The ‘B++’ rating indicates that the Bank is qualified as a sufficiently reliable borrower. Risk of a delay in meeting liabilities is moderate, restructuring risk for a loan / part of a loan is insignificant.

The Bank’s rating score is supported by its increasing profit. Its profit for 2011 was RUB 54.1 million against a loss of RUB 66.4 million for 2010. The Bank’s net profit totaled RUB 32.3 million against a loss of RUB 73.9 million for 2010. In absolute terms, the Bank retains its fairly high profit considering it therefore as a real source of funds to increase its capital.

Another positive signal for the rating score is that short-time assets (on-call and overnight assets) have a large share in the Bank’s current (liquid) assets (89.1%). As a whole, the structure Bank’s asset structure is satisfactory in terms of currency. Short-term assets prevail in the current asset structure, which increases the bank's stability while slightly reducing its margin. Our analysis of the quality of assets and liabilities in terms of currency revealed that their balance is acceptable.

The Bank’s rating score is also supported by the absence of liquidity-specific problems. Instant liquidity ratio (N2) is favorable. As of 5/1/2012, the N2 ratio was 56.4% (the minimum percentage required being 15%), above the average value in Russia’s banking system. Therefore, the near-term liquidity loss risk is relatively low. As of 5/1/2012, current liquidity ratio (N3) was 70.10%. It will be specifically noted that the N3 ratio earlier decreased to 54.74% as of 7/1/2011, then improved in contrast to the decreasing average level in Russia’s banking system. As of 5/1/2012, long-term liquidity ratio (N4) was close to the average value in Russia’s banking system. Till 7/1/2011, it was on the rise (reaching 90.1%) while the average level in Russia’s banking system looked down; later, however, this ratio ranged from 69.4% to 82.8%.

The rating score is restricted, among others, by the low capital adequacy and quality. As a whole, the Bank’s capital adequacy leaves much to be desired. However, the Bank has never failed to meet both the requirements of the Central Bank of Russia and the Basel committee’s guidelines. The Bank’s capital adequacy ratio (N1) has ranged from 13.3% to 15.6% in recent years, not much below what other banks similar in the amount and volume of operations achieved in the way of CAR (14-20%). As of 6/1/2012, this ratio (N1) was 13.55%.

Another negative argument against the rating score is the low profitability of the Bank. Return on equity as of 4/1/2012 was 6.8%, three times below the average level in Russia’s banking system, a clearly insufficiently ROE result. Return on assets of the Bank is average. As of 1/1/2012, it was 0.9% (1.9% in Russia’s banking system) further decreasing by 0.02 percentage points in the first quarter 2012 (against 2.4% in Russia’s banking system).

Another thing restricting the Bank’s rating score is the volatility of its key performance indicators. The Bank’s assets and liabilities lack stability: their annualized growth at the end of the year 2011 was replaced by a decrease in Q1 2012.

The bank has been active in the market of banking services since 1989, specializing in comprehensive services to corporate customers and individuals. The bank’s core activity is providing all kinds of banking products and services involving Russian rubles and foreign currencies. Overall, the Bank’s profile can be considered as typical for an average Russian bank. Apart from its HQ, the Bank has 4 branches, 9 additional outlets, 1 operational office and 7 stand-alone cash desks. For today, the Bank is active in 6 constituents of the Russian Federation (Moscow, Moscow region, Oryol region, Samara region, Nizhny Novgorod region, Kostroma region). The bank has following licenses: banking license no. 55 of the Central Bank of the Russian Federation as of 6/25/2004, for banking activities involving Russian rubles and foreign currencies, without accepting deposits of monetary resources from individuals; license no. 55 of the Central Bank of the Russian Federation as of 6/25/2004, for accepting deposits of monetary resources denominated in Russian rubles and foreign currencies from individuals; license no. 077-03978-000100 as of 12/15/2000 for professional custody services, professional brokerage license no. 077-03253-100000 as of 11/29/2000, professional dealer’s license no. 077-03342-010000 as of 11/29/2000, license no. 077-03410-001000 as of 11/29/2000 for professional management of securities. In February 2005, the Banking Supervision Committee of the Central Bank permitted the Bank to join the Deposit Insurance System (DIS). The Bank’s auditor is RIAN-AUDIT LLC.

<img alt="en bbb" src="http://www.akmrating.ru/en/images/en_bbb.gif" style="height:120px; width:120px" />

This press release is based on the statement of assigning a credit rating to Moscow Joint-Stock Bank TEMPBANK.

The credit rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Company's reliability 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 – Provision 323-P), Vnesheconombank (for granting subordinated loans) and SME Bank (for its program of lending to SME businesses), RUSNANO (when selecting banks to provide business banking services to project and engineering entities implementing investment projects), 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). Pursuant to an order of Russia's Government AK&M Ratings count for approving the capitalization increase procedure for 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.V. Yakovenko

Phone no. (495) 916-70-30, fax no.: (499) 132-69-18.