Saint-Petersburg Commercial Bank “Tavrichesky” (joint-stock) (стр. 1 )

Saint-Petersburg Commercial Bank

“Tavrichesky” (joint-stock)

 

Financial Statements

as of Dec. 31, 2006

 

Petersburg Bank Audit

J. V. Limited

Off. 1, 33 Morskaya Embankment,

St. Petersburg,

199155

Tel: (8,

Fax: (812)

Email: pba-91@peterlink. ru

Audit Certificate

To the shareholders and the Board of Directors of Saint-Petersburg Commercial Bank “Tavrichesky” (joint-stock).

We have conducted an audit of the accompanying annual statements for Saint-Petersburg Commercial Bank “Tavrichesky” (joint-stock) (hereinafter referred to as Bank “Tavrichesky” (j.-s.)). The statements thereof include the balance sheet (as of Dec. 31, 2006), the profit and loss account, the capital report and the cash flow statement (all for the calendar year 2006). The annual results also refer to the essential aspects of the accounting policy and contain an array of notes to the financial reports.

The responsibility for these accounts preparation and their conformity to the International Financial Reporting Standards (IFRS) lies with the Bank “Tavrichesky” (j.-s.) executives. Apart from that, the Bank’s responsibility includes appropriate internal audit planning and deliverance required to make up and arrive at accurate report presentation, with no significant falsifications due to fault or fraud. The responsibility also embraces a relevant accounting policy to be chosen and applied, as well as any assumptions arising under particular circumstances.

Our responsibility as external auditors is to state whether these accounts have been presented in an accurate way, as we base our opinion on the auditing procedure conducted. We have carried out the examination in line with the Statements on Auditing Standards (SAS). According to these standards, the check should be planned and conducted by the auditor to get enough confidence that there are no serious falsifications in the financial statements. A typical examination includes carrying out verification or falsification-aimed evidence collecting procedures as regards the amounts stated and data presented. The choice of expedients is solely based on the auditor’s opinion which includes the risk profile assessment within the report of any major misrepresentation due to fault or fraud. On estimating this risk, the auditor monitors the internal audit system set-up concerning the report preparation and its non-falsified rendering. This is done in order to define ensuing auditing procedures and does not involve any opinion-giving on Tavrichesky internal audit system potency. Additionally, the audit contains relevance and validity assessment of the accounting policy and specific methods taken on by the Bank’s executives. The accounts and records have also been subject to GAAP-related scrutiny.

It is our belief that the audit conducted provides us with enough grounds to express our opinion.

As far as we are concerned, the annual accounts in all their essential aspects render in whole accuracy the financial position of Bank “Tavrichesky” (j.-s.) (as of Dec. 31, 2006) and its operations and cash flow results for the reporting period in accordance with the IFRS.

June 26, 2007

Seal:

Petersburgbank audit J. V. Limited I

Saint Petersburg

signature

Bank “Tavrichesky” (j.-s.).

Balance Sheet as of Dec. 31, 2006

(in thousand RUR)

	Note	2006	2005
Assets
Money and cash-equivalent items	5	2,205,726	1,813,609
Amounts on the Central Bank of Russian Federation obligatory reserve accounts		149,133	143,311
Fair value profit or loss-priced assets	6	4,742	7,437
Assets in other banks	7	338,352	174,020
Accounts payable and receivable	8	6,970,175	5,950,189
Available-for-sale (AFS) securities/assets	9	71,766	2,628
Other assets	11	8,689	71,040
Current claim on profit tax		9,235	12,521
Fixed assets	10	65,650	70,457
Total assets		9,823,468	8,245,212
Liabilities
Other banks’ assets	12	254,358	400,495
Clients’ deposits	13	6,017,099	4,241,700
Debt securities in issue	14	2,271,026	2,332,680
Other loan instruments	15	195,163	192,785
Other liabilities	16	38,369	14,662
Deferred taxation	24	3 280	3 784
Total liabilities		8,779,295	7,186,106
Ownership capital
Authorized capital	17	552,867	552,867
Equity gain	18	582,285	582,285
Fair value reassessment fund for AFS assets	9	1,619	-
Accumulated deficit	19	(92,598)	(76,046)
Total ownership capital		1,044,173	1,059,106
Total liabilities and ownership capital		9,823,468	8,245,212
Approved by and signed on behalf of the Board of Directors June 20, 2007
_____________________________	Chairman of the Board Somov Sergey Aleksandrovich
Seal Saint-Petersburg Commercial Bank “Tavrichesky” (joint-stock) _____________________________	Chief Accountant Goncharova Lyubov Anatolievna

The accompanying notes form an integral part of the annual accounts.

Bank “Tavrichesky” (j.-s.)

Profit and Loss Account

Financial statements for the year ended December 31, 2006

(in thousand rubles)

	Note	2006	2005
Interest gained		992,533	939,493
Interest paid		(527,739)	(487,010)
Net interest gained	21	464,794	452,483
Change in provisions for loss of value (Change in credit portfolio depreciation amounts)	8	(146,879)	(200,720)
Net interest gained after formation of provisions for loss of value		317,915	251,763
Earnings after fair value profit or loss-priced assets transactions expenses		68	3 918
Earnings after AFS assets transactions expenses		2,573	87
Earnings after forex transaction expenses		48,278	33,444
Earnings after foreign exchange revaluation expenses		(9,751)	(7,043)
Commission gained	22	109,082	69,445
Commission paid	22	(9,223)	(4,068)
Returns/losses from debts owed (by way of asset distribution) at rates below/above the market	8	(42,384)	(17,745)
Amounts of difference in AFS assets loss of value	9, 24	(238)	25
Amounts of difference in other assets and ratable liabilities loss of value	11, 26	2,861	(14,630)
Other operating revenues		15,233	30,708
Net earnings/expenses		434,414	345,904
Operation expenditure	23	(356,422)	(309,909)
Earnings before tax (EBT)		77,992	35,995
Profit tax expenditure	24	(33,980)	(22,027)
Net profit		44,012	13,968

The accompanying notes form an integral part of the annual accounts.

Bank “Tavrichesky” (j.-s.)

Capital Statement

Financial statements for the year ended on December 31, 2006

(in thousand Rubles)

	Note	Authorized capital	Equity gain	Fair value reassessment fund for AFS assets	Accumulated deficit	Total ownership capital
Balance as of Dec. 31, 2004 (before reassessment)		552,867	582,285	-	(89,234)	1,045,918
Recalculation after faults found on applying IFRS 8	3	-	-	-	6,420	6,420
Balance as of Dec. 31, 2004 (after reassessment)		552,867	582,285	-	(82,814)	1,052,338
Net profit for 2005		-	-	-	13,968	13,968
Preferred shares dividends to be paid	20	-	-	-	(7,200)	(7,200)
Balance as of Dec. 31, 2005		552,867	582,285	-	(76,046)	1,059,106
AFS assets fair value reassessment after taxes	9, 24	-	-	1,619	-	1,619
Net profit for 2006		-	-	-	44,012	44,012
2004 profit tax reassessment		-	-		(49)	(49)
Dividends stated	20
common shares	-	-		(46,115)	(46,115)
preferred shares	-	-		(14,400)	(14,400)
Balance as of Dec. 31, 2006		552,867	582,285	1,619	(92,598)	1,044,173

The accompanying notes form an integral part of the annual accounts.