Approved on May 14, 2014
by the Management Board of Bank Vozrozhdenie
Minutes datedMay 14, 2014 No. 25
QUARTERLY REPORT
Bank Vozrozhdenie
Issuer’s code: 01439-В
for the 1stquarter of 2014
Issuer’slocation: the Russian Federation, 101000, Moscow, Luchnikov pereulok, 7/4, building 1
Information within this Quarterly Report is subject to disclosure according to the legislation of the Russian Federation on securities
Deputy Chairman of the Management Boardof Bank Vozrozhdenie
Date: May ___ 2014 / ______A. Bolvinov
signature
Chief Accountant
of Bank Vozrozhdenie
Date: May ___ 2014 / ______E. Volik
signature
Contacts: ElenaAbramova
Head of theIssuable SecuritiesDivision
Corporate Department
Telephone (fax): (495) 620 18 61
E-mail:
Website where this Quarterly Report is disclosed:
Index
I. Summary of the members of the management board of the Issuer and information on bank accounts, the auditor, the appraiser and the financial adviser of the Issuer as well as the other persons who have signed the quarterly report
1.1. Persons included in the management board of the Issuer
1.2. Information on the Issuer's bank accounts
1.3. Information on the Issuer's Auditor (Auditors)
1.4. Information on the Issuer's Appraiser
The bank did not engage the Appraiser to make assessments in order to determine:
1.5. Information on the Issuer's consultants
1.6. Information on other persons who have signed the quarterly report
II. Issuer’s financial and economic performance: basic information
2.1. Issuer’s financial and economic performance indicators
2.2. Issuer's market capitalization
2.3. Issuer's liabilities
2.3.1. Loans and payables
2.3.2. Issuer's credit history
2.3.3. Issuer's obligations from the security provided to the third parties
2.3.4. Issuer's other obligations
2.4. Risks, inherent with the acquisition of the placed issuable securities
2.4.1. Credit risk
2.4.2. Country risk
2.4.3. Market risk
2.4.4. Liquidity risk
2.4.5. Operational risk
2.4.6. Legal risk
2.4.7. Reputational risk
2.4.8. Strategic risk
III. Detailed information on the Issuer
3.1. Issuer's history
3.1.1. Information on the company name (title) of the Issuer
3.1.2. Information on state registration of the Issuer
3.1.3. Information on foundation and development of the Issuer
3.1.4. Contacts
3.1.5. Taxpayer Identification Number
3.1.6. Issuer's affiliates and branches
3.2. Issuer’s main economic activity
3.2.1. Industry classification of the Issuer
3.2.2. Issuer’s main economic activity according to the All-Russia Classifier of Economic Activity
3.2.3. Information on availability of admissions (licences) or authorizations for particular types of activity
3.3. Future prospects for the Issuer's activity.
3.4. Issuer's participation in group banking, bank holdings, holdings and associations
3.5. Organisations controlled by the Issuer and that are essential for the Issuer
3.6. Composition, structure and value of the Issuer's fixed assets, information regarding plans for the acquisition, replacement, and disposal of fixed assets as well as of all the facts of encumbrance of the Issuer's fixed assets
3.6.1. Fixed assets
IV. Information on the financial and economic activity of the Issuer
4.1. Results of the financial and economic activity of the Issuer
4.2. Issuer's liquidity, capital adequacy and current assets
4.3. Issuer's Financial Investments
4.4. Issuer's Intangible Assets
4.5. Information on the policy and expenses of the Issuer in the field of scientific and technical development with regard to licences and patents, new developments and research
4.6. Analysis of development trends with regard to the Issuer's main activity
4.6.1. Analysis of the factors and conditions having an impact on the activity of the Issuer
The factors and conditions that are currently impacting on the activity of the Issuer and influencing the change of profit (loss) of the Issuer resulting from its main business activity
4.6.2. Issuer’s competitors
V. Detailed information on the persons that are a part of the Issuer's management, the bodies controlling the financial and economic activity of the Issuer and brief information regarding the officers (employees) of the Issuer
5.1. Information about the structure and competence of the Issuer's management bodies
5.2. Information on members of the management bodies of the Issuer
5.3. Information on amount of remuneration, benefits and/or reimbursement of costs for every management body of the Issuer
5.4. Information about the structure and competence of the bodies carrying out control over financial and economic activity of the Issuer
5.5. Information on members of bodies of control over financial and business operations of the Issuer
5.6. Information on amount of remuneration, benefits and/or reimbursement of costs for the body of control over financial and business operations of the Issuer
5.7. Information on the number and structure of the staff (employees) of the Issuer as well as of changes in the number of the staff (employees) of the Issuer.
5.8. Information on any Issuer's liabilities to the staff (employees) regarding possible shares in the authorized capital (associated capital, share fund)of the Issuer
VI. Information on the Issuer's Participants (Shareholders) and on the interested party transactions executed by the Issuer
6.1. Information on the total number of the Issuer's Shareholders (Participants)
6.2. Information on the Issuer's Participants (Shareholders) holding not less than five percent of its authorized (share) capital (mutual fund) or not less than five percent of its ordinary shares as well as information with regard to the persons maintaining control over such Participants (Shareholders) and, in case of the absence of such persons, information about their Participants (Shareholders) holding not less than twenty percent of the authorized (share) capital (mutual fund) or not less than twenty percent of their ordinary shares
6.3. Information on the size of the state's or municipal unit's share in the authorized (share) capital (mutual fund) of the Issuer, and the special right ("gold share")
6.5. Information on changes in the composition and amount of participation of the Issuer's Shareholders (Participants) holding not less than 5 percent of its authorized (share) capital (mutual fund) or not less than 5 percent of its ordinary shares
6.6. Information on the interested party transactions executed by the Issuer
6.7. Accounts Receivable Information
VII. Accounting (financial) statements of the Issuer and other financial information
7.1. Annual accounting (financial) statements of the Issuer
7.2. Quarterly accounting (financial) statements of the Issuer
7.3. Consolidated accounting (financial) statements of the Issuer
7.4. Information on the accounting policies of the Issuer
7.5. Information on total exports and the share of exports in total sales
7.6. Information on significant changes in the structure of the Issuer's property after the end date of the last completed financial year
7.7. Information on the Issuer's participation in legal proceedings should such participation significantly reflect on the Issuer’s business and financial performance
VIII. Additional information on the Issuer and its placed securities
8.1. Additional information on the Issuer
8.1.1. Information on the volume and structure of the authorized (share) capital (mutual fund) of the Issuer
8.1.2. Information on changes in the authorized (share) capital (mutual fund) of the Issuer
8.1.3. Information on convocation procedure and holding a meeting (hearing) of the Issuer’s supreme management body
8.1.4. Information on commercial organisations in which the Issuer owns at least five percent of authorized capital (associated capital, share fund)or at least five percent of ordinary shares
8.1.5. Information on major transactions carried out by the Issuer
8.1.6. Information on the credit rating of the Issuer
8.2. Information on each category (type) of Issuer shares
8.3. Information on previous issues of the Issuer's securities save for the Issuer's shares
8.3.1. Information on issues where all the securities have been redeemed
8.3.2. Information on unredeemed issues of securities
8.4. Information on an individual (persons) who has (have) provided security on the Issuer’s secured bonds and the conditions for securing the fulfillment of obligations on the Issuer’s secured bonds
8.4.1. Conditions regarding securing the fulfillment of obligations under the mortgage-backed bonds
8.5. Information on organisations conducting the accounts on the Issuer’s equity securities
8.6. Information on legislative acts regulating issues relating to the import and export of capital, which may affect the payment of dividends, interest and other payments to non-residents
8.7. Description of the taxation procedure of income from the placed and to be placed issuable securities of the Issuer
8.8. Information on declared (accrued) and paid dividends on the Issuer's securities, as well as on returns on Issuer's bonds
8.8.1. Information on declared and paid dividends on the Issuer’s securities
8.8.2. Information on accrued and paid dividends on the Issuer's shares
8.9. Other information
8.10. Information on presented securities and Issuer of the provided securities where the title is certified with by Russian depositary receipts
Introduction
According to cl. 5.1. of the RegulationsNo. 11-46/pz-n “On Information Disclosure by Issuers of Issuable Securities” as of October 4, 2011, the Bank performs information disclosure via the quarterly reportof the IIssuer of securities, issues and prospectus thereof were officially registered by the state, in the event ofmarket release by public offering among other partiesoutnumbering 500.
This quarterly report includes assessments and forecasts of the authorized management bodies of the Issuer regarding future events and/or actions, perspectives of the development of economy sector, in which the Issuer conducts its main activities, as well as the results of those activities, including the Issuer's plans and possibilities of occurrence of certain events and actions. The investors should not fully rely upon the assessments and forecasts of the Issuer's management bodies, as actual results of the Issuer's actions in the future may vary from the predicted results due to various reasons. Acquisition of the Issuer's securities is subject tocertain risks as defined in this quarterly report.
I. Summary of the members ofthe managementboardof the Issuer and information on bank accounts, the auditor, the appraiser and the financial adviser of the Issuer as well as the other persons who have signed the quarterly report
1.1. Persons included in the management boardof the Issuer
Information on the personal composition of the Issuer's Board of Directors:
Full name / Birth yearGoncharova Lyudmila / 1958
Dolgopolov Alexander / 1961
Zatsepin Nikolay / 1951
Lapushkin Oleg / 1941
Malinin Vladimir / 1940
Malinin Sergey / 1963
Margania Otar / 1959
Mikhalkov Nikita / 1945
Orlov Dmitry / 1943
Panskov Vladimir / 1944
Poletaev Yuri / 1943
Eskindarov Mukhadin / 1951
Chairman of the Board of Directors
Orlov Dmitry / 1943
Information on the personal composition of the Board of Directors:
Full name / Birth yearAbdullin Rushan / 1968
Bolvinov Alexander / 1962
Bondareva Tatiana / 1965
Goncharova Lyudmila / 1958
Dolgopolov Alexander / 1961
Dmitriev Evgeny / 1965
Ivanov Alexey / 1972
Malinin Sergey / 1963
Nakhmanovich Mark / 1957
Semko Mikhail / 1963
Shalimov Andrey / 1973
Information on the person holding the position of the sole executive body of the Issuer:
Full name / Birth yearDolgopolov Alexander / 1961
1.2. Information on the Issuer's bank accounts
a) Information on the Issuer's correspondent account opened at the Central Bank of the Russian Federation:
Correspondent Account Number / 30101810900000000181The Bank of Russia division holding the correspondent account / Operations Office of the Chief Administration of the Central Bank of the Russian Federation in the Central Federal District, Moscow
b) Resident credit institutions holding the Issuer’s correspondent accounts
Full company name / Abbreviated name / Location / TIN / BIC / No. of the correspondent account in the Bank of Russia, name of the Bank of Russiadivision / Account No. in the record of the credit institution-Issuer / Account No. in the record of the counterparty bank / Type of account1 / 2 / 3 / 4 / 5 / 6 / 7 / 8 / 9
VTB Bank (open joint-stock company) / OJSC VTB Bank / Bolshaya Morskaya St., 29, Saint-Petersburg, 190000 / 7702070139 / 044525187 / 30101810700000000187
in Operations Department of the Bank's of Russia Moscow Main Territorial Department / 30110840100100070101
30110978700100070101
30110810800100070101
30110826700100070101
30110810700100170101
30110810000101170101 / 30109840700000000516
30109978455550000050
30109810100000000366
30109826155550000004
30109810655550010186
30109810655550010186 / correspondent
Srednerussky bank of the Sberegatelny Bank of the russian federation (open joint stock company) / Srednerussky bank of the SBERBANK OF RUSSIA(OJSC) / Vavilova St., 19, Moscow, 117997 / 7707083893 / 044525225 / 30101810400000000225
in Operations Department of the Bank's of Russia Moscow Main Territorial Department / 30110810400100070190 / 30109810540000000015 / correspondent
c) Non-residentcreditinstitutions holding the Issuer’scorrespondent accounts
Full companyname / Abbreviated name / Location / TIN / BIC / No. of the correspondent account in the Bank of Russia, name of the Bank's of Russiadivision / Account No. in the record of the credit institution-Issuer / Account No. in the record of the counterparty bank / Type of account1 / 2 / 3 / 4 / 5 / 6 / 7 / 8 / 9
VTB BANK (DEUTSCHLAND) AG / Ruesterstrasse 7-9
60325 Frankfurt am Main, Germany / 30114978200100030100 / 0102912011 / correspondent
clearstream banking / 42 Avenue JF Kennedy, L-1855 Luxembourg, Luxembourg / 30114840100100030040
30114840900100230040 / 82999
88687 / correspondent
THE BANK OF NEW YORK MELLON / One Wall Street,
New York N.Y. 10286U.S.A / 30114840500100030116 / 890-0085-681 / correspondent
JP MORGAN CHASE BANK / 270 Park Avenue,
New York N.Y. 10017 U.S.A / 30114840500100030145 / 400920735 / correspondent
NORDEA BANK FINLAND PLC / Aleksanterinkatu 36,
00100 Helsinki, Finland / 30114978300100030110 / 20006701039367 / correspondent
COMMERZBANK AG / D-60261,Frankfurt am Main, Germany / 30114978200100030058 / 400886818400 / correspondent
UBS AG / Bahnhofstrasse 45, CH-8001, Zurich, Switzerland / 30114756200100404071
30114978800100404071 / 02300000069107050000V
02300000069107700000B / correspondent
THE BANK FOR FOREIGN ECONOMIC AFFAIRS OF THE REPUBLIC OF BELARUS / BELVNESHECONOMBANK / 32, ul. Myasnikova, 220050, Minsk, Republic of Belarus / 30114974900100030019 / 1702795130005 / correspondent
1.3. Information on the Issuer's Auditor (Auditors)
Information regarding the Auditor (Auditors) carryingout (carriedout) an independent audit of the accounting (financial) statements oftheIssuer, aswellas consolidated accounting (financial) statements of the Issuerand (or) groupoforganisationsthatare bothcontrollingandcontrolled entities tooneanotherorobligedtocompose suchstatementsby other meansand in the mannerspecifiedby federal laws, if at least one of these organisations is the Issuer (hereinafter - consolidated accounting (financial) statements of the Issuer)which is part of the quarterly report, based on the agreementas well as the information onthe auditor (auditors)approved (selected) for the audit of the annual accounting (financial) statements of the Issuer, including the Issuer's consolidated accounting (financial) statements for the current and the last complete financial year,isspecified.
Fullandabbreviatedcompany namesof the Auditor, Taxpayer Identification Number, Primary State Registration Number, Location of theAuditor:
Full company name: ZAO PricewaterhouseCoopers Audit
Abbreviated company name: PwC Audit, ZAO
Taxpayer Identification Number: 7705051102
Primary State Registration Number: 1027700148431
Location: 10 Butyrsky Val, Moscow, 125047
Telephoneandfacsimile number, e-mail (if available):
Telephone: (495) 967-6000
Facsimile: (495) 967-6001
E-mail:
Fullnameandlocationofthe self-regulatory organisation of auditors, the part of which is the Issuer's Auditor:
Self-regulatory organisation of auditors Non-profit Partnership Audit Chamber of Russia (SRO NP APR)
Location:3/9, bldg.3, 3rd Syromyatnicheskiy Lane, 105120 Moscow
Financial year (years) from the last five completed financial years and the current financial year for which the independent audit of the annual accounting (financial) statements of the Issuer has been carried out (will be carried out) by the Auditor:
2009, 2010, 2011, 2012, 2013
Type of the Issuer's accounting (financial) statementsinrespectofwhichtheindependentaudit (accounting (financial) statements, consolidated accounting statements, consolidated financial statements) has been carried out (will be carried out) by the Auditor:
Published annual financial statements prepared in compliance with the requirements of the Russian Federation's legislation; consolidated financial statements prepared in compliance with the International Financial Reporting Standards.
FactorsthatmayimpactontheindependenceoftheAuditorfromtheIssuer, including information on material interestsconnecting the Auditor (officersof the Auditor) with the Issuer (officersof the Issuer):
TherearenofactorsthatmayimpactontheindependenceoftheAuditorfromtheIssuer as well as the material interestsconnecting the Auditor (officersof the Auditor) with the Issuer (officersof the Issuer):
Approval of the Issuer's Auditor:
tender procedure for the approval of the Auditor’s candidacy and its main terms:
approvalof the Auditor’s candidacyby tender is not applicable.
ProcedureoftheAuditor's nomination for approval by the meeting of the Shareholders (Participants), including management body, approving such adecision:
TheBank'sBoardofDirectorsoffersan audit company for approval at the General Meeting of the Bank's Shareholders.
Information on the works carried out by the Auditorwithin the framework of the special Auditor's engagements.
No special Auditor's engagements have been carried out by the Auditor under Agreement No. 282 as of 30 August 2013.
TheprocedureofdeterminingtheAuditor'sremunerationamountisdescribed;the actual amount of remuneration, paid to the Auditor by the Issuerfollowing the results of thelast complete financial year when the independent audit of the accounting (financial) statements of the Issuer has been carried out, isspecified;information ondeferred and overdue amountsfor the services rendered by the Auditor.
Theamount of remuneration with regard to the rendering of auditing services is agreed with the Auditor andis approved by the Bank's Board of Directors;
RUB 8,500,000.00 rubles (excluding VAT);
therearenooverduepaymentsfor the auditing services rendered.
1.4. InformationontheIssuer's Appraiser
The bank did not engage the Appraiserto make assessments in order to determine:
the marketvalueofplacedoutstanding securities
the marketvalueofproperty, by which placed securities are paid or by which current outstanding placed securities were paid.
Collateralized bond obligationswerenotplacedbytheBank, thus, the Appraiserfor determining the market value of the property that is to be pledged hasnotbeenengagedbytheBank.
1.5. Information on the Issuer's consultants
No securities market'sfinancial consultants have been engaged in the12 months prior to the end of the financial quarter.
1.6. Information on other persons who have signed the quarterly report
ElenaVolik , 1962, Chief Accountant of Bank Vozrozhdenie by virtue of the OrderNo. 199/k as ofApril 14, 2014.
II. Issuer’s financial and economicperformance: basic information
2.1. Issuer’s financial and economicperformance indicators
Indicator dynamics, describing the financialand economic performance of theIssuer forthelastcompletefinancialyearaswellasforthethreemonthsofthecurrent yearand forthe similar period of theprevious year:
Performance indicator / 01.01.2014 / 01.01.2013 / 01.04.2014 / 01.04.2013Authorised capital, RUB thousand / 250,432 / 250,432 / 250,432 / 250,432
Own funds (capital), RUB thousand / 23,585,138 / 23,191,770 / 24,736,347 / 24,284,074
Net profit (retained loss), RUB thousand / 1,388,749 / 2,073,034 / 307 818 / 194,961
Return on assets, % / 0.66% / 1.09% / 0.60% / 0.38%
Return on equity, % / 5.85% / 9.79% / 5.17% / 3.33%
Borrowed funds (credits, deposit accounts, clients' accounts, etc.), RUB thousand / 174,439,619 / 177,581,722 / 172,901,433 / 178,318,459
Indicators' calculation methodology:
Return on assets:
(P/A*number of days in the year/number of daysin the reporting period)*100%, where:
P – valueofthenetprofitin the reporting period,
A – medium value of the assets inthereportingperiod, accordingtotheform 0409806 (calculated using the formula of the chronological average):
Assetsas of 01.01.14 =1/4*(1/2*Assetsas of 01.01.13 + Assetsas of 01.04.13 + Assetsas of 01.07.13 + Assetsas of 01.10.13+ 1/2*Assetsas of 01.01.14)
Assetsas of 01.04.14 = 1/2*Assetsas of 01.01.14 +1/2* Assetsas of 01.04.14
Returnonequity:
(P/E* numberofdaysintheyear / number of daysin the reporting period) *100%, where:
P – valueofthenetprofitin the reporting period,
E – mediumvalueoftheequity, Bank'sownfunds in the reportingperiod, accordingtotheform 0409808 (calculated using the formula of the chronological average): Equityas of 01.01.14 =1/4*(1/2* Equityas of 01.01.13 + Equityas of 01.04.13 + Equityas of 01.07.13 + Equityas of 01.10.13+ 1/2* Equityas of 01.01.14)
Equityasof 01.04.14 = 1/2* Equityas of 01.01.14 + 1/2* Equityas of 01.04.14
As of the end of 2013, the Bank has obtained RUB 1,388,749thousand of net profit, which is RUB 684,285thousand(or 33.0%) less than last year (in the year 2012 there wasRUB 2,073,034thousand).
Themainreasonattributing totheBank'snetprofitdecrease,isassociatedwiththegrowth of allocations to provisionsfor possiblelosses, formed at a time of deceleration in the Russian economy’s growthin orderto cover the increased loan portfolio'srisks. During 2013 RUB 3,813,885thousandwere allocated to theprovisionsfor loan impairment and accrued interest now stands at RUB 1,654,589 thousand(76.6%) more thanin 2012.