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Presentation. July 2010. Overview. 2. Overview. Bank of Moscow’s Key Strengths and Investment Highlights. Extensive distribution network in Moscow and key Russian regions. Well-diversified and solid client base of large corporate, SME and retail clients.

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  1. Presentation July 2010

  2. Overview 2

  3. Overview Bank of Moscow’s Key Strengths and Investment Highlights Extensive distribution network in Moscow and key Russian regions Well-diversified and solid client base of large corporate, SME and retail clients 5th largest bank in Russia in terms of total assets 3rd place by volume of retail deposits provides reliable and stable funding base Strong risk profile Moody’s: Baa1 Fitch: BBB- Track record of strong support from the City of Moscow – the largest shareholder 3

  4. Shareholder Structure 4

  5. Shareholder Structure • The City of Moscow has been the largest shareholder of the Bank since the Bank was established in 1995 • Combined stake of the City of Moscow in the Bank’s share capital is 66.4%, including direct shareholding of the Property Department of the City of Moscow - 48.11% and indirect shareholding of the companies of the Capital Insurance Group - 18.29%. The Capital Insurance Group is, in its turn, controlled by the City of Moscow and the Bank of Moscow Group. • Mr. Andrey Borodin, Chairman of the Management Board, and Mr. Lev Alaluiev, citizen of the Russian Federation, indirectly jointly control 23.07% of the Bank’s share capital. • Since 2004 Bank’s shares are traded on MICEX. • The new 14th issue of shares for RUB 21 bln is planned to be completed by the middle of July 2010. As the result, the capital of the Bank will be increased to RUB 108,3 bln (USD 3,5 bln). Controlled by the City of Moscow 5

  6. Business Overview 6

  7. Business Overview Bank of Moscow’s Market Position Top Russian Banks by Net Assets (RUB, bln) Top Russian Banks by Retail Deposits (RUB, bln) 6 786 3 324 Top Russian Banks by Capital (RUB, bln) Top Russian Banks by Loan Portfolio (RUB, bln) 13 350 5 481 7

  8. Business Overview Ratings Reflect the Credibility of the Bank* A A2 A- A3 BBB+ Baa1 BBB Baa2 BBB- Baa3 BB+ Ba1 BB Ba2 BB- Ba3 B+ * Senior Unsecured Eurobond Ratings 8

  9. Current and deposit accounts Loan services Mortgages Debit and credit cards Money transfers Internet and telephone banking Internet trading (“Mos-broker”) Business Overview Business Lines Retail Banking Corporate and Investment Banking • Corporate lending • Syndicated loans • Trade finance and guarantees • Foreign trade and exchange operations • Debt Capital Markets (Local and International) • Payment and account services • Securities trading • Precious metals • Depositary services • Underwriting • Research Asset Management & Private Banking • Private asset management services • Fund management services • Mutual and pension funds • Private Banking 9

  10. Business Overview Retail Banking • No. 3 retail deposit taker in Russian Federation • RUB 177.5 bln of term deposits and current accounts of individuals as of January 1, 2010* • Approved by CBR to participate in the Deposit Insurance System • Authorised bank of the Deposit Insurance Agency to manage retail accounts of the banks with withdrawn licences • Over 9,7 million retail customers as of January 1, 2010 • As of May 1, 2010 - 13.9 mln plastic cards issued (compared to 11.0 mln as of January 1, 2009) • Variety of deposit products designed for different categories of retail customers • Wide range of services targeted at the inhabitants of the City of Moscow, including Muscovite Social Cards issued in partnership with VISA International. It is a combination of a bank debit card, an identification card, an insurance identification card and Moscow public transportation travel card designed for those Muscovites, who receive pay offs from the City’s budget. • 1824 ATMs and self-service zones inside retail locations and offices throughout the country to allow customers to get services from ATMs such as credit payments, transfers, deposits, utility and mobile communication payments, etc. • Advanced Internet and Telephone banking * Source: Bank of Moscow IFRS Consolidated Financial Statements as of December 31, 2010 10

  11. Business Overview Corporate and Investment Banking • Over 106 000 corporate clients as of January 1, 2010 • Focus on stable sectors of Russian economy • Corporate banking dominates the asset side of the balance sheet: • as of January 1, 2010* corporate loans accounted for 80.8% of the Bank’s gross loan portfolio and stood at RUB 431.7 bln* • involved in financing the key projects of the City of Moscow • Developing banking products and services targeted at SME clients • Increasingly active in trade financing • Provides payment services to commercial and public sector clients through branch network • Variety of investment banking services, including: • underwriting • debt issuance • research • asset management 11 * Source: Bank of Moscow IFRS Consolidated Financial Statements as of December 31, 2009

  12. Business Overview Correspondent Banking and Trade Finance • Over 900 correspondent banks in 104 countries worldwide, including 65 new relationships established in 2009 • Clean lines for trade related and treasury operations established by major international banks • RUB clearing bank for over 100 banks and one of the major providers of trade services in Russia • Variety of products offered: • L/C confirmations and deferred payments • Guarantees and Standby L/Cs • Post-financing • Pre-export financing • Financial with ECA coverage • Forfeiting • 22,6% growth of the trade finance portfolio in 2009, including 39,3% increase of L/G’s • Eligible partner in Russia for the overwhelming majority of ECAs worldwide • Framework Credit Agreements signed with the leading international banks for ECAs covered financing 12

  13. Business Overview Moscow-based with Wide Geographical Reach • 137 outlets and 474 desks at postal offices in Moscow and Moscow Region • 68 regional branches and 190 sub-branches • With total 394 outlets throughout the country - presence in 60 regions of Russian Federation • Foreign subsidiaries in Belarus, Latvia, Estonia, Ukraine, Serbia and Representative office in Frankfurt United Statesof America United Statesof America Norway “Eesti Krediidipank” (Tallin) Finland “Latvian Businessbank” (Riga) Petrozavodsk Estonia Vyborg Latvia Poland Kaliningrad St. Petersburg Vologda Byelorussia Arkhangelsk Velikiy Novgorod “Moscow-Minsk” (Minsk) Yaroslavl Kovrov Moscow Syktyvkar Kirov Orel Ukraine Tula Nizhny Novgorod Cheboksary Petropavlovsk—Kamchatsky Kursk Lipetsk Berezniaki “BM Bank” (Kiev) “Zarechye”(Kazan) Kazan Belgorod Perm Rostov-on-Don Russian Federation Voronezh Izhevsk Saratov Sochi Krasnodar Yekaterinburg Volgograd Samara Stavropol Maykop Yakutsk Tyumen Ufa Orenburg Chelyabinsk Vladikavkaz Astrakhan Tomsk Omsk Orsk Turkey Yuzhno—Sakhalinsk Novosobirsk Kransnoyarsk Kazahkstan Kemerovo Khabarovsk Novokuznetsk Japan Barnaul Ulan-Ude Irkutsk Iran Regional Branches China Vladisvostok Subsidiary and Affiliate Banks 13

  14. Emphasis on the further increase of risk management efficiency Rigorous control over the asset quality Credit risk diversification and strengthening of underwriting standards PRESERVE ASSET QUALITY, EFFICIENCY OF BUSINESS AND MAINTAIN THE CURRENT MARKET POSITION Business Overview Business Strategy Prudent Risk Management Policy Business Efficiency and Market Positions • Increase business efficiency • Maintain leading positions in the national banking industry • Tighten control over the quality of all business processes, costs and expenses • Increase and diversify the customer base • Maintain high quality of the loan portfolio • Provide flexible services and solutions to customers to address the current market environment Retail Banking • Increase and diversify the customer base • Maintain high quality of the loan portfolio coupled with a rise in cross selling • Provide flexible services and solutions to customers to address the current market environment Corporate Business Private Banking • Offer services to wealthy individuals in line with international standards • Retain positions in the regions • Use the regional network to diversify client and risk concentration Branch Network 14

  15. Based on recommendations and requirements of CBR, Basel Committee and auditors Single borrower/economic group limits Product type/geographic/industry concentration limits Ongoing monitoring of borrower’s condition and collateral Strengthening of underwriting standards to address the crisis Business Overview Conservative Credit and Market Risk Policies in Place Vertically integrated risk management system penetrating the Bank, incl. regional branches, with the CRO reporting directly to the CEO and the Management Board. Credit Committee, Small Credit Committee and Mortgage Committee are authorised to make independent lending decisions. Credit Risk Interest Rate Risk • Measured via gap and interest rate sensitivity models • Also employ stress testing and scenario analysis techniques • Limited open foreign currency position, stop-loss, borrower limits • Centralised control over exchange rates in currency operations • In accordance with CBR regulations, currency risk exposure cannot exceed 20% of the Bank’s aggregate capital in all currencies • Currency position is controlled by the CBR on a daily basis Currency Risk • Managed with the aid of scenario analysis, simulative, optimising and predictive modelling • Strict CBR controls on instant (N2) and current (N3) liquidity standards • Monitored on a daily basis Liquidity Risk 15

  16. Business Overview Bank of Moscow in International and Local Capital Markets Eurobonds: US$ 300,000,000 Eurobonds due the end of 2010 • CHF 250,000,000 Eurobonds due 2011 • US$ 500,000,000 Eurobonds due 2013 • US$ 750,000,000 Eurobonds due 2015 LT2 Debt: • US$ 300,000,000 Subordinated Eurobonds due 2015 • US$ 400,000,000 Subordinated Eurobonds due 2017 Local Bonds: • RUR 10,000,000,000 Bond due 2011 • RUR 10,000,000,000 Bond due 2013 • 4 senior Eurobonds issued over the last five years • 2 placements on the local debt market • 2 syndicated Term Loans outstanding • In 2010 the Bank of Moscow raised 750 US$ bln from international markets Syndicated Loans: • US$ 220,000,000 Syndicated Term Loan was repaid in 2009 • US$ 105,000,000 Syndicated Term Loan was repaid in 2010 • US$ 600,000,000 Syndicated Term Loan was repaid in 2010 • US$ 30,000,000 & EUR105,000,000 Syndicated Term Loan due 2011 • US$ 350,000,000 Syndicated Term Loan due 2011 16

  17. Financial Overview 17

  18. Financial Overview Overview of Assets Asset Composition (2009)* Assets in 2006 – 2009 (RUB bln) 100% = RUB 825,1 bln * Source: Bank of Moscow, IFRS Consolidated Financial Statements as of December 31, 2009. 18

  19. Loan portfolio is well diversified by industries and geographically, which is in line with the credit risk management approach. 40% of the Bank’s gross loan book are concentrated in regions. Focus is on the stable sectors of the Russian economy. Financial Overview Bank of Moscow’s Loan Portfolio Loan Portfolio Breakdown by Industry Sectors (2009)* * Source: Bank of Moscow, IFRS Consolidated Financial Statements as of December 31, 2009 19

  20. Financial Overview Bank of Moscow’s Loan Portfolio (Cont’d) Overdue Loans and Allowance for Loans Losses As of December 31, 2009 the provisions totalled RUB 43,3 bln. NPLs accounted for 3,94 % of the Bank’s gross loan portfolio. The NPLs are 1,9 times covered by provisions. Loan portfolio is collateralized by 1.9 times • Source: Bank of Moscow, IFRS Consolidated Financial Statements as of December 31, 2009 20

  21. Financial Overview Overview of Liabilities Liability Composition (2009) Liabilities in 2006 – 2009 (RUB bln) 100% = RUB 738,5 bln • Strong deposit and well balanced base has always been one of the key advantages of the Bank. • As of December 31, 2009, customers accounts comprised 61,1% of the Bank’s liabilities. • Customer funds increased 11,0% in 2009. * Source: Bank of Moscow, IFRS Consolidated Financial Statements as of December 31, 2009 21

  22. Financial Overview Deposit Base Composition of Client Deposit Portfolio Growth in Deposits (RUB bln) By Deposit Type By Customer Type • Continued diversification of deposit base with the following sources of state funding available: CBR funding (unsecured and secured loans, repo transactions), Ministry of Finance and funds of state-owned corporations • Authorised bank to bid for the funds of the City of Moscow placed on a tender basis. * Source: Bank of Moscow, IFRS Consolidated Financial Statements as of December 31, 2009. 22

  23. Financial Overview Profit & Loss Highlights Selected Profitability Ratios* Profit and Loss (RUB bln)* Cost/Income Ratio* Operating Income (RUB bln)* * Source: Bank of Moscow, IFRS Consolidated Financial Statements as of December 31, 2009. 23

  24. Financial Overview Capital Adequacy • As of December 31, 2009 the Bank’s total capital position was sound with a total capital ratio (Basel 1 Accord) of 18.9%. • High quality of capital: Tier 1 Capital of RUB 86,6bn with the Tier 1 ratio of 12.8%. • The 13th share issue was completed to boost the capital by RUB 20 bln in July 2009. As of January 1, 2010 the CAR (CBR N1) stood at 16.11%.* This is well above 10% minimum limit set by the Bank of Russia. • On August 3, 2009 the Supervisory Board of Vnesheconombank (VEB) decided positively on extending a subordinated loan for RUB 11.1 bn to the Bank, which will further strengthen its capitalization. Capital Adequacy Capital Base (RUB bln) min 8% (Basel 1 Accord) • Source: Bank of Moscow, IFRS Consolidated Financial Statements as of December 31, 2009 24

  25. Contact Information Address: 8/15, bldg. 3, Rozhdestvenka str., Moscow 107996, Russia Telephone: (7 495) 745 80 00, 925 80 00 Facsimile: (7 495) 795 26 00 E-mail: info@mmbank.ru Web site: http://www.bm.ru Telex: 485306 MBNK RU, 614475 MBANK RU SWIFT: MOSWRUMM Reuters dealing code: MMBM INTERNATIONAL DIVISIONFINANCIAL INSTITUTIONS Mr. Alexander NAUMOV Mr. Vladimir VASYATKIN Managing Director General Manager Tel.: (7 495) 745-8000, ext. 1168 Tel.: (7 495) 745-8000 ext. 1141 Fax: (7 495) 624-1387 Fax: (7 495) 621-1290 E-mail: Naumov_AY@mmbank.ru E-mail: Vasjatkin@mmbank.ru TRADE FINANCEFUNDING AND INVESTOR RELATIONS Mr. Alexander MUSIYKO Mrs. Anastasia BELYANINA General Manager Managing Director Tel.: (7 495) 745-8000, ext. 4217 Tel.: (7 495) 745-8000 ext. 1149 Fax: (7 495) 624-1387 Fax: (7 495) 795-3080 E-mail: Musiyko_AE@mmbank.ru E-mail: Belyanina@mmbank.ru 25

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