OREANDA-NEWS. On 02 June 2008 was announced, that MDM Bank released reviewed financial results for Q1 2008 in accordance with International Financial Reporting Standards (IFRS). Net profit after tax for Q1 2008 amounted to RUB 675 million, down 52.1 percent from reported net profit for Q1 2007. The decline in profit is mainly attributed to losses from trading in securities (RUR 297 million, versus gains of RUR 471 million in Q1 2007), which have been largely reversed in the second quarter to date.

Other highlights:

Total assets decreased 5.0% from 31 December 2007 to RUB 305.5 billion (YE 2007: RUB 321.5 billion), on repayment of a syndicated loan and decline in volatile customer account balances in MDM Bank’s Latvian subsidiary, LTB;

Net interest margin declined slightly from 5.2% in Q4 2007 to 4.8%;

Total equity grew by 1.9% to RUB 39.7 billion during the quarter (YE 2007: RUB 38.9 billion);

Cost/Income ratio increased to 57.5% from 43.6% for Q1 2007, mainly due to lower revenues impacted by the losses from securities;

Deposits/Loans ratio declined slightly from 66.6% at 2007-end to 65.2%. Excluding customer accounts at LTB, deposits/loans ratio increased from 51.7% to 57.1%, on strong growth in deposits from individuals (+11.2%) as well as corporates and public entities (+12.8%);

Provision coverage of non-performing loans totaled 145.0% (177.5% and 121.7% for the Corporate & Investment Banking and Retail books respectively);

11 new points of sale opened during the period.

The full text of the financial statements for Q1 2008 can be found here: www.mdmbank.com/about/financial

The Q1 2008 results call presentation will be available before the conference call here: www.mdmbank.com/about/calls