OREANDA-NEWS. On April 29, 2008 Alfa-Banking Group, which includes Alfa-Bank and its subsidiaries, reported financial results for the full year 2007, reported the press-centre of Alfa-Bank.

In the reporting period Alfa-Banking Group recorded strong growth of its total assets to US\\$ 22,7 billion, up 49,3% from US\\$ 15,2 billion at the end of 2006. Net profit after tax grew by 33,2% to US\\$ 253,5 million, up from US\\$ 190,3 at December 31, 2006. The Group’s total gross loan portfolio grew to US\\$ 15,4 billion at December 31, 2007, a 57,1% increase compared to US\\$ 9,8 billion at December 31, 2006.

The corporate loan portfolio rose by 51,0% to US\\$ 13,5 billion, while loans to retail clients increased by 131,1% to US\\$ 1,9 billion at December 31, 2007. The retail loan portfolio share of total loans of Alfa-Banking Group increased to 12,3%, compared to 8,3% at the end of 2006.

Alfa-Banking Group has been active in the international capital markets, raising a total of US\\$ 2,4 billion in 2007. In February 2007 Alfa-Banking Group issued subordinated notes, representing Lower Tier 2 capital, in the amount of USD 300 million.

In March 2007, Alfa-Banking Group issued Euro and US Dollar denominated notes with a nominal value of EUR 145 million and USD 200 million respectively under the securitization of Diversified Payment Rights Program. In June 2007 Alfa-Banking Group issued notes under its Euro Medium Term Note Programme in an aggregate nominal amount of USD 500 million. During the second half of the year Alfa-Banking Group received 3 syndicated loans totaling US\\$ 1,3 billion.

In June 2007 Alfa-Banking Group’s shareholders contributed US\\$ 350 million to a share capital increase in order to support the rapid growth of the Group. In line with the Group’s objective of removing non-core assets from its balance sheet, the investment in CTC Media Inc. was transferred to shareholders by means of a dividend of US\\$ 92 million. By December 31 2007, total equity of Alfa-Banking Group amounted to US\\$ 1.9 billion, a net increase of US\\$ 545 million compared to December 31, 2006.

In 2007 Alfa-Banking Group continued its development as a “universal financial supermarket” that offers a complete range of quality banking services to both corporations and individuals. The Group’s business model is focused on sustainable growth in profitable business segments, investing in technology driven operating platforms and retaining highly-qualified personnel.

The Group’s clear business strategy, its analysis of market and operational risks, combined with the ability to execute set goals and objectives, has further strengthened Alfa-Bank’s position as the leading private Russian bank. The corporate and retail client base has grown considerably — by December 31, 2007 Alfa-Banking Group served over 51 500 corporate and 2,65 million retail customers, while the branch network has been extended to 304 offices across Russia and abroad, up from 229 at the end of 2006.

In March 2007 Alfa-Bank became the first bank in Russia to be assigned a BBB- bank survivability assessment by the international rating agency Standard & Poor’s. In May 2007, Moody’s Rating Services raised the bank’s credit rating to Ba1/Stable and its individual rating was upgraded to D+. Standard & Poor’s confirmed the bank’s credit rating at BB/Stable in December 2007.

In 2007, Alfa-Bank was once again recognized as one of Russia’s most transparent banks according to the “Transparency and Disclosure by Russian Banks”“research conducted by Standard & Poor’s.

Alfa-Banking Group’s IFRS figures have been audited by PriceWaterhouseCoopers.