TRUST Investment Bank & National Bank TRUST

TRUST Investment Bank & National Bank TRUST
1st Half 2007 Results and Business Strategy 20 September 2007

Disclaimer This presentation has been prepared and issued by National Bank TRUST and TRUST Investment Bank (collectively and jointly known as “TRUST”). This publication is intended for professional and institutional customers. Any information in this presentation is based on data obtained from sources considered to be reliable, but no representations or guarantees are made by TRUST with regard to the accuracy of the data. The opinions and estimates contained herein constitute our best judgment at this date and time, and are subject to change without notice. This presentation is for information purposes, it is not intended to be and should not be construed as an offer or solicitation to acquire, or dispose of any of the securities or issues mentioned in this presentation. TRUST and/or its subsidiaries may use the information in this presentation prior to its publication to its customers. TRUST or its employees may also own or build positions or trade in any such securities, issues, and derivatives thereon and may also sell them whenever considered appropriate. TRUST may also provide banking or other advisory services to interested parties. TRUST accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this presentation.

1 Executive Summary 2 Rationale for Merger 3 Group History & Structure 4 Group Strategy 5 Group Business Overview 6 Group Risk Management 7 Group Financial Forecasts 8 Group Merger Implementation Plan

Executive Summary The shareholders of Investment Bank TRUST (“IBT”) and National Bank TRUST (“NBT”) announced the merger of the two banks on July 17th, 2007 The merger will optimise both the capital and asset structure of the merged bank Although the merged bank will be a universal bank, the focus of growth will be on the retail and SME portfolios The branch expansion plan will be largely completed by the end of 2008 allowing management to greater focus on achieving higher ROAE targets Including the announced and funded RUB3.4bn capital increase of NBT, the merged bank will have sufficient capital for at least 24 months and will be in the top 20 financial institutions in Russia by capital and assets

Executive Summary: NBT’s Stand Alone Profile
What We Are: NBT provides full range of commercial banking services to corporate and private clients. Bank primarily focuses on Retail and SME loans to corporate and individual customers and federal / municipal governmental entities. NBT is a member of Deposit Insurance System. Key Clients: Mass Retail segment, Trade and Service Industries, SME Current Geographical Coverage: Strong presence in cities with population of over 100,000 and satellite towns of large cities Strategic Goal: In the next two years to become a TOP 5 Russian retail and SME bank in Russian regions with high growth potential based on Size of assets Number of clients Coverage of branch network NBT in Figures: 1H 2007 IFRS (RUB mln.) Total Assets: 54,977 Net profit (6 month): 145 Shareholders’ equity: 5,497 Loan portfolio: 32,676 Branch Network as of 20 September, 2007: 171 offices in 118 cities of Russia and in process of opening 42 offices by the end 2007 Employees: 6,357 Ratings: “B1”, outlook “Positive” by Moody’s “B-” , outlook “Positive” by Fitch

Executive Summary: TIB’s Stand-Alone Profile
TIB in Figures: H IFRS (RUB mln.) Total Assets: 43,647 Net loss (6 month): (36) Shareholders’ equity: 6,633 2007 YTD League Tables: 1st Qtr 2007, #2 CLNs (37.5%) 1st Qtr 2007, #2 Domestic Owned Bank, Eurobonds (1.3%), #17 overall 1H 2007: #1 Domestic owned Bank, Eurobonds and CLN 1H 2007: #3 Domestic Owned Bank, IPOs Employees: 409 Ratings: “B1”, outlook “Positive” by Moody’s What We Are: TIB provides a full range of investment banking services to corporate and institutional clients. The Bank’s primary focus is to act as an intermediary between second and lower tier corporate Russia and domestic and international investors. Key products include DCM, ECM, Hybrids, Securitizations, Real Estate, Corporate Finance, Investment Banking and Principal Investments. Key Clients: Primary: Second and lower tier Russian & Ukrainian corporates with an appropriate size within the next 18 months to be seen as a qualified issuer of debt or equity to investors. Investors: Global Hedge Funds, International and Domestic Banks, Insurance Companies, Pension Funds, Private Clients and Asset Managers Location: Moscow based with FSA registered office in London with plans of expansion to Asia (licensed office in Hong Kong) within next 12 months. Strategic Goal: In the next two years: Remain in top 3 domestically owned banks in fixed income credit product (CLNs, Eurobonds, Hybrids) Move into top 3 domestically owned banks participating in IPOs, by number of deals Retain research leadership in Fixed Income and Second Tier Equity

1 Executive Summary 2 Rationale for Merger 3 Group Structure 4 Group Strategy 5 Group Business Overview 6 Group Risk Management 7 Group Financial Forecasts 8 Group Merger Implementation Plan

Rationale for Merger Focus remains to grow branch network to cover all cities with population greater than 100,000 people. However the management recognises that the expansion plan will discontinue by the end of 2008 Further asset growth and diversification, namely across retail and SME ROAE is forecasted to start to pick up in 2007 and normalize during 2008 Release app. $150mln of capital from Investment Bank TRUST by optimising asset structure through spin-off of the proprietary position to an asset management structure – needed in 12 months time (including current capital increase)(1) Yukos deposits no longer represent a material component of the group balance sheet(2) Become one of the top 20 Russian banks and reduce cost of funding For every 50bp improvement to overall effective funding rate the earnings of the merged bank will increase by approximately $13mln leading to an improved ROE of additional app. 2.1% Recognised cost synergies of at least $7.5mln per year; headcount reduction of 80 people Merger advisors: Merrill Lynch as exclusive financial advisor, Allen & Overy as legal counsel and KPMG as auditors and financial advisors (1) See page 47 for further information (2) See page 55 for further information

Executive Summary Rationale for Merger Group History & Structure Group Strategy Group Business Overview Group Risk Management Group Financial Forecasts Group Merger Implementation Plan

NBT’s History 1995–2002 2003–2004 2005 2006 2005-present “New Era”
NBT (AKB “Menatep SPb”) was founded as a 50/50 JV between Yukos (Menatep) and Gazprom Servicing Menatep and Gazprom In 2002 Menatep purchased Gazprom’s stake 2003 IBT management takes over management of NBT May Management Buyout (IBT management) Re-branding of TRUST: The Two Banks Hired professional retail banking team May 2005 – MBO fully paid Branch Network & Product Expansion Hired team from one of the top SME banks’ in Russia Continue Branch Network & Product Expansion Leading Retail and SME Bank “New Era” 2005-present March 2005 – First Auto Loan April 2005 – First Cash Loan July 2005 – Retail loan program available at all branches March – First SME Loan April – Credit Cards program launched October 2006 – First Mortgage Loan

TIB’s History 1998–2003 2003–2004 2006 – 1H2007 Beyond “New Era”
Bank was founded by Group Menetep Leading Fixed Income and Investment Bank in Russia May Management Buyout (IBT management) Re-branding of TRUST: The Two Banks September 2006, hired new CEO Restructured institution to meet the demands of clients and investors Built equity platform (trading, research, sales) Opened regulated sales office in London Execution of broader product range Derivatives platform (JV) Expanded distribution with non-exclusive relationships with international banks and funds Alternative Investments (Private Equity, Hedge Fund and Asset Management) Open regulated sales office in Asia “New Era” 2H2006 to Present Summer – Institutional Investor Ranked Research Team Sept – TIB $150m, Reg S Eurobond placed. First Capital Markets Transaction post the MBO Dec – First Subordinated CLN placed (BSP) Jan – Announced Bank restructuring and staff upgrade program April – First non-group Eurobond lead manger role May – First Official IPO role (Nutritec & Dixy)

Current Shareholding Structure
Other shareholders Terzyan Artashes Beliaev Sergei Fetisov Nikolai Yurov Ilia 8,12% 16,44% 21,55% 21,55% 32,33% Beliaev Sergei Fetisov Nikolai Yurov Ilia 100% 100% 100% TIB Holdings Limited (Cyprus) Neaspal Investments Limited (Cyprus) Winsala Investments Limited (Cyprus) Zaploma Investments Limited (Cyprus) 68,10% 9,12% 9,12% 13,66% Yurov Ilia – 18,1699% Beliaev Sergei – 3,8225% Fetisov Nikolai – 1,1589% Terzyan Artashes – 1,031% Other shareholders Yurov Ilia Management company TRUST (Russia) Other shareholders 0,55% 0,1% 24,18% 99,35% 68,38% 7,44% National bank TRUST (Russia) TRUST Investment Bank (Russia)

Pro-forma Post Merger Shareholder Structure
Other shareholders Terzyan Artashes Beliaev Sergei Fetisov Nikolai Yurov Ilia 8,12% 16,44% 21,55% 21,55% 32,33% Beliaev Sergei Fetisov Nikolai Yurov Ilia 100% 100% 100% TIB Holdings Limited (Cyprus) Neaspal Investments Limited (Cyprus) Winsala Investments Limited (Cyprus) Zaploma Investments Limited (Cyprus) 68,10% 9,12% 9,12% 13,66% Yurov Ilia – 5,99% Beliaev Sergei – 1,25% Fetisov Nikolai – 0,38% Terzyan Artashes – 0,34% Other shareholders Management company TRUST (Russia) 2,8% 89,24% 7,96% Calculation based on the following numbers NBT BV multiple = 2.5 X IBT multiple Total equity NBT, thousand RUR Total equity IBT, thousand RUR National bank TRUST (Russia)

Merged Bank Organisational Structure
Board of Directors Chairman: Yurov CEO & Chairman of Management Board Eggleton Management Committee Chairman: Fetisov President Fetisov CFO CRO CIO COO Treasury HR Retail Bank Investment & Corporate Bank Committee Chairman: Eggleton Retail SME Network Origination Markets Research Sales & Syndicate Asset Management

Group Management Structure (Post Merger)
Board of Directors Chairman: Yurov Credit Committee Chairman: Yurov Investment & Corporate Banking Committee Chairman: Eggleton Management Committee Chairman: Fetisov ALCO Committee Chairman: Eggleton Retail Risk Commitments Committee Technology Committee SME Risk Products Committee Corporate Risk

Biographies – Shareholders and CEO

Group Strategy Upon the completion of the merger, become and remain one of top 20 Russian banks based on capital, assets, number of clients and branch network in Russian regions with long term recurring ROAE of >20% In top 5 banks by full city coverage by end of 2008 In top 5 banks by portfolio and number of retail clients within 3 years In top 5 SME banks by loan portfolio by the end of 2007 In top 2 Russian-owned banks league table for CLNs and Eurobond In top 3 Russian-owned banks league table for IPO by 2009 At least 2 Institutional Investor ranked team members Continue to provide a full range of banking and investment services to its existing corporate clients, but primarily focus on the retail and SME clients in order to grow the balance sheet while remaining a leader of financial intermediation of Russian corporate sector to international and domestic investors Reduce leverage and absolute MTM securities portfolio across both banks by spinning off IBT proprietary position into asset management JV with internationally recognised partner Focus on ROAE growth through deceleration of branch expansion by the end of 2008 and increased product penetration through the network Utilise the experience of the management and sales department, the large regional network and cross-selling opportunities to increase the scope and depth of its banking business Continue to introduce new risk management systems to make operations within the retail and SME sectors of the business more efficient

Integrated Multi-Product Platform
RETAIL SME CORPORATE CAPITAL MARKETS Auto loans Cash loans Consumer loans Credit cards Savings products Current accounts Funds transfer Safe custody Debit cards Micro loans Medium loans Small loans Overdrafts Factoring Payments and cash management Savings products Working capital facilities Collateralised loans Overdrafts Trade finance Export-import finance Payments and cash Management Treasury products Savings products Asset management Commercial banking Debt products Equity products Hybrid and structured products Fixed income Equities Derivatives Corporate finance Focus on car loans, cash loans and mortgage lending Diversify and standardise product lines Reclassify loans less than RUB 30mln to SME, and focus corporate business on loyal client base Further reclassify loans less than RUB 75mln to SME in 2008 Broaden the product and services base Focus on mid-cap companies Investment and Corporate Banking

Retail Banking Retail Strategy Net Retail Portfolio Size (RUB bn)
Enter TOP 5 by portfolio and number of clients within 3 years Offer the widest and most flexible product lines Focus on mass market segment of clients living in the Russian regions Serve clients in all cities with the population of over 100,000 40.6 5.7 2.8 23.6 7.7 16.9 1.1 0.1 1.6 0.8 12.2 13.9 6.7 0.05 10.0 5.7 8.1 0.5 0.6 5.3 24.4 5.3 3.2 0.2 0.3 5.2 5.1 10.3 14.2 1.9 4.7 7.9 3.4 4.6 6.5 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 07B 08E Cash Auto Cards Mortgage Number of Clients in Portfolio (‘000) Retail Deposits (RUB bn) 341.0 183.0 30.0 281.0 68.0 1Q 2007 CAGR: 48% 97.0 234.0 4.3 17.5 21.8 3.1 12.7 15.8 07B 08E 48.0 33.0 158.0 29.0 13.5 128.0 19.0 11.7 12.3 11.0 27.0 85.0 23.0 211.0 7.3 157.0 4.5 8.3 8.9 10.0 19.0 94.0 112.0 4.1 66.0 2.2 2.3 3.2 3.4 3.4 3.5 1Q 06 2Q 06 3Q 06 4Q 06 2Q 2007 2004 2005 2006 1Q 07 2Q 07 Cash Auto Cards Call Deposits Term Deposits

SME Loans Classification as of 2Q07 SME Portfolio Size (RUB mln)
SME Banking Overview SME Loans Classification as of 2Q07 Hired professional team from one of the top Russian SME banks in 2005 At SME loans accounted for 13.5% of NBT’s total loan portfolio Even though SME lending was launched in March 2006, in 2006 NBT was ranked 9th among Russian banks by loan portfolio Number of clients at the end of June 2007 reached 8,207 comparing to 3,842 at the end of It is expected to reach 15,000 by the end of 2007. Factoring business is expected to reach RUB6bn by the end of 2007 and RUB10bn by the end of 2008 SME Portfolio Size (RUB mln) 34,700 SME Strategy 5,187 Diversify SME loan portfolio Increase the range of banking services to SME clients Standardise the products Increase service efficiency Be in top 5 SME bank by loan portfolio by the end of 2007 18,144 20,127 2,638 4,399 (2) (2) 51 2,376 858 3,285 1Q2007 11,372 718 2,274 296 48 (1) 1,353 22 540 156 9,386 669 1,734 2,890 4,134 1Q2006 2Q2006 3Q2006 4Q2006 2Q2007 2007B 2008E Micro Small & factoring Medium (1) Doesn’t include factoring (2) Off balance sheet factoring of RUB 3.3bn as of 2Q 2007 , currently RUB3.5bn

Pro- forma Corporate Banking
Overview Net Corporate Loans (RUB bn) Number of corporate clients as of 31 July was c.13,400 (compared to 13,800 corporate customers as of 31 December 2006) Reorganization: focus on relationship with medium-sized clients (up to RUB 5bn annual turnover), interested in multiple value-added banking services, while small clients are redirected to SME banking Cross-sell opportunities for capital market products to regional customer base Approximately $300mln higher yielding structured deals (collateralised) to be retained on Balance Sheet as support to distribution, however this business is not active through the end of the 2nd quarter. Widening of existing product range CAGR: 8% 23.8 18.7 17.7 13.1 14.4 14.0 7.9 2004 2005 2006 1Q 07 2Q 07 07B 08E Corporate Deposits (RUB bn) 30.4 30.7 21.6 9.7 31.3 1Q 07 (1) 11.8 20.6 10.1 12.1 32.7 21.9 07B 08E 29.3 (1) 10.5 9.6 13.1 17.8 1.0 19.9 21.1 16.2 16.8 2004 2005 2006 2Q 07 Call Deposits Term Deposits (1) Expected budget due to withdrawal of Yukos-related deposits during 2007

Capital Markets Overview Strategy
The Bank provides various services including: Lending and structured lending Private placements Corporate finance Capital markets (ECM and DCM) Client flow trading Research Sales Asset management National and international presence through: 450 international clients 400 domestic clients Institutional Investor ranked research team members Diversify revenue stream and investor base by expanding products and services Focus on mid-cap companies providing bridge to global capital markets Focus on origination to distribution model $13.5m of risk free origination income, including $11.2mln of fee income for 1H 2007 vs. less than $7mln for all Adjusted Target $25mln for full year 2007

CAPITAL MARKETS OVERLAY
TRUST INTERNATIONAL Global Syndication & IBT Alternative Investment Products Investment & Corporate Banking Committee Origination Markets Sales Investment Banking and Structured Solution Fixed Income & Equity Sales & Distribution Products Research DCM & Private Placements DCM & Private Placements Proprietary (Asset Management JV) Client Flow Repo Derivatives (negotiating JV) Corporate Book (Lending & Structured Credit) Macro & Quantitative Analysis Head of Head of Domestic Sales Coordination International Sales Coordination ECM, Hybrids & Private Placements Corporate Fixed Income Capital Markets Transaction Management Group Fixed Income Primary/Secondary Flow Equity Primary/ Secondary Treasury Funding Treasury Products Alternative Investments Securitization Equity Real Estate Real Estate IBSS Legal Counsel Corporate Finance and Investment Banking Financial Domestic Syndication Institutions Prinicpal Investments Structured Solutions Origination Distribution DEAL FLOW

Nationwide Branch Network (Domestic Distribution)
Critical Regional Indicators (as of September 20, 2007) Network Expansion Targets As of As of As of As of 2007 As of 2008 2005 2006 20/09 / 07 (planned) (planned) Regions 47 50 55 59 70 Cities 74 77 118 150 - 160 220 Sales offices 125 128 171 190 - 200 300 The bank owns app. 80% of the branches The average branch reaches break-even at app. 2 years Top 10 Banks in RF Cities as of September 20, 2007 Target area of regional expansion No Bank # of Cities 1 Sberbank 938 2 Russian Agricultural Bank 268 3 Rosbank 220 4 Russky Standard 175 5 VTB 118 6 National bank Trust 7 Uralsib 104 8 Vozrozhdenie Bank 74 9 VTB Retail 73 10 Investsberbank * Source: NBT estimates * - at the end of December 2006 with the exception of NBT

Established and Recognised Global Platform (International Distribution)
Israel Chile USA South Africa Spain Greece UK Portugal Germany Luxembourg Latvia Switzerland Italy Thailand Singapore Philippines Hong Kong Kazakhstan France Estonia Sweden Denmark Turkey

Group Risk Management Architecture

Risk Management Strategy

Pro-forma Credit Portfolio Diversification
Loan Portfolio Regional Breakdown as of 2006YE Retail SME Corporate Far East 2.5% North-West Central 8.6% 22.0% Ural 11.2% Siberia West 12.2% 16.2% Privolzhskyj South 13.2% 14.0% Loan Portfolio Regional Breakdown as of 2Q 2007

Credit Portfolio Diversification (Cont’d)
Industry Breakdown as of 2006YE Top 10 Credit Concentration - NBT Trading Enterprises Financial Intermediaries Manufacturing Engineering and Metal Processing Construction Energy Chemicals and Petrochemicals Oil and Gas Transport State Administrations Pharmaceuticals Other Individuals Industry Breakdown as of 2Q 2007 Top 10 Credit Concentration - IBT Trading Enterprises Financial Intermediaries Manufacturing Engineering and Metal Processing Construction Energy Chemicals and Petrochemicals Oil and Gas Transport State Administrations Pharmaceuticals Other Individuals * Fully repaid as at (total amount is RUR mln)

Credit Portfolio Quality
Non-Performing Loans / Total Loans (%) Provisions / Non-Performing Loans (%) 6.67% 6.98% 5.23% 5.16% 5.12% 4.19% 4.28% 3.62% 3.70% 3.80% 77.12% 70.20% 72.23% 62.85% 61.33% 2005 2006 2Q 2007 2007B 2008E 2005 2006 2Q 2007 2007B 2008E Provision / NPL Provision / Gross Loans Retail NPL / Total Loans (%) SME NPL / Total Loans (%) Corporate NPL / Total Loans (%) 11.33% 11.68% 10.60% 10.00% 2006 2Q 2007 2007B 2008E 1.80% 2.22% 3.00% 2.50% 2006 2Q 2007 2007B 2008E 1.30% 0.54% 0.33% 0.25% 2006 2Q 2007 2007B 2008E Auto 25.7% 24.9% - Cash 35.8% 33.6% E ffect ive Interest Rate Blended 28.0 % 21.75 Small 21.0% 19.7% - Micro 23.4% 22.8% Blended 18.38 % 16.38 - - - - - - - - Blended 13.6% 11.5 % 16. 5 % 16.25 %

Managing Retail Credit Risk
Auto Cash Level of defaulted loans 16% 0% 5% 10% 15% 20% 25% 14% 14% 12% 12% 10% 10% 8% 8% 6% 6% 4% 4% 2% 2% 0% 0% FPD, first payment default rate SPD, second payment default rate AUTO CASH Credit cards TPD, third payment default rate Measures applied in 2006/2007 The reorganisation of retail risk management department was completed. “Welcome calls” were introduced in order to identify frauds at the earliest possible stage. Anti-fraud training and equipment were provided to the retail banking employees to improve their capabilities of spotting fraudulent customers. Credit products were modified or eliminated to avoid high risk combinations, for instance 0% equity auto loans. Credit documentation requirements were standardised and clarified. Risk management targets: Probability of default – 11% Expected losses – 5%-7% Risk based pricing Further diversification of the portfolio

NBT - Financial Overview
Key indicators, RUR mln by IFRS 2004 2005 2006 1Q07 Actual (unaudited) 1H07 Actual (reviewed) Capital 3,545 4,193 4,337 4, 419 5, 497 Assets 29,715 39,360 44,669 48,057 54,977 Loans (gross) 9,553 17,262 25,934 29,117 34,136 Loan / total assets, % 32% 44% 58% 61% 62% Amount due to customers 22,257 30,564 34,868 38,349 38,787 Net operating income 2,319 3,615 4,284 1,234 2,290 Pretax profit 856 847 303 125 116 Net interest margin 9.2 8.3 9.8 11,5 11,4 ROAA 1.1 0.8 0.5 0,7 ROAE 9.3 7.5 4.5 7,4 6,6 Cost / Income before provisions 87.3 68.1 77.4 74.0 81.2 Cost / Income 70.3 74.4 91.7 88.0 94.9 CAR 24.1 17.0 14.2 14.7 19.2 Key financial ratios, % Headcount ,698 3,505 5, , ,357

IBT-Financial Overview
Key indicators, RUR mln by IFRS 2004 2005 2006 1Q07 Actual (unaudited) 1H07 Actual (reviewed) Capital 5,808 6,233 6,669 6,683 6,633 Assets 23,101 28,347 47,396 49,541 43,646 Financial assets at fair value 9,982 13,888 34,528 35,119 31,441 FA at FV / total assets, % 43% 49% 73% 71% 72% Payables under repurchase agreements 2,432 7,013 21,842 24,277 18,333 Net operating income 2,027 2,262 1,784 293 707 Pretax profit 265 938 14 (36) Net interest margin 5.8 4.4 3.2 2.1 1.9 ROAA 1.1 2.8 0.5 0.1 -0.2 ROAE 9.3 12.1 0.8 -1.1 Cost / Income before provisions 87.3 53.0 73.0 93.1 100.5 Cost / Income 70.3 58.5 85.1 95.4 100.4 Key financial ratios, % Headcount

Timeline: Convergence of Expense to Revenue Generation Capacity
This is one of the main profitability drivers of the bank.

Increasing loan portfolio in assets structure 2006 vs.1Q07
NBT – Total assets and Loan portfolio Increasing loan portfolio in assets structure 2006 vs.1Q07 2007 Budget 2Q 2007 Total assets & loan portfolio. RUR mln.

NBT Net Interest Margin less LLP

NBT - Loan portfolio structure
Changes in loan portfolio structure 2005 2006 2Q07 2007 Budget Retail 50.0% Corporate 41.3% SME 8.7% 93% of retail and SME business is conducted in the Regions

NBT – Deposit Analysis (Corp and Retail)

TRUST Investment Bank - Assets structure
2006 1H07 2007 Budget Cash and cash Other Cash and Other Cash and cash Other equivalents 8.5% cash 10.9% equivalents 3.4% 0.5% Loans to equivalents customers 12.0% Loans to 10.9% customers Loans to 6.7% 6.2% customers 21.2% Financial Financial Financial assets assets assets through through profit through profit profit and loss and loss and loss 72.0% 72.9% 74.8% 1H2006 to 1H2007 2006 to 2007 Total assets Financial assets at fair value Total assets Financial assets at fair value 50 000 50 000 45.4% 40 000 40 000 -11.4% 34.0% 30 000 30 000 47 396 -21.0% 43 647 20 000 20 000 41 973 32 581 34 528 31 441 27 285 10 000 21 629 10 000 1H2006 1H2007 2006 2007B

NBT – 1H07 Effective Interest Rates

TRUST Investment Bank - Financial assets at fair value structure
Changes financial assets at fair value structure 2005 2006 1H07 Other Other Other 14% 15% 21% Corporate debt Eurobons of RF Eurobons of RF securities 11% 0% 43% Eurobons of RF Corporate debt 20% securities Corporate debt 58% securities OFZ 60% 17% OFZ OFZ 36% 5%

Rating breakdown of Securities Portfolio - IBT
Ruble bond portfolio rating breakdown BBB+/Baa1 (incl. sovereign) BBB/Baa2 21% BBB-/Baa3 Currency bonds portfolio rating breakdown 0% BB+/Ba1 BBB+/Baa1 (incl. 1% sovereign) 44% 1% BB/Ba2 2% 8% BBB/Baa2 BB-/Ba3 2% BB+/Ba1 B+/B1 19% 9% BB/Ba2 B/B2 B-/B3 BB-/Ba3 3% 1% 4% 6% 52% No rating 16% B+/B1 B/B2 Ruble bond without rating portfolio breakdown 7% B-/B3 Banks 3% 2% No rating 18% Electric utilities 1% 18% Municipality 2% 1% OFZ Futures 13% Private enterprises State enterprises 9% Subfederal financial 37% institutions Subfederal governments

TRUST Investment Bank - Liabilities structure
Funding structure 2006 1H07 2007 Other Other Other 10% Long term 8% Long term 7% Long term financing financing financing 8% 10% 12% Short term Short term interbank Short term Payables interbank 10% Payables under interbank under REPO 6% REPO 12% 49% Customer 53% accounts 9% Payables Customer accounts under REPO 19% Customer 66% accounts 21%

Pro-forma Key Ratios; Merged Bank Targets
3 year plan has not been amended due to current market conditions

Pro-forma Securities Portfolio – Optimising for the Future
In order to optimise the asset structure of the bank and allow the expansion of the retail and SME business, the bank has decided to reduce its position in trading securities to 10% of total assets by the end of 2009 Pro-forma Trading Securities (RUB mln) - Proprietary Pro-forma Trading Securities (RUB mln) – Client Flow Business 19,691 35,688 36,181 17,089 15,434 2,396 1,262 1Q 2007 27,897 17,704 10,575 Treasury and Asset Management 6,302 2,227 2,228 6,120 5,100 2007B 2008E 1,494 4,974 4,948 6,181 6,056 7,650 5,483 6,885 765 574 5% 2007B 2008E 1,525 1,690 6% 1,512 16,258 2,420 5% 4,422 526 5% 1Q 2007 370 1,376 941 12,949 6,181 5,799 2% 4,604 16,215 11,575 11,016 137 1,357 2005 2006 2Q 2007 2005 2006 2Q 2007 Government and municipal bonds Corporate bonds Total Equities Equities Asset Management & Other Corporate bonds % of total assets

Pro-forma Funding Structure
2006 2Q 2007 3Q-4Q 2007 2008E 2009E $100mln CLN by NBT (Dec) $150mln Eurobond by IBT (Sep) $20mln NBT sub-debt (Mar) $50mln NBT CLNs (Apr) $200mln NBT Eurobond (May) €150mln funding from securitisation (May) € mln securitisation bond $100mln private placement $100mln one year syndicated loan $ mln funding from securitisation $350mln new Eurobonds issued $100mln raised in syndicated loans $50-100mln of other securities issued $ mln funding from securitisation $ mln new Eurobonds issued $100mln raised in syndicated loans (new) $50-100mln of other securities issued (new) Increasingly Diversified Funding Structure 2006 2Q 2007 2007 Budget 2008E

Pro-forma Capital Structure
Total Shareholders Equity (RUB mln) Comments Management estimates that after the merger, National Bank TRUST would reach TOP 20 Russian banks in terms of assets 1.5bln of 3.4bln of announced capital increase has been provided. The remaining 1.9bln will be provided by the end of October Significant room to overperform asset growth targets in model RUB 7bln capacity for tier 2 subdebt issuance 12,130 23,367 19,057 15,997 2Q 2007 2007B 2008E 2009E CAGR: 29% Capital Adequacy Ratio 20.6% 16.89% 13.16% 2Q 2007 17.6% 18.2% 16.0% 16.1% 15.3% 14.73% 12.24% 1Q 2007 2007B 2008E 2009E Tier 1 Ratio Total Capital Ratio BIS Requirements (8%) Central Bank (10%)

Investment Banking Optimal Asset Structure as Department in Merged Bank
IBT Asset Structure NBT

Pro Forma Related Party Transactions
Amounts Due to RP Customers Loans to RP 6.03% 728 2.62% 2.31% 1.72% 543 647 610 2004 2005 2006 1H2007 Transactions with related parties: Carried out on an arm's-length basis Subject to the same approval procedures and limits as transactions with unrelated parties

Pro-forma Employee Structure
2006 2Q 2007 Pro-Forma 2007 Pro-Forma 2008 82% 94% 18% 6% 6,357 409 IBT NBT Total: 5,631 Total: 6,766 Total: 8,200 Total: 9,100 Post merger, the group expects a minimal impact to its headcount due to different business operations of the banks being merged; however due to spin-off of proprietary and alternative investments combined with synergies and back office redundancy will lead to savings of at least $7.5mln a year Expected redundancies of appr. 80 people due to merger (23 front office, 57 back/middle office) In light of the bank’s network expansion plans, management anticipates to have approximately 3,000 new employees to grow the business in 2007 and The new employees will receive introductory training to ensure that high standards are maintained Headcount not due to increase significantly after 2009

Indicative Timetable: Expected Completion in 2Q 2008
Announced Merger to market, staff and regulators on 17 July 2007 Engaged A&O as legal counsel Finalizing Capital Increase of National Bank TRUST by late October 2007 Informal Discussions with regulator on Merger Official request will be filed with CBR during October 2007

APPENDIX

Yukos Deposits

Yukos Related Deposits
Post Yukos related company auctions the Unfrozen Yukos-Related deposits have effectively been reduced to zero

Historical Financials of NBT and IBT

Balance Sheet (RUB mln)
NBT IBT 2005 2 2006 2 Q 2007 2005 2 2006 2 Q 2007 Cash and cash equivalents 13,970 11,147 1 6 , 326 5,350 5,696 4 , 774 Amounts due from credit institutions 15 15 15 1,891 1,320 519 Trading securities 7,302 6,150 2 , 655 13,887 34,529 3 1 , 441 Net loans to cust omers 16,379 24,847 32 , 676 4,381 3,166 2,695 Total retail loans 4,691 12,715 16,934 - - - Corporate 11,688 9,891 11,343 4,381 3,166 2,695 SME - 2,241 4,399 - - - Property, equipment and intangibles 1,203 1,965 2,633 417 604 5 82 Tax and other assets 484 546 672 2,421 2,081 3, 6 35 Total Assets 39,360 44,670 54 , 977 28,347 47,396 4 3 , 646 Amounts due to credit institutions 2,875 1,126 1,423 3,959 3,983 4 , 395 Payables under repurchase agreements - - - 7,013 21,842 18 , 333 Amounts due to customers 30,564 34,868 38, 787 7,235 7,899 7 , 637 Retail 7,299 11,886 13,482 176 - - Corporate 23,265 22,867 25,305 7,059 7,899 7,637 SME - - - - - - Funding from securitisation - - - - - - Obligations to return securities received as - - - 846 1,885 2,092 collateral Debt securities issued 1,002 3,713 8 , 6 40 2,714 4,914 4, 312 Tax and other liabilities 726 625 6 30 348 204 2 44 Total Liabilities 35,167 40,333 4 9 , 480 22,114 40,727 37 , 013 Shareholders' Equity 4,193 4,337 5 ,4 97 6,233 6,669 6,6 33

Income Statement (RUB mln)
NBT IB T 2005 2 2006 2 Q 2007 2005 2 2006 2 Q 2007 Interest income 2,726 4,622 3 , 337 1,354 2,383 1,55 8 Due from credit institutions 208 321 243 145 290 143 Debt securities and other financial instruments 615 679 179 555 1,581 1,126 Reverse repurchase agreements - - - 117 117 62 Loans to customers 1,904 3,622 2,915 440 395 226 Interest expense (788) (1,373) ( 1,140 ) (659) (1,439) ( 1,077 ) Due to credit institutions (73) (27) (26) (125) (237) (153) Repurchase agreements - - - (301) (739) (617) Deposits by customers (634) (1,247) (870) (109) (225) (116) Debt securities issued (81) (99) (244) (123) (238) (153) Net interest income 1,938 3,249 2,197 695 944 481 Provision for impairment (304 ) (665) (417) (238) (295) 7 Net interest income after provisions 1,634 2,584 1,780 457 649 488 Fee and commission income 876 925 461 187 318 2 90 Fee and commission expense (163) (159) ( 96 ) (51) (45) ( 27 ) Net Fees and commissions 713 766 365 136 274 263 Total operating income 3,310 3,619 2,290 2,262 1,784 707 Operating expense (2,463 ) (3,317) ( 2,174 ) (1,324) (1,518) ( 748 ) Salaries and benefits (1,318) (1,855) ( 1,288 ) (828) (946) ( 442 ) Administrative expenses (815) (1,148) ( 687 ) (359) (426) (2 56 ) Depreciation and amortization (153) (165) ( 115 ) (77) (95) (4 ) Other expenses (178) ( 148) ( 84 ) (61) (51) ( 10 ) Profit before taxation 847 303 116 938 265 (41) Income tax expense ( 558 ) ( 111 ) 29 ( 213 ) ( 87 ) 5 Net income 288 192 145 726 178 (36)

Russian Banking Sector Overview

Russian Banking Sector: Summary
Total Assets Retail lending is increasingly the focus for banks and, despite explosive growth in consumer credit, Russia still lags behind emerging market peers. There is potential for several years of further strong growth in credit card, auto credit, as well as mortgage lending as personal income levels rise Mortgages, although quickly becoming a mass product, still account for only 0.75% of GDP vs. 5.3% in Kazakhstan and 7.3% in Poland and amid enormous demand for new housing, still make up only c.10% of total retail loans Mortgage lending is forecasted to grow by 80% in 2007 There is increasing emphasis on providing banking services in the under-banked regions as economic wealth spreads into the regions responsible for much of Russia's industrial output The key constraints for all Russian banks are capital and funding. With some of the leading private banks growing at over 100% per annum, sourcing capital is challenging VTB successfully listed in May 2007 and several other banks have IPO in the pipeline In 2006, total NPLs of the banking system has increased by 2.5x from $765m as of January 2006 to $2.0bn whereas lending to individuals rose by 75% in 2006 $bn % Key Banking Statistics Total Deposits $bn % With the fast growth of retail lending, an increasing number of banks face capital constraints as the capital ratio decreases to the minimal level acceptable by the CBR Source: RosStat, CBR

Russian Banking Sector: Forecasts by Product
Total Banking Assets Total Deposits Mortgages Credit Cards Car Loans Corporate Loans Source: Deutsche Bank Equity Research (20-Sep-06) and Merrill Lynch Research (23-May-06)

Banking Assets in % of GDP Total Deposits in % of GDP
Russian Banking Sector: Benchmarking Banking Assets in % of GDP Total Loans in % of GDP Total Deposits in % of GDP (1) (2) (1) (2) (1) (2) Note: Total banking assets, loans and deposits data as of 31 December 2005 unless otherwise stated Sources: European Banking Federation, Bank of Ukraine, Economist Intelligence Unit and broker research (1) Includes Bulgaria, Czech Republic, Hungary, Poland, Romania, Slovakia and Ukraine (2) Includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Norway, Netherlands, Portugal, Spain, Sweden, Switzerland and the United Kingdom

Main Financial Indicators of Top 20 Banks, as at April 1, 2007
Top Russian Banks Main Financial Indicators of Top 20 Banks, as at April 1, 2007 Source: Interfax (1) Includes capital increase of RUB 3.4bn

TRUST Investment Bank & National Bank TRUST

Similar presentations

Presentation on theme: "TRUST Investment Bank & National Bank TRUST"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

TRUST Investment Bank & National Bank TRUST

Similar presentations

Presentation on theme: "TRUST Investment Bank & National Bank TRUST"— Presentation transcript:

Similar presentations

About project

Feedback