OREANDA-NEWS. November 25, 2009.

Financial indices as of June 30, 2009:

Total assets: US 3,822.8 million (+US 57.1 million YTD, up 2%)

Total liabilities: US 3,464.6 million (+US146.7 million YTD, up 4%)

Gross total loans to customers: US 3,552.1 million (+US 177.1 million YTD, up 5%)

Customer accounts of retail clients: US 285.5 million (+US 13.8 million YTD, up 5%)

Net interest income before provisions: US154.7 mln.(+ US20.7 million YoY, up 15%)

Cost to income ratio: 32.5% (54.8% at 1H2008)

Eurobonds exchange transaction (LPN US\\$840.6 mln.)

All figures are based on International Financial Reporting Standards (IFRS).

The Bank’s balance sheet amounted to US 3,822.8 mln. as of 30 June 2009 compared to US 3,764.6 mln. at the end of 2008. The flat 2% increase corresponds to the Bank’s conservative strategy in the difficult operating environment affected by the economic crises in Ukraine and limited access to international funding for Ukrainian borrowers.

Total gross loan portfolio grew by 5% to US 3,552.1 mln. as of 30 June 2009 from US3,375.0 mln. at the beginning of the year. Following reduction of Bank’s lending activities its retail and SME loan portfolios shrank to US620 mln. and US217 mln. at the end of June 2009, correspondingly. At the same time the Bank continued to credit the real economy, in particular, the state sector and existing clients that succeeded in readjusting their businesses to a new environment. Thus, the corporate loan portfolio increased by 18% to US2,715.1 million as of 30 June 2009 from US2,303.1 mln. at the end of first six months of 2008.

Being one of the systemic backbone banks of Ukrainian banking system, Alfa-Bank Ukraine received refinancing loans from the National Bank of Ukraine which amounted to US 225.6 million at the end of 1st half of 2009. Due to other banks comprised US724.3 million as of 30 June 2009. Alfa-Bank Ukraine raised the subordinated debt amounting to US166 mln. in March 2009 which enhanced the Bank’s capital adequacy ratio to 17.4% at the end of June 2009. Total subordinated debt comprised US\\$250.5 mln. as of 30 June 2009, an increase of 237% from the beginning of the year.

Alfa-Bank Ukraine holds leading positions in Ukraine in terms of attracting funds from retail customers during last months reflecting the Bank’s efforts in gaining market share and growing customer confidence in the Alfa-Bank’s brand. The Bank’s retail customer accounts grew by 5% to US\\$285.5 mln. for the first six months of 2009 as opposed to the reverse market trend. The Bank has also successfully launched deposit program for Small and Medium Enterprises clients and has been offering VIP-class services to wealthy individuals in the line with the international standards. There is an evident trend of customer accounts redistribution in favour of stronger banks in the Ukrainian banking sector, which gives Alfa-Bank opportunity to increase and diversify its customer base further.

Core income , defined as net interest income before provisions and net fee and commission income, increased by 15% to US167.1 mln. in the first half of 2009 from US145.6 mln. in the same period of the last year reflecting strong underlying business performance. Net interest income before provisions grew by 15% to US154.7 mln. from US134.0 mln. YoY. Net fee and commission income rose 8% YoY to US12.4 mln. due to gain increase on cash and settlement transactions commissions.

In response to deteriorating market conditions and following conservative approach to loan loss provisioning the Bank has significantly enhanced allocations to provisioning for impairment. Provisions were raised by 509%, or US352.7 million, to US421.5 million at the end of 1st half of 2009 from US69.2 mln. in the same period in 2008.

The key priority of Alfa-Bank (Ukraine) in the context of financial crisis was focus on cost control and improved efficiency. The Bank has implemented a range of cost cutting measures across all of its business lines. Consequently, staff and administrative expenses decreased by 24% to US59.6 mln. for the first six months of 2009 from US78.6 mln. for the same period in the preceding year. The Bank’s cost to income ratio improved by 22.3 percentage points to 32.5% for the 1st half of 2009 versus 54.8% for the first six months of 2008.

Careful liquidity management and smoother maturity profile of foreign borrowings due to Eurobonds exchange transaction COMPLETED IN August 2009 ensure financial stability of the Bank. Over 80% of noteholders of each of the Bank’s outstanding 2009, 2010 and 2011 Notes have elected to participate in the relevant exchange offer. Three series of new 2012 Notes issued were consolidated into one series totaling US840.6 mln. on October 30, 2009. 13% coupon Notes will be amortized in 8 equal installments by July 2012 with first principal payment due October 2010.

In May 2009, Alfa-Bank Ukraine repaid US100 mln. Loan Participation Notes. The Bank also redeemed 2 tranches of syndicated loan in the amount of US 23.5 mln. and EUR 26.9 mln. in October 2009.

Condensed Interim Financial Information and Review Report 6m 2009 can be reviewed and downloaded at http://www.alfabank.com.ua/investor/reports .

The Financial Results Presentation for 6m 2009 can be reviewed and downloaded at http://www.alfabank.com.ua/investor/Presentations .

Alfa-Bank (Ukraine) is one of the privately-owned banks in Ukraine that is part of the international Alfa Group Consortium. The Bank holds leading positions in all segments of the Ukrainian banking sector. According to National Bank of Ukraine statistics, the Bank was the 7th largest bank in Ukraine in terms of total assets and among leaders in terms of customer accounts of legal entities as of October 1, 2009.