NBD General Presentation

Population is over 4.5 mln

NBD Bank Brief profile

Year of creation – 1992 General banking license, Securities license Since 2004 – state deposit insurance program memberSince 1994 – development as an universal bank for SMEsSince 1994 – close cooperation with EBRD, EBRD has 25%+1 of voting sharesTarget groups – SMEs and individuals The main foreign partners – EBRD, IFC, DEG, KFW, Commerzbank, USAID, Raiffeisenbank Capital 30 September 2005 – 598 mln. rub. ($ 21.01 mln), equity $ 25.9 mln, assets – 3 963 mln. rub. ( $ 139.067 mln)Branch network – 14 agencies

List of international programs¹ Партнер Программа Годы

1 EBRD SME Lending Program Since 1994

2 WORLD BANK and EBRD Enterprise Support Program 1996-1999

3 WORLD BANK and EBRD Financial Institutions Development Program 

 1996- 1999

4 WORLD BANK and EBRD Housing Construction Financing Program 1996-1999

5 Swisscontact Credit Resources Access Facilitation Program 1997-2004

6 Swisscontact Exchange risk sharing program 

2000-2004

7 US-Russian Investment Fund Micro Lending Program 1999-2001

8 US-Russian Investment Fund Car Purchase Lending Program 1999-2001

9 USAID Pilot program of IAS implementation in Russian banking

system Since 2000

10 IFC Medium sized business promotion Program Since 2001

11 WORLD BANK Enterprise Support Program Since 2001

12 Dresdner Bank AG Financing of import from Germany Since 2001

13 Commerzbank Bank AG Guarantee of the telecommunication equipment purchase Since 2002

14 DEG Middle business development program Since 2003

15 KFW Micro and small business development program Since 2004

16 EBRD Trade Facilitating program Since 2004

16 Raiffeizen Bank ( USAID) Micro and small business development program Since 2005

NBD Bank – Bank for Small and Medium companies Prerequisites Large number of clients ( According to official statistics there are over 9.5 mln in Russia) Excellent opportunities for the growth of clients number ( in 2004 г number of SMEs for 1000 of population in Russia 6.5, in France 35, GB - 45, Japan 50, Italy 68, USA 75) Positive trends of the development in the the sector sale growth was over 35% in 2004 Relatively low banking competition level in the sectorHigh efficiency profitability ------------------------------------------------------------------------------------------------------------------------------------------

Bank achievementsDevelopment and successful 10 years use of the risk assessments techniques Implementation of the work out procedures Implementation of the wide product range Creation of the distribution channels, developing branch network--------------------------------------------------------------------------------------------------------------------------------------

Key resultsMore then 20 loans are issued every day Loan portfolio exceeds 2,6 bln. rubles , losses are below 1 %

Branch network

SME loans

Key products

Deposits

Payments

Documentary business

Exchange

Money market operations

Plastic cards

Internet bank

Securities market

Type of clientMonthly

turnover, $ thousands

Number of staff

Micro up to 20 up to 50

Small over 20 up to 100

Medium up to 1,250 up to 300

Express Micro no collateral

Loan products

Micro

Middle loanSmall

Consumer loans for entrepreneurs

Car purchase loan

Mortgage loans for entrepreneurs

Overdraft on plastic cards ( payroll payment programs)

Business loans Consumer loans

LC/guarantees

Leasing

Mortgage loans for individuals

Main business loans to SMEs

Micro business financing (loan in rubles up to equivalent of $30 000, terms up to 2 years, mainly financing of the trade turn over of the micro trade companies and private entrepreneurs, up to 200 000 rubles ( ~ $7 000) no collateral, over $ 7 000 – collateral for 100% of the loan size- equipment, goods, private property)

Small business financing ( loans in rubles and hard currency up to equivalent of 150 000 up to 5 years, trade, production and service, collateral - 100%, hard collateral ( fixed assets) not less then 70% of the loan size

Middle business financing (loans in rubles and hard currency up to equivalent of 3 000 000 up to 6 years, trade, production and service, the majority are investment loans, use the combination of the Letters of Credits and loans, collateral - 100%, preference to the real estate as a collateral.)

Over 500 loans are issued monthly

Loan portfolio growth ( IAS 2000 – I H 2005)

Loans

010 000

20 00030 00040 000

50 00060 00070 000

80 00090 000

2 000 2 001 2 002 2 003 2 004 2005 h

$ 0

00

Quality of the loan portfolio and its share in total assets

4.0%4.6%6.8%

9.1%

17.5%

24.7%

33.2%

0.0%

10.0%

20.0%

30.0%

40.0%

31.1

2.19

99

31.1

2.20

00

31.1

2.20

01

31.1

2.20

02

31.1

2.20

03

31.1

2.20

04

30.0

6.20

05

Provisions to total loan portfolio, IFRS

Movements of loan share in the total assets, IFRS

39.0%

42.0%

48.0%

59.0%

66.0%64.0% 64.0%

30%

40%

50%

60%

70%

31.1

2.19

99

31.1

2.20

00

31.1

2.20

01

31.1

2.20

02

31.1

2.20

03

31.1

2.20

04

30.0

6.20

05

International relationships

International strategy Trade finance using the limits in the foreign banks ( 7 banks) Special programs for SME lending with EBRD, IFC, DEG, KFW, USAID and FMO. Foreign currency payments via correspondent network Program of the borrowings from the private banks - direct loans, and syndicated loans in future_______________________________________________________________________

Documentary business volume

0.002 000 000.00

4 000 000.006 000 000.00

8 000 000.0010 000 000.00

12 000 000.0014 000 000.00

16 000 000.00

2 000 2 001 2 002 2 003 2 004 2 005

Euro

0

20 000

40 000

60 000

80 000

1993 1995 1997 1999 2001 2003 1h2005

Amounts due to customers Amounts due to IFIs

Mln Euro

Proposals for the cooperation with NBD Bank

Trade finance - Letters of credits Setting up limits for the confirmation of the Letters of

Credits issued by NBD Bank with no cash cover _______________________________________________________________

Direct Loans to NBD Bank Middle term Loans to NBD Bank ( 2-5 years), with local loan portfolio as a collateral which consist of the loans to SMEs in the Volga region in Russia_______________________________________________________________

Participation in the syndicated loan NBD Bank intends to attract a syndicated loan at

the amount of 15-20 mln USD in 2007.

Contact details

www. nbdbank.ruRussia, 603600, Nizhny Novgorod,

GSP-202, Gorkogo Sqr., 6Tel.: +7 8312 30 80 61; Fax: +7 8312 34 39 48

Alexander Sharonov

Chairman Of the Board of ManagersSharonov@nbdbank.ru

Evgenij MaksakovHead of corporate finance&customers

Maksakov@nbdbank.ru