The ‘A’ rating indicates that ECOPROMBANK JOINT-STOCK COMMERCIAL BANK 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.

The Bank’s rating is supported by its leading position in the region, high capital adequacy and quality, and low credit risks.

Among the five banks registered in Perm Krai, ECOPROMBANK JSCB ranks first in the amount of capital, second in the amount of assets and net profit, just like the year before. As of January 1, 2013, the Bank's capital accounted for 45% of the regional banks’ total capital, 32% of their total assets.

The Bank maintains a high capital adequacy and quality. As of January 1, 2013, its capital adequacy ratio was 23.5%, which is above the average ratio in Russia's banking sector (13.7% as of the same date). Capital quality ratio of ECOPROMBANK JSCB was 12-13% in 2012, ca. 8% in early 2013. The Bank’s authorized capital accounts for more than 90% of its equity capital.

Loans of quality grades 1 and 2 are dominating the loan portfolio, accounting for 69.7% of the loan receivables and their equivalents in early 2013. The share of problem and non-performing loans at the start of 2013 was 6.1%, the share of doubtful loans was 24.2%. Loan arrears were low (0.8% as of 1/1/2013, the average percentage in the banking sector on the same date being 3.9%).

The Bank’s maximum amount of major credit risks decreased against 2011. While exceeding 200% in 2011, this ratio has been below 90% since March 2012. As of February 1, 2013, it was 73.05%.

The positive changes in the loan portfolio quality are favorable for the rating of ECOPROMBANK JSCB.

At the same time, the rating of ECOPROMBANK JSCB is impaired by the low return ratios and a decrease in the loan portfolio in 2012.

The Bank’s return on assets and return on equity ratios are fairly low. Despite a higher 9-month profit (pre-tax profit for three quarters 2012 being 36.8% above the 9M 2011 result), ROA and ROE of the Bank were below the average levels in Russia's banking sector as of October 1, 2012 (ROE being 6.38%, ROA 1.73%, against 18.3% and 2.3% in the banking system as of the same date, respectively). According to the Bank’s preliminary 2012 results (Form 102), its profit decreased by ca. 21.5% against 2011 – which means lower annual ROE and ROA figures compared with 10/1/2012.

The Bank's loan portfolio shrank in the first quarter 2012 by 43.7% against the start of the year, followed by a rebound; however, the early 2012 level remained out-of-reach (as of 2/1/2013, the loan portfolio reached about 77% of what it had been on 1/1/2012). The Bank’s overall loan portfolio is largely dependent on loans granted to legal entities accounting for more than 80% of the loan portfolio at the start of 2013.

Full name of the Bank: ECOPROMBANK. JOINT-STOCK COMMERCIAL BANK (PERM JOINT-STOCK ECOLOGICAL/INDUSTRIAL COMMERCIAL BANK)

Short name: ECOPROMBANK JSCB

ECOPROMBANK JSCB has been active in the market of banking services since 1992, The Bank of Russia assigned it registration no. 2011 as of August 17, 1992. The Bank possesses a license for banking operations involving rubles and foreign currencies (without accepting money deposits from individuals) as of February 29, 2012 and a license for accepting money deposits in rubles and foreign currencies from individuals as of February 29, 2012.

The Bank participates in the compulsory deposit insurance system (registered under no. 522 as of January 27, 2005).

The Bank is headquartered in Perm and has no additional offices or branches.

The Bank provides all types of services involving rubles and foreign currencies, provides loan facilities and attracts funds from individuals.

This press release is based on the statement of assigning a credit rating to ECOPROMBANK JSCB.

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.

CJSC 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.

CJSC AK&M Rating Agency is a leading independent national rating agency engaged in rating activities since 1993. CJSC 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), and the MICEX (as a prerequisite for including bonds in the Corporate Bond Index / MICEX CBI and Municipal Bond Index / MICEX MBI calculation base and for listing bonds). 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: A.M. Krachkovskaya
Phone no. (495) 916-70-30, fax no.: (499) 132-69-18