In the period from April 1, 2015 to April 1, 2016, the Bank's liabilities and assets increased by 19.6% and 15.3%, respectively. That said, we appreciate the outstripping growth rate of the Bank's highly liquid assets: their share in total assets increased from 9.5% to 16.6%.

The growth of liabilities was mainly driven by an inflow of client funds: since our previous review, the amount of retail deposits increased by RUB 303 million (+31%), corporate deposits by RUB 133 million (+23%).

As of June 1, 2016, the Bank's loan portfolio reached approximately RUB 2.5 billion, roughly no change against the 2015 level. At the same time, it should be noted that the relative share of overdue debt decreased from 5.1% to 3.1% this April, the average percentage in Russia's banking system being 5.7%.

As a whole, the Bank maintains a positive financial result, although its 5-month profitability weakened compared with the same period in 2015. In January-May 2016, the Bank's net profit decreased by 59% to RUB 4.3 million.

AK&M Rating Agency assigned a credit rating to CB Altaikapitalbank Limited for the first time on May 20, 2009. The last rating action in relation to the Bank was taken on July 6, 2015. All rating action announcements are available on the akmrating.ru website.

For estimation purposes, we completely rely on the reliability of information provided by the Bank. The rationale for AK&M Rating Agency's judgment on the rating may include information acquired from other sources we deem to be reliable; however, the agency does not check the input data exhaustively and disclaims all responsibility for their possible errors.

This press release is based on the monitoring results of the current credit rating assigned to CB Altaikapitalbank Limited and the Credit Rating Methodology for Banks and their Debt Instruments rev. February 25, 2016.

The rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Bank's creditworthiness and shall not be construed as a recommendation to purchase or sell securities, or to lend funds.

AK&M Rating Agency shall not be held liable 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

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www.akmrating.ru

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