The 'A' rating indicates that JSC IntechBank 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 Agency appreciates the continuing growth of key performance indicators (equity capital, assets, net profit, deposits of individuals), good level of capital adequacy, lack of any problems with liquidity and low credit risks.

Equity capital of the Bank has been on the upward trend which supported the rating along with its satisfactory structure. The Bank increased its equity capital by 667.0 million rub. (29,2%) due to the attraction of the subordinate credit and retained profit. The Bank's authorized capital covers 67.8% in the own capital (to compare with 23-24% in the banking sector).

The capital adequacy of the Bank is supported at rather high level, the Bank's N1 ratio was fixed within 12-15%.

The growing assets are on the positive trend and exceed the growth in the banking system at the mean. By July 1, 2013 the assets moved up 18.7% from year start; 21.1% in 2012 (same patterns in the banking system gained 6.5% and 18.9%, respectively).

The uptrend in the net revenues is considered as positive factor: in 2012 they added 17.1% to reach 89.8mln rub.; in IH 2013 – 23.6% to 73.5mln rub.

The profit is going upward as well. In IH 2013 it rallied up against prior year period: the pretax profit gained 48.9mln rub. (52.4%); after-tax profit –66.4mln rub. (101.7%).

The positive trend in the volume of the funds provided by individuals and legal persons is considered as a factor keeping up the Bank’s rating. The total volume of deposits in 2012 was fixed to move up by 1 979.5mln rub. (19.7%); in IH 2013 - 2 506.7mln rub. (20.8%).

The liquidity and credit risks criteria are far enough from the fixed limits. During the considered period none violations of the adopted standards were revealed which should be regarded as positive impact for the rating.

The rating constraints involve the unsteady structure of net revenues and rise in interest expenses moving upward at a speed well above the interest income and volume of distressed loans exceeding the average growth rate Russia's banking sector.

The unsteady structure of net revenues in 2012-2013 restrains the credit rating. The net interest income fluctuates, to a great extent, after the formation of reserves on probable losses and other net revenues. Thus, in IH 2013 the net interest income rallied up from 21% to 46%, other net revenues plunged from 69% to 37%.

The interest expenses are moving upward at a speed well above interest income. In 2012 the interest income added 17.6%; similar expenses – 19.0%. During IH 2013 the interest income increased by 12.9%; interest expenses – 46.1% against prior year period. Thus, their ratio dropped from 1.7 to 1.3 which is rather low for this index.

The volume of distressed loans in the portfolio on Sep. 1, 2013 raeched 7.4% or 3 fold higher the average growth rate in Russia's banking sector. The loans of this category increased by 211.0mln rub. or 25,4% from year start in absolute terms. In general, the loan indebtedness structure is characterized by the predominant portion of the loans of the first and second quality category.

Full name in English: Open Joint Stock Company «IntechBank».

The abbreviated name: JSC IntechBank.

JSC IntechBankhas been performing on the market of banking services since 1994. The Bank keeps a general banking license no. № 2705 as of May 17, 2012 and a banking license of Apr. 3, 2008 to accept deposits of precious metals and effect other transactions involving precious metals.

The Bank participates in the compulsory deposit insurance scheme, DIS registration certificate no. 487 from January 20, 2005.

JSC IntechBank provides the standard range of banking products and services involving Russian rubles and foreign currencies, and performs on the securities market.

The headquarters of the Bank: Sh. Mardzhani Str., 2, Kaza,. Apart from its Headquarters, the Bank's network consists of 3 branches, 6 satellite offices and 4 stand-alone cash desks. The Bank is currently active in 2 regions of the Russian Federation: Tatarstan and Moscow.

The Bank's reports are audited by Ekaterinburgsky Audit-Center (a member of nonprofit partnership SRO Audit Chamber of Russia, principal SRO registration number 10201046624).

This press release is based upon the report on the assignment of the credit rating to JSC IntechBank.

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

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 AK&M Rating Agency
ul. Gubkina 3
Moscow, Russia
www.akmrating.ru
A.G. Chumachenko
Phone no. (495) 916-70-30, fax no.: (499) 132-69-18.