General Market Information

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5 General Market Information (31 october) USD/AZN exchange rate AZN inflation rate 1.5% 5.7% 7.9% 1.1% 2.3% GDP growth 9.3% 4.8% 1.0% 2.2% 5.2% All numbers in the report are prepared according to Azerbaijan accounting standards in AZN 000, unless indicated otherwise Sources: Central Bank of Azerbaijan, World Bank

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13 Mission and Values of Rabitabank Тo be a client-oriented bank providing straightforward and comfortable banking products and quality services to micro, small and medium size companies and professionals Rabitabank values: Responsibility Transparency Teamwork Determination Efficiency

14 Our Vision To become a leading bank working with MSMEs and their owners/employees in Azerbaijan in terms of profitability as well as operations volume through excellent execution of strategy and selective mergers and acquisitions. To gradually sharpen strategic focus towards full concentration on MSMEs and synergistic retail banking. During the transition, take advantage of profitable and short-term opportunities in segments of retail banking and lucrative non-credit relations with selected corporates where the bank may have competitive edge.

15 Strategy and Financial Plan

16 Strategy Who? Micro, Small and Medium-size Enterprises in Baku, regional cities and rural areas. Selected retail segments: a) pawn-shop loans b) owners, employees and families/associates of client MSME companies c) individuals with stable incomes (government or private sector employees) in the areas where the bank can: have relatively high interest and non-interest income, measure risks, achieve time and cost-efficiency and avoid significant capital expenditure; and thereby achieve high customer-profitability Selected larger companies and affluent individuals where the management and/or the bank s shareholders have special relationships which enable: cost and time-efficient (i.e. not much management time, or distraction of key employees from core business is required for this) and profitable sales, measured and low risk, no capital expenditure and where such operations short-term and easy to discontinue.

17 Financial plan Growth of annual net profit from AZN 150 thousand to 15.3 million Increase return on average equity from 0.8% to 20.1% Growth of loans - 3.4x, average growth 25-35% per annum Growth of deposits - 3.7x, average growth 18-42% per annum Growth of assets from AZN 150 million to over AZN 500 million Growth of capital from AZN 32 million to over AZN 100 million Cost to Income ratio to improve from 91% to 47%. Loans to Deposits ratio to decrease from 116% to 106%. Capital adequacy to be within 20% - 19% range by 2017

18 Financial plan Balance sheet items 9 month 2013 Actual Plan % TA ASSETS Cash and cash equivalents % Loans to clients growth % 42% 35% 28% 25% 25% 25% Loans to customers % Other assets % Total assets % LIABILITIES Client deposits % International borrowings % Total liabilities % Shareholders equity % Total liabilities and Sh. equity % Income Statement 9 month 2013 Actual % TI Net interest income % Net non-interest income % Total income % Administrative expenses % Profit before provisions % Loan loss provisions % Profit before tax % Net income % Key ratios 9 month 2013 Actual Plan Net interest margin 7,40% 5,70% 7,20% 8,80% 8,60% 8,80% Cost / income ratio 60% 72% 56% 53% 51% 47% Return on assets 1,20% 1,30% 3,80% 4,20% 4,00% 4,20% Return on equity 5,40% 5,60% 14,80% 18,20% 18,80% 20,70% Provisions / loans 4,80% -3,70% 3,50% 3,00% 2,80% 2,80% Loans / deposits 80% 131% 119% 114% 111% 106% Capital adequacy 24,20% 27,10% 23,30% 21,50% 19,90% 18,80%

19 Supervisory Board Zakir Nuriyev Chairman of the Supervisory Board Zakir Nuriyev has been Chairman of the Supervisory Board since Prior to this, he served as the Chairman of Rabibank s management board from its inception in 1993 to Mr Nuriyev chaired Azerbaijan Banks Association in Prior to starting banking career, from 1981 to 1993, he has held various managerial roles in the Ministry of Communications. Kamal Madatov member of the Supervisory Board Kamal Madatov is one of the founders of Rabitabank. He is a serial entrepreneur, primarily in the telecoms sector. Mr Madadov has been CEO of Bakcell, a leading mobile operator. Currently his is Director of Foris telecoms company. Farhad Jafarov - Member of the Supervisory Board Finance Director at Az Eurotel LLC, a leading company in telecoms sector.

20 Management Board Nikoloz Shurgaia - Chairman of the Management Board Nikoloz has 19 years experience in banking sectors of Georgia, Belarus, Russia and United Kingdom. He is a Non-executive Director of Eurotorg Invest Bank (Belarus). Previously, Nikoloz served as the Deputy CEO of Bank of Georgia, where he was responsible for the bank s international subsidiaries and chaired Belarusky Narodny Bank. Also, he has served as independent board director at Caspian Financial Group (Kazakhstan). Earlier in his career, Nikoloz served as CEO of VTB Bank (Georgia), held senior executive roles at United Georgian Bank, was Assistant VP at ABN Amro Bank (Moscow) and Principal Banker in the EBRD s Financial Institutions team (London). Nikoloz has MBA degree from London Business School and MSc from Tbilisi State University.

21 Management Board Elchin Gadimov Deputy Chairman, Retail Banking Elchin Gadimov joined the Rabitabank in Previously he served as Deputy Chairman of the Management Board at Atabank. Prior to this, Elchin has worked in various positions at International Bank of Azerbaijan and Capital Bank. Elchin Gadimov has obtained Bachelor s and Master s degrees from Accounting and Audit Faculty of Azerbaijan State Economic University. He has MBA degree from the University of South Alabama (USA). Farhad Hajinski Deputy Chairman, Corporate and MSME banking Farhad Hajinski has joined Rabitabank in December Previously he was Investments Director at Caspian International Investment Company. Earlier in his career Farhad has held executive and professional positions at Bank Respublica, FINCA International and Germa-Azerbaijan Fund. Farhad Hajinski has graduated from Azerbaijan Medical University. He is candidate for MBA degree in Manchester Business School (United Kingdom).

22 Management Board Turan Ismayilov Deputy Chairman, Risk Management Turan Ismayilov has joined Rabitabank in Prior to this Turan was Deputy CEO at Parabank and Advisor at German Azerbaijani Fund (GAF). Turan has graduated from Finance Faculty at Khazar University and studied at Lawrence College, Technical University of Texas (USA). Eldar Aghayev Deputy Chairman, Operations and Asset Recovery Eldar Aghayev has been working at Rabitabank since Prior to joining the bank, Eldar was Deputy CEO at Azinvestbank. Eldar has graduated from Finance and Credit Faculty of Azerbaijan State Economic University.

23 2013 Financial Results

24 Balance Sheet Indicators Account name Fact 31 Oct Fact 31 Dec Growth % Plan 31 Dec Structure Cash and cash equivalents ,20% ,0% Investments and loans to banks ,60% ,5% Loans to clients (net) ,80% ,2% Fixed assets ,50% ,9% Other assets ,10% ,4% Total Assets % % Loans from banks ,20% ,0% Client deposits ,20% ,6% Current deposits ,10% ,2% deposits of individuals ,00% ,3% deposits of companies ,50% ,9% Term deposits ,20% ,4% deposits of individuals ,90% ,3% deposits of companies ,00% ,0% Other liabilities ,10% ,6% Total Liabilities ,70% ,2% Shareholders' equity ,40% ,8% Total Liabilities & Equity % % Note:All numbers in AZN' 000 and in Azerbaijan accounting standards

25 Income Expenditure Fact Fact Fact Growth Plan Jan-Oct % Jan-Oct Jan-Oct 2012 Full 2013 Structur e % Interest income % % Interest expenses % % Net interest income % % Non-interest income % % Non-interest expenses % % Net non-interest income % % Total income % % Operating expenses % % Profit bef. provisions and FX gain/loss % % Net gain/loss on FX position % -80 0% Loan loss provisions % % Profit before tax % % Tax % 626 4% Net profit % %

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