Alfa-Banking Group is one of Russia’s largest privately owned banking groups in terms of equity, assets, branches, retail deposits and funds under management.

Founded in 1990, Alfa-Banking Group offers a wide range of products and operates in all sectors of the financial market, including corporate and retail lending, deposits, payment and account services, foreign exchange operations, cash handling services, custody services, investment banking and other ancillary services to corporate and retail customers.
Alfa-Banking Group has 280 offices across Russia and abroad. The Group also operates through subsidiary banks, affiliate and branch offices in Kazakhstan, the Netherlands, Cyprus, the US and the United Kingdom and serves more than 2.6 million individual and more than 51 thousand corporate clients. These include many of Russia’s top 200 companies.
In addition to banking, Alfa-Banking Group has FSA, CySEC and NASD-regulated brokerage subsidiaries, and other companies located in Cyprus, London and New York.

Alfa-Banking Group recorded strong growth of its total assets to US$ 17.1 billion, up 12.6% from US$ 15.2 billion at the end of 2006 and representing a year-on-year increase of 38.8%. Net profit after tax for the first six months grew by 0.7% to US$ 115.6 million, up from US$ 114.8 at June 30, 2006. The Group’s total gross loan portfolio grew to US$ 11.8 billion at June 30, 2007, a 20.8% increase compared to US$ 9.8 billion at December 31, 2006. The corporate loan portfolio rose by 17.9% to US$ 10.6 billion, while loans to retail clients increased by 52.6% to US$ 1.2 billion at June 30, 2007. The retail loan portfolio share of total loans of Alfa-Banking Group increased to 10.5%, compared to 8.3% at the end of 2006.

Alfa-Banking Group has been active in the international capital markets, raising a total of US$ 1.1 billion by June 30, 2007. In March 2007, Alfa-Bank issued Euro and US Dollar denominated notes with a nominal value of EUR 145 million and USD 200 million respectively under the securitization of Diversified Payment Rights Program. In June 2007 the Group issued notes under its Euro Medium Term Note Program in an aggregate nominal amount of USD 500 million. In February 2007 the Group issued subordinated notes, representing Lower Tier 2 capital, in the amount of USD 300 million.

During the first half of 2007, Alfa-Banking Group’s shareholders contributed US$ 350 million to a share capital increase in order to support the rapid growth of the Group. In line with the Group’s objective of removing non-core assets from its balance sheet, the investment in CTC Media Inc. was transferred to shareholders by means of a dividend of US$ 92 million. By June 30, 2007, total equity of Alfa-Banking Group amounted to US$ 1.7 billion, a net increase of US$ 374 million compared to December 31, 2006.

The first half of 2007 was a period of strong growth across all business lines. Alfa-Banking Group’s business model is focused on sustainable growth in profitable business segments, investing in technology driven operating platforms and retaining highly-qualified personnel. The Group’s clear business strategy, analysis of market and operational risks, combined with the ability to execute set goals and objectives, has further strengthened Alfa-Bank’s position as the leading private Russian bank.

Alfa-Bank is one of the few Russian domestic banks that operate under international auditing standards (PricewaterhouseCoopers — since 1993).

In March 2007 Alfa-Bank became the first bank in Russia to be assigned a BBB- bank survivability assessment by the international rating agency Standard & Poor’s. In May 2007, Moody’s Rating Services raised the bank’s credit rating to Ba1/Stable and the individual rating was upgraded to D+.

In 2007, Alfa-Bank was once again recognized as one of Russia’s most transparent banks according to the “Transparency and Disclosure by Russian Banks” research conducted by Standard & Poor’s.
Alfa-Bank received Operational Risk Magazines Operational Risk Achievement Award in both 2004 and 2005 for an Operational Risk Framework at a financial institution based in an emerging market. Alfa-Bank has won numerous other awards, including Best Forex Bank in Russia in 2005 (Global Finance), Best Bank and Best Russian Brand 2006 (Inter brand Zintzmeyer & Lux AG and Business Week), Best Trade Finance Bank in Russia 2007 (Global Finance), and Best Bank in Russia 2007 (Euromoney).

Throughout its history, Alfa-Bank has supported charities, Russian culture and development programs for young talents. The Bank is member of the Corporate Club of WWF Russia (World Wildlife Foundation) and a donor to the Russian Charity “Life Line”.