OREANDA-NEWS. March 25, 2008. We are advise about results of activity of RosEvroBank in 2007. Full version of financial statements (with auditors' report and notes) will; be sent to our correspondents in the middle of April 2008 together with press releases about the most remarkable events in the Bank's life in 2007.

Very briefly, in 2007 RosEvroBank achieved the following results:
Assets grew by 72% to more than USD 2 billion
Shareholders equity exceeded USD 244 million
Loan book grew by nearly 71% to more than USD 1.2 billion (however NPL are extremely low at 0.2% and the Bank did not write off any loans in 2007)
Net profit amounted USD 33 million having decreased from 2006 because of change of structure of income (now more income is generated by lending activities, previously the Bank had quite big portfolio of securities including corporate shares, this portfolio was bought in 1999 and was sold in 2005-2006).

RosEvroBank is now among Top 25 banks in Russia in terms of funds of corporate customers accumulated within the Bank and among Top 50 banks in terms of assets and equity.
In June 2007 RosEvroBank's shares were purchased by DEG (6% of shares) and by Renaissance Investment Management (6%), our shareholders are looking forward to have new equity partners in future.

RosEvroBank continues to keep excess liquidity which helps the Bank to further develop its business irrespective of the market turbulence, in 2007 the Bank achieved significant growth of corporate customers (more than 2,000 corporate customers became our customers in 2007), now more than 70% of the Bank's resources are coming from customer accounts and only 25% - from international borrowings. The Bank has stable market place not only in Moscow (where we have 11 branches) but also in regions (4 branches plus 22 credit offices). ROAE in 2007 was 16%, C/I increased from 33.7% to 51% (due to network and personnel growth - we buy offices into property). Related party's lending is relatively small (about 3%) because the other businesses of our shareholders (National Logistics Company and RosEvroDevelopment) are independent companies with foreign shareholders and they are able to raise funds by themselves.

Year of 2007 was very successfull year for RosEvroBank's international business- in April RosEvroBank raised USD 150 million through 18-month LPN issuance, in June the Bank attracted USD 45 million 2-year syndicated loan, in October RosEvroBank completed 1-year car loans-backed syndicated loan for USD 22 million, in November the Bank signed 5-years Loan Agreement with National City Bank (Cleveland, USA) for amount USD 20 million and in December RosEvroBank reached agreement about RUB 620 million 5-year credit line from EBRD to help the Bank to develop its SME lending business.

In 2008 RosEvroBank plans to achieve at least 60% growth because of SME lending business outside Moscow (provided high quality of loan portfolio will be observed), traditional corporate business in Moscow and big Russian regional cities and by retail banking services mainly for chief executives of its corporate customers. It is a decision of shareholders not to be agressive but to be conservative and maintain high quality of banking business instead of maximizing of profit and involvement into high-risk retail and consumer business with ordinary individuals.