The 'A+' rating indicates that JSC AIKB Tatfondbank qualifies as a highly reliable borrower. The risk of a failure to meet liabilities in time is insignificant.

We appreciate the growing key performance indicators (equity capital, assets, personal deposits, profit performance), low amount of credit risk assumed, and mature branch network as positive rating drivers for the Bank.

In 2013, equity capital of JSC AIKB Tatfondbank grew by RUB 3,673.8 million (30.6%) reaching RUB 15,682.3 million. The Bank's authorized capital amounted to RUB 12,600 million (increasing by half in 2013), accounting for 80.3% of its total equity capital.

The Bank's assets kept growing at a pace exceeding the average asset growth rates in Russia's banking sector. The Bank increased its assets by 13.5% for 9 months of 2013, by 31.6% in 2012, against the average growth rates of 9.8% and 18.9%, respectively.

Personal deposits are the main source of the Bank's obligations (46.3%). The Bank increased the amount of personal deposits by 41.1% in 2012, by 20.3% for 9 months of 2013, exceeding the average growth rates in Russia's banking sector.

We appreciate the Bank's significantly stronger profit performance. In particular, the Bank's pre-tax profit for 9 months of 2013 increased 3.6-fold year-on-year to RUB 571.0 million, net profit soared almost 9 times to RUB 387.1 million. In 2012, the Bank also improved its pre-tax profit by 52.7%, profit after tax by 78.5%.

The Bank's credit exposure is relatively low. Its liquidity ratios are comfortably far from the regulatory limits. As of January 1, 2014, N7 was 318.53%, N9.1 was 9.53%, N10.1 was 0.77%.

JSC AIKB Tatfondbank benefits from a well-developed PoS system. The Bank's retail network, apart from its HQ, comprises 6 branches, 75 satellite offices, 36 operational offices and 1 stand-alone cash desk. The Bank's presence in other regions enables it to geographically diversify its loan portfolio and funding sources.

At the same time, the rating is under pressure of a weak capital adequacy position, low return ratios, and high N4 ratio approaching the upper limit set by the Central Bank of Russia.

We regard the capital adequacy level of JSC AIKB Tatfondbank as low. While always meeting the applicable requirements of the Central Bank of Russia, the Bank's N1 ratios have been below the average level in Russia's banking sector.

The Bank's return on equity and assets ratios levels trailed the average levels in Russia's banking sector. Its ROE ratio was 5.0% in 2012, 7.9% as of October 1, 2013, against 18.2% and 16.1% in the banking sector, respectively. In 2012-2013, the ROA ratio stayed below 1% against 2.0-2.3% on average in Russia's banking sector.

The N4 (long term liquidity) ratio of JSC AIKB Tatfondbank matched or exceeded the average percentage in Russia's banking sector. As of January 1, 2014, the N4 ratio was 108.11% (against the maximum acceptable level of 120%).

Full name: Joint Stock Company 'Joint stock investment commercial Bank Tatfondbank'.

Short name: JSC AIKB Tatfondbank.

JSC AIKB Tatfondbank has been operating in the market of banking services since 1994. The Bank of Russia assigned it registration no. 3058 as of August 24, 1994.

The Bank possesses a license for banking operations involving rubles and foreign currencies (without accepting money deposits from individuals) as of October 15, 2012, a license for accepting money deposits from individuals denominated in Russian rubles and foreign currencies, and a license for accepting deposits of precious metals as of April 18, 2005.

The Bank is operating within the compulsory deposit insurance scheme, DIS registration certificate no. 96 as of October 21, 2004.

JSC AIKB Tatfondbank provides the standard range of banking products and services involving Russian rubles and foreign currencies.

Headquartered at Chernyshevskogo street 43/2, 420111 Kazan, JSC AIKB Tatfondbank Branch is operating a network comprising 6 branches, 75 satellite offices, 36 operational offices and 1 stand-alone cash desk. As of today, the bank is active in 16 regions in 5 federal districts of Russia.

The Bank's RAS reports are audited by Bankovsky Audit LLC (a member of nonprofit partnership Moscow Audit Chamber, principal number of registration entry 11203059543). The Bank's IFRS reports are audited by Ernst & Young LLC (a member of nonprofit partnership Audit Chamber of Russia, principal number of registration entry 10201017420).

This press release is based on the statement of assigning a credit rating to JSC AIKB Tatfondbank.

The credit rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Bank's credit standing 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).

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.