We assigned the ‘B++’ (stable outlook) credit rating to JSB Izhcombank (OAO) as per the national scale on September 1, 2011.
A good argument for the outlook revision is the growth of the Bank's key performance indicators, which increases the Bank’s power in the market of banking services in the Udmurt Republic.
For 2011, the Bank’s assets increased by 8.2%; loan portfolio by 12.3%; physical persons’ deposits by 4.2%; equity capital by 4.7%.
Pre-tax profit for 2011 was RUB 77.3 million increasing more than twice year-on-year (against RUB 35.3 million). The Bank’s net profit for 2011 increased 4.4-fold to RUB 49.1 million from RUB 11.2 million for 2010.
JSB Izhcombank (OAO) has achieved a fairly good liquidity level, which naturally supports the rating score. Quick liquidity ratio of the Bank as of March 1, 2012 was 53.94%, the minimum value required being 15%. Current liquidity ratio equaled 95.77% against the minimum acceptable percentage of 50%. Long-term liquidity was 43.3%, far below the maximum limit of 120%.
The Bank’s principal results as of for March 1, 2012 are as follows: assets amounted to RUB 6.2 billion, equity capital was RUB 709.5 million, loan portfolio was RUB 3.3 billion, funds of enterprises and organizations totaled RUB 1.5 billion, physical persons’s deposits were RUB 3.5 billion.
The Bank's key performance indicators earn it a favorable place among the borrowers maintaining sufficient reliability (the highest sub-grade of the ‘B' grade).
AKB Izhcombank (OAO) has been active in the market of banking services since 1990. Among Russian regional banks, it is a mid-sized bank in the amount and volume of operations. JSB Izhcombank (OAO) registered in Izhevsk city possesses license no. 646 of the Central Bank of the Russian Federation for banking oeprations as of 10/5/2005.
In October 2004, AKB Izhcombank (OAO) was included in the register of the banks supporting the Deposit Insurance Scheme / DIS (Certificate of Registration for the Deposit Insurance System no. 646 as of 10/28/2004).
The auditor of the Bank is CJSC Yekaterinburg Audit Center.
JSB Izhcombank (OAO) provides all kinds of banking products and services involving Russian rubles and foreign currencies and performs operations in the securities market.

This press release is based on the current-state monitoring records for JSB Izhcombank (OAO) and materials submitted by the Bank and duly considered by CJSC AK&M Rating Agency.
The rating score, along with any information and conclusions provided in this press release, only conveys our opinion on the Bank'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, for listing bonds and for providing access to the MICEX+ trading mode). 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: Y.B. Kuznetsova
Phone no. (495) 916-70-30, fax no.: (499) 132-69-18.
E-mail: kuznetsova@akm.ru