The ‘A’ rating indicates that JSCB IntrustBank is qualified as a highly reliable borrower.
The key performance indicators of JSCB IntrustBank are steadily growing. In 2010, the Bank’s assets increased by 45.9% against 14.9% on average in Russia’s banking sector. As of October 1, 2011, The Bank’s assets increased by 19% year-to-date. All instruments constituting the Bank’s assets excluding net investments in securities increased. The average growth rate in Russia’s banking system was 13.7%.
There is an upward trend in the amount of the loan portfolio. In 2010, the loan debt was RUB 5,923.6 million increasing by RUB 1,831.1 million, or 44.7%, in one year. As of October 1, 2011, the loan receivables increased to RUB 7,366.0 million (by 24.3%).
Liabilities of JSCB IntrustBank are also on the rise: in 2010, they increased by 55.3% against 2009; as of October 1, 2011, they further increased by 20.9% against the start of the year.
Contributions of physical persons of the Bank are also growing. It will be noted that the growth rate of physical persons’ contributions at the Bank matched or surpassed the average value in Russia’s banking system in 2009-2011. As of October 1, 2011, the physical persons’ deposits grew by 26.7% year-to-date against 11.2% on average in Russia’s banking system.
Another positive signal for the rating score is that JSCB IntrustBank is maintains high liquidity. Quick liquidity ratio as of November 1, 2011 was 81.83%, the minimum value required being 15%. Current liquidity ratio equaled 95.7% against the minimum acceptable percentage of 50%. As a whole, the principal liquidity indicators (N2, N3) exceed the average levels in the banking system of the Russian Federation in 2011. Long-term liquidity was 41.68%, below the maximum limit of 120%.
JSCB IntrustBank has achieved good diversification of funding sources. As of October 1, 2011, funds deposited by physical persons accounted for the highest share of the Bank’s liabilities (44.4%, above the average level in Russia as of the same date (28.3%). Funds of non-credit institutions account for 32.8% of all liabilities.
Our analysis of the quality of assets and liabilities in terms of currency revealed that their balance is acceptable. On-call and overnight assets accounted for a considerable share (more than 70%) of the current (liquid) assets.
One of the things resisting a higher rating score is the unstable profit profile and the low profitability. Since 2008, pre-tax profit gradually decreased. In 2010 it plummeted to RUB 30 million from RUB 50.4 million in 2009 (by 40.6%). Furthermore, in 2010, the Bank’s net profit reached a mere RUB 5.8 million, the lowest over the period under review (2007-2011).
However, the Bank’s profit for 9 months 2011 grew considerably, which assumes it would eventually surpass the 2010 overall result. Pre-tax profit for 9 months 2011 was RUB 76.3 million, more than 3 times above the result achieved over the same period in 2010 (RUB 23.7 million). Net profit of the Bank for 9 months 2011 was RUB 46.2 million exceeding the result for 9 months 2010 (RUB 4.4 million) more than 10-fold.
Return on equity and total assets of the Bank in 2010-2011 are below the banking average.
Loan assets of JSCB IntrustBank are of low. Class 1 loans and class 2 loans together account for 47.6% of receivables, far below the average value in Russia’s banking system (81.5%). The share of doubtful loans is 46% (the average level in Russia’s banking system being 11%). Nevertheless, the share of NPLs and problem loans in the loan portfolio as of October 1, 2011 was 6.4%, below the average level in Russia’s banking system (about 7.5%).
Another negative signal for the rating score is the high concentration of the credit risk. The maximum amount of large credit risks (N7) is above the average. As of November 1, 2011, it was 537.44% (the average N7 value as of the same date in Russia’s banking system being 217.8%).
JSCB IntrustBank has been active in the market of banking services since 1994. The bank is among 500 largest banks of Russia. As of October 1, 2011, the Bank’s assets amounted to RUB 9.8 billion, equity capital is estimated at RUB 1.2 billion. JSCB IntrustBank possesses general banking license no. 3144 granted to it by the Central Bank of Russia on December 6, 2002. In September 2005, the Banking Supervision Committee of the Central Bank permitted JSCB IntrustBank to join the Deposit Insurance System (DIS). The Bank's auditor is FBK LLC (Accountants and Business Advisers LLC).
JSCB IntrustBank provides the standard range of banking products and services involving Russian rubles and foreign currencies. It specializes in lending to real economy enterprises and individual customers (physical persons).

This press release is based on the statement of assigning a credit rating to JSCB IntrustBank.
The rating score, 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, 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