Etapas del Proceso de la Investigación

1/1-30/6 2012 1/1-30/6 2011 Change Q2/2012 Q1/2012 Change Operating income 555 447 24.1% 266 289 (7.8)% General administrative expenses (238) (222) 7.3% (116) (122) (4.8)% Operating result 317 226 40.6% 150 167 (10.0)%

Net provisioning for

impairment losses 15 (4) – 14 1 >500.0% Other results 0 (15) – 10 (10) –

Profit before tax 332 206 61.4% 175 158 10.9%

Assets 17,041 13,196 29.1% 17,041 15,195 12.1% Net interest margin 4.68% 4.42% 0.25 PP 4.41% 5.01% (0.60) PP

Return on equity before tax 43.4% 33.1% 10.3 PP 45.1% 40.3% 4.8 PP

Profit before tax for the Russia segment rose by 61 per cent to € 332 million. The segment improved its operating income year-on-year thanks to an increase in its loan portfolio above that of the group aver- age, which was primarily related to large corporate customers and private individuals. Although gen- eral administrative expenses rose because of this growth, the segment's cost/income ratio still im- proved year-on-year by 6.7 percentage points to 42.9 per cent. Return on equity before tax increased significantly by 10.3 percentage points to 43.4 per cent.

Operating income

Net interest income in Russia rose by 30 per cent or € 83 million to € 362 million year-on-year. De- spite the weakening of the Russian rouble, the increase totaled 14 per cent and was primarily attribut- able to an expansion of the loan portfolio with large corporate customers and private individuals. The significant rise in interest income from derivatives, mainly resulting from a higher number of transac- tions and larger transaction volumes, also made a positive contribution to net interest income to the amount of € 70 million. This increase was based on the positioning of the Russian unit. The segment reported a year-on-year improvement in its net interest margin by 25 basis points to 4.68 per cent. Total assets grew by 29 per cent to € 17.0 billion, while credit risk-weighted assets rose by 8 per cent to € 10.1 billion as a result of a significant increase in the loan portfolio. In contrast, the first-time application of the IRB-based approach for loans in almost all non-retail asset classes reduced credit risk-weighted assets significantly.

The segment's net fee and commission income rose year-on-year by 23 per cent or € 25 million to € 135 million. Income from payment transfer business was 28 per cent higher than in the same period last year, and, at € 48 million, still provided the largest contribution to net fee and commission income. Income from foreign currency, notes/coins and precious-metals business, as well as net income from loan and guarantee business, contributed a further € 32 million and € 36 million respectively to net fee and commission income.

Segment report

RBI Semi-Annual Financial Report 2012 43 Net trading income was down 6 per cent year-on-year to € 56 million. Net income from currency-

based transactions was up € 12 million to € 44 million, primarily due to higher revaluation gains both on currency swaps held for proprietary trading and on foreign currency positions. In contrast, net income from interest-based transactions declined by € 16 million to € 12 million due to a lower portfo- lio of bonds in the trading book.

The segment's other net operating income turned around from minus € 1 million to plus € 2 million, mostly due to the release of other provisions for legal disputes that were successfully resolved during the reporting period.

General administrative expenses

The segment's general administrative expenses rose by 7 per cent to € 238 million. Higher staff ex- penses due to salary increases at the end of the previous year were primarily responsible for this in- crease. In addition, other administrative expenses rose due to deposit insurance fees, as well as adver- tising, PR and promotional expenses. The number of business outlets increased by 3 locations to 193. The cost/income ratio improved year-on-year by 6.7 percentage points to 42.9 per cent thanks to the considerable rise in operating income.

Net provisioning for impairment losses

There was a net release of € 15 million in net provisions for impairment losses, resulting in a € 19 million improvement over the same period last year. Net allocations to individual loan loss provisions rose for the loan portfolio by € 3 million to € 1 million. There was a net release in portfolio-based loan loss provisions, resulting in a year-on-year reduction of € 20 million to € 14 million. The release was due to an improvement in portfolio quality since new business was primarily concluded with better- rated customers, and old loans with poorer customer ratings matured. The ratio of non-performing loans in the loan portfolio decreased year-on-year by 1.5 percentage points to 5.7 per cent.

Other results and taxes

Other results for the Russia segment rose year-on-year by € 16 million in total to just under € 1 million. Net income from derivatives of € 5 million was due primarily to valuation gains on interest swap transactions concluded to mitigate interest rate structure risk. In the previous year, this net income was minus € 14 million. Net income from financial investments amounted to minus € 2 million and resulted from the valuation of securities.

Income taxes increased to € 77 million compared to the same period last year, while the tax rate declined by 1 percentage point to 23 per cent. Profit after non-controlling interests rose by 69 per cent to € 261 million.

Segment report

44 RBI Semi-Annual Financial Report 2012

Russia

The table below provides an overview of the country results for Russia. Any discrepancies with the values for the Russia segment are the result of equity being allocated differently. The income figures in the country overview are based on the equity reported on the statement of financial position; at seg- ment level the equity is based on actual equity used.

In € million 1/1-30/6 2012 1/1-30/6 2011 Change Q2/2012 Q1/2012 Change

Net interest income 362 279 29.7% 178 184 (3.5)% Net fee and commission income 135 109 23.1% 71 63 12.5% Net trading income 56 60 (6.2)% 15 41 (64.5)% Other net operating income 2 (2) – 2 0 –

Operating income 555 447 24.1% 266 289 (7.8)%

General administrative expenses (238) (222) 7.3% (116) (122) (4.8)%

Operating result 317 226 40.6% 150 167 (10.0)%

Net provisioning for impairment

losses 15 (4) – 14 1 >500.0% Other results 0 (15) – 10 (10) –

Profit before tax 332 206 61.4% 175 158 10.9%

Income taxes (77) (50) 54.6% (39) (38) 4.4%

Profit after tax 255 156 63.5% 135 120 12.9%

Profit attributable to non-

controlling interests 6 (1) – 9 (3) –

Profit after non-controlling interests 261 155 68.7% 144 117 24.0%

Assets 17,041 13,196 29.1% 17,041 15,195 12.1% Loans and advances to

customers 9,492 8,337 13.9% 9,492 9,485 0.1% hereof corporate % 68.6% 71.1% (2.5) PP 68.6% 69.6% (1.0) PP hereof retail % 31.4% 28.5% 2.9 PP 31.4% 30.4% 1.0 PP hereof foreign currency % 52.7% 43.5% 9.2 PP 52.7% 46.4% 6.3 PP Deposits from customers 10,625 8,283 28.3% 10,625 10,064 5.6% Loan/deposit ratio 89.3% 100.7% (11.3) PP 89.3% 94.3% (4.9) PP

Return on equity before tax 37.7% 22.2% 15.5 PP 35.2% 31.7% 3.4 PP Return on equity after tax 29.0% 16.8% 12.1 PP 27.3% 24.2% 3.1 PP Cost/income ratio 42.9% 49.7% (6.8) PP 43.6% 42.2% 1.4 PP Number of employees as of reporting date 8,015 8,628 (7.1)% 8,015 8,257 (2.9)% Business outlets 193 190 1.6% 193 192 0.5% Number of customers 2,283,450 1,950,246 17.1% 2,283,450 2,379,581 (4.0)%

Segment report

RBI Semi-Annual Financial Report 2012 45

CIS Other