1. Union of Banks of Armenia Yerevan, Republic of Armenia, January 2007 Armenian Banking Area Developments and Trends Figures as at 01 January, 2007

2. General Descriptive Figures Total Capital – 0.251 billion Total Capital – 0.251 billion Total Assets – 1.137 billion Total Assets – 1.137 billion Total loans – 0.53 billion Total loans – 0.53 billion Total Liabilities – 0.886 billion Total Liabilities – 0.886 billion Total Deposits of Physical persons - 0.302 billion Total Deposits of Physical persons - 0.302 billion Total number of banks – 21 Total number of banks – 21 Number of Branches – 298 Number of Branches – 298 Total staff – 5694 Total staff – 5694 Union of Banks of Armenia

3. Key Indexes Total View P rofitability Indexes R Return on Assets (ROA) – 3.13% eturn on Equity (ROE) – 14.2% Capitalization I II Indexes T Total Capital/Total Assets – 22.08 otal Capital/Liabilities – 28.33 Union of Banks of Armenia

4. 98 51 43 27 16 14 88 44 3 22 11 0 30 60 90 120 VTB Bank (Armenia) ARDSHININVESTBANK Armeconombank Unibank ACBA-Credit Agricole Bank Converse Bank Artsakhbank Anelik Bank Areximbank Inecobank ITB Ararat Bank BTA Investbank Prometey Bank Armbusinessbank HSBC Bank Armenia Number of Branches Banks with Branches Average number of branches for one bank – 14 Average number of branches for one bank – 14 Number of banks without branches - 5 Number of banks without branches - 5 Union of Banks of Armenia

5. 976 927 622 427422 393 356 275 217 185181 101 9988 807572 575349 30 0 300 600 900 1200 ARDSHININVESTBAN VTB Bank (Armenia) Armeconombank Anelik Bank ACBA-Credit Agricole Unibank Converse Bank Artsakhbank Inecobank HSBC Bank Armenia Areximbank ITB Armbusinessbank Ararat Bank BTA Investbank Prometey Bank ADB ArmSwissBank Cascade Bank Armimpexbank Mellat Bank Number of Employees Banking Staff Developments Total number of staff - 5694 Average number of staff for one bank – 271 Average number of staff for one bank – 271 Average profit on one employee - 7,851 Average profit on one employee - 7,851 Average assets on one employee – 199,684 Average assets on one employee – 199,684 Administrative expenses share in total expenses – 61% Banking Staff Integrative Indexes Union of Banks of Armenia

6. Banking Area Development Trends Total Capital Union of Banks of Armenia

7. Banking Area Development Trends Total Assets Union of Banks of Armenia

8. Total Loans Union of Banks of Armenia Banking Area Development Trends

9. Total Acquired Securities Union of Banks of Armenia Banking Area Development Trends

10. Balance Profit Union of Banks of Armenia Banking Area Development Trends

11. Presentation of Separate Banks Union of Banks of Armenia

12. ACBA-Credit Agricole Bank CJSC Total Capital – 38.2 mln Assets – 110.3 mln Loans – 68 mln Securities Acquired – 15.8 mln Liabilities – 72.1 mln Total Deposits of Physical persons - 21.3 mln Total Deposits of Physical persons - 21.3 mln Branches –16 Branches – 16 Employees –422 Employees – 422 ACBA Assets Union of Banks of Armenia

13. Anelik Bank Ltd. Total Capital – 10.06 mln Assets – 61.8 mln Loans – 29.9 mln Securities Acquired – 0.7 mln Liabilities – 51.8 mln Total Deposits of Physical persons - 14.2 mln Total Deposits of Physical persons - 14.2 mln Branches –8 Branches – 8 Employees –427 Employees – 427 Anelik BankAssets Anelik Bank Assets Union of Banks of Armenia

14. Ararat Bank CJSC Total Capital – 8.01 mln Assets – 17.8 mln Loans – 6.1 mln Securities Acquired – 7 mln Liabilities – 9.84 mln Total Deposits of Physical persons - 0.57 mln Total Deposits of Physical persons - 0.57 mln Branches –3 Branches – 3 Employees –88 Ararat BankAssets Ararat Bank Assets Union of Banks of Armenia

15. ArdshininvestbankCJSC Ardshininvestbank CJSC Total Capital – 23.18 mln Assets – 144.45 mln Loans – 65.1 mln Securities Acquired – 30.6 mln Liabilities – 121.3 mln Total Deposits of Physical persons - 27.4 mln Total Deposits of Physical persons - 27.4 mln Branches –51 Branches – 51 Employees –976 Employees – 976 Ardshininvestbank Assets Union of Banks of Armenia

16. Areximbank CJSC TotalCapital – 6.64 mln Total Capital – 6.64 mln Assets – 28.5 mln Loans – 15.8 mln Securities Acquired – 0.4 mln Liabilities – 21.9 mln Total Deposits of Physical persons - 11.5 mln Total Deposits of Physical persons - 11.5 mln Branches –8 Branches – 8 Employees –181 Employees – 181 Areximbank Assets Union of Banks of Armenia

17. Armbusinessbank CJSC Total Capital – 5.7 mln Assets – 34.7 mln Loans – 12.4 mln Securities Acquired – 6.5 mln Liabilities – 29 mln Total Deposits of Physical persons - 5.4 mln Total Deposits of Physical persons - 5.4 mln Branches –1 Branches – 1 Employees –99 Employees – 99 Armbusinessbank Assets Union of Banks of Armenia

18. Armeconombank OJSC Total Capital – 14.37 mln Assets – 91.8 mln Loans – 42.6 mln Securities Acquired – 15.9 mln Liabilities – 77.4 mln Total Deposits of Physical persons - 22.3 mln Total Deposits of Physical persons - 22.3 mln Branches –43 Branches – 43 Employees –622 Employees – 622 Armeconombank Assets Union of Banks of Armenia

19. ArmenianDevelopmentBank OJSC Armenian Development Bank OJSC Total Capital – 7.9 mln Assets – 19.3 mln Loans – 9.2 mln Securities Acquired – 4.2 mln Liabilities – 11.4 mln Total Deposits of Physical persons - 5.3 mln Total Deposits of Physical persons - 5.3 mln Branches –0 Branches – 0 Employees –72 Employees – 72 ADB Assets Union of Banks of Armenia

20. Armimpexbank CJSC Total Capital – 7.08 mln Assets – 23.6 mln Loans – 7.2 mln Securities Acquired – 10.4 mln Liabilities – 16.5 mln Total Deposits of Physical persons - 1.5 mln Total Deposits of Physical persons - 1.5 mln Branches – 0 Branches – 0 Employees –49 Employees – 49 ArmimpexbankAssets Armimpexbank Assets Union of Banks of Armenia

21. ArmSwissBank CJSC Total Capital – 6.4 mln Assets – 20.4 mln Loans – 5.2 mln Securities Acquired – 4.3 mln Liabilities – 14 mln Total Deposits of Physical persons - 2.6 mln Total Deposits of Physical persons - 2.6 mln Branches –0 Branches – 0 Employees –57 Employees – 57 ArmSiwissBank Assets Union of Banks of Armenia

22. Artsakhbank CJSC Total Capital – 8.28 mln Assets – 47.8 mln Loans – 27.7 mln Securities Acquired – 8 mln Liabilities – 39.5 mln Total Deposits of Physical persons - 5.5 mln Total Deposits of Physical persons - 5.5 mln Branches –14 Branches – 14 Employees –275 Employees – 275 ArtsakhbankAssets Artsakhbank Assets Union of Banks of Armenia

23. BTAInvestbank CJSC BTA Investbank CJSC Total Capital – 6.8 mln Assets – 19.99 mln Loans – 12.6 mln Securities Acquired – 1.7 mln Liabilities – 13.2 mln Total Deposits of Physical persons - 0.6 mln Total Deposits of Physical persons - 0.6 mln Branches –2 Branches – 2 Employees –80 Employees – 80 BTA InvestbankAssets BTA Investbank Assets Union of Banks of Armenia

24. CascadeBank CJSC Cascade Bank CJSC Total Capital – 9.77 mln Assets – 18.4 mln Loans – 6.3 mln Securities Acquired – 5.9 mln Liabilities – 8.6 mln Total Deposits of Physical persons - 2.9 mln Total Deposits of Physical persons - 2.9 mln Branches –0 Branches – 0 Employees –53 Employees – 53 Cascade Bank Assets Union of Banks of Armenia

25. ConverseBank CJSC Converse Bank CJSC Total Capital – 20 mln Assets – 74.2 mln Loans – 26.5 mln Securities Acquired – 5.7 mln Liabilities – 54.2 mln Total Deposits of Physical persons - 20.1 mln Total Deposits of Physical persons - 20.1 mln Branches –16 Branches – 16 Employees –356 Employees – 356 Converse Bank Assets Union of Banks of Armenia

26. HSBCBankArmenia CJSC HSBC Bank Armenia CJSC Total Capital – 15.08 mln Assets – 167.5 mln Loans – 64.6 mln Securities Acquired – 40.9 mln Liabilities – 152.5 mln Total Deposits of Physical persons - 78.5 mln Total Deposits of Physical persons - 78.5 mln Branches –1 Branches – 1 Employees –185 Employees – 185 HSBC Assets Union of Banks of Armenia

27. Inecobank CJSC Total Capital – 12.8 mln Assets – 46.88 mln Loans – 25.3 mln Securities Acquired – 4.8 mln Liabilities – 34.1 mln Total Deposits of Physical persons - 12.6 mln Total Deposits of Physical persons - 12.6 mln Branches –4 Branches – 4 Employees –217 Employees – 217 Inecobank Assets Union of Banks of Armenia

28. ITBBank CJSC ITB Bank CJSC Total Capital – 6.3 mln Assets – 11.59 mln Loans – 5.6 mln Securities Acquired – 1.2 mln Liabilities – 5.3 mln Total Deposits of Physical persons - 1.6 mln Total Deposits of Physical persons - 1.6 mln Branches–4 Branches – 4 Employees –110 Employees – 110 ITB Bank Assets Union of Banks of Armenia

29. MellatBank CJSC Mellat Bank CJSC Total Capital – 7.7 mln Assets – 19.5 mln Loans – 7.1 mln Securities Acquired – 7 mln Liabilities – 11.8 mln Liabilities – 11.8 mln Total Deposits of Physical persons - 5.2 mln Total Deposits of Physical persons - 5.2 mln Branches – 0 Employees –30 Employees – 30 Mellat Bank Assets Union of Banks of Armenia

30. PrometeyBank LLC Prometey Bank LLC Total Capital – 9.08 mln Assets – 17.86 mln Loans – 5.9 mln Securities Acquired – 1.6 mln Liabilities – 8.8 mln Total Deposits of Physical persons - 3.8 mln Total Deposits of Physical persons - 3.8 mln Branches –2 Branches – 2 Employees –75 Employees – 75 Prometey Bank Assets Union of Banks of Armenia

31. Unibank CJSC Total Capital – 7.9 mln Assets – 64.7 mln Loans – 30.9 mln Securities Acquired – 7.3 mln Liabilities – 56.8 mln Total Deposits of Physical persons - 31.9 mln Total Deposits of Physical persons - 31.9 mln Branches –27 Branches – 27 Employees –393 Employees – 393 UnibankAssets Unibank Assets Union of Banks of Armenia

32. VTBBank(Armenia) CJSC VTB Bank (Armenia) CJSC Total Capital – 19.5 mln Assets – 95.36 mln Loans – 57.7 mln Loans – 57.7 mln Securities Acquired – 10.5 mln Liabilities – 75.9 mln Total Deposits of Physical persons - 26.7 mln Total Deposits of Physical persons - 26.7 mln Branches –98 Branches – 98 Employees –927 Employees – 927 VTB Bank Assets Union of Banks of Armenia

33. ComparativeChartonTotalCapital Comparative Chart on Total Capital Union of Banks of Armenia

34. ComparativeChartonAssets Comparative Chart on Assets Union of Banks of Armenia

35. SupervisionInstitute Supervision Institute CentralBankofArmenia Central Bank of Armenia The average number of CBA staff in 2005 was 532 which is around 9.7% of banking area staff. The Central Bank of Armenia (CBA) is a legal entity empowered with state functions of banking and financial system supervision. Primary goal of the CBA is price stability in the Republic of Armenia. The CBA coordinates the primary goal with the Government of Armenia, as stipulated by the Armenian Law on State Budget, and approved by the National Assembly of Armenia. The CBA itself decides on the strategy of monetary policy it implements and target (intermediate and operational) indicators that are contained in the monetary policy program and subject to presentation to the National Assembly. The program outlines the main directions of the monetary policy and the monetary instruments which the CBA uses in order to fulfill its objectives. CBA is vested with authority to ensure necessary conditions for a stable, liquid, solvent and normally functioning banking system and defend interest of lenders and depositors. The divisional structure of CBA is as follows: Banking Supervision Department, Banking Methodology and Analyses Department, Statistics Department and Legal Department Union of Banks of Armenia

36. InternationalTransfers International Transfers C ommercial Banks in Armenia are included totally in 12 international transfer sytems The key systems available are Western Union, Money Gram, Anelik, Unistream, Contact, etc Total Turnover at 2005: 0.6 billion (out : 0.07 billion, in : 0.5 billion) Union of Banks of Armenia 15 55 3333 22 111 00 0 2 4 6 8 10 12 14 16 Western Bistraya Pochta Anelik Unistream Migom Lider Contact Privat Money Interexpress STB Express Money Gram Armenian Travelex STEFI Total number of member banks

37. InternationalTransfers International Transfers Transfer Volumes Number of Transfers SWIFT Out - 6.5 billion In – 6.1 billion 2005 Union of Banks of Armenia

38. Transfers of physical persons via RA banks for non-commercial purposes for non-commercial purposes Jan-Dec/ 2005 InOutRussia54130883537 USA8262830671 Germany152255346 Great Britain 98013428 Switzerland93792490 France66782560 Turkey16227777 UAE46067775 Ukraine59716030 Other7560040179 Total752819189793 Jan-Dec/ 2006 InOutRussia739419107835 USA9449113295 Germany1073710068 Great Britain 87092628 Switzerland65662463 France64783581 Turkey12727846 UAE255110048 Ukraine77706228 Other8293244444 Total960926208436 RussiaUSAGermany Switzer land FranceTurkeyUAEUkraineOtherTotal Year 2005 457771519579879637368894118-6155-3169-5935421563026 Year 2006 63158481196669608141032897-6574-7497154238488752490 Transfers - In Figures are in mln AMD

39. PlasticCardsinArmenia Plastic Cards in Armenia Armenian Card (ArCa): Armenian Card (ArCa): Armenian Card was established by Central Bank of RA and 10 trade banks in March 2000 with the goal of establishment and development a new payment system. The Company presents service package, which gives an opportunity to banks to issue and acquire ArCa Classic, ArCa Gold, ArCa Business, ArCa Debit, ArCa Affinity, ArCa Co-branded and ArCa Platinum, using the modern technical, technologies and software of the processing centre, as well as the Company's professional assistance. -Principle members – 17 banks -The right to issue – 1 bank Visa Card Visa Card - Principle members– 7 banks - Principle members – 7 banks MasterCard MasterCard - Principle members– 2 banks - Principle members – 2 banks - Affiliates – 10 banks - Affiliates – 10 banks Union of Banks of Armenia

40. Total Plastic Cards in Armenia 177,957 177,957 Total ATMs and POS-Terminals PlasticCards Plastic Cards 2006

41. Total plastic cards issued in 2006: 89,460 89,460 Total terminals installed in 2006: 356 356 Transactions at the banks operating in Armenia and NKR Volume 196.6 mln Quantity 2,316,000 transactions Total transactions via ATMs Volume 129.7 mln Quantity 1,838,300 transactions PlasticCards Plastic Cards 2006

42. PlasticCards Plastic Cards Union of Banks of Armenia Number of Transactions Total: 2,492,200 2006 million Euro Volume of Transactions Total: 220 mln

43. UnionofBanksofArmenia Union of Banks of Armenia Union of Banks of Armenia (UBA) is non-commercial union of legal entities, which was founded in May 1995. Conceptual and continuous goal of UBA is directed to sustaining of member banks interests. With this task we are working on finding solutions for acceptable supervision, legislation, adopting international best practice and innovations and in general – building appropriate conditions for sustainable development of banking industry in Armenia. From 21 banks operating in Armenia 19 are members of UBA currently. UBA is going on with following tasks: supporting of banking relations development and strengthening, systemizing of member banks long term supporting of banking relations development and strengthening, systemizing of member banks long term projects implementation, projects implementation, taking part in creating and expertise of Armenian legislation connected with banking and financial activities taking part in creating and expertise of Armenian legislation connected with banking and financial activities and presenting at National Assembly, and presenting at National Assembly, providing to banks such information as international banking materials, possible channels of cooperation, etc., providing to banks such information as international banking materials, possible channels of cooperation, etc., supporting in banking innovations, helping banking area to be integrated to international banking system, and supporting in banking innovations, helping banking area to be integrated to international banking system, and capturing of international standards, capturing of international standards, Executive education and trainings for management, Executive education and trainings for management, organization of seminars, conferences and workshops. organization of seminars, conferences and workshops. Union of Banks of Armenia

44. UnionofBanksofArmenia Union of Banks of Armenia UBA is actively cooperating with Central Bank of Armenia (CBA), National Assembly of RA, Government and other state bodies of the Republic of Armenia. The aim of mentioned cooperation is promotion of favorable environment for banking activity. Management of UBA is constantly participating at board meetings of CBA, which allows expressing banking area joint opinion concerning discussing questions. Representative of CBA is also constantly taking part in UBA's Board meetings, which allows banks to take into account CBA's position during making decisions. Collaboration with other state bodies is based on necessity concerning separate questions. UBA is also cooperating with various international and local NGO's. Continuous works on mutual projects are organizing. UBA places proper attention to international relations. During 2004 UBA has agreed on mutual cooperation with around 15 international banking associations and other banking institutes. Memorandums of understanding have been signed with Association of Russian Banks (2003), Hellenic Banks Association and Association of Financiers of Kazakhstan. During 2005 UBA intended to sign similar memorandums with other associations. In summer 2004 UBA applied to European Banking Federation (FBE) for becoming associative member. In December 2004, reviewing presented application materials FBE Executive Board has positively approved UBA's application. According to FBE's rules, the final decision of membership will discussed in 1 April 2005 during 30th FBE Board meeting and UBA approved officially as FBEs associative member. FBE has 35 National Banking Associations as its members from all across the Europe, and it represents the interests of over 4,500 banks with over 2 million employees and total assets of over 20 trillion euros. 15 members of FBE are associative members (Russian Federation, Latvia, Estonia, Holland,, etc). From CIS countries the only member is Russian Federation. Union of Banks of Armenia

45. UnionofBanksofArmenia Union of Banks of Armenia Our Members Union of Banks of Armenia