Vozrozhdenie held 18th Annual General Shareholders’ Meeting

27 June 2008

The General Meeting of Bank Vozrozhdenie Shareholders took place today which reviewed the results for the year 2007 and the main developments for the current year, elected a new Board of directors and declared dividends.

The Meeting recognized the very satisfactory financial results and approved Vozrozhdenie’s Annual Report, Annual Accounting Statements, Income Statement and profit distribution for 2007.

In 2007, Vozrozhdenie Bank continued its stable growth even in the light of the unfavorable situation in the international markets. “Once again we demonstrated that our long-term relationships built on trust are the Bank’s most important assets. This helps us overcome the most complex tasks”, said Dmitry Orlov, President of the Bank. Assets grew by 52% in 2007 and reached 111.4 billion rubles. The overall credit portfolio grew by 49% to 78.1 billion rubles. In comparison to 2006, net profit grew by 2.4 times to 1.9 billion rubles.

Bank Vozrozhdenie is one of the few Russian banks whose shares are freely traded on Russian and foreign stock markets. The Bank has more than nine thousand private and corporate shareholders. “Shareholders are very positive about the Bank’s increasing reputation and increase in share price”, remarked Yury M. Marinichev, Chairman of the Bank’s Board of Directors. “Last year the Bank placed its 20th issue of shares, increasing the number shares outstanding to 25 million. As a result of this successful placement, the equity capital of the Bank increased from 5.5 billion rubles to 11.9 billion rubles. The fact that the American private equity fund, Brysam Global Partners, became one of Vozrozhdenie’s major shareholders at the beginning of 2008 proves the attractiveness of the Bank’s business model and high potential of share value growth.” The market capitalization increased to 1.6 billion dollars by year end.

In 2007, the Bank was more active in the debt capital markets and successfully raising funds three times: 2 syndicated loans totaling $103 million and a 3 billion debut domestic ruble bond, all at favourable rates despite the market uncertainty which had begun by the time the last syndicated loan was completed. The dollar funds were used to support foreign trade transactions of our customers and bond proceeds to support the Bank’s clients, in particular, for small and medium business loans and for consumer and mortgage loans.

The Bank has adopted a conservative plan for growth in 2008 in the light of market uncertainty. “The reduction from very rapid growth of the banking sector in the past four years will allow us to focus on the improvement of our risk management systems,” said President Dmitry Orlov. “Our priorities for 2008 include new approaches and products for small and medium businesses clients, broadening the range of loan products for larger corporate customers, completing the implementation of our new operational and accounting platform, dynamic development in the retail segment as well as strengthening the Bank’s corporate governance.”

The General Meeting of Shareholders of Bank Vozrozhdenie approved amendments to the Articles of Association, primarily minor changes to update its charter and other documents in line with changes in regulations. This included new editions of the “Regulation of the General Shareholders Meeting”, “Regulation of the Board of Directors”, “Regulation of the Executive Bodies” and “Regulation on Audit Commission of Bank Vozrozhdenie”. The Meeting also approved a new policy of compensation for directors in the “Regulation on compensation of Bank Vozrozhdenie Board of Directors Members”.

The General Meeting of Shareholders elected the following to the Board of Directors:

  • Yury M. Marinichev, Chairman of the Council of Moscow Regional Union of Consumer Cooperation
  • Dmitry L. Orlov, Chairman of the Bank’s Management Board
  • Lyudmila A. Goncharova, Deputy Chairman of the Bank’s Management Board
  • Alexander V. Dolgopolov, Deputy Chairman of the Bank’s Management Board
  • Robert B. Willumstad, Managing Partner of Brysam Global Partners
  • Alexander N. Zhizhaev, General Director of the State Unitary Enterprise of Road Passenger Transport in Moscow Region, Mostransavto
  • Valeriy P. Zhigulich, General Director of the S А. Zverev Krasnogorsk Federal Scientific Manufacturing Company
  • Nikolay S. Zatsepin, General Director of CJSC Mozhaisk Wholesale and Retail Company
  • Otar L. Margania, Senior Vice-President of Bank VTB
  • Nikita S. Mikhalkov, Film Director and Chairman of Trite Studios LLC
  • Vladimir G. Panskov, Professor of the All-Russian Financial and Economic Institute
  • Yuri V. Poletaev, former head of Moscow Narodny Bank in London

The meeting elected an Audit Committee consisting of 4 members, and also made a decision to approve related party transactions, which might be concluded only on market terms until the next General Meeting of Shareholders.

The General Meeting of Shareholders declared dividends of 5% of nominal value for ordinary shares and 20% of nominal value for preferred shares. The total amount of dividend payment is to be 14.5 million rubles.

ZAO PricewaterhouseCooper’s Audit was appointed as the official auditor of the Bank.

Minutes of the Annual General Meeting of Shareholders will be posted on the Bank’s web-site shortly.

Vozrozhdenie Bank, a community bank for companies and individuals, was founded in 1991. (General License from the Central Bank of the Russian Federation # 1439, March 24, 2003.) Among the Top 30 Russian Banks in the Central Banks rating, its network includes 171 offices and almost 600 ATMs in 20 regions of Russia. The Bank provides more than 1,150,000 individual and 49,000 corporate clients with a range of services, from savings accounts, payment handling, payroll management, to mortgages, bank cards and business and consumer loans. Vozrozhdenie is considered by Standard and Poor’s as the most transparent Russian bank from a shareholder’s perspective. According to the results of a 2007 survey the Bank was recognized as “Company of the Year” in the category “Reputation and Confidence”.

Vozrozhdenie recognized as best Russian bank in Investor Relations
The new Board of Directors of Bank Vozrozhdenie held its first session