The 'A' rating indicates that CB OBRAZOVANIE qualifies as a highly reliable borrower. Risk of a delay in meeting liabilities is relatively low, restructuring risk for a loan / part of a loan is minimal.

We appreciate the continuing growth of key performance indicators (equity capital, assets, net loans receivable, deposits of individuals), sustained loan portfolio excellence and low percentage of loan arrears, relatively low funding costs, and profitable operations as positive rating drivers for the Bank.

Equity capital of CB OBRAZOVANIE has been on the upward trend, topping the RUB 3 billion mark as of September 1, 2013. The Bank increased its equity capital by RUB 1,009.9 million (57.2%) in 2012 and further improved it by RUB 274.7 million (9.9%) for eight months 2013. The Bank's authorized capital has increased by 57.9% since our previous review, which we also regard as a positive signal.

The growing and well-structured assets are also supporting the rating of CB OBRAZOVANIE. Net loans receivable, the main source of the Bank's assets (65.9%), have grown impressively: by RUB 4,157.9 million (41.8%) in 2012, by RUB 2,604.4 million (18.5%) in the first half of 2013.

The Bank maintains good quality of loan assets: the combined share of non-performing and problem loans is 2.3%, which is below the average percentage in Russia's banking sector (6.4%). The low share of loan arrears (less than 1% of the total loan portfolio) contributes to the high credit rating.

The Bank's individual deposits continue to increase at a speed well above the average growth rate in Russia's banking sector (by 44.0% in 2012, by 32.3% in the first half of 2013, against 20.0% and 9.7% in the banking sector, respectively).

The relatively low cost of debt (compared with the Bank of Russia's refinancing rate) is another positive argument for the rating. In 2012-2013, the cost of liabilities and interest rates on customer deposits did not exceed 6% p.a.

The Bank is a profit-making institution staying above the break-even point. Its net profit for the first half of 2013 totaled RUB 61.6 million; as of July 1, return on assets was 2013 1.5%, return on equity was 13.6%.

At the same time, the low capital adequacy and growing imbalance of liabilities across groups of investors are exerting pressure on the Bank's credit rating.

We tend to regard the capital adequacy of CB OBRAZOVANIE as low. While always meeting the applicable requirements of the Central Bank of Russia, the Bank's N1 ratios have been below the average level in Russia's banking sector. As of the last reporting date (September 1, 2013), this ratio was 10.85%.

Another negative rating signal for the Bank is the growing concentration of liabilities in one group of investors. Since our previous review, the share of 10 biggest depositors in the Bank's total liabilities increased from 4.4% to 28.7% as of August 1, 2013.

Bank name: Commercial Bank OBRAZOVANIE.

Commercial Bank OBRAZOVANIE has been operating in the market of banking services since 1991. The Bank possesses general banking license no. 1521 as of August 22, 2013 issued by the Central Bank of the Russian Federation, with a banking license to accept deposits of precious metals and effect other transactions involving precious metals, dated December 19, 2007.

The Bank participates in the compulsory deposit insurance scheme, DIS registration certificate no. 939 from November 28, 2005.

Commercial Bank OBRAZOVANIE provides the standard range of banking products and services involving Russian rubles and foreign currencies, focusing on lending to SME businesses and exchange operations.

Apart from its Headquarters, the Bank's network consists of 10 branches, 19 satellite offices, 3 operational offices and 14 stand-alone cash desks. Headquartered in Moscow, CB OBRAZOVANIE is currently active in 15 regions in 6 federal districts of the Russian Federation.

The Bank's reports are audited by CJSC BDO, a member of nonprofit partnership SRO Audit Chamber of Russia, principal SRO registration number 10201018307.

This press release is based on the statement of assigning a credit rating to Commercial Bank OBRAZOVANIE.

The credit rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Bank's credit standing and shall not be considered as advice on the purchase and sale of securities or the provision of loan facilities to the Bank.

AK&M Rating Agency will not incur any responsibility for any interpretations, inferences and consequences related to the application of results of the rating estimation procedure by any third parties.

AK&M Rating Agency is a leading independent national rating agency engaged in rating activities since 1993.

AK&M Rating Agency is accredited by the Ministry of Finance of the Russian Federation (order no. 452 as of September 17, 2010).

AK&M Ratings are recognized by the Central Bank of Russia (for providing unsecured lending facilities – Regulation 323-P), Vnesheconombank (for granting subordinated loans) and SME Bank (for its program of lending to SME businesses), RUSNANO (when selecting banks to provide cash and settlement services to project and engineering companies implementing investment projects), the MICEX (for the Corporate Bond Index / MICEX CBI and Municipal Bond Index / MICEX MBI calculation and bond listing purposes). By a resolution of Russia's Government AK&M Ratings count for the recapitalization of banks. Besides, AK&M Rating Agency is recognized by AHML and accredited by SRO National Securities Market Association.

CJSC Analysis, Consulting and Marketing Rating Agency
ul. Gubkina 3
Moscow, Russia
www.akmrating.ru
Press release by: Y.B. Kuznetsova
Phone no. (495) 916-70-30, fax no.: (499) 132-69-18.
Email: kuznetsova@akm.ru