novikom ar'11 e 120710€¦ · general information 7 in 2011, russia’s economy once again...

Annual Report

It is a priority for Novikombank to provide solid

financial support for the Russian economy.

Among the Bank's most important strategic goals

for the nearest future are financing the real

sector and developing new banking products and

instruments to meet the needs of the Russian

industry. The strong position held by Novikombank

among the leaders of the Russian financial industry

reflects the professionalism of the Bank and its

reliability, as well as its advanced level of commitment

to the society, to the nation and to the future of Russia.

Statement from the Chairman of the Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Statement from the President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Management Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Russian Economy in 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Novikombank in the Russian Banking Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Financial Performance in 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Corporate Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Services to Corporate Clients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Lending Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Retail Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Financial Market Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

International Business and Interbank Cooperation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Regional Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Management Bodies and Committees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Human Resources Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Charity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Strategy and Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Summarized Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Addresses and other information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Annual Report 2011Contents

Novikombank | Annual Report 20112

Today, society faces the challenge of creating

a qualitatively new economy in Russia, with innovative

development of industry as the key driver. To achieve

this, it is necessary to support sectors and companies

capable of creating products with a strong competitive

edge. In 2011, specific steps were taken in this

direction at the national level. As a result, annual

output in the engineering sector rose by about 10%,

and two-digit growth was recorded in the machine-

tool manufacturing and automotive industries.

Russian Technologies State Corporation and our

financial partner Novikombank have been closely

involved in the development of public-private

partnerships to support leading companies

in the manufacturing sectors. In 2011, Novikombank

increased its financing of the key sectors

of the economy. Quite a lot was accomplished,

and the results are indeed impressive. Novikombank

Statement from the Chairman of the Board of Directors

helps its clients in industry implement large-scale

projects that are absolutely necessary to promote

development of the Russian economy in the spirit

of innovation.

Novikombank has made progress in virtually all

of its business lines. The Bank has designed and

implemented fundamentally new tools for handling

the challenges it and its partners face in treasury

services, export financing, and many other areas.

This is precisely why Novikombank’s client base has

been growing dramatically from year to year. In 2011

alone, over 60 of the largest and most important

companies in the key sectors started working actively

with the Bank. Mutual trust and commitment to

joint endeavours aimed at contributing to Russia's

prospertity create a foundation that allows the Bank

and its industrial partners to move forward.

As a specialised financial institution, Novikombank

has been called upon to play an increasingly larger

role in financing the real sector, creating new

production operations and roadmaps, and supporting

innovative projects. In 2012, focused on these

objectives, the Bank is continuing to increase its

capital and assets while diversifying its activities

and broadening its lending services to the national

economy.

Sergey Chemezov

3Statement from the President

The year 2011 brought many new achievements

for Novikombank. We worked actively to implement

the bold plans set forth in our Development Strategy

for 2010–2014, and the results are really impressive.

As in 2010, last year the Bank had one of the highest

development rates in Russia (over 60%), ranking

46th among leading Russian banks in terms of assets

by the end of 2011.

Today, our Bank is a reliable partner for the leaders

of Russian business. Companies in the real sector

of the economy choose Novikombank for its

impeccable reputation, unwavering client

responsiveness, and its focus on innovative banking

products and services. Last year alone, our corporate

client base expanded by almost 33% to 4,600.

In 2011, in conjunction with the leaders of Russian

business, we launched a number of landmark projects.

The Bank was closely involved in the modernisation

of Russian industry, the creation of new types

of production, the manufacture of advanced

products, research and development. Another

important area of work was promoting Russian

machinery in international markets, where the Bank

successfully cooperated with JSC Rosoboronexport

and financed Russia’s first foreign-trade contract with

the participation of the Export Insurance Agency

of Russia.

Statement from the President

The creation of a unique set of treasury services –

Corporate Settlement Centre – was a landmark

in the development of the Bank’s business, giving our

clients the opportunity to use highly advanced and

innovative cash management tools. The product’s

efficiency has already been demonstrated by its

successful implementation at some of the holdings

of Russian Technologies State Corporation.

The dedicated efforts of the Bank and its partners

underlie each of the projects implemented, which

combine effectiveness for specific clients with benefits

for the development of Russian industry as a whole.

In 2011, pursuant to its Development Strategy,

the Bank launched its regional branch network,

opening offices in Rostov-on-Don, Togliatti, Nizhny

Novgorod, St. Petersburg, Zhukovsky and Samara.

In addition to broadening and diversifying our

client base, this provides, first and foremost, new

opportunities for servicing our traditional clients

where they are based.

Today, we are successfully meeting the challenge

of serving as a key bank for the real sector of the

Russian economy, buttressed by the presence

of a new key shareholder, Russian Technologies State

Corporation, the leader of Russia’s push for economic

innovation. This opens up new prospects for helping

to achieve the state’s goals for modernising domestic

industry.

I would like to express sincere gratitude to our clients

and partners for fruitful cooperation and to thank

our shareholders and the members of the Board

of Directors. I am confident that in 2012

Novikombank will continue to advance by enhancing

its support for companies in the real sector and

providing new financial opportunities for its clients.

Ilya Gubin

5Statement from the Chairman of the Board of Directors

The Moody's Investors Service rating agency

has assigned Novikombank a high level credit

rating of B2 with a stable outlook. In addition,

the Expert RA rating agency assigned

Novikombank an A+ rating, which corresponds

with a very high level of creditworthiness.

INCREASING CONFIDENCE


Board of Directors

Management Board

Board of Directors Chairman

Sergey Chemezov

Director General, Russian

Technologies State Corporation

Board of Directors members

Boris Aleshin

General Director, Federal State

Unitary Enterprise “Central

Aerohydrodynamic Institute named

after Prof. N.E. Zhukovsky”

Yuriy Artyakov

Senior Vice President, Corporate

Customer Relations Department,

Novikombank

Ilya Gubin

President, Novikombank

Igor Zavyalov

Deputy Director General, Russian

Technologies State Corporation

Igor Komarov

President, JSC AVTOVAZ

Igor Makarov

Chairman of the Board of Directors,

ITERA Oil and Gas Company

Nikolay Tokarev

President, JSC Transneft

Denis Ursulyak

Deputy CEO, Novikombank

Petr Fradkov

Member of Vnesheconombank’s

Board, Director General of Russian

Export Credit and Investment

Insurance Agency

Management

Board Chairman

Ilya Gubin

President

Management Board members

Tatiana Ryskina

Deputy CEO

Elena Shirinskaya

Deputy CEO

Stanislav Stankut

Deputy CEO

Denis Ursulyak

Deputy CEO

Natalia Yudina

Deputy CEO

Tatiana Golodets

Senior Vice President

7General Information

In 2011, Russia’s economy once again showed

positive upward momentum, with GDP increasing

by 4.3%, according to preliminary estimates.

Industrial output rose by 4.7% last year compared

to 8.2% in 2010. The growth was largely fuelled

by rising oil prices, the growth of the resource base,

and expanding production of agricultural goods.

Russia’s current account balance rose from USD 70.3

billion in 2010 to USD 101.1 billion in 2011. Thanks

to high oil prices, the volume of foreign trade

significantly exceeded the pre-crisis level, with

General Information

the trade surplus reaching USD 198.1 billion

vs. USD 149.2 billion in 2010.

Against the backdrop of the debt crisis in developed

countries, Russia finished 2011 with a federal budget

surplus, clearly a strong achievement. According

to the Russian Ministry of Finance’s preliminary

data, the budget surplus was about RUB 435 billion,

or 0.8% of GDP.

Despite the difficult situation in the global markets,

in 2011 Russia’s total foreign debt increased by 10%,

reaching USD 538.9 billion; the growth was mainly

driven by the corporate sector, demonstrating foreign

investors’ continued faith in the Russian economy.

In 2011, for the first time in Russia’s new market

economic era, the CPI reached a record low

of 6.1%, clear evidence of the effectiveness

of the anti-inflation measures undertaken by Russia’s

monetary authorities.

Low interest rates on loans combined with strong

business activity and diminishing risks triggered

higher demand for bank financing from the

business community. Despite the relatively modest

rise in real household income, demand for retail

loans rallied. In 2011, credit expansion was the

key driver of growth in the Russian banking system,

Russian Economy in 2011

16

13

10

7

4

Inflation in Russia, 2006–2011

2006 2007 2008 2009 2010 2011

Consumer price index, %

9.0% 8.8% 8.8%

6.1%

11.9%

13.3%

14

10

6

2

–2

–6

–10

–14

GDP and manufacturing output dynamics,

2008–2011

2008 2009 2010 2011

Gross domestic product dynamics, %

Manufacturing output dynamics, %

–7.8%

–9.3%

8.2%

4.0%

5.2%4.3%

4.7%

0.6%


which displayed impressive development rates.

Total assets rose by 23.1% vs. 14.9% in 2010.

The corporate and retail loan portfolios grew by

26.0% and 35.9%, respectively, vs. 12.1% and

14.3% in 2010.

Impacted by the continuing instability in the global

financial markets, the volume of Russian banks’

investments in securities rose by just 6.6% in 2011,

largely neutralising their function of substituting

lending, seen in 2010, when demand for money

from the corporate sector and households was weak,

and banks’ investments in securities surged by 35.3%.

Retail deposits rose by 20.9%, exceeding

RUB 11.8 billion. Corporate accounts and deposits

increased by 22.7% compared to 15.0% in 2010.

In 2011, the NPL rate fell from 5.7% to 4.8%,

resulting in slower growth of total reserves. In 2010,

the banking system’s total reserves increased

by 6.9%, against just 5.8% in 2011.

The pre-tax earnings of the Russian banking sector

reached a record high of RUB 848.2 billion, posting

growth of 47.9%.

The year 2012 may turn out to be another

challenging period for the global economy. Recession

is probable in the Euro zone, and it may spread

to the U.S., which could substantially decelerate

global economic growth. Russia, therefore, is also

expecting a difficult year, with the pace of lending

growth likely to slow. The influence of the electoral

cycle and the rescheduling of tariff indexation for

natural monopolies may fuel inflationary pressures

in the economy in the second half of 2012.

Nevertheless, moderate overall growth is forecast

for Russia’s economy and banking system in 2012

in the context of relatively stable oil prices.

Novikombank in the Russian Banking Sector

In 2011, Novikombank continued to follow its

2010–2014 Development Strategy, expanding

its work with strategic partners and increasing its

financing of the real sector of the economy. Over the

past two years, the Bank’s assets have more than

doubled, their growth rate exceeding those of the

banking system several times over. Thanks to business

expansion, Novikombank is now one of Russia’s Top

50. According to the Interfax-100 rating, in 2010–

2011 Novikombank jumped 34 spots, ranking 46th

among major Russian financial institutions in asset

value as of 1 January 2012.

The Bank has been lending actively to the real sector.

According to the RIA-Analitika economic research

centre, Novikombank ranked 50th as of 1 January

28,000

21,000

14,000

7,000

0

60%

20%

–20%

–60%

–100%

60%

30%

0

–30%

–60%

–90%

Customer deposits in the banking system,

2008–2011

2008 2009 2010 2011

8,209

5,907

43%

10% 15%21%

15%

31%27% 23%

7,4859,057

9,818

11,87110,416

12,778

Corporate accounts and deposits, RUB billion

Retail deposits, RUB billion

Increase in corporate accounts and deposits, %

Increase in retail deposits, %

35,000

28,000

21,000

14,000

7,000

0

Dynamics of lending in the banking system,

2008–2011

2008 2009 20112010

Corporate loans, RUB billion

Retail loans, RUB billion

Increase in corporate loans, %

Increase in retails loans, %

12,510

4,017

38%

0%12%

26%

–11%

24%

14%

36%

3,574 4,0855,551

12,54214,063

17,715


2012 in loan portfolio size. The Bank’s corporate

lending rose by 57% vs. 26% for the Russian banking

system as a whole (IAS).

Similar incremental dynamics were seen

in Novikombank’s client accounts, including

deposits, (up 40.7%), with the growth of corporate

accounts and deposits reaching 33.5% vs. 22.7% for

the banking system as a whole. Retail deposits rose

by 75.3%, significantly exceeding the system-wide

growth rate (IAS).

Novikombank’s successful performance was

recognised by Moody’s, which confirmed the

Bank’s international rating of B2 (stable outlook).

The Bank also received an A+ rating from Expert

RA, a leading Russian rating agency, which also rates

Novikombank’s bonds at the A+ level, a very high

level of creditworthiness.

The certification of the Bank under ISO 9001

was a landmark event in 2011. The introduction

of a quality management system based on the highest

international standards should lift Novikombank

to a new level of client service, ensuring high quality

of the Bank’s products and services in correspondence

with its clients’ requirements.

Novikombank’s substantial contribution

to the development of the Russian economy

and the successful expansion of its business were

also highly valued by the banking community.

In 2011, the Bank was awarded the “Financial

Olympus” prize in the category “Potential and

Prospects” and won Expert RA’s award “For

Contribution to the Development of Russia’s Industrial

Sector”. Novikombank President Ilya Gubin won

the Association of Russian Banks’ award “For Effective

Bank Management”.

Novikombank consistently strengthens its status

as a key financial institution for Russian engineering.

President Ilya Gubin, as deputy chairman of the Russian

Engineering Union and deputy chairman of the Union’s

Commission on Investment and Technical

Modernisation of Engineering and Related Sectors

of the Industry, is directly involved in the Union’s

efforts to create a highly competitive and innovative

economy in Russia based on the engineering industry.

The Bank’s participation in the Union helps improve

the cooperation between engineering companies

and Russian banks, providing new opportunities for

financing sector development programmes. In this

context, Novikombank served as Strategic Partner for

the Russian Engineering Union’s Congress and Strategic

Partner for the MAKS 2011 air show.

2,000

1,600

1,200

800

400

0

200%

130%

60%

–10%

–80%

–150%

Banking sector profit, 2008–2011

2008 2009 2010 2011

Pre-tax profit, RUB billion

Pre-tax profit growth, %

Corporate banks* profit as a share of aggregate sector

profit, %

* Banks with 80% and more corporate loans

in the aggregate loan book

409

–19%

–50%

180%

48%61%

38% 36%27%

205

573

848

Banking system

Novikombank

120

80

40

0

180

120

60

0

Increase

in gross

corporate loans

in 2011, %

Increase

in gross

retail loans

in 2011, %

26% 35.9%

57%

111.7%


Well aware that modernisation of the economy may

not be possible unless there are qualitative changes

in the industrial and financial sectors, Novikombank

participates in leading public organisations,

including the Russian Union of Industrialists and

Entrepreneurs (RSPP), the Moscow Chamber

of Commerce and Industry (MCCI), the Association

of Russian Banks (ARB) and the Association of

Regional Banks of Russia (Association ”Russia”).

In 2011, representatives of the Bank took an

active part in discussions on strategic initiatives

for development of the Russian banking system,

presenting its ideas for standardising the quality

of credit institutions’ performance. Novikombank

traditionally actively participates in annual scientific

and practical conference ”Вanks, Processes,

Standards, Quality” in Ufa, Bashkortostan. In 2011,

the Bank became a strategic partner of the event,

and the Bank's managers acted as hosts, speakers

and experts. The bank also supported large-scale

events in the financial sphere: the 13th National

Banking Conference, organised by the Association

of Regional Banks of Russia, and the 22nd Congress

of the Association of Russian Banks.

Banking system

Novikombank

120

80

40

0

60

40

20

0

Increase

in retail

deposits

in 2011, %

Increase

in corporate accounts

and deposits

in 2011, %

20.9%

22.7%

75.3%

33.5%

To help ensure favourable conditions for supporting

the work of its strategic partners in the global markets,

Novikombank has been successfully expanding

its international business relations in the financial

sphere. Novikombank served as a partner for the 9th

International Banking Forum “Russian Banks in the

21st Century” and as a sponsor for the 7th Ukrainian

Bond Congress. In addition, Novikombank staff

participated in a number of international conferences

and forums, including Sibos 2012, a SWIFT

international financial forum, the 20th International

Banking Congress, the EBRD International Forum,

the International Investment Forum “Yalta Business

Meetings”, the All-Russia Banking Forum in Nizhny

Novgorod, and others. Novikombank offered

proposals on a number of mutually beneficial

projects at bilateral sessions of business councils

and commissions within the framework of Russia’s

cooperation with Austria, China, Lithuania and

Turkey, and also during the Russian-Indian Forum

on Trade and Investments, the Turkmen-Russian

Economic Forum and the Russian-Slovak Forum of

Entrepreneurs.

As part of the International Banking Club’s

InterbankClub.com project, Novikombank organised

and conducted a number of workshops and

roundtables for its clients and partners.

To develop its business, Novikombank intends

to consistently expand its involvement in public

activities, which should sharpen the Bank’s

competitive edge in the Russian market and provide

opportunities for the Bank and its clients to participate

in the most important initiatives for the modernisation

and innovative development of Russia.

Financial Performance in 2011

Last year, Novikombank’s successful business

development strategy led to an increase in assets

and expanded lending volume in the real sector


5.3

5.96.2

3.23.0

2.2

39

63

99

of the economy. Moreover, the Bank was able

to increase its competitive advantages while

establishing a robust foundation to support broader

operations.

In 2011, assets increased 1.6 times

to RUB 99 billion.

Asset growth was accompanied by an increase

in capitalisation, which rose by 6% to reach

RUB 9.4 billion in 2011.

The loan portfolio is the Bank’s major asset group,

constituting almost half of total assets. In 2011,

Novikombank increased lending volume to the

real sector of the economy by RUB 19 billion.

Against the backdrop of financial market volatility,

Novikombank reduced the share of investments

in securities by 26% from the 2010 level, with

marketable securities constituting 17% of total assets.

Customer deposits account for the majority

of the Bank’s resources. Settlement accounts and

client deposits, including subordinated deposits,

increased by 39% to RUB 59.9 billion, which testifies

to the Bank’s sound customer base. In keeping with

the strategy of developing business with CIS countries

and neighbouring states, the volume of borrowing

from banks tripled to RUB 21.0 billion.

The Bank ended 2011 with a net profit

of RUB 290.5 million (IAS).

120

100

80

60

40

20

0

9

8

7

6

5

4

3

2

1

0

Assets,

RUB billion

Capital (Basel 1),

RUB billion

Tier 1 capital

Tier 2 capital

2009 2011

2009

2010

2010 2011


The growth rate of the Bank's assets in 2011 was

several times above the banking sector average.

In two years, Novikombank climbed 34 places

and now ranks 46th among the largest financial

institutions in Russia by assets.

ACCELE RATING GROWTH

13Board of Directors


Assets structure, % Liabilities structure, %

Customer

loans Client

funds

Other

assets

Bank

funds

SecuritiesDebt securities

issued

Cash

in banks

Equity,

including

shareholder

funds and

proceeds from

share issues

CBR reserve

requirements Subordinated

deposit

46 59

27

2117 9

9

7

1

4

15Corporate Business

Corporate Business

Services to Corporate Clients

In 2011, Novikombank continued to develop its high

tech banking services for corporate clients, focusing

mainly on real-sector companies. The Bank was highly

successful in business diversification in the sector,

and has significantly broadened its relationships with

industrial clients.

One of the Bank’s top priorities is expanding its work

with partners in all banking product lines. In addition

to providing efficient, high-quality client service

and fully satisfying each client’s requirements, this

approach allows the Bank to increase its business

margins by cross-selling, as well as expanding

settlement and commission operations.

The Bank’s flexible tariff policy, efficient business

processes, and constant improvement of its distance

cash-management instruments allowed it to

increase the number of clients using its settlement

and international payment services, which was also

triggered by new products offered to the Bank’s

clients, such as trade and structured financing

of the delivery of goods and equipment, secured

by guarantees from leading European export credit

agencies and the Export Insurance Agency of Russia.

In order to work as closely as possible with each client,

Novikombank continued to develop business lines such

as consulting on investment operations and arranging

bond issues in the securities market. Additionally,

the Bank devotes considerable attention to offering

payroll projects for the staff of its strategic corporate

clients and promoting retail banking products.

Timely decision-making, a customised approach

to each client and extensive knowledge of industry

sectors have contributed to broadening the client

base. In 2011, about 120 pacesetting companies

became partners of the Bank, with the number of

corporate clients increasing by nearly 30% to 4,600.

Among the Bank’s new partners are JSC INTER

RAO UES, JSC Aviation Equipment Concern, JSC

Aircraft Engineering Concern, JSC Orion Concern,

State Design Bureau of Instrument and Program

System Svyaz, FSUE R&D Institute Gradient, JSC NUI

Sibselmash, JSC Tupolev, JSC Kurganmashzavod, JSC

Far Eastern Shipbuilding and Shiprepairing Centre, JSC

Far Eastern Plant Zvezda, CJSC Antipinsky Oil Refinery,

Tomskneftepererabotka LLC, Sibgaztranzit LLC, and

many others.

Under its Development Strategy, Novikombank has

continued to expand its cooperation with strategic

partners among leading Russian companies. The Bank

actively works with Russian Technologies State

Corporation and its subsidiaries. A major treasury

servicing project was successfully implemented

at JSC Radio-Electronic Technologies Concern,

allowing the holding to monitor the cash flows of its

structural units and greatly reduce its loan interest rate

burden via comprehensive cooperation with the Bank.

Implementation of a similar project is already under

way at JSC Orion Concern, and there are plans under

the Development Strategy to expand the range

of clients using this service.

The 31.3% growth of funds raised from corporate

clients (including subordinated loans) in 2011 clearly

illustrates the Bank’s large-scale cooperation with

the real sector. Industrial clients’ deposits account for

more than half of the Bank’s funding base, serving as

a cornerstone for funding the Bank’s operations.

Participation in special events organised by clients

and partners is an important line of activity


for Novikombank. In 2011, the Bank took part

in a number of exhibitions and shows in Russia and

elsewhere, including the HeliRussia 2011 helicopter

exhibition (Moscow, May); the International Air

Transport Forum (Ulyanovsk, April); the International

Naval Design Show 2011 (St. Petersburg, June);

the International Aerospace Show MAKS 2011

(Zhukovsky, August); the Russian Expo Arms

2011 international exhibition of weapons, military

hardware and munitions (Nizhny Tagil, September);

the LIMA 2011 Langkawi International Maritime

and Aerospace Exhibition (Malaysia, December);

and others. As a result of the Bank’s active work,

cooperation agreements were signed with a number

of leading Russian holdings and companies: JSC

Russian Helicopters, JSC MIL Helicopter, JSC Kamov,

JSC Aircraft Engineering Concern, JSC Aviation

Equipment Concern, JSC Aviaagregat, JSC United

Aircraft Corporation, JSC UAC Transport Aircraft,

Ilyushin Finance Co., JSC IL, JSC Myasishchev Design

Bureau, FSUE SRPE Bazalt, FSUE Planta Chemical

Plant, and others.

In 2012, Novikombank is continuing to develop its

corporate business by expanding its cooperation

with strategic clients and diversifying its products

in order to attract clients from new sectors. The Bank

also plans to focus on providing a broader range

of facilities for corporate clients in Russia’s regions via

its branch network, which was launched in 2011.

Lending Policy

In accordance with Novikombank’s Development

Strategy and its status as a key source of financing

for Russian industry, the Bank’s credit policy in 2011

focused on ensuring active growth of a high-quality

portfolio consisting mainly of loans to companies

in the real sector of the economy. In addition to

increasing its loan volumes, the Bank also devoted

considerable attention to improving the quality and

optimising the structure of its portfolio.

Over the past few years, the growth rate of the

Bank’s loan portfolio has consistently exceeded that

of the Russian banking system as a whole. In 2011,

the Bank’s corporate loan portfolio (gross) expanded

by 57%. In absolute terms, loan volume rose by RUB

16.9 billion, reaching RUB 46.6 billion as of 1 January

2012.

Within the scope of its participation in implementing

the federal-level tasks of modernisation and

innovative development of the Russian economy,

Novikombank has significantly enhanced its financing

of the high tech segments of domestic industry. Loan

portfolio growth in 2011 mainly came from providing

loans to companies in the defence industry, as well

as in mechanical engineering. As of 1 January 2011,

total financing for companies in these sectors was

RUB 12.4 billion; during the year, the total rose

by almost 93.5%, reaching RUB 24 billion as of

1 January 2012.

To diversify its investments and enhance its

support of Russian industry, in 2011 the Bank

provided financing for a number of major

projects in the oil-producing and processing

sectors designed to improve production efficiency

at leading companies. The Bank provided credit to

Tomskneftepererabotka LLC for completion of plant

modernisation, which allowed the plant to double its

output from 200,000 to 400,000 tonnes. In March

2011, the Bank provided financing to Tarkhovskoye

LLC for oil field development, and in September

the Bank helped finance construction of the third

Corporate client funds

including subordinated

loans, RUB billion

60

50

40

30

20

10

0

2009 2010 2011

21.2

36.3

47.6

17Corporate Business

stage of Antipinsky Oil Refinery. Once completed, this

project should enable the plant to increase its primary

processing to 7 million tons of oil per year.

Financing from Novikombank gives clients new

opportunities to develop their production capacities.

In 2011, a large-scale project was launched to

construct a hull-plating shop at JSC Far Eastern Plant

Zvezda for manufacturing of new types of vessels.

Last year, the Bank was directly involved in completing

innovative projects such as a united engineering

centre for JSC Russian Helicopters, a helicopter

assembly facility for AgustaWestland, a specialised

multi-media presentation centre, etc.

Another important line of business for Novikombank

is providing loans to industrial clients for the purpose

of developing new, innovative types of products.

In 2011, the Bank began financing design work

for new modifications of the TU-204 passenger

aircraft. Additional financing was provided for

the development of the Russian regional aircraft

Sukhoi Superjet, construction and reconstruction

of steel plant facilities in South and Southeast Asia,

deliveries of modern engineering equipment under

state defence order, international military and

technical cooperation projects, and many other

purposes.

In 2011, the Bank achieved impressive results

in documentary transactions. By 1 January 2012,

Corporate loan book,

RUB billion

50

40

30

20

10

02009 2010 2011

23.0

29.7

46.6 Loan book structure

as of 1 January, 2012, %

Aircraft

manufacturing

industry

Financial

services

Radio-Electronics

Mining and

metallurgy

R&D and

manufacturing

Other sectors

Civil

con struc-

tion

Manu-

facturing

Food

and

light

industries

Ship-

building

industry

Mechanical

engineering

and automo-

tive industry

Trade

14.5

10.3

9.1

8.3

6.9

7.6

5.6

4.4

3.3

5.2

5.1

19.7

the Bank’s portfolio of guarantees had grown

3.2 times to a total of RUB 15.3 billion.

Documentary transaction volume has grown mainly

due to the provision of guarantees for participation

in tenders and meeting obligations under government

contracts. High demand among the Bank’s clients

was again seen for guarantees to Russia’s Ministry

of Defence, Ministry of Industry and Trade, Federal

Security Service, Ministry of the Interior of the Russian

Federation, Federal Customs Service, Ministry of

Civil Defence, Emergencies and Disaster Relief of

the Russian Federation, JSC Rosoboronexport, JSC

Transneft, JSC RusHydro, JSC MRSK Holding, and

JSC Aeroflot Russian Airlines. To help develop its

operations in this line of business, Novikombank also

began providing guarantees to JSC Rosenergoatom

Concern.


Guarantee portfolio,

RUB billion

2011

20

15

10

5

02009 2010

2.4

4.8

15.3

Sector structure

of guarantee portfolio, %

Guarantees issued for participation

in tenders and execution of contracts

with mechanical engineering and

defence sector companies


in tenders and execution

of contracts with aircraft industry

companies

Guarantees

issued

to customs

authorities


in tenders and execution of contracts

with non-defence sector companies

51.27

27.32

6.59

14.83

In 2012, Novikombank will aim to ensure that

expanding its lending to domestic industry remains

a key priority as well as the Bank’s most dynamically

developing business line. Targeted lending to the

manufacturing sector and enhanced support for the

development of innovative production will promote

continued improvement of loan portfolio quality,

while enhancing Novikombank’s reliability, stability

and its continued effective efforts for the benefit of

Russia.

19Retail Business

Serving private clients is a key area of activity

for Novikombank. In 2011, the Bank’s retail business

developed dynamically, thanks to its impeccable

reputation, expanding scope of services for all

categories of clients, and the launch of its branch

network in Russia’s regions.

The volume of funds deposited by private clients

with Novikombank exceeds RUB 12 billion, almost

doubling from the beginning of 2011. Private

deposits account for over 12.5% of the Bank's

liabilities. The dynamics of development in this line

of business reflect client trust along with the Bank’s

reliability and stability. Novikombank currently

provides services to over 20,000 Russian citizens.

In 2011, the Bank issued four times more plastic

cards than in 2010, with a total of 17,900 cards

as of 1 January 2012. The increase was largely due

to the extensive expansion of payroll projects: the list

now features over 70 major industrial companies,

including Russian Technologies State Corporation

and its subsidiaries.

In 2011, Russian economic expansion and

increasing retail lending resulted in high demand for

Novikombank’s Visa credit cards with a renewable

credit limit of up to RUB 3.5 million. In 2011,

the number of credit cards issued by the Bank

increased by 150%.

Along with the development of its partnership with

Visa, in 2011 Novikombank joined the MasterCard

Worldwide payment system. Issuing this card will

help supplement and broaden the Bank’s product

scope for private individuals. In 2011, as part

of its retail business development in the Samara

Region, Novikombank began issuing cards of

the NCC (National Credit Cards) interbank payment

system. This allows clients to use services at over

17,000 ATMs in Russia and perform the full cycle

of settlements – from receiving salaries to making

non-cash payments. As of 1 January 2012, the Bank

has issued over 1,000 NCC cards.

In 2011, Novikombank expanded its consumer

lending in areas such as home equity loans, mortgage

loans, auto loans, etc. Total retail loan volume more

than doubled, reaching RUB 914.8 million.

In 2011, the Bank continued improving its client

service terms and further refined its banking service

technologies. To help improve its work with clients,

new information services were introduced on the

Bank’s website and its Internet banking system

(Inter@ctive), greatly increasing communication

speed and enhancing the reliability of the online

payment system.

One of the key factors of the Bank’s successful work

in the retail market is the wider range of services

offered to the staff of its regional clients and

the broad scope of its financial products for Russian

regional households. The opening of offices in 2011

25

20

15

10

5

0

Private customer funds and number

of private customers

2009 2010 2011

Client funds, RUB billion

Number of clients, 000’

5.2

5.4 7.4

20.8

7.0

12.3

Retail Business


in Togliatti, Nizhny Novgorod, Rostov-on-Don,

Zhukovsky and Samara ensured significant growth

of the Bank’s client base. To further develop this line

of business, the Bank is refining its line of banking

products customised for regional clients and is

creating sales technologies aimed at promoting

regional projects and online services. In 2011, new

online services were introduced, including mobile

banking services, self-service terminals and SMS

services (mobile payments and SMS inquiries).

The Bank plans to offer a new service format, Mobile

Office, which will combine the functions of ATMs,

self-service terminals (including Inter@ctive) and

a call-centre, allowing clients to perform banking

transactions in the 24/7 mode.

In 2012, under its Development Strategy

for 2010 –2014, Novikombank will continue

to increase its transaction volume in the retail

market. The main areas targeted for

development in this segment are cross-sales

of banking products to the staff of the Bank’s

corporate clients and development of retail

operations throughout the regional network.

To help achieve its business objectives and

satisfy clients' requirements to a greater extent,

the Bank plans to accelerate development of its

lending operations, including mortgage and car

loan programmes for the staff of its corporate

clients.

21Financial Market Operations

In 2011, the Bank worked in financial markets amid

significant growth of volatility in all segments. Faced

with this challenge, Novikombank achieved impressive

results in business expansion, while maintaining its

traditionally high levels of liquidity and investment

reliability.

These objectives were met with the development

of relationships with Russian banks in the interbank and

forex markets and the expansion of the counterpart

base, which includes VTB, Russian Agricultural

Bank, Sviaz-Bank, Gazprombank, MDM Bank,

Promsvyazbank, Alfa Bank, NOMOS-Bank and others.

In 2011, the total value of transactions on the interbank

market exceeded RUB 1 trillion, and the volume of

short-term arbitrage transactions more than tripled

year-on-year.

The Bank’s liquidity and market risk management policy

concentrated on building a portfolio of highly liquid

bonds of superior credit quality. Most of the stocks

in the Bank’s portfolio were blue chips.

At the end of 2011, the share of bonds on the Bank of

Russia’s Lombard List was nearly 80% of Novikombank’s

total investment volume, with OFZs accounting for

43%. In 2011, the total volume of investment in debt

securities slightly decreased. In line with Novikombank’s

strategic priorities, the released funds were mainly used

to finance the real sector. As of 1 January 2012, the

Bank’s bond portfolio stood at RUB 15.8 billion, and

the total turnover of transactions in the debt market

exceeded RUB 85 billion.

Consistently implementing its client operations

development strategy, in 2011 Novikombank

substantially updated its product line and introduced

a new platform for trust management operations. Given

the general instability on the stock market, the Bank

focused on conservative strategies, which, amid high

market volatility, enabled it to meet its profitability

targets for the client portfolio, significantly exceeding

the established benchmark.

Among the key results in 2011 was the signing

of agreements on trust management with a number

of member companies and organisations of Russian

Technologies State Corporation. By the end of 2011,

the total value of assets under management exceeded

RUB 4.5 billion.

To help support its corporate clients, in 2011 the Bank

participated as a co-arranger, underwriter and

co-underwriter for 52 new bond placements by Russian

issuers. Active involvement in public placements of debt

made a significant contribution to increasing turnover

in the securities market, lifting the Bank into the Top 30

of leading corporate bond market players.

In 2011, the Bank continued to develop its debt

financing programme by issuing bonds. Along with the

previously placed RUB 2 billion bond issue, in July 2011

the Bank also successfully distributed series BO-1

three-year bonds for the total amount of RUB 3 billion.

In 2012, Novikombank is introducing innovative cash

management products and continuing its efforts to

develop comprehensive services for financial market

operations of its clients. Given the current market

environment, reliability and liquidity will continue to be

the key priority for both the Bank’s own operations and

customer transactions.

Financial Market Operations


Russian industry accounts for about 60%

of the Bank's loan portfolio. Novikombank will

continue to consistently strengthen its position

in provision of services to the defence, mechanical

engineering, automotive and high tech companies.

STRENGTHENING

POSITION

23Financial Market Operations


Development of cooperation and the strengthening

of business relations with international financial

institutions is a priority area for Novikombank. Among

the Bank’s partners are world-renowned players

such as Commerzbank (Germany), Deutsche Bank

(Germany), JPMorgan Chase Bank (US), Danske

Bank (Denmark), UniCredit Group (Italy), Raiffeisen

Bank International (Austria), UBI (Italy), Credit Suisse

(Switzerland), BCP (Switzerland), Intesa Sanpaolo

(Italy), State Bank of India, and others. The volume

of limits opened for the Bank now stands at over

USD 200 million.

In 2011, Novikombank substantially increased its

client base by expanding its financing of foreign trade

operations. A key area of the Bank’s Programme

of International Business Development launched

in 2010 is the use of international trade finance

instruments to expand the Bank's corporate

clients’ business. In 2011, the Bank arranged

financing for over 50 contracts worth a total

of over USD 120 million. Most of the funds

provided went for the modernisation and

retooling of Russian industrial companies.

In 2011, in conjunction with Commerzbank

(Germany), Deutsche Bank (Germany), VTB

(Shanghai), UBI Banca (Italy), Oberbank (Austria),

Banque de Commerce et de Placements (Switzerland)

and many other, Novikombank continued financing

deliveries of high-tech goods. The geography

of the deals includes Germany, Italy, Great Britain,

Israel, the Netherlands, and a number of other

countries. Framework agreements signed with foreign

banks enabled Novikombank to arrange long-term

financing of clients' import contracts using insurance

coverage provided by export credit agencies such as

SACE, Hermes, OeKB, and others.

In 2011, Novikombank significantly expanded

its trade finance support to the banks in the CIS;

over 30% of the current portfolio consists of deals

within the limits opened for CIS institutions. Key

Novikombank partners in the CIS include major

banks in Belarus, Tajikistan, and Ukraine. The Bank

provides large-scale financing for crude and product

deliveries to refineries in Belarus, cotton shipments

to Russia from Tajikistan, delivery of high-tech goods

from Russia to Belarus, and other projects. In this

way, the Bank makes a significant contribution

to the growth of bilateral trade turnover and the active

development of export and import operations

between Russia and CIS countries, and the creation

of a single trade and economic environment.

Novikombank’s participation in major syndicated

loans for CIS financial institutions was another step

in strengthening and expanding its cooperation with

CIS banks.

In 2011, Novikombank acted as one of Mandated

Lead Arrangers of syndicated loan for Savings Bank

Belarusbank, Belinvestbank and Paritetbank (Belarus)

for a total of over USD 60 million.

In 2011, the “Bank for Banks” Programme

of Comprehensive Services for Financial

Institutions continued. Thanks to its active

development, by end-2011 the Bank’s partner

base on the Interbank/Forex market reached 320;

the client list for banknote operations expanded

to 125 financial institutions. Over 70 credit

institutions opened loro accounts with Novikombank,

for total year-end balance value of over RUB 3 billion.

The range of counteragents in the interbank market

expanded significantly, thanks to the entry of banks

from Belarus (Belarusbank, Belagroprombank,

Belinvestbank, VTB Belarus, MTBank, Alfa-

International Business and Interbank Cooperation

25International Business and Interbank Cooperation

Bank, Belgazprombank, BPS-Bank, Paritetbank,

RRB Bank, Belrosbank and Belvneshekonombank);

Tajikistan (National Bank of Tajikistan, Orienbank,

Agroinvestbank, Bank Eskhata, Tojiksodirotbank,

and Amonatbank); Ukraine (Prominvestbank, Bank

Oshchadny, VTB Ukraine, Alfa-Bank Ukraine, First

Ukrainian International Bank, and Finances and

Credit Bank). There are plans to expand the business

geography by developing cooperation with banks

in Kazakhstan, Azerbaijan, Armenia, Uzbekistan,

Turkmenistan, and the Baltics.

Under the programme, Novikombank offers

counteragent banks new settlement service terms

meeting the highest requirements for bank clearing

and focused on minimising clients’ spending of time

and money. Novikombank now services a significant

portion of the ruble payments of the business entities

involved in Russia/CIS trade turnover.

The banknote business developed quite dynamically

in 2011. Banknotes denominated in various

currencies are delivered “door-to-door” throughout

Russia/CIS. Delivery time does not exceed 24 hours,

and new, flexible commission rates are in place.

Novikombank also provides cash delivery services

to partner bank branches in Russia.

Since September 2010, Novikombank has been

extensively developing International Banking Club

INTERBANKCLUB.COM, an informational and

analytical project in the banking sphere. Within

the scope of the Club, Novikombank runs projects,

including “Banks, Clients, and Partners. Points of

Growth” and “Events for Companies”. In 2011,

over 1,000 representatives of Russian and foreign

banks took part in seven conferences arranged

by the Club in partnership with authoritative public

organisations such as the Russian Engineering Union,

the Association of Russian Banks, the Association

of Regional Banks of Russia, the Russian Union

of Industrialists and Entrepreneurs, the National

Currency Association, the Russian Federation

Chamber of Commerce and Industry, the International

Bank Council, and others.

In 2011, the Bank significantly strengthened its

positions in international markets, increased its

volume of export and import operations financed,

and actively developed its work with banks

in CIS countries. All of these achievements reflect

Novikombank’s active involvement in modernising

the Russian economy and facilitating the progress

of Russian industry.

Geographic breakdown of trade and

stuctured finance transactions, %

CIS and Baltic

countries

Africa

Western

Europe

Asia

9.81

47.541.7

Sector structure of trade finance

portfolio, %

Services

Mechanical

engineering

Food

industry

Textile

industry

Polymer

manufacturing

40

52

1

2

5


In 2011, under its Development Strategy,

Novikombank continued implementing its Programme

of Regional Development, which involves opening

Bank offices in areas where the regional companies

of its strategic partners are present while offering

a wide range of services to all categories of clients

in Russia’s regions.

Development of the regional network began with

branches in Rostov-on-Don, Nizhny Novgorod,

St. Petersburg, Togliatti, additional offices in Samara

and Zhukovsky, and representative office in Kazan.

In order to provide comfortable conditions for servicing

clients and partners, the Bank’s regional units face

major tasks, including: provision of a full range

of services to regional corporate clients; participation

of the Bank’s branches in major regional programmes;

and developing promising areas of lending

in the regions, including investment financing, etc.

In 2011, the Bank’s regional divisions added

about 9,000 clients. Additionally, Novikombank’s

branches implemented 26 payroll projects for major

companies, including 14 projects with subsidiaries

of the Russian Technologies State Corporation.

Today, the branches are already beginning to make

a significant contribution to the Bank’s overall financial

results in several areas: for example, retail account

balances in the regional network account for about

7% of the Novikombank’s total retail funds.

The Bank expanded into the Samara Region on the

basis of JSC Lada-Credit in Togliatti. During the year,

Novikombank undertook the transfer of a promising

portfolio of corporate loans to the Togliatti branch

and began offering cash and settlement services

to corporate clients.

In the second half of the year, the Bank was actively

engaged in transferring Lada-Credit’s retail clients

to the new branch, offering payroll projects for JSC

AVTOVAZ and its subsidiaries.

In 2012, the Bank is continuing to develop its regional

network, focusing on regions that are important for

strategic clients and partners. Work is under way to set

up an operational office in Tula.

Regional Business

27Corporate Governance

Corporate Governance

Management Bodies and Committees

The system of corporate governance at Novikombank

is based on the principles of strict compliance with

the requirements of the Russian law and the Central

Bank of Russia and recommendations of the Russian

Federal Service for Financial Markets, with maximum

reliance on the best international practice.

The highest governing body of the Bank is the General

Meeting of Shareholders. Novikombank’s Board

of Directors is elected by and accountable to its

shareholders and is responsible for strategic

management and control of the activity

of the executive bodies (President, Management

Board). The Bank’s executive bodies are responsible

for day-to-day management and carrying out

the tasks assigned to them by the shareholders

and the Board of Directors.

The Bank has an efficient system of control over

the financial, economic and legal aspects of its

activities; the system includes the Audit Commission

and the Internal Control Department. To conduct

audits and confirm its financial reporting, the Bank

engages an independent external auditor.

In conformity with modern practices of corporate

governance, the Bank has several collegial bodies,

including the Credit Committee; the Assets and

Liabilities Management Committee; the Financial

Institutions Committee; the Budget Committee;

the Committee for Quality, Business Processes

and Banking Technologies; the Strategic Planning

Committee and the Charity Committee.

In 2011, to help support the Bank’s corporate

business and implement efficient decision-making

procedures for financing long-term operations,

the Bank created an Investment Committee.

The Bank’s organisational structure is developing

continuously, with the emphasis on enhancing

manageability, providing the Bank’s business

with advanced technologies, and defining new

priority areas of client service at various units.

In 2011, there was organised a Department

of Organisation and Support of the Corporate

Settlement Centre service, introduced by the Bank

for Russian Technologies State Corporation and

other strategic clients. To enhance the Bank’s

operational efficiency and improve its technological

capabilities, a Department for Development of

Bank Information Technologies and a Settlement

Centre began operations. A Department for

Administering Loan and Guarantee Operations was

established to provide more effective management

of the Bank’s loan portfolio.

Novikombank is continuing to improve its information

system for clients and investors, with the Bank’s

website as the key information resource. The Bank

discloses information on a timely and complete

basis in compliance with applicable legislation and

maintains a dialogue with its clients using all types

of communications. Continuous modernisation

of the system for communicating with clients and

investors, focused on quality and operational

efficiency, is a priority area for development

of Novikombank’s corporate governance.

Last year, Novikombank completed implementation

of the ISO 9001 quality management system.

A certification audit performed in December

2011 by JSC VNIIS (All-Russian Research Institute

for Certification) and German TUV Rheinland

confirmed Novikombank’s compliance with

the requirements of ISO 9001:2008.

Implementation of ISO 9001 standards

is an important step in the formation of the Bank’s


system and process management activity and should

substantially enhance the efficiency of corporate

governance in order to further increase the Bank’s

business volumes.

In accordance with international practices and

the requirements of the Central Bank of Russia, work

is under way to enhance the efficiency of the internal

control system in order to ensure its conformity with

the nature and scope of the Bank’s activities. As part

of the ongoing expansion of the branch network and

business diversification, control procedures are being

enhanced to cover all levels of governance, internal

processes, operations, and divisions. The Bank’s

internal control system is organised in accordance with

the principles of internal control continuity and risk

optimisation, adequacy of information, information

systems and technical media, and the appropriateness

and timeliness of control procedures.

In order to further optimise its corporate governance,

the Bank plans to implement a number of initiatives

in 2012, designed to enhance the level of integration

among the main management systems and

processes. In this way, the Bank plans to enhance its

client responsiveness and increase the effectiveness

of the services it provides to partners and customers.

Risk Management

In 2011, given the development of Novikombank’s

product line and the geography of its business,

considerable attention was devoted to increasing

functional efficiency and improving risk management.

In order to build a comprehensive, efficient risk

management system, Novikombank is continuing its

efforts to refine its risk management technologies,

taking into account the most innovative standards

of international banking practice.

To ensure that risks are properly managed, the Bank

has developed reliable risk-assessment methods and

procedures, as well as an organizational structure

and an order of interaction among divisions and

collegial bodies performing managerial functions and

functions of control and methodology. The system

allows the Bank to identify, assess and mitigate

assumed risks on an ongoing basis, monitor their

scale and structure, and minimise their consequences.

The Bank’s risk management framework consists of

six committees: the Credit Committee; the Assets and

Liabilities Management Committee; the Financial

Institutions Committee; the Investment Committee;

the Strategic Planning Committee and the Committee

for Quality, Business Processes and Banking

Technologies. Within the scope of its mission, each

committee makes decisions related to the Bank's

risk management and develops and approves risk-

monitoring procedures.

Novikombank controls risks in all of its basic areas,

including credit risks, market risks, liquidity risk,

operational risk, legal risk, and reputational risk.

The Bank monitors and closely controls credit risks

on an individual and aggregate basis, including

summary quantitative measurement of credit risk and

analysis of its structure.

Market risk management (stock market risk, currency

risk, interest rate risk) and liquidity risk are monitored

by the Bank’s Assets and Liabilities Management

Committee.

Operational risk management is the responsibility

of managers at all levels and includes operating

the internal control system, work of the Committee

for Quality, Business Processes and Banking

Technologies creating the necessary organisational

structure and internal procedures, and subsequent

control of operations.

The Bank focuses particularly on legal and

reputational risks, which are monitored to minimise

potential losses, as well as to protect and support

the Bank’s business reputation in the eyes of its

clients, counterparts, shareholders, financial market

participants, government authorities, and other

partners of the Bank.

Within the scope of its Development Strategy,

Novikombank continuously improves its services and

develops and introduces new banking products. One

key priority for the Bank’s risk management system

is ensuring maximum safety of assets and capital by

preventing potential losses.

With this objective in mind, the Bank conducts

continuous comprehensive monitoring, as well as

29Corporate Governance

development and introduction of new methods

of assessment, and techniques for analysis,

forecasting and control of risks assumed by the Bank.

Human Resources Policy

Employees are the core resource for implementing

the Bank’s Strategy, and our recognition of this serves

as the cornerstone of our human resources policy.

Successful achievement of the Bank’s Strategy goals,

the diversification of its operations, and the expansion

of its business and geographic coverage can only be

achieved by the joint efforts of a closely knit, highly

professional team. When implementing its HR policy,

Novikombank strives to maintain staff stability and

recruit leading market professionals to develop new

areas of activity.

One instrument used to achieve these goals

is continuous adjustment of staff salaries to reflect

each person’s contribution to the Bank’s work, taking

into account current salary levels in the banking

sector. In 2011, job assessment was performed,

and a grading system was introduced to ensure a

competitive salary level for the Bank's personnel.

The rapidly changing economic environment and

new information technologies call for continuous

upgrading of staff knowledge and professional

skills. In 2011, over 33% of staff upgraded their

professional qualifications via specialised training

courses. To develop its corporate training system,

the Bank launched Big Banking Tests, a programme

of distance courses and tests to assess employees’

professional knowledge.

In 2011, acknowledgements for “High

Professionalism and Commitment” were given

to 12 staff members, and a new category, “The Team”,

was added, with the award for effective work going

to three structural divisions and the Togliatti branch.

One key HR area contributing to the improvement and

development of the entire Bank is staff involvement

in the quest for higher efficiency in various spheres

of activity. In 2011, one of the priority tasks in this

area was participation by all staff members in efforts

to modify and optimise business processes at all levels.

Encouragement of staff initiative and creativity helps

develop each employee’s potential and contribute

to greater efficiency and lower costs.

The Bank’s concern for the well-being of its staff

is reflected in its close attention to labour safety.

Employees undergo mandatory training when hired,

and then attend further training at specialised training

centres. In 2011, an additional workplace compliance

certification was performed, and line managers

received training on labour safety issues. The Bank

also expanded its line of comprehensive health

check-up programmes. Diagnostic and preventive

screening under various programmes included over

250 employees.

Highly qualified team is Novikombank’s most valuable

asset, serving as the foundation for development.

In 2012, Novikombank is continuing to adhere

to Corporate Code standards while introducing

international quality standards into its personnel

management system.


Novikombank's strategic plans for business

development envisage further expansion of its

banking services across all market segments.

In the medium term, the key driver for the Bank's

further growth is set to be the development of

ties with corporate clients among the 1,000 largest

companies in the Russian market and their partners.

EXPANDING

HORIZONS

31Regional Business


Charity

Novikombank traditionally attaches great importance

to charitable activities. Using its lengthy experience

in corporate social responsibility, the Bank

continuously develops its charity programme. The

Bank’s social priorities include support for children’s

education and healthcare, support for cultural

projects, preserving spiritual and historical heritage,

assistance to socially vulnerable groups of the

population, particularly to war veterans and disabled

people, and development of Russian sports. In 2011,

the Bank implemented recipient-oriented charity

projects in over twenty regions of Russia.

Support for children’s education is a key area

of Novikombank’s charity work. The Bank has

long-standing relations with the Orthodox Abode

of Mercy Saint Alexis Hermitage, home to over 200

students – mainly children in difficult life situations

(e.g., orphans and children from problem families).

The Bank renders support to the Abode’s secondary

school and its teaching staff, kindergarten, day-

care center and cadet school, along with funding

the development of infrastructure and support

facilities for the Orthodox community. Every year,

Novikombank sponsors cultural events for children

at the Hermitage. In 2011, a summer camp

session and excursions to Moscow were arranged

for the children; the latter included sightseeing tours

to Moscow along with visits to the State Tretyakov

Gallery, Star City, an exhibition of paintings by Isaac

Levitan at the Central House of Artists, the Andronikov

Monastery, the Andrei Rublev Central Museum

of Ancient Russian Art and Culture, and concerts

at the Moscow State Conservatory.

For the past 10 years, Novikombank has taken part

in the programme “Evolution and Development

of the Preobrazhensky Regiment Cadet Corps”, aimed

at enhancing the quality of life and education of pupils

at the Moscow cadet boarding school, where young

people are educated in the spirit of patriotism and

in the finest traditions of the Russian Army.

In addition to its programmes for the Saint Alexis

Hermitage and the Preobrazhensky Cadet Corps,

Novikombank implements numerous non-recurring

charitable projects. In 2011, the Bank contributed

to the organization of a concert by young

talented performers marking the anniversary

of the Yury Rozum Foundation. In 2010, the Bank

financed the construction and equipment of a sports

and recreation centre at a state secondary school

in the village of Pruzhinki (Lipetsk Region).

Novikombank’s charitable activities are closely

associated with care for the younger generation.

The Bank provides support to initiatives and projects

in child healthcare, particularly in the prevention of

pediatric diseases. The Bank provides targeted support

to disabled children and medical facilities and works

to boost sports and recreation infrastructure to help

preserve and promote young people’s health. In 2011,

Novikombank provided finances for expensive medical

operations and treatment, as well as for the purchase

of expensive medicaments and prosthetic devices

for children with serious illnesses.

For many years, Novikombank has provided support to

children suffering from infantile cerebral paralysis (ICP).

In 2011, the Bank purchased rehabilitation equipment

and organised recreation and rehabilitation, including

outside Russia, for ICP patients. The Bank has presented

a number of families of children suffering from ICP with

Adeli therapeutic costumes which are an important

component of a highly efficient method of rehabilitation

treatment. The Home Visits project implemented

33Charity

by the Diema’s Dream Foundation and supported

by the Bank is designed to improve the rehabilitation

system for young ICP patients via medical experts’

visits to the children’s homes.

Novikombank devotes considerable attention

to cultural projects, preserving spiritual and historical

heritage, boosting spiritual education, as well as

restoring architectural landmarks, Russian temples and

churches. The significant contribution of Novikombank

and its front office to the cause of Russia’s spiritual

renewal has many times been acknowledged with

major awards.

As part of its charitable activity aimed at preserving

spiritual and historical heritage, in 2011 the Bank

contributed to restoring landmarks of great historic

value, such as the Vvedenskaya Church in Kalyazin

town, Tver region, and the Military Glory monument

in Mauthausen, Austria.

In 2011, with financial backing from Novikombank,

the Regional Public Organisation “Historical and

Cultural Retrieval Centre Obelisk” led field expeditions

to the sites of military actions of the Great Patriotic

War to search for, rebury and honour the remains

of Russian soldiers.

Another priority area of the Bank’s charitable

activities is providing assistance to veterans and

people in difficult circumstances. The Bank works

in cooperation with several public organisations

that offer social protection and legal and financial

assistance to war veterans and members of their

families.

In 2011, Novikombank played a substantial part in

organising commemorative events and purchasing

medical rehabilitation equipment for Russian military

veterans. Over the years, the Bank also implemented

a number of projects involving financing expensive

medical treatment and improving the quality of life

for disabled people.

Development of Russian sports is also a priority

of Novikombank’s charity policy. Novikombank

makes significant regular contributions to develop

professional cycling and acts as а permanent partner

of the Cycling Federation of Russia. The Bank took

part in organising the World Cycling Championship

in Moscow, and was a sponsor of the Katyusha

professional cycling team (created in 2008 and

a competitor in 45 cycling races and international

competitions to date).

Novikombank supports initiatives to promote

professional handball in Russia by providing assistance

to Russia’s national handball team in partnership with

the Russian National Public Organisation “Handball

Union of Russia”.

The Bank is also a long-term partner of the Board

of Trustees of the Russian Practical Shooting

Federation.

Considerable attention is paid to the participation

of the Bank’s employees in charitable events

and programmes. Novikombank has adopted

a programme to involve its employees in charity

and regularly holds corporate fundraising events

to provide for medical treatment and rehabilitation

of children with serious diseases, as well as to finance

restoration of houses of worship and support socially

vulnerable groups of the population.

For many years, the Bank's employees have paid

regular visits to the Orthodox Abode of Mercy Saint

Alexis Hermitage, helping out with everyday chores,

getting to know the Hermitage’s activities and

everyday life and communicating with its residents.

The scope of Novikombank’s charity programmes

grows hand in hand with its business, with

the number and the geographical span of social

projects continuously expanding. In 2011,

Novikombank ranked third in the “Finances”

category of the annual nationwide survey “Corporate

Philanthropy Leaders,” organised by the business

newspaper Vedomosti in collaboration with one

of the leading international consulting and auditing

firms PwC and the Russian Donors Forum expert NGO.

Bearing in mind the significance of social investment

and charitable work, Novikombank intends to further

support and promote socially significant initiatives

and projects.


Strategy and Outlook

In 2011, the Bank forged ahead in pursuit

of the goals set in its Strategy for 2010–2014.

Significant success was achieved in cooperation with

strategic partners, and a firm foundation was laid

for effective business diversification.

In addition to traditional areas of activity (financing

defence industry, aircraft engineering and oil &

gas sectors), the Bank expanded its work with

companies in the petrochemicals sector, the food

industry, civil construction, as well as with high-tech

companies, including instrument makers. Business

diversification and extended partnership with Russian

Technologies State Corporation, JSC AVTОVAZ, JSC

Transneft, ITERA Group and FSUE TsAGI allowed

the Bank to greatly exceed its growth targets in terms

of volume.

In 2011, the Bank surpassed its Development

Strategy target for net assets by 22.6% and its goals

for attracting corporate funds by 12% and met its

strategic objectives for the growth of retail funds.

As planned, 2011 saw intensive development

of the Bank’s branch network, with launches

in Rostov-on-Don, Nizhny Novgorod, and

St. Petersburg. Following Novikombank’s acquisition

of Lada-Credit, a key branch was opened in Togliatti;

offices were also added in Samara and Zhukovsky.

Strategic projects realised by the Bank in 2011

include:

■ Implementing the Corporate Settlement Centre

project at subsidiaries of JSC Radio-Electronic

Technologies Concern; signing agreements

on providing this service to JSC Orion Concern and

JSC Aviation Equipment Concern companies;

■ Launching payroll projects for subsidiaries of key

strategic partners such as Russian Technologies

State Corporation, MDB Compas, JSC AVTOVAZ,

JSC Radio-Electronic Technologies Concern, and

JSC Aviation Equipment Concern;

■ Expanding its financing for major clients’ foreign-

trade contracts;

■ Developing Private Banking and other services.

Strategic initiatives the Bank plans to launch

in the near future include:

■ Optimising the management system in response

to new challenges faced by the banking market;

■ Expanding its work with key partners on payroll

projects, focused on extensive cross-sales

development;

■ Continuing to develop the branch network in key

regions for strategic and major clients;

■ Improving the management reporting system.

Implementation of these plans should ensure

further development of the Bank’s business, focused

on servicing key partners, with potential expansion

of the client base to include other major enterprises.

Organisational measures to develop the management

system will help increase the profitability and

efficiency of operations.

35Summarized Financial Statements

Summarized financial

statements prepared

based on the audited

financial statements

Year ended 31 December 2011

Together with Independent

auditors’ report

Summarized Financial Statements


Independent auditors’ report

ООО “Эрнст энд Янг”Россия, 115035, Москва,

Садовническая наб., 77, стр. 1Teл.: +7 (495) 705-9700 +7 (495) 755-9700Факс: +7 (495) 755-9701ОКПО 59002827

Ernst & Young LLCSadovnicheskaya Nab., 77, bld. 1

Moscow, 115035, RussiaTel.: +7 (495) 705-9700 +7 (495) 755-9700Fax: +7 (495) 755-9701

www.ey.com

Independent auditors’ report on the summary financial statements to the Shareholders and Board of

Directors of JSCB “NOVIKOMBANK”

The accompanying summary financial statements, which comprise the summary income statement

for the year ended 31 December 2011, the summary statement of comprehensive income for the

year ended 31 December 2011, the summary statement of financial position as at 31 December

2011, summary cash flow statement and summary statement of changes in equity for the year then

ended, are derived from the audited financial statements of JSCB “NOVIKOMBANK” for the year

ended 31 December 2011. We expressed an unmodified audit opinion on those financial statements

in our auditors’ report dated 14 May 2012. Those financial statements, and the summary financial

statements, do not reflect the effects of events that occurred subsequent to the date of our auditors’

report on those financial statements.

The summary financial statements do not contain all the disclosures required by International Financial

Reporting Standards. Reading the summary financial statements, therefore, is not a substitute for

reading the audited financial statements of JSCB “NOVIKOMBANK”, referred to in the first paragraph.

Management’s responsibility for the summary financial statements

Management is responsible for the preparation of a summary of the audited financial statements

in accordance with International Financial Reporting Standards.

Auditors’ responsibility

Our responsibility is to express an opinion on the summary financial statements based on our

procedures, which were conducted in accordance with International Standard on Auditing (ISA) 810

Engagements to Report on Summary Financial Statements.

Opinion

In our opinion, the summary financial statements derived from the audited financial statements of JSCB

“NOVIKOMBANK” for the year ended 31 December 2011 are consistent, in all material respects, with

the financial statements, referred to in the first paragraph.

14 May 2012

37

Income statement

For the year ended 31 December 2011

2011 2010

RUR'000 RUR'000

Interest income 6,273,823 4,980,100

Interest expense (3,548,841) (2,385,735)

Net interest income 2,724,982 2,594,365

Reversal of allowance / (allowance) for impairment of loans to customers 306,145 (1,356,500)

Net interest income after reversal of allowance / (allowance) for impairment of loans to customers 3,031,127 1,237,865

Fees and commissions income 419,423 246,406

Fees and commissions expenses (55,759) (47,411)

Net gains/(losses) from financial instruments at fair value through profit or loss and available-for-sale assets (898,673) 624,573

Net losses from foreign currencies (55,336) (150,843)

Other income 170,009 162,938

Net non-interest income/(loss) (420,336) 835,663

Other allowances for impairment (28,756) (37,167)

Share of loss of associate (15,750) –

Loss on initial recognition of loans issued (402,686) (52,539)

Operating expenses (1,751,145) (1,225,914)

Profit before tax 412,454 757,908

Income tax expense (121,984) (126,352)

Profit 290,470 631,556

These financial statements were authorized for release by the Management Board of the Bank on 10 May

2012.

I.N. Gubin Т.V. Radchenko

President Chief Accountant



Statement of comprehensive income


2011 2010

RUR'000 RUR'000

Profit 290,470 631,556

Other comprehensive income

Revaluation reserve on available-for-sale assets:

net change in the fair value of available-for-sale assets, net of income tax (43,366) 120,416

net change in the fair value of available-for-sale assets, transferred to profit or loss, net of income tax (129,012) (64,673)

Revaluation of property and equipment, net of income tax (2,857) 4,786

Other comprehensive income/(loss) for the year, net of tax (175,235) 60,529

Total comprehensive income for the year 115,235 692,085



39



Statement of financial position

As of 31 December 2011

2011 2010

RUR'000 RUR'000

ASSETS

Cash and cash equivalents 17,054,547 7,941,119

Deposits with the Central Bank of Russia 7,000,767 –

Obligatory reserve with the Central Bank of Russia 804,679 370,412

Amounts due from banks and other financial institutions 9,202,231 5,548,236

Financial instruments at fair value through profit or loss

– owned by the Bank 4,849,796 14,862,018

– pledged under repurchase agreements 8,451,050 –

Available-for-sale assets

– owned by the Bank 995,454 6,035,119

– pledged under repurchase agreements 1,007,444 –

Held-to-maturity investments

– owned by the Bank 446,132 909,237

– pledged under repurchase agreements 420,737 –

Loans to customers, including

– reverse repurchase agreements receivable 2,123,397 –

– loans to customers 45,648,050 26,557,710

Investments in an associate 9,250 25,000

Property and equipment 300,654 281,776

Current income tax prepaid 56,778 32,657

Deferred income tax assets 30,485 –

Other assets 180,671 88,624

Total assets 98,582,122 62,651,908

LIABILITIES

Financial instruments at fair value through profit or loss 87,257 5,734

Accounts and deposits from banks and other financial institutions 10,640,674 4,662,097

Repurchase agreements payable 10,398,028 –

Current accounts and deposits from customers 57,649,314 40,973,169

Debt securities issued 8,940,699 7,251,738

Other borrowed funds 138,248 259,422

Deferred income tax liabilities – 125,322

Other liabilities 326,582 422,421

Subordinated loans 4,128,804 2,794,724

Total liabilities 92,309,606 56,494,627

EQUITY

Share capital 3,198,350 3,198,350

Share premium 73,964 73,964

Property and equipment revaluation reserve 146,115 148,972

Revaluation reserve for available-for-sale assets (67,455) 104,923

Retained earnings 2,921,542 2,631,072

Total equity 6,272,516 6,157,281

Total liabilities and equity 98,582,122 62,651,908



Statement of cash flows


2011 2010

RUR'000 RUR'000

CASH FLOWS FROM OPERATING ACTIVITIES

Interest, fees and commissions received 7,015,318 4,971,073

Interest, fees and commissions paid (3,441,499) (2,356,791)

Net receipts/(payments) from financial instruments at fair value through profit or loss and available-for-sale assets (333,965) 666,863

Net receipts/(payments) from foreign currency operations 57,170 (288,859)

Net gains from transactions with precious metals 117,747 61,033

Dividends received 6,495 5,742

Other income 8,067 5,150

Operating expenses (1,723,062) (1,124,635)

1,706,271 1,939,576

(INCREASE) DECREASE IN OPERATING ASSETS

Deposits with the Central Bank of Russia (7,000,000) –

Obligatory reserve with the Central Bank of Russia (434,267) (191,326)

Amounts due from banks and other financial institutions (3,506,288) (1,481,729)

Financial instruments at fair value through profit or loss 1,201,735 (14,680,589)

Reverse repurchase agreements receivable (2,119,928) –

Loans to customers (19,367,306) (6,678,019)

Other assets (101,096) (35,525)

INCREASE (DECREASE) IN OPERATING LIABILITIES

Accounts and deposits from banks and other financial institutions 5,913,076 3,054,154

Repurchase agreements payable 10,382,342 (200,530)

Current accounts and deposits from customers 16,008,292 16,753,334

Promissory notes issued (1,476,914) 677,294

Other borrowed funds (123,949) (185,817)

Other liabilities 54,606 5,958

Net cash from (used in) operating activities before taxes 1,136,574 (1,023,219)

Income tax paid (258,105) (198,289)

Net cash from (used in) operating activities 878,469 (1,221,508)

41

Statement of cash flows


(continued)

2011 2010

RUR'000 RUR'000

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of investment securities (148,694) (121,680)

Proceeds from sale of investment securities 60,000 400,000

Purchase of available-for-sale assets (13,642,404) (6,398,967)

Proceeds from sale of available-for-sale assets 17,454,992 5,984,360

Proceeds from redemption of held-to-maturity investments 47,233 602,968

Proceeds from sale of property and equipment 363 –

Purchase of property and equipment (61,885) (48,974)

Net cash from (used in) investing activities 3,709,605 417,707

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issue of subordinated loans 1,350,000 300,000

Proceeds from bonds issued 3,000,000 2,000,000

Net cash from financing activities 4,350,000 2,300,000

Net increase in cash and cash equivalents 8,938,074 1,496,199

Effect of exchange rate changes on cash and cash equivalents 175,354 (14,100)

Cash and cash equivalents, beginning 7,941,119 6,459,020

Cash and cash equivalents, ending 17,054,547 7,941,119



Statement of changes in equity


Share capital

Share premium

Property and equipment revaluation

reserve

Revaluation reserve for available-

for-sale assets

Retained earnings

Total equity

RUR'000 RUR'000 RUR'000 RUR'000 RUR'000 RUR'000

Balance as at 1 January 2010 573,350 2,173,964 144,186 49,180 2,524,516 5,465,196

Profit – – – – 631,556 631,556


Revaluation of available-for-sale assets, net of deferred tax liability in the amount of RUR 30,103 thousand – – – 120,416 – 120,416

Revaluation of available-for-sale assets, transferred to profit or loss, net of deferred tax assets in the amount of RUR 16,168 thousand – – – (64,673) – (64,673)

Revaluation of property and equipment, net of deferred tax liabilities in the amount of RUR 1,196 thousand – – 4,786 – – 4,786

Total other comprehensive income – – 4,786 55,743 – 60,529

Total comprehensive income for the year – – 4,786 55,743 631,556 692,085

Increase in share capital 2,625,000 (2,100,000) – – (525,000) –

Balance as at 31 December 2010 3,198,350 73,964 148,972 104,923 2,631,072 6,157,281

Profit – – – – 290,470 290,470


Revaluation of available-for-sale assets, net of deferred tax assets in the amount of RUR 10,841 thousand – – – (43,366) – (43,366)

Revaluation of available-for-sale assets, transferred to profit or loss, net of deferred tax assets in the amount of RUR 32,252 thousand – – – (129,012) – (129,012)

Revaluation of property and equipment, net of deferred tax assets in the amount of RUR 714 thousand – – (2,857) – – (2,857)

Total other comprehensive loss – – (2,857) (172,378) – (175,235)

Total comprehensive income/(loss) for the year – – (2,857) (172,378) 290,470 115,235

Balance as at 31 December 2011 3,198,350 73,964 146,115 (67,455) 2,921,542 6,272,516

43Addresses and other information

Addresses and other information

Full name:

Joint-Stock Commercial Bank

“NOVIKOMBANK”

Brief name:

JSCB NOVIKOMBANK

Legal address:

4/4 Yakimanskaya Emb., bldg 2,

Moscow, 119180

Telephone:

+7 (495) 974-71-87,

745-56-10

Fax:

+7 (495) 969-20-65

E-mail:

[email protected]

Founded October 25, 1993.

Registered by the Bank of Russia

May 21, 1999, № 2546

Certificate on registration of the

legal entity in the Uniform State

Register of Legal Entities (EGRUL)

of 15.08.2002, issued by issued

by the Interdistrict Tax Office of

the Ministry of Taxes and Charges

of Russia No. 39 within the city of

Moscow, №1027739075891

INN/KPP:

7706196340/775001001

BIK 044583162

Correspondent account

30101810000000000162

with Office №1 of the Moscow

GTU of the Bank of Russia

Statistic codes:

OKPO 17541272

OKOGU 1500010

OKATO 45286596000

OKTMO 45384000

OKFS 16

OKOPF 67

OKVED 65.12

Licences

General licence to conduct

banking operations

Licence place of issue: Moscow

Name of the licensing authority:

Central Bank of the Russian

Federation Licence No.: 2546

Licence issue date and validity:

23 September 2002, valid

indefinitely

Licence of professional

participant on the securities

market for brokerage

activities


Licensing authority: Federal

Securities Market Commission

Licence No.: 177-06439-100000


25 February 2003, valid

indefinitely



market for dealing activities




Licence No.: 077-06443-010000



indefinitely



market for depository activities




Licence No.: 177-06450-000100



indefinitely

Licence for performing banking

activities with precious metals


Licensing authority: Central Bank

of the Russian Federation

Licence No.: 2546


3 October 2002, valid indefinitely

Licence for activities involving

State secrecy information


Licensing authority: Russian

Federal Security Service

Department for Moscow and


Moscow Region

Registration No.: 18103


from 28 September 2010 to 28

September 2015

Licence to take measures and/

or provide services to protect

State secrecy information



Federal Security Service

Department for Moscow and

Moscow Region

Registration No.: 18104


from 28 September 2010 to 28

September 2015

Licence for distribution

of encoding devices



Federal Security Service Centre for

State Secret Licensing, Certification

and Protection

Registration No.: 11659 P


29 December 2011 to 29

December 2016

Licence to perform technical

maintenance of encoding

devices





and Protection Registration

No.: 11658 Х



December 2016

Licence to render information

encoding services





and Protection Registration

No.: 11660 У



December 2016



market for securities

management



Financial Markets Service

Licence No.: 177-13074-001000


29 April 2010 valid indefinitely

Contact information:

JSCB NOVIKOMBANK4/4 Yakimanskaya Emb., bldg 2, Moscow, 119180Tel.: +7 495 974 7187Fax: +7 495 969 2065www.novikom.ru

novikom ar'11 e 120710€¦ · general information 7 in 2011, russia’s economy once again...

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