 81% - no less than once a week. In comparison national average is 40% and 61% respectively. The marketing policy of VTB24 rests on following features:  Internet Advertising (high share in the advertising budget, emphasis on contextual advertising)  General creative concept (celebrities)  Presence in social networks Family Income, per person, per month, $ The share of the Internet users in different income groups The share of Internet in the sources of information about the bank

7 Internet audience in Russia The number of the Internet users in the Russian Federation increased by 31,8% in 2010 and amounted to 59,7 million people. It’s about 42,8% of the total population of the country. Source: Internet World Stats

8 Internet Advertising in Russia Except for the post-crisis 2009, the growth rate of internet advertising in Russia in didn’t descend below 40%. In 2010 the internet advertising market capacity in Russia according to MindShare Interaction amounted to 21,9 billion rubles. The Internet is the only segment of the advertising market that has been continuously increasing even during the crisis in years.

9 Website Attendance Dynamics – The amount of website visitors is continuously rising with a 25% increase in For 4 years in a row ( ) the VTB24 site attendance has grown by 7.5 times. About 50% of visitors are interested in cash loans and credit cards. VTB24 site reach is less than the amount of Internet users in Moscow or St. Petersburg, but exceeds that of Ekaterinburg and the other Russian cities. Website visitorsThe product structure of site attendance in 2010

10 VTB24 Expands Its Communications Via the Internet Internet Advertising costs increased by 80% in The share of Internet Advertising coats in the advertising budget is rising from year to year. In 2010 it reached 26,1%. Website is a Generator of Sales The amount of cash loans applications via increased by 28% in 2010, which is three times more than in 2009 (9%). Internet Advertising Costs, $mlnThe Structure of Advertising Costs

11 The Effectiveness of Internet Advertising Increases: The Example of Cash Loans With the increase of Internet advertising costs by 80% in 2010 the conversion ratio of the number of VTB24 site visitors into the number of internet applications for cash loans decreased by 21%. So the effectiveness of Internet advertising has risen. -21% Internet Advertising Costs and Conversion Ratio (Number of Visitors-Number of Applications)

12 VTB24 in Social Networks VTB24 is represented in Facebook, Twitter, on Banki.ru (leading Russian site on banking), LiveJournal and Blogspot.

13 VTB24 Internet Banking In the number of internet banking clients of VTB24 has grown by 4,6 times. At present every eighth client of VTB24 uses internet banking.

14 Specifics of Russian financial internet development Banking technologies development can’t catch up with the Internet technologies Russians don’t have enough trust in the Internet for financial transactions. In general in Russia the Internet is yet a communication environment and information search engine, rather than a tool for business matters and for solving personal financial questions. The core of financial internet audience are young successful professionals, a new and attractive generation of clients This is yet narrow but fast growing segment with a high potential for both financial internet and client base of retail banks development They would open new opportunities for the banking sector