OAO AIKB TATFONDBANK
(Abridged version in the form of a presentation)
Word from the Chairman of the Board of Directors and Chairman of the Board 3
General Information on the Bank
Business Card 5
The Bank’s Mission 7
Board of Directors 10
Management Board 11
Report of the Board of Directors on the Bank’s Development in Priority Areas
Priorities and Development Strategy 12
Corporate Governance 13
Corporate Structure 14
Shareholders and Capital Structure 15
Board of Directors 16
Board of Directors’ Activity 17
Board of Directors’ Committees 19
Board of Directors’ Self-Certification 21
Remuneration of Directors 22
Executive Bodies 23
Interaction of Management Bodies 24
Internal Documents 25
Application of Profits. Dividend Policy 26
Information Policy 27
The Bank and Society 28
Large Transactions Performed by the Bank in 2006 30
Information on the Bank’s Auditor 31
Business Development and Main Financial Indicators of the Bank’s Performance in 2006
Main Events 32
Main Indicators 33
Development of Clientele Base 36
Corporate Banking 37
Interbank Banking 39
Retail Banking 40
Money Market Operations 44
International Activity 47
Regional Policies 48
Risk Management 50
Information Technologies 53
Personnel Policies 54
Balance Sheet 55
Profit and Loss Statement 56
Report on Capital Adequacy Ratio, Reserves for Doubtful Loans and Other Assets 57
Audit Opinion 58
The Annual Report has been preliminary approved by the Board of Directors of
OAO AIKB Tatfondbank on 9 April 2007, the Minutes No. 7/2007.
Word from the Chairman of the Board of Directors and Chairman of the Board
(Обращение Председателя Совета директоров и Председателя Правления Банка)
DEAR SHAREHOLDERS, CLIENTS AND PARTNERS!
We would like to start summarising the results of the year 2006 with a joint statement of
the Board of Directors and the executive managers of the Bank. Understanding that attaining the
goals of the Bank’s activity lies in the field of joint responsibility of its management bodies and
their joint efforts for the fulfilment of the strategic development plans, we firmly follow the Bank’s
mission: “Each day for each customer to be a reliable partner in aspiration for the best”.
The results of the last year confirm that we were right in choosing the path of building a
universal financial institution, expanding our regional network, and rendering high-quality
banking services to all clients irrespective of their sectoral affinity and scale of activity. The policy
of reasonable conservatism, thorough consideration of all operations and precise economic
analysis has opened for the Bank the broad prospects for further successful operation. The Bank
has become more stable and reliable, stronger and more efficient. The balance-sheet total at the
end of the year was 36 billion roubles, an increase by 11 billion roubles, and its assets exceeded
30 billion roubles.
As before, one of the main factors of the stable development of OAO AIKB Tatfondbank
was it activities in the corporate banking sector. As of the end of the year, the Bank and its
branches served around 12,000 corporate clients, including the leading enterprises and
organisations of the republic, small- and medium-sized businesses, and private entrepreneurs.
In 2006, the lending portfolio grew by 32%, and its quality was improved. The Bank offers its
corporate clients the integrated programmes for resolution of their business tasks, and, owning
to its cooperation with Russian and international financial organisations, provides resources for
implementation of the long-term projects.
The Bank has been vigorously developing retail services, which enabled it to continue the
diversification of the sources of income and increase their stability. At the same time, the Bank
has been continuously refreshing the product line: flexible conditions, weighted approach to
pricing made it possible to take into account the clients’ interest to the maximum.
The development of the regional network was one of the most important tasks of the
Bank. We have increased the number of separate subdivisions, moved beyond the borders of
the Republic of Tatarstan having opened our branches in Cheboksary, Perm and Moscow. Our
plans also include expansion to the most promising Russian regions.
In 2006, the Bank continued its work in the stock market. The confidence in our Bank on
the part of Russian and foreign financial institutions has grown, which resulted in its improved
rating: Moody’s has changed its “stable” outlook of Tatfondbank’s B3 long-term foreign currency
deposit rating for “positive”. The Bank’s investment in securities grew almost 4-fold; all payments
on the second bond loan were made on time and in full; the Bank also placed its third bond loan
to the amount of 1.5 billion roubles. We have raised US$90 million by issuing credit notes, and a
syndicated loan to the amount of 600 million roubles. We have forged links with large
international financial organisations: EBRD (European Bank for Reconstruction and
Development) and IFC (International Finance Corporation, which is an independent investment
entity of the World Bank Group).
Tatfondbank has a strategic importance for the Republic of Tatarstan, a vigorously
developing Russian region, which historically has been an active participant of governmental
programmes. Having a strong growth potential, the Bank in on the threshold of a new phase in
its dynamic development and has good prospects for the implementation of its strategic plans,
which enables us to be optimistic about the Bank’s future.
The guarantee of the Bank’s success is in its weighted strategy, its management and
control system based on responsibility and clear division of authorities between each of collegial
bodies and officials, as well as in the ambitions of its management and highly professional
training of the personnel along with the use of the latest banking technologies. To pursue its
strategy, the Bank has developed and is currently implementing the programmes of actions in all
main areas of its activity. The resolution of the tasks set by the Bank is the priority for the Board
of Directors, which supports the qualitative improvement of processes taking place in the Bank.
The implementation of actions scheduled to be taken in the near future will enable the
Bank to enhance its asset growth rates, improve its efficiency, labour productivity, expand its
regional network, develop information technologies, standardise client services processes and
move up in the list of the largest banks of Russia.
We are convinced that Tatfondbank will be resolving its tasks with utmost efficiency and
will achieve new accomplishments. So far we have been successful and we do not have any
doubts that we will continue to be successful in the future.
We would like to express our sincere gratitude to all our shareholders, partners and
clients for their trust and loyalty towards Tatfondbank, for our close interaction, which makes our
cooperation mutually beneficial and long-term.
With respect and best wishes,
Marat Akhmetov Rinat Khairov
Chairman of the Board of Directors Chairman of the Board
GENERAL INFORMATION ON THE BANK
ОБЩАЯ ИНФОРМАЦИЯ О БАНКЕ:
Визитная карточка Банка
Full corporate name of the Bank: Open-end Joint-Stock Company “Joint-Stock Investment
Commercial Bank “Tatfondbank”.
Short corporate name of the Bank: OAO AIKB “Tatfondbank”.
Full corporate name of the Bank in English:
Joint Stock Company “Joint Stock Investment Commercial Bank “Tatfondbank”;
Short corporate name of the Bank in English: OAO AIKB Tatfondbank.
Head office: 43/2, Chernyshevsky St., Kazan, 420111, Republic of Tatarstan, Russian
Phone: +7(843) 291-98-00, +7(843) 291-98-84, +7(843) 291-98-10
Fax: +7(843) 291-98-45, +7(843) 291-16-25
Correspondent account: 30101810100000000815 at GRKC NB RT
License of the Central Bank of Russia No. 3058 of 24.08.1994;
License of the Federal Financial Markets Service of the Russian Federation for broker
activities No. 016-03237-100000 of 29.11.2000;
License of the Federal Financial Markets Service of the Russian Federation for dealer
activities No.016-03327-010000 of 29.11.2000;
License of the Federal Financial Markets Service of the Russian Federation for depository
activities No. 016-04195-000100 of 20.12.2000;
License of the Federal Financial Markets Service of the Russian Federation for securities
management activities No.016-03403-001000 of 29.11.2000;
License of a stock broker for performing futures and option transactions in exchange
business No. 828 of 08.06.2006;
License of the Central Bank of Russia No. 3058 of 18.04.2005 for attraction to deposits and
placement of precious metals;
License of the Central Bank of Russia No. 3058 of 17.10.1997 for operations with foreign
Membership in Russian and international associations and organisations:
OAO AIKB Tatfondbank is a member of the Banking Association of Tatarstan;
OAO AIKB Tatfondbank is a member of the Association of Russian Banks from 20.06.2006
OAO AIKB Tatfondbank is a member of the Moscow Interbank Currency Exchange
OAO AIKB Tatfondbank is a member of the Chamber of Commerce and Industry of the
Republic of Tatarstan;
OAO AIKB Tatfondbank is a member of the Society for Worldwide Interbank Financial
OAO AIKB Tatfondbank is a participant of the Russian UNION CARD Payment System;
OAO AIKB Tatfondbank is an associate member of VISA International Payment System;
OAO AIKB Tatfondbank is a participant of the Deposit Insurance System;
OAO AIKB Tatfondbank is a member of the SRO National Stock Association.
The key characteristics of OAO AIKB Tatfondbank are stability and impeccable business
reputation, financial soundness and reliability. In the Russian banking community, Tatfondbank
has long been known as a reputable, reliable and promising partner.
Moody’s Investor Service has assigned to OAO AIKB Tatfondbank B3 long-term and NP
short-term foreign currency deposit ratings; E+ financial strength rating, and Baa2.ru national
scale long-term credit rating.
Long-term foreign currency deposit rating B3, outlook ‘positive’
Short-term foreign currency deposit rating NP, outlook ‘stable’
Financial Strength Rating E+, outlook ‘stable’
According to the PROFILE Magazine, at 1 April 2006, Tatfondbank ranked 21st on the list
of top 100 most reliable Russian banks, which is compiled with account for such parameters as
capital adequacy, liquidity, profitability, clientele base development, asset structure
diversification and their riskiness (PROFILE Magazine No. 26 of 26.06.06).
According to the INTERFAX Agency, at 1 January 2007, Tatfondbank ranks 52nd in the
amount of equity capital among the largest banks of the Russian Federation.
Among the largest regional banks, Tatfondbank ranks 10th in the amount of assets.
Working in the well-developed banking services market of Tatarstan, the Bank stands firm
at the 2nd place among independent banks of the republic in such financial indicators as:
- the amount of assets;
- the amount of equity capital;
- the total amount of raised funds;
- the amount of household deposits.
To further enhance its competitiveness in the banking services market, OAO AIKB
Tatfondbank takes actions aimed at the development of the range of its products and improving
the quality of its services; expansion of the geography of fund raising, including its entrance to
international capital markets; introduction of new types of operations in domestic financial
markets; and further perfection of its technical and technological basis.
The Bank’s Mission
Each day for each customer to be a reliable partner in aspiration for the best
“Each day for each customer…
We are a universal and vigorously developing bank.
Being a leader among private banks of the Republic of Tatarstan, we are constantly improving
and systematically expanding our presence in regions of the Russian Federation, offering our
clients a complete set of modern, high-quality, and hi-tech banking services.
…to be a reliable partner…
We are close to each client.
Valuing our impeccable business reputation and strictly observing confidentiality, we use a
flexible approach to the requirements and needs of our clients, doing our best to be as close to
each of them as possible.
… in aspiration for the best”
We are a socially responsible bank.
Increasing the value of business of our shareholders, we contribute to the growth of prosperity of
our clients and local society, acting as a close-knit team of professionals and providing
maximum opportunities for self-realisation of our employees.
Shareholders of OAO AIKB Tatfondbank
at 1 January 2007
Shareholders owning a stake in the Bank’s authorised capital of over 5%:
No. SHAREHOLDER’S NAME
1 OAO Tatagroleasing 19.905
2 OAO National Holding Company of the Republic of Tatarstan 8.926
3 OAO VAMIN Tatarstan 7.645
4 OAO ARTUG 6.141
OAO Zainsky Sakhar (on 28.04.2006, the date on which the
5 register was last closed; nominee shareholder: OAO Sberbank 5.572
6 OAO Nizhnekamskneftekhim 5.193
Legal entities owning a stake in the Bank’s authorised capital of less than 5% each with the
aggregate stake of 46.555% (alphabetically):
7. GU Tatgospostavki under the Ministry of Finance of the Republic of Tatarstan
8. ZAO Depository and Clearing Company (nominee shareholder)
9. ZAO Tatgazinvest
10. ZAO “Altyn Ai” Trading House
11. OAO Adonis
12. OAO Ak Bars Bank
13. OAO Aromat
14. OAO Buinsk Sugar Plant
15. OAO Burundukovsky Elevator
16. OAO GIPRO VTI
17. OAO Gorkovsky Communication Equipment Plant n.a. A.S. Popov (on 28.04.2006, the date
on which the register was last closed; beneficial owner – ZAO IK “TatInK“)
18. OAO Kazan Meat-Packing Plant
19. OAO Karatun Granary
20. OAO NASKO
21. OAO Nizhnekamskshina
22. OAO Novaya Neftekhimia
23. OAO Nefis Cosmetics – KHK n.a. M. Vakhitov
24. OAO “Spartak” Shoe Factory
25. OAO Joint Bread Company
26. OAO Tatmetall
27. OAO Tatnefteprom
28. OAO Tatneft n.a. V.D. Shashin (on 28.04.2006, the date on which the register was last
closed; nominee shareholder: OAO Zenith Bank)
29. OAO Fund “Obrazovaniye”
30. OAO Khiton
31. OAO Special Privatisation Fund CIF APK RT Zolotoi Kolos
32. OAO TRO Kholod
33. OOO AktivAr
34. OOO Voskhod
35. OOO Idel
36. OOO IK Tatar Trust Company
37. OOO IFK FinKom
38. OOO Mart
39. OOO Interregional Auction Agency (at 1.10.2006; nominee shareholder: OAO Sberbank of
40. OOO Polyar
41. OOO STAVEST
42. OOO “Karavan Obuvi” Trading House
43. OOO “Spartak” Trading House
44. OOO UK Zolotoi Kolos (Gorno-Altaisk)
45. OOO UK Zolotoi Kolos (Kazan) (on 28.04.2006, the date on which the register was last
closed; nominee shareholder: OAO AIKB Tatfondbank)
Shareholders-physical persons owning a share in the Bank’s authorised capital less than
0.1% each with the total share of 0.063% (alphabetically):
46. R.A. Gilmanov
47. G.V. Ivanova
48. A.G. Latypov
49. O.N. Maltseva
50. G.K. Meshcherova
51. R.I. Mingazetdinov
52. I.Kh. Muginov
53. R.Z. Safiullin
54. L.L. Flyagina
Board of Directors of OAO AIKB Tatfondbank
(Elected at the Annual General Meeting of Shareholders on 8 June 2006)
Chairman of the Board of Directors
Marat Akhmetov, year of birth: 1954, Deputy Prime Minister of the Republic of Tatarstan –
Minister for Agriculture and Foodstuffs since May 1999. Graduated from the Kazan State
Veterinary Institute (1976).
Deputy Chairman of the Board of Directors
Ildus Mingazetdinov, year of birth: 1960, President of OAO AIKB Tatfondbank since June
2006. Graduated from the Kazan Institute for Finance and Economics n.a. V.V. Kuibyshev
Members of the Board of Directors
Roustem Galiakberov, year of birth: 1961, Director General of OAO Tatmetall since December
2000. Graduated from the Moscow Order of Lenin and Order of October Revolution Energy
Raikhat Garipov, year of birth: 1958, Director General of OAO “Spartak” Shoe Factory since
March 2003. Graduated from the Tatar Institute for Promotion of Business (1999).
Roza Garipova, Vice President of Renaissance Investment Management since November 2006.
Graduated from the Moscow State University of Commerce (1997), Kazan State University
(2002 – lawyer, 2003 – financial manager). Completed МВА programme of the University of
Chicago School of Business, USA (2006).
Ildar Gilmoutdinov, year of birth: 1963, Deputy Director General of ZAO “TatInK Investment
Company since January 1998. Graduated from the Kazan Institute for Finance and Economics
n.a. V.V. Kuibyshev (1990).
Gabdelnazir Karimov, year of birth: 1948, Director General of OAO Tatagroleasing since August
2005. Graduated from the Kazan State Agricultural Academy (1999).
Alexandra Morozova, member of the Council of the Reserve Fund of the President of the
Republic of Tatarstan. Graduated from the Kazan Institute for Finance and Economics n.a. V.V.
Dmitry Nagumanov, year of birth: 1950, Director for Strategic Development of OAO AIKB
Tatfondbank since 20 March 2007. Graduated from the Kazan Institute for Finance and
Economics n.a. V.V. Kuibyshev (1972).
Ildar Nikiforov, year of birth: 1959, Director General of OAO Joint Bread Company since January
2006. Graduated from the Kazan Institute of Chemical Technology (1982), Tatar Institute for
Promotion of Business (2003).
Vladimir Smirnov, year of birth: 1951, Director General of ZAO “TatInK” Investment Company
since 1998. Graduated from the Kazan Aviation Institute n.a. A.N. Tupolev (1974), Tatar Institute
for Promotion of Business (2001).
Yevgeny Tikhturov, year of birth: 1960, Head of the Financial Board of OAO Tatneft n.a. V.D.
Shashin since September 1999. Graduated from the Moscow Institute for Management (1982).
Nail Khadeyev, year of birth: 1965, Director General of OAO NASKO since January 2005.
Graduated from the Kazan Institute for Finance and Economics n.a. V.V. Kuibyshev (1989).
Alexey Chuplygin, year of birth: 1965, Director General of OAO national Holding Company of the
Republic of Tatarstan since July 1999. Graduated from the Tatar Institute for Promotion of
Business (1994), Kazan Banking School (1994).
Ilfar Yakhin, year of birth: 1963, Chief Accountant of OAO Nizhnekamskneftekhim since
September 1999. Graduated from the Kazan Institute for Agriculture (1985).
Management Board of OAO AIKB Tatfondbank
Rinat Khairov, year of birth: 1964, Chairman of the Management Board. Graduated from the
Kazan Institute for Finance and Economics n.a. V.V. Kuibyshev (1989).
Kamil Yusoupov, year of birth: 1971, First Deputy Chairman of the Management Board.
Graduated from the Kamsky Polytechnic Institute (1994), Kazan Institute for Finance and
Economics n.a. V.V. Kuibyshev (1998).
Farid Bikmoukhametov, year of birth: 1951, Deputy Chairman of the Management Board.
Graduated from the Gorky Higher School of the Ministry of Interior of the USSR (1976).
Rezeda Bikchantayeva, Chief Accountant. Graduated from the Kazan Institute for Finance and
Economics n.a. V.V. Kuibyshev (1990).
Sergey Gavrilov, year of birth: 1965, Deputy Chairman of the Management Board. Graduated
from the Kazan Institute for Finance and Economics n.a. V.V. Kuibyshev (1986).
Grigory Mikheyev, year of birth: 1970, Deputy Chairman of the Management Board. Graduated
from the St.-Petersburg State Power Engineering University n.a. V.I. Ulyanov-Lenin (1994).
Nailya Tagirova, Deputy Chairman of the Management Board. Graduated from the Kazan
Institute for Finance and Economics n.a. V.V. Kuibyshev (1994).
REPORT OF THE BOARD OF DIRECTORS
ON THE BANK’S DEVELOPMENT IN PRIORITY AREAS
PRIORITIES AND DEVELOPMENT STRATEGY
OAO AIKB Tatfondbank provides a full range of banking services to legal entities and
physical persons, cooperates with enterprises of any patterns of ownership in all sectors of the
The priorities of the activity of OAO AIKB Tatfondbank include credit financing of the real
sector of the economy. Tatfondbank ranks 2nd among independent credit organisations of the
republic in the amount of credits issued to enterprises and organisations.
Tatfondbank is a participant of federal and regional programmes aimed at financial
support of small businesses engaged in the real sector of the economy and implementing
projects related to the expansion of production, modernisation of the fixed assets, introduction of
new technologies, and the development of the innovation activity.
Special attention is being paid to working with physical persons. The Bank is timely
reacting to the changing needs of the market, constantly perfecting the traditional and
introducing new kinds of products and services. The Bank offers all types of retail operations:
consumer crediting, auto-crediting, mortgage, factoring operations, cash transfers, and
operations with plastic cards. The Bank ranks 2nd among independent financial and crediting
institutions of the Republic of Tatarstan in the volume of deposits of physical persons. Apart from
rendering the traditional service related to opening of deposits, the Bank continues to develop
the settlement system for private clients. The Bank is actively using the most popular systems of
cash transfers and performs all necessary types of settlements for citizens.
Operations with plastic cards are an important part of the work aimed at the attraction of
funds of physical persons. The strategy of the plastic cards system development is closely
interconnected with the introduction and expansion of the technical and regulatory base of the
Bank engaged in the work with plastic cards. The Bank has the status of an Associate Member
in the Visa Int. payment system and is an issuer of cards of such Russian payment systems as
Golden Crown and Union Card. In December 2005, the Bank has become a participant of the
MasterCard Int. payment system, having obtained the status of an Affiliate Member.
To ensure its further efficient growth and improved competitiveness in the financial
services market, the Bank has developed, on the basis of the marketing research,
macroeconomic model building and financial modelling, its development strategy until 2009.
Conceptually, the Bank has chosen the model of a universal commercial bank offering a
complete range of financial services, with a broad regional network, strong positions both in the
Republic of Tatarstan and in the other regions of the Russian Federation.
The Bank’s strategic priorities are:
Expansion of a range of services. Maximum improvement of quality of the client service.
Formation of a diversified structure of the Bank’s balance sheet, enhancing its investment
Upgrading the resource base, including such through attraction of foreign investment and
growth of the Bank’s clientele.
Consolidating its leading positions in the market of the Republic of Tatarstan and entering
the most promising, from the point of view of regional expansion, regions.
Maintaining the high financial stability, ensuring the long-term profitable operation subject
to risk minimisation.
Corporate governance for OAO AIKB Tatfondbank is one of the most important means to
achieve its strategic tasks.
Understanding our social responsibility, and liabilities to our shareholders and clients, and
recognising the importance of corporate governance for attaining success in its activities, the
Bank’s everyday activity in the reporting period was governed by principles set forth in the
Corporate Governance Code of OAO AIKB Tatfondbank.
The last year, we have continued to improve the corporate governance practices on the
basis of advanced standards, including the recommendations of the IFC experts given to the
Bank within IFC’s Russia Banking Sector Corporate Governance Project. The Bank’s
management not only strived for staged achieving the formal compliance of corporate
governance procedures with the recommendations of the Bank of Russia, Russian Corporate
Behaviour Code, OECD Principles of Corporate Governance, recommendations of the Basel
Committee on Banking Supervision and other generally recognised standards, but also did its
best for organising an efficient activity of the management and control bodies, for better
controllability of business, for enhancing the attractiveness of the Bank for public, clients, and
Welcoming the attention to issues pertaining to corporate governance on the part of the
Bank of Russia, the Bank is actively using recommendations stipulated in the Letters of the
Central Bank of Russia No. 119-T of 13.09.2005 “On Modern Approaches to Corporate
Governance in Credit Organisations” and No. 11-T of 7.02.2007 “On the List of Issues for
Evaluation of Corporate Governance by Credit Organisations”.
Corporate Structure of OAO AIKB Tatfondbank
GENERAL MEETING OF
CORPORATE SECRETARY BOARD OF STRATEGIC DEVELOPMENT
BOARD OF DIRECTORS STAFF AUDIT AND RISK MANAGEMENT
INTERNAL CONTROL SERVICE STAFF AND REMUNERATION
CHAIRMAN OF THE
MANAGEMENT BOARD CORPORATE GOVERNANCE
IN SECURITIES MARKET
MANAGEMENT BOARD STAFF MANAGEMENT BOARD COMMITTEES AND COMMISSIONS
INVESTMENT AND NETWORK
INTERNATIONAL CORPORATE DEVELOPMENT. RETAIL BANKING
BANKING. BANKING MARKETING.
ANALYSIS. BLOCK OF UNITS OF
PLANNING. SECURITY INFORMATION DIRECT
Shareholders and Capital Structure
(Акционеры и структура капитала)
The General Meeting of Shareholders is the supreme management body of OAO AIKB
Protection of share ownership rights of shareholders against possible infringements was
ensured in the course of the year by means of registration of ownership rights, maintaining and
keeping of the register of the Bank’s registered securities by an independent registrar, ZAO
Interregional Registration Company”, which has the relevant equipment, control systems and
impeccable reputation in the securities market.
In 2006, some shareholders used their right to freely dispose of the shares in ownership,
including the right to transfer ownership of their shares to other persons.
Структура капитала на 01.01.2006
Акционеры с долей > 5%
Акционеры с долей от 2 до 5 %
Акционеры с долей < 2%
Структура капитала на 01.01.2007
Акционеры с долей > 5%
Акционеры с долей от 2 до 5 %
Акционеры с долей < 2%
Диаграмма 1: Capital Structure at 01.01.2006
Shareholders with a stake of > 5%
Shareholders with a stake from 2 to 5%
Shareholders with a stake of < 2%
Диаграмма 2: Capital Structure at 01.01.2007
Shareholders with a stake of > 5%
Shareholders with a stake from 2 to 5%
Shareholders with a stake of < 2%
The information on changes in the composition of shareholders owning 5 or more per
cent of voting shares of the bank was disclosed in the course of the year in the form of
Statements of information which can cause material influence on the value of securities of the
joint stock company.
BOARD OF DIRECTORS
(Состав Совета директоров)
In 2006, the Board of Directors was reduced by 2 persons and elected by the Annual
General Meeting of Shareholders to consist of 15 members, 10 of which worked in the previous
Board of Directors.
Members of the Board of Directors do not have any stakes in the authorised capital and
do not own any shares of the Bank. In the reporting period, they did not perform any transactions
related to purchase or disposal of the Bank’s shares.
The absolute majority of members of the Board of Directors are top managers of
successful companies, have rich professional and managerial experience, and high reputation in
the business community of the region.
The Board consists of 6 independent directors who meet the independence criteria of the
Russian Corporate Behaviour Code and IFC, as well as the criteria set forth in the Regulations
of the Federal Financial Markets Service on the activity related to settlement of trade in
securities market, which are part of requirements of the Listing Rules of Russian stock
exchanges. They are: R.R. Garipova, Vice President of OOO UK Renaissance Capital, G.Kh.
Karimov, Director General of OAO Tatagroleasing, I.A. Nikiforov, Director General of OAO Joint
Bread Company, E.A. Tikhturov, Head of Financial Board of OAO Tatneft, N.R. Khadeyev,
Director General of OAO NASKO, and I.R. Yakhin, Chief Accountant of OAO
In December 2006, shortly before the campaign aimed at the preparation of the Annual
General Meeting of Shareholders, the Staff and Remuneration Committee adopted an Address
to shareholders of the Bank concerning the structure and composition of the Board of Directors,
and prepared its proposals on the issues related to formation of the Board of Directors, including
such related to attraction of independent directors to the Board of Directors.
Board of Directors’ Activity
(Деятельность Совета Директоров)
Fulfilling the authorities related to the general management of the Bank’s activities
delegated by the shareholders, the Board of Directors acted in the elapsed year with account for
the adopted Strategy, the results of the systematic analysis of the Bank’s financial and economic
activities, and with account for internal and external factors.
For purposes of controlling the activities of executive bodies and facilitating the qualitative
improvement of processes taking place in the Bank, the Board of Directors listened at its
meetings the regular reports of the Management Board on the implementation of the Bank’s
development plans, reports of the Internal Control Service and the Bank’s Inspector as a
professional participant of the securities market, as well as the information on the resolution in
the Bank of problems revealed by auditors, Internal Control Service of the Bank, and the
information of the fulfilment of their recommendations. Within its competence the Board of
Directors approved the development plans and the budget of the Bank, authorised large and
non-standard transactions, resolved issues related to staff appointments and election to the
Management Board of the Bank, established the procedure of remuneration of the Bank’s
managers, coordinated the composition of credit committees and participation of managers in
management bodies of other organisations, made decisions on issues related to the issue of the
Bank’s securities, spending of special purpose funds, expansion of its regional network and
With account for the established working procedures of the Board of Directors and tasks
related to the implementation of the Development Strategy of the Bank, the proposals have been
prepared on introducing the amendments and alterations to the Bank’s Charter providing for the
expansion of the competence of directors on a number of issues.
Organising the efficient fulfilment by the Board of Directors of its functions, ensuring the
compliance of procedural requirements by bodies and officials of the Bank, which guarantee the
implementation of rights and interests of shareholders owe much to special officials: President of
the Bank and Corporate Secretary of the Bank, as well as to activities of the Staff of the Board of
Directors and the Working Team for Corporate Governance, which performed their activities in
accordance with internal documents of the Bank approved by the Board of Directors.
Deputy Chairman of the Board of Directors, President of the Bank were delegated, by
decision of the Board of Directors, certain authorities of the Chairman of the Board of Directors,
which helped enhance the efficiency in exercising the authorities imposed on the Board of
There has been continued the practice of introducing to the candidates to the Board of
Directors to the requirements the members of the Board of Directors should meet according to
legislation, banking rules, internal documents of the Bank and recognised principles of corporate
governance, as well as to the other materials pertaining to the activities of the Board of Directors
by means of sending a specially developed memo before such candidates take decision to
agree to stand for election to the Board of Directors.
By the decision of the shareholders, the Regulations on the Board of Directors was
supplemented with a request to the elected members of the Board of Directors to submit
personified information by filling in the form, which was attached as an appendix to the above
mentioned Regulations, and to inform of the changes in the information given in it as such take
place. All information is being requested and processed in accordance with the Federal Law No.
152-FZ of 27 July 2006 “On Personal Data” and is used by the Bank in connection with the need
to comply with the requirements of the banking rules and the information disclosure procedure,
including such established by the Bank’s information policies.
The meetings of the Board of Directors were held in accordance with the approved plan.
The draft agendas stipulated by the plan, containing the key issues related to the Bank’s activity
lying within the scope of competence of the Board of Directors, were finalised with account for
suggestions on urgent issues made by members of the Board of Directors, the Management
Board, and managers. The plan envisioned the holding of the meetings once in every six weeks.
However, in addition to 8 planned meetings of the Board of Directors 8 more meetings were held
because of the urgent need to make decisions on additional issues.
Total issues Of them stipulated Share of planned Considered Not considered in
considered by approved plan issues out-of-time 2006*
80 38 47.5% 1 2
* Consideration of the issue on the Bank’s credit and investment policy in 2007 was postponed from November 2006 to the early
2007 in view of the absence of the key annual planning parameters. The issue of payment of remuneration to members of the
Board of Directors of OAO AIKB Tatfondbank will be considered, in accordance with the newly adopted system of remuneration
of directors, after the Annual General Meeting of Shareholders based on results of 2006.
Members of the Board of Directors and all its Committees were duly informed of the
meetings of the Board of Directors and its Committees well in advance by mail, facsimile and
electronic mail. Information (materials) for the meeting (draft decisions, explanatory notes, draft
internal regulatory acts and documents suggested for consideration, etc.), were also sent to
participants of the meeting in advance, except for materials of informative nature and such that
did not require preliminary study. The complete set of information and materials was provided to
each member of the Board of Directors just before the meeting.
When it was impossible for some members of the Board of Directors to be present at the
meeting in person, they used, after studying the preliminary materials, their right to send written
opinion on the issues included on the agenda for consideration.
To ensure the efficient work, the members of the Board of Directors had access,
throughout the year, to all necessary information enabling them to make judgments on the
issues under consideration and make the reasonable decisions. To put in order the regular
reporting of executive bodies in what refers to its scope and timing, the Board of Directors
approved in 2006 the “List of Information and Managerial Reports Submitted to the Board of
The current control over the implementation of decisions made by the Board of Directors
is exercised by the President, Corporate Secretary and the Staff of the Board of Directors of the
Information on the Meetings Held
Number of meetings Written
Total Regular Absentee considered quorum
2005 14 13 1 0 68 61.9
2006 16 16 0 6 87 64.5
Change, % 114% 123% 0% 128% 108%
Board of Directors Committees
Комитеты Совета директоров
Over the year, there has been adjusted the practice of preliminary consideration of the
most important issues suggested for consideration at a meeting of the Board of Directors by
committees for strategic development, for audit and risk management, for staff and
remuneration, and for corporate governance (within the scope of their competence). Such
practice ensures the implementation of managerial and control authorities of the Board of
Directors, since it makes it possible to better understand the essence of the issues under
consideration and make reasonable decisions on the basis of the expressed opinions of the
members of the Committees and their recommendations. The work of the Committees of the
Board of Directors was organised on the basis of the approved plans for the period of authority
broken down by months. Based on the results of consideration of issues, the Committees
prepared the relevant recommendations to the Board of Directors or executive bodies of the
Thus, the Strategic Development Committee carried out preliminary consideration of
quarterly reports of the Management Board on the Bank’s development plan implementation, the
draft Regulations on the Bank’s Strategic Planning, suggestions on the procedure of profit
distribution, funds formation and the Bank’s dividend policies.
The Audit and Risk Management Committee discussed the organisational structure of risk
management at the Bank, prepared recommendations on further improvement of the Bank’s
policy of risk evaluation and management, on operational risks management, on a system of
legal risk management, and on the business reputation risk management, listened to the report
on the implementation of recommendations given based on the results of the audit check and
based on the results of checks of the Internal Control Service.
The Staff and Remuneration Committee considered suggestions on the procedure of
evaluation of the Board of Directors’ activities, discussed the criteria for determination of the
amounts of payments to directors and the draft new wording of the Regulations on remuneration
of members of the Board of Directors, and prepared an Address to shareholders of the Bank on
the issues related to the formation of the Board of Directors.
The Corporate Governance Committee prepared the proposals on the development of the
Bank’s standpoint at General Meetings of Shareholders in which the Bank takes part and on the
preparation of the relevant recommendations to representatives of the Bank at such meetings.
Based on the recommendation of the Bank, there has prepared a memo to the representative of
shareholders on the Board of Directors and at the General Meetings of Shareholders of
economic entities. Following the consideration of ratings of web sites of various banks, published
in EXPERT VOLGA magazine, the Committee prepared recommendations on the improvement
of the Bank’s web-site and suggested considering their implementation at a meeting of the
Board of Directors.
In the reporting period, there existed the practice of holding the joint meetings of the
Committees of the Board of Directors. Members of the Strategic Development Committee and
the Staff and Remuneration Committee listened to the report of the Director of the Personnel
Department about the work on the implementation and improvement of the Bank’s personnel
policies, including such related to motivation of employees and staff reserve planning, discussed
the proposals on the system of bonuses to employees of the Bank and a draft proposal on the
procedure of performing certain non-standard transactions, including the transactions with
persons connected with the Bank, considered the results of checking the spending of cash funds
from the special purpose fund in accordance with the established procedure of profit distribution,
carried out by the Internal Control Service by instruction of chairmen of the mentioned
committees, considered the issues related to preliminary results of the Bank’s performance in
2006 and the Development Plan, the budget (including the cost estimate) and the key
parameters of efficiency in the main areas of the Bank’s activities for 2007. The joint meetings of
the Corporate Governance Committee and the Staff and Remuneration Committee considered
the results of the analysis of fulfilling the procedure of participation of the members of the Bank’s
Board of Directors in the management bodies of other entities established by the Regulations on
the Board of Directors.
The Regulations on the Committees of the Board of Directors of OAO AIKB Tatfondbank
provides for the possibility of attracting experts who are not members of the Committees and
possessing the necessary professional knowledge, and the right of every member of the
Committee to request to attract for work on contractual basis, at the expense of the Bank, of an
expert (organisation) for rendering legal, advisory or other services on the issues within the
scope of competence of the Committee.
Composition of the Board of Directors’ Committees
Strategic Corporate Audit and Risk Staff and
Status Development Governance Management Remuneration
Committee Committee Committee Committee
Ildus Mingazetdinov Vladimir Smirnov Roza Garipova * Ildar Nikiforov *
Gabdelnazir Karimov* Rustem Galiakberov Evgeny Tikhturov * Rustem Galiakberov
Alexandra Morozova Raikhat Garipov Nail Khadeyev * Ildus Mingazetdinov
Ildar Nikiforov * Ildar Gilmoutdinov Ilfar Yakhin * Alexey Chuplygin
* independent directors.
Board of Directors’ Self-Certification
Самооценка работы Совета директоров
In accordance with the Corporate Governance Code of OAO AIKB Tatfondbank, the
Board of Directors made a decision in 2006 to introduce a system of its self-certification in
general and self-certification of every member of the Board of Directors individually. Considering
the absence of a universal or generally recognised evaluation system, the Board of Directors of
the Bank analysed the practices of Russian companies in this field and identified the basic
principles and mechanisms of this process and fixed them in the Regulations on the procedure
of evaluating of activities of the Board of Directors of OAO AIKK Tatfondbank. The Staff and
Remuneration Committee was instructed to organise the evaluation of the Board of Directors’
work within the period of preparing for the Annual General Meeting of Shareholders of the Bank.
Introducing the system of evaluation of its activity, the Board of Directors aims to attain
the following goals:
Establishing the level of efficiency of the Board of Directors’ activity as a collective body
of the Bank’s management;
Identifying the areas where the activity of the Board of Directors and its individual
members could be improved;
Intensifying the work of the Board of Directors and increasing the contribution of its
members into implementation of its functions;
Obtaining an opportunity to timely amend the plans and working methods of the Board
of Directors and each of its members;
Attaining an optimal balance between the resolution of strategic management tasks,
observance of interests of owners and the regular control over the work of the Bank’s
Consolidating trust of shareholders in the Board of Directors;
Further improving the corporate governance and enhancing the investment
attractiveness of the Bank;
Establishing a correspondence between the size of remuneration of the members of the
Board of Directors and the scope (complexity) of the fulfilled functions and personal contribution
into the resolution of the Bank’s tasks;
Having an opportunity to take into account the results of evaluation for election of the
new Board of Directors.
Remuneration of Directors
The new wording of the Regulations on the Board of Directors adopted at the General
Meeting of Shareholders on 8 June 2006 included the following principles used for establishing
the amount and payment of remuneration to members of the Board of Directors:
Ensuring a minimum amount of remuneration, the same for all directors.
Dependence of the size of remuneration on personal participation of a member of the
Board of Directors in the work of this management body and on the results of the Bank’s
Taking into account the term of fulfilling the duties on the Board of Directors and
stimulation of the pro-active position of each director in the resolution of issues lying within the
scope of competence of the Board of Directors.
Taking into account the objective evaluation of activity of each director within the term of
Additional stimulation of directors fulfilling the duties of chairmen of committees of the
Board of Directors.
Payment of remuneration following the approval of the Bank’s Annual Report at the
General Meeting of Shareholders and calculation of remuneration over the term of office of
In accordance with these principles and by recommendation of the Staff and
Remuneration Committee, one of the first meetings of the new Board of Directors has approved
a new wording of the Regulations on Remuneration of Members of the Board of Directors of
OAO AIKB Tatfondbank providing for a differentiated approach to charging fees to directors over
the term of their office depending on their personal attitude (extra remuneration for taking part in
regular meetings; for participation in making decisions in the course of absentee vote or
submitting written opinions on issues included on the agenda of the regular meeting; for taking
part in the work of committees of the Board of Directors; and for fulfilling additional duties), as
well as on the results of the Bank’s performance (for growth of capitalisation). The Board of
Directors also made a decision to submit these Regulations for approval of the General Meeting
For this reason, remuneration to members of the Board of Directors for 2006 was not
calculated and was not paid. This issue shall be considered at the meeting that immediately
follows the Annual General Meeting of Shareholders.
In accordance with the Charter, the current management of the Bank’s activities is
performed by the sole executive body – Chairman of the Management Board – and a collegial
executive body of the Bank – the Management Board, which are entrusted with high degree of
independence for purposes of ensuring the efficient management of the Bank.
The most complex issues of everyday management of the Bank affecting materially the
current operation and requiring collegial consideration are resolved by the Management Board.
Under the Management Board, there have been established and operate as permanent working
bodies the Financial Committee and Committee for Products and Sales, whose task is to discuss
and develop recommendations and make decisions, within their scope of authority, on the issues
lying within the scope of competence of the Management Board.
The Chairman of the Management Board and members of the Management Board of the
Bank do not have any interests in the authorised capital and do not own any shares of the Bank.
In the reporting period, they did not perform any transactions related to purchase or disposal of
the Bank’s shares.
Remuneration of the members of executive bodies in the course of the year was
performed in accordance with the procedure of payment of remuneration approved by the Board
of Directors for each of the mentioned persons based on the use of the key performance
indicators (KPI). The Bank does not provide for additional remuneration for the work in the
The total payroll bill of the Management Board consisting of 9 persons totalled in 2006
Interaction of Management Bodies
Взаимодействие органов управления
Interrelations between management bodies of the Bank are being built based on the
principle of clear division of their authorities, as well as on inadmissibility of unwarranted
interference of the Board of Directors and shareholders with the everyday activities of the
executive bodies and limiting of their capacity to promptly resolve issues related to the Bank’s
operation with account for the changing economic situation.
In the course of the year, the executive bodies were ensuring the provision of the
necessary data to the Board of Directors and shareholders in the scope established by internal
documents and in accordance with their requests, and provided regular reports on the state of
affairs at the Bank, on the new areas of activity, on the course of implementation of the yearly
development plan, on the implementation of decisions of the superior bodies, on the actions
taken based on the results of checks carried out by the Audit Commission and the Bank’s
Inspector, and on other issues.
The Management Board also paid great attention to preliminary expertise of materials
suggested for consideration by the Board of Directors. The management of the Bank, Board of
Directors and its committees worked together to further improve the internal control system, the
risk evaluation and management system, and further perfect the procedures related to other
areas of activity. The yearly work plan of the Internal Control Service approved by the Board of
Directors was previously coordinated with the Chairman of the Management Board of the Bank.
Chairman of the Management Board and members of the Management Board in the
reporting period used the following rights stipulated by the Corporate Governance Code of the
- to prepare recommendations and make proposals concerning the agenda of the
meetings of the Board of Directors of the Bank;
- to apply to chairmen of the committees of the Board of Directors with proposals on
consideration of issues within the scope of competence of the relevant committee, and to attend
the meetings of the committees dedicated to consideration of issues suggested by them;
- to elaborate and submit for consideration of the Board of Directors the proposals on
amendment (adjustment) of the approved development plans of the Bank;
- to attend the General Meetings of Shareholders convened by the Board of Directors,
and, by invitation of the Chairman of the Board of Directors, to attend the meetings of the Board
of Directors of the Bank.
Much has been done in the Bank to further improve the corporate governance in the field
of perfection of internal regulatory and legal base. By suggestion of the Board of Directors, the
shareholders approved the Regulations on the General Meeting of Shareholders, the new
wordings of the Charter of the Bank, the Regulations on the Audit Commission, on the Board of
Directors, on executive bodies, which made it possible to clearly divide the functions and
responsibility of the Bank’s bodies, distinguish their authorities and establish the requirements
applied to their members.
For purposes of introducing the elements of best practices in the field of corporate
governance, the Board of Directors introduced in the reporting period the amendments and
additions to the Corporate Governance Code, the Regulations on Committees of the Board of
Directors, on the Procedure of Monitoring the Internal Control System, on Information Policies;
adopted new wordings of the Regulations determining the policy of the Bank in such areas as
risk evaluation and management, crediting of different categories of clients, payment and
stimulation of labour of employees, motivation of managers. The Board also adopted a number
of new documents: the Regulations on Strategic Planning, Procedure of Performing Certain
Non-standard Transactions, including such with persons connected with the Bank, Regulations
on the Procedure of Evaluation of Activity of the Board of Directors, etc.
When refining the Charter and internal documents of the Bank, special attention was paid
to increasing the role and efficiency of activity of the Board of Directors and its committees so
that the functions lying within the scope of their competence were permanently represented in
the actual work of these bodies.
This rule-making activity is systematic and controlled and will be continued on the basis of
permanent monitoring of legislative and regulatory requirements, study of the available
recommendations and the current practice of corporate governance of Russian and foreign
Application of Profits. Dividend Policy
Использование прибыли. Дивидендная политика.
In 2006, the Board of Directors paid considerable attention to ensuring one of the basic
rights of shareholders – the dividends right. For purposes of observation and protection of this
right, the Board of Directors and its Committees many times considered the issues of further
improvement of the Bank’s profits allocation policy. As a result of this work, the Board of
Directors approved and recommended for approval to the General Meeting of Shareholders the
draft new wording of the Regulations on Allocation of Profits of OAO AIKB Tatfondbank,
providing for the creation of two new funds – the Capitalisation Fund, whose funds will solely be
used for payment of dividends and increasing the authorised capital of the Bank, and the Fund
of the Bank’s Corporate Social Responsibility. This Regulations stipulates that at least 50% of
the annual profit of the Bank will be used to form the Capitalisation Fund and pay the dividends.
The Board of Directors also prepared proposals to the General Meeting of Shareholders
on redistribution of balances of the Bank’s funds accrued on the date of its holding and
allocation of over a half of these funds to the Capitalisation Fund.
Besides, the Board of Directors approved the Regulations on the Dividend Policy of the
Bank, which stipulates the principles and approaches of the Board of Directors to elaboration of
recommendations to the General Meetings of Shareholders concerning the size, conditions, and
procedure of payment of dividends on the Bank’s shares, and the Regulations on the procedure
of formation and application of the Bank’s funds, which stipulates the types, sources and
procedure of formation, goals and areas of application of the Bank’s funds.
The meetings of the Board of Directors regularly approved the spending of cash funds
from the Bank’s special purpose funds. The Board of Directors also established a limit with
respect to the non-recurrent expenditures from the Bank’s special purpose funds, which could be
incurred without its prior consent.
Implementation of the new policy of profits application will make it possible to ensure
optimal ratios of the used and capitalised portions and prepare the Bank for the payment of
dividends on the Bank’s shares starting from the distribution of profits based on the results of
The purpose of the information policy of OAO AIKB Tatfondbank is to ensure the right of
shareholders to obtain information on the Bank’s activity and the maximum possible satisfying
the need of other interested persons (potential investors, clients of the Bank, professional
participants of securities market, etc.) in the true information on the Bank. The information policy
of the Bank is aimed at timely provision of the shareholders with information, which is essential
for enabling them to make investment and managerial decisions, as well as at the protection of
confidential information on the Bank, the disclosure of which could harm the interests of the
Bank and its shareholders. The basic principles of the Bank’s information policy are regularity,
promptness, accessibility, truthfulness, completeness, balance, neutrality, and security of
The rules and approaches of the Bank to the disclosure of information and documents, as
well as their composition, the ways and terms of their submission have been established by the
Regulations on Information Policy of OAO AIKB Tatfondbank approved by the Board of
Directors. In particular, there has been established the procedure of submission of documents to
owners of securities of the Bank and other interested persons; the procedure of using the insider
information and information which contains official or commercial secrets; and the procedure of
obtaining of information by the Bank.
In the reporting period, the Bank ensured the timely and accurate disclosure of
information on all material issues related to the Bank’s activity by meeting the requirements of
legislation, the federal body of executive power for securities market and the Central Bank of the
Russian Federation, as well as by disclosing, of its own free will, the additional information. For
this purpose, the Board of Directors took actions, based on the monitoring of requests of
investors, to improve the composition of the disclosed information and the ways of its disclosure.
The work has been done to update the web site of the Bank, which is used to publish the
most significant materials and statements. As a result, the site has become more informative
and convenient for users. To conduct prompt dialogue with all interested persons, the site was
supplemented by the feature enabling them to ask any questions related to the Bank’s activity,
and receive prompt answers prepared by the responsible employees of the Bank.
The control over timely and complete disclosure of information in accordance with
legislation, requirements of the regulatory bodies and internal documents of the Bank was
exercised by the Corporate Secretary and the Staff of the Board of Directors of the Bank.
The Bank and Society
Банк и общество
Recognising its social responsibility, OAO AIKB Tatfondbank cannot hold aloof of the
acute social problems and pays special attention to the implementation of projects aimed at
comprehensive improvement of life of people. In 2006, the Bank provided for charitable
purposes some 8.3 million roubles from its special purpose funds.
The charitable work is carried out at the Bank based on the principles of its own strategy
of charitable activity: “We take care of the younger generation, ensure the continuity of cultural
and spiritual traditions, we help create a generation of successful and talented professionals –
we preserve and develop the intellectual wealth of the nation”.
Priority in the Bank’s charitable activity belongs to taking care of children and the youth.
The Bank carries out regular work with children’s social institutions, such as the Kazan Social
Rehabilitation Centre for children with deviant behaviour and the Nurlat Children’s Home.
Besides, in 2006, the Bank allocated money for organising the rest of children from low-paid
families to the total amount of 1 000 000 roubles and the funds for organising a trip to an aqua-
park for children from the Sanatory Children’s Home No. 3.
The noble cause of supporting the national system of education was also reflected in the
programme of grants established by the Bank to encourage the most talented students of the
republic’s institutions of higher educations. The Bank also rendered financial aid to the Kazan
State Institute for Finance and Economics in connection with its 75th anniversary, the Kazan
Suvorov Military School of the Ministry of Defence of the Russian Federation, the Music School
under the Kazan State Conservatory n.a. Nazib Zhiganov, and the Department for People’s
Education of the Moskovsky District of Kazan in purchasing books and text-books for first-form
Participating in the resolution of socially important issues, the Bank was actively
cooperating with the Council of Veterans-Pensioners of the Moskovsky District of Kazan,
providing funds on the monthly basis over the whole year 2006 to the Council of Veterans of the
World War II and Veterans of Military Service of the Vakhitovsky District of Kazan, and, as a
targeted aid, provided financial help to the family of Mikhail Devyatayev, the Hero of the Soviet
Holding to the traditions of patronage of arts, Tatfondbank has been working for the
preservation and increasing the cultural heritage of the republic. The last year, the Bank
provided assistance in holding the concerts and tours to the Interregional House of Composers
of the Republics of the Volga Region and the Pre-Urals Region; to OOO Faida, in holding the
events confined to the 60th anniversary of Razil Valeyev, a well-known Tatar writer and
playwright; to the “Happy Childhood” choreographic ensemble; the Library No. 22, in the repair
of its premises. Considerable contributions were made to support such Moslem and Christian
institutions as the Nouroullah Kazan Cathedral Mosque, the Spiritual Board of Moslems of the
Republic of Tatarstan, the Aniler Mosque, and the Parish of Our Lady the Queen of All.
In its charitable activity, OAO AIKB Tatfondbank pays great attention to the preservation
of national traditions and cultural identity of the peoples living in the territory of the Republic of
Tatarstan. The Bank took part in organising the Pitrau-2006 festival in the Mamadysh District of
the republic, the Day of the City in Kazan, and the Day of the Republic. For several years the
Bank has been sponsoring the Sabantui festival in different districts of the republic, including the
federal-scale Sabantui festival in Nizhny Novgorod.
Among the social initiatives of OAO AIKB Tatfondbank is the development of sports in the
republic. In 2006, the Bank financed the holding of the final of the World Cup for trotters at the
Kazan Hippodrome, the All-Russian Hand-to-Hand Fight Championship, the Tatar-Bashkir
national wrestling tournament, chess competitions, the Syuyumbike Cup rhythmic-sportive
gymnastics tournament, and the participation of a Kazan team in the Russian Closed Circuit Car
Race Championship. The Bank has been providing an active support to the Federation of
Automobile and Motorcycle Sports of the Republic of Tatarstan, the Chess Federation of the
Republic of Tatarstan, the Ak-Bars ice-hockey sports club, the Federation of the Tatar-Bashkir
National Wrestling of the Republic of Tatarstan, and the Karate-Do Federation of the Republic of
Tatfondbank does a lot for improving health of citizens of Tatarstan and supports the
public health system of the republic. In 2006, the Bank transferred charitable contributions to the
Republic’s Centre for Fighting AIDS and Infectious Diseases, to the Republic’s Clinical Hospital
No. 2 of Kazan, and to the Administration of the Moskovsky District of Kazan for opening the
Voskhozhdeniye Rehabilitation Centre for Disabled People.
The Bank proceeds from the idea that the future of any business is closely connected with
the social well-being, stability, and the level of culture and education in the country. We are
proud with the achieved level of sponsor and social support, but do not consider our work done.
That is why all social and charitable initiatives of Tatfondbank are permanent. The plans of the
Bank include paying special attention to programmes of targeted charity and sponsor support.
These intentions will be supported by the funds from the special fund for financing the
programmes and events aimed at enhancing the corporate social responsibility of the Bank,
including the rendering of charitable and sponsor aid.
Within the framework of the cooperation agreement with the International Finance
Corporation (IFC), the Bank will be actively promoting a new financial product for crediting the
energy-saving projects, which will facilitate the introduction of energy-efficient technologies at
enterprises, because along with the Bank’s financing the programme participants will also be
receiving the professional advise of experts on technical, legal, and financial issues at all stages
of the project implementation.
The management and employees of the Bank understand that transferring to energy-
saving technologies would not only contribute to optimisation of production and reducing the cost
of the products but would also help resolve the issues related to rational use of natural
resources, and improve the environment. That is why, implementing an investment programme
aimed at the efficient use of fuel and energy resources, OAO AIKB Tatfondbank will be
increasing its contribution to environmental protection and social well-being.
Large Transactions Performed by the Bank in 2006
Перечень совершенных Банком в 2006 году крупных сделок
In 2006, the Bank did not perform transactions recognised as large in accordance with
Chapter X of the federal Law “On Joint Stock Companies”.
In accordance with the Corporate Governance Code of the Bank and with account for
recommendations of the International Finance Corporation, a decision was made at the
extraordinary General Meeting of Shareholders on 16 January 2006 to introduce amendments
into the Charter of the Bank that envisage the application of the procedure of approving the large
transactions to the other transactions performed by the Bank if such have a material significance
for the Bank and if their amount makes up from 10 to 25 per cent of the balance sheet assets of
According to this provision of the Charter, in February 2006, the Board of Directors
approved the transaction between OAO AIKB Tatfondbank and C.R.R. BV (Amsterdam,
Netherlands) on the provision of the borrowed funds with the use of credit linked notes (CLN) to
the amount of US$ 90,000,000 (ninety million), which was performed successfully. The
information on the transaction was disclosed on 22 February 2006 in the form of a material fact
Information on the Bank’s Auditor
Сведения об аудиторе Банка
Full business name Bankovsky Audit, Limited Liability Company
Short business name OOO Bankovsky Audit
Location 44/6-85, Dostoyevsky St., Kazan, 420043
Phone and fax numbers Phone: 260-94-62; fax:236-29-26
Number, date of issue and validity term of the License to conduct the audit activity No. E 005371 of 09.12.2003
license to conduct the audit activity for the term of five years
Ministry of Finance of the Russian Federation (order No. 387 of
Body which issued the specified license
Fiscal year (years) in respect of which an The audit check of the Bank’s financial statements was carried
independent audit check of the Bank’s accountancy out by OOO Bankovsky Audit annually starting from the
and financial statements was carried out by the accounts for 1994
When preparing its opinion, the auditor had no financial, property, kindred or any other
interest in business of OAO AIKB Tatfondbank going beyond the relations under the agreement
on rendering of audit services.
By recommendation of the Audit and Risk Management Committee of the Board of
Directors, the agreement between the Bank and the auditor for carrying out a check and
validation of accounts for 2006 was amended to include the following additional provisions:
a) the auditor shall be obliged to timely submit the information obtained by it in the course
of the audit and conclusions on issues stipulated by the Corporate Governance Code of OAO
AIKB Tatfondbank in writing;
b) the provisions that envision the change of employees directly involved in conducting
the audit of the Bank in case they render audit services for more than five successive years;
c) the audit should be completed and the auditor opinion should be submitted before 1
May 2007, i.e. within the term which ensures its preliminary consideration by the Audit and Risk
Management Committee of the Board of Directors jointly with the Audit Commission and Internal
Control Service of the Bank. Also, the results of consideration should be submitted as materials
for the Annual General Meeting of Shareholders;
d) the agreement should include the information on the insurance of the risk of auditor’s
responsibility for infringing the agreement in accordance with Article 13 of the federal law “On
the Audit Activity” with indication of the insurance company;
e) the Bank shall be obliged to appoint persons or a unit of the Bank responsible for
submitting the documents to the auditor.
BUSINESS DEVELOPMENT AND MAIN FINANCIAL INDICATORS
OF THE BANK’S PERFORMANCE IN 2006
РАЗВИТИЕ БИЗНЕСА И ОСНОВНЫЕ ФИНАНСОВЫЕ ИТОГИ
ДЕЯТЕЛЬНОСТИ БАНКА В 2006 ГОДУ
February US$90 million raised by the issue of credit linked notes (CLN).
March A branch opened in Cheboksary.
May Third issue of bonded loan to the amount of RUR 1.5 billion.
Moody's Investors Service improved the outlook “stable” of the Bank’s B3
long-term rating for outlook “positive”. The E+ financial stability and NP
short-term deposit ratings were confirmed as “stable”.
The National Bank of the Republic of Tatarstan registered two general
bank management funds of OAO AIKB Tatfondbank: the Fund for
Russian Shares and the Stable Income Fund.
July An agreement signed between Tatfondbank, the Agency for Business
Development of the Republic of Tatarstan, and the Investment and
Venture Fund of the Republic of Tatarstan on the mid-term crediting by
OAO AIKB Tatfondbank of small businesses implementing projects in the
real sector of the economy.
ZAO FB MICEX started trading in bonds issued by OAO AIKB
A bilateral credit agreement signed between OAO AIKB Tatfondbank and
Standard Bank London to the amount of US$ 5 million to finance
enterprises of agro-industrial industry against agricultural credits issued
September OAO AIKB Tatfondbank successfully certified SmartVista processing
system for issue and servicing of plastic cards of MasterCard
International payment system.
November Syndicated credit attracted to the amount of RUR 600 million.
December A cooperation agreement signed with the International Finance
Corporation (IFC) of the World Bank Group covering the crediting of
investment projects connected with energy-saving and energy-efficiency.
OAO AIKB Tatfondbank issued the 100,000th Visa card.
The Bank started the project of introducing a new targeted information
system of the banking activity automation.
In 2006, the main financial indicators of Tatfondbank testify to the stable positive trend in
its development. The Bank preserves steady pace of growth of the balance-sheet total, equity
capital and its assets. Financial stability and high growth rates are the natural result of the
Bank’s management’s policy aimed at building solid and mutually beneficial relations with
corporate and private clients and at the development of the product range.
At 1 January 2007, the Bank’s assets exceeded RUR 30 billion, having increased by 45%
from the beginning of the year.
25 000 30 112
15 000 20 754
The equity capital of the Bank, at 1 January 2007, exceeded RUR 3.6 billion. In the
course of the year, the Bank did not break the capital adequacy rules, which speaks about its
high capacity to meet its obligations.
3 600 3 614
3 540 3 552
The funds raised by the Bank in 2006 have grown by 54% and exceeded RUR 26 billion,
which is by 1.5 billion roubles more than had been planned. The structure of the equity capital
has changed significantly due to the Bank’s entry to the international capital market.
2 608 7 666
4 943 3 442
5 000 115
На 01.01.06г. На 01.01.07г.
Holdings in accounts of legal entities International loans
Holdings in accounts of physical persons Debt securities issued
In 2006, the Bank pursued an active policy in the field of clients’ attraction, which
contributed to a significant expansion of the clientele base and, as a result of this, to a
considerable growth of balances of accounts of legal entities and physical persons. The funds on
accounts of corporate clients grew from 5 billion roubles to 8 billion roubles, while balances of
accounts of physical persons grew more than 1.5-fold and exceeded 7.6 billion roubles.
The current pattern of the assets growth owes much to the development of the real sector
crediting, commercial and mortgage crediting of physical persons, and trade operations with
Earning Assets Structure
20 000 1 089 1 666
15 000 1 380
На 01.01.06г. На 01.01.07г.
Crediting of legal entities Interbank credits
Crediting of physical persons Investment in securities
As a result of the active credit policy, the volume of credits issued to legal entities grew in
2006 by more than 4 billion roubles and totalled 19.5 billion roubles.
Also developing successfully was the crediting of physical persons. The volume of the
retail credit portfolio exceeded by the end of 2006 the figure of 2.3 billion roubles, having grown
2-fold compared to the beginning of the year.
The portion of the credit portfolio in the Bank’s assets has somewhat decreased in favour
of the securities portfolio, which affected positively the structure of assets from the point of view
of their diversification.
In 2006, the aggregate investment of the Bank in securities grew from 1 billion roubles to
4 billion roubles. The major part of the portfolio is represented by marketable bills of credit of the
first class Russian banks, government securities and debt securities of Russian issuers
represented mostly by bonds of the largest Russian companies.
In 2006, the balance sheet profit of the Bank totalled 275 million roubles.
Development of Clientele Base
Развитие клиентской базы
The implementation of the Bank’s business development strategy is aimed at the creation
of a diversified and high-quality clientele base and rests on maintaining the balance between the
Bank’s and clients’ interests.
The status of a universal bank assumes the provision of a wide range of banking products
and services to clients at different market segments. In 2006, the business was being developed
through an active policy of cultivating the new client markets, perfection and expansion of the
range of products and services intended to meet the requirements of various categories of
clients, and through the development of the Bank’s branch network. An active work has begun in
the field of offering trust management services, general bank management funds, industrial
factoring and project financing.
Over this period the Bank began cooperating with more than 2,200 new corporate clients.
Balances of accounts of legal entities exceeded at the end of the year 8 billion roubles. At the
same time, the balances of accounts of physical persons exceeded 7.6 billion roubles.
Number of Clients Employing Settlement
The number of clients in the field of retail crediting has grown over the past year almost 4-
fold: from 3,002 to 12,945.
In 2006, the clientele base of deposits of physical persons grew from 136,904 to 158,758.
In 2006, the Bank established a specialised unit called the department for client business
development, which is engaged in carrying out the client policy and focuses its activities on the
systematisation of the work with primary clients;
development and introduction of client work standards;
systematisation of the process of monitoring and improving the quality of client
introduction of the clients’ rights code;
introduction of a common customer relationship management (CRM) system.
We can safely say that in 2006 we have laid a solid foundation for further improvement
and development of the clientele base.
In 2006, the Bank was actively working for providing its clients with credits. It kept on
perfecting the credit quality assessment technique, which enabled it to objectively evaluate the
risk for each loan when issuing a credit and over the entire period of crediting.
A significant increase in volumes of crediting owes much to the flexible client policy and
expansion of the range of products offered. The total volume of credits provided by the Bank to
corporate clients totalled at the end of 2006 RUR 19.5 billion, which is by 27% more compared
to 2005. The share of overdue credits is just 0.37%, which testifies to the reasonable credit
The Bank’s credit policy is targeted at financing of the real sector of the economy and
support of the development of business of its clients.
The priority areas of the Bank’s activity in the field of crediting were:
- meeting the requirements of clients and improving the quality of their service;
- offering the clients an adequate credit product, which takes into account the specific
features of their business;
- increasing the share of credits to small and medium-sized businesses within the
framework of the republic’s and federal programmes;
- financing the agro-industrial complex within the framework of the National Project.
The work in these areas made it possible to:
- increase the clientele base of the Bank;
- enhance the efficiency of credit operations;
- ensure financial stability and minimise credit risks of the Bank with account for interests
of the clients.
Changes in Credit Portfolio of Legal Entities
10 000 7 212
01.01.04 01.01.05 01.01.06 01.01.07
Branch Structure of Credit Portfolio of Legal Entities
20% - Manufacturing industry
- Commerce and public catering
- Transport and communications
- Other sectors
- Individual entrepreneurs
In 2006, the Bank was actively developing such credit products as:
- Factoring operations, which ensure high profits for banking organisations, give them an
opportunity to increase the clientele base owing to the absence of such obligatory conditions as
the opening of a settlement account by a client and the transfer of its business operations to the
Bank. By the end of the reporting period, the Bank served 28 trading organisations offering the
following factoring services: open and closed factoring with recourse and reverse factoring.
These products are offered within the entire branch network of the Bank. At 01.01.2007, the
volume of factoring transactions totalled 171 million roubles.
- Project financing, when the Bank invests its funds in particular investment projects. The
investments are repaid from the profit of such project, when it is put into operation, without
recourse to the current operating assets of the recipient of investments. In such case, the Bank
is performing an integrated servicing of its clients in the field of project financing, providing the
complete package of advisory and information support of the project, and the development and
implementation of the optimal financial schemes for the project.
- Overdraft, i.e. crediting of a bank account in case of shortage or absence of funds on the
account. The overdraft limit is set depending on the amounts of monthly receipts to the client’s
accounts in the Bank. In the course of 2006, the amount of overdraft credits issued by the Bank
exceeded 736 million roubles.
The credit portfolio of the Bank consists mainly of the credits issued for the term from 0.5 to
1 year (41%). The credits with the term from 1 to 3 years make up 35%, and such with the term
from 3 to 6 months make up 13%. The credit support of enterprises in the real sector of the
economy and small business was provided in the following areas: crediting of small- and
medium-sized companies implementing investment projects jointly with OAO Russian
Development Bank, the Investment and Venture Fund of the Republic of Tatarstan, the Agency
for Business Development of the Republic of Tatarstan; crediting of enterprises enjoying support
of the state in the form of subsidies from various funds (for example, the NIOKR Fund, the
Ministry for Agriculture and Foodstuffs) by offering a variety of mutually beneficial crediting
Developed for use in 2007 were the following kinds of credit products:
Financing the projects in the field of energy saving within the framework of the agreement
concluded with the International Finance Corporation.
Commercial mortgage – crediting of legal entities and individual entrepreneurs against the
pledge of the real estate to be purchased, with further transfer of the right of ownership with
respect to the encumbered real estate to the borrower.
Crediting with floating interest rate depending on the client’s turnover and the minimum
balance of the settlement account in the Bank.
Factoring without recourse – a product which ensures regular increase of the floating
capital of the clients and risk insurance at the same time. The major advantage for clients is that
the loan funds received within the framework of factoring service remain, in any case, with the
client and are repaid only at the expense of the funds arriving from the client’s debtors.
Structure of Credit Portfolio of Legal Entities
Broken Down by Terms of Crediting
Short-term (up to 1 year)
Medium-term (from 1 to 3
Long-term (over 3 years)
The distribution of credits to legal entities by terms is being done by the Bank with account
for ensuring the liquidity of the Bank (timely fulfilment of the undertaken obligations), and the
need of the clients’ business in credit resources.
Geographical Structure of Credit Portfolio of Legal Entities
Republic of Tatarstan
Republic of Altai
Nizhny Novgorod Region
10,8% Moscow Region
The structure of the credit portfolio of legal entities is dominated by credits provided to
clients doing their business in the territory of the Republic of Tatarstan.
The correspondent network of Tatfondbank, established with account for own needs and
interests of the clients, has been optimised so as to ensure the performing of settlements at
minimum cost and in the shortest time possible.
The main correspondents and financial partners of OAO AIKB Tatfondbank in our country
are such large banks as OAO Alfa Bank, Moscow, OAO MDM Bank, Moscow, OAO PSB, St.-
Petersburg, etc. The correspondent relations established with foreign banks in America and
Europe make it possible to remit the payments of the clients in different currencies. Considering
the fact that the major part of contracts is concluded in US dollars, the Bank provided its clients
with an opportunity to make remittances through the American Express Bank. Payments in
Euros are performed through one of the largest European banks, COMMERZBANK, with which
the Bank has been cooperating already for 9 years.
In 2006, the Bank concluded over 20 general agreements in the interbank credit market,
having paid special attention to regional banks. The total number of counterparties in the
interbank market exceeded 150. The total amount of uncovered lines for attraction of short-term
interbank credits was some 3.5 billion roubles. The operations in the interbank market are being
used by the Bank both as a source of income and for purposes of liquidity management. The
Bank carries out permanent control of risks related to interbank crediting transactions, which is
manifested in setting on its counterparties of limits of unsecured credit lines.
OOO Zenith Bank, Moscow
OAO MDM Bank, Moscow
OOO Impexbank, Moscow
ZAO AB Gazprombank, Moscow
OAO AKB Finprombank, Moscow
OAO AB Orgresbank, Moscow
OAO RosBR, Moscow
OAO PSB, St.-Petersburg
OAO NKB Radiotekhbank, Nizhny Novgorod
OAO Ak Bars Bank, Kazan
ODO Bank Kazansky, Kazan
OSB Bank Tatarstan, Kazan
OOO Tatagroprombank, Kazan
Bank for Social Development of Tatarstan Tatsotsbank, Kazan
OOO KB Intekhbank, Kazan
ZAO AIB Ipoteka-Invest, Kazan
OOO Kamkombank, Naberezhnye Chelny
OAO AB Devon Credit, Almetyevsk
COMMERZBANK AG Germany
RAIFFEISEN ZENTRALBANK OSTERREICH AG Austria
BCEN EUROBANK France
AMERICAN EXPRESS BANK LTD NEW YORK
One of the priorities for OAO AIKB Tatfondbank is the development of retail banking. In
2006, the Bank’s activities in this field were aimed at increasing the clientele base and improving
the efficiency of client service. The clients are offered modern banking products and services on
the basis of a common product range and banking technologies which have been stardardised
throughout the entire regional network. The flexible tariff and marketing policies, as well as the
constant expansion of the regional network, enable the Bank to take into account the clients’
interests to the maximum.
Funds Attracted from Individuals (‘000 roubles)
8 000 000
7 048 815
6 000 000
4 000 000 4 721 118
2 000 000
At 01.01.2007, the share of OAO AIKB Tatfondbank in the deposits market of
independent banks of the Republic of Tatarstan is 18%.
The most popular are mid-term (91 days - 184 days) and long-term deposits (starting from
1 year), which account for 91% of the total volume of the attracted funds, or 6.4 billion roubles.
Some 40% of the total volume of attracted cash funds is term pension deposits. The amount of
funds attracted as pension deposits totalled over 2.7 billion roubles.
Owing to diverse and convenient service, flexible tariffs and beneficial conditions for
deposits of individuals, the number of private clients has grown in 2006 1.2-fold and totalled
some 159,000. The balances of accounts of physical persons grew 1.5-fold.
OAO AIKB Tatfondbank offers its clients a wide range of products for saving and
accumulation of money: a flexible system of deposits in roubles and foreign exchange for the
term from 1 month up to 3 years and special kinds of deposits, which make it possible to
combine the operational efficiency of the current account and profitability of the term deposit.
The Bank also offers its clients the deposits with special conditions, including such with prize
Remittance of Money and Payments
OAO AIKB Tatfondbank performs term remittance of cash to the CIS and other foreign
countries with the help of such systems as Western Union, Migom, and Travelex. In 2006, the
monthly volume of such operations has been increased more than 3.6-fold.
Also popular is the acceptance of payments from population for public utilities and other
services. At 01.01.2007, OAO AIKB Tatfondbank concluded 36 agreements with organisations
of the Republic of Tatarstan, of which 20 were concluded in 2006.
Developed for use in 2007 were the following new products and services:
Further improvement of the information technologies is today one of the topical issues for
Bank, since clients need not only the deposits that produce a profit, but also the maximum
service opportunities. The system of Internet banking of OAO AIKB Tatfondbank will include a
full range of banking services which will be accessible to clients remotely.
Deposit – Plastic Card product
The main purpose of the joint Deposit – Plastic Card project is the integration of two lines
of retail banking business: deposits of individuals and plastic cards. To enhance the
attractiveness of deposits, the interest that accrued periodically on the account is suggested to
be paid to a plastic card, which will be issued to clients at the time of opening the deposit. The
accrued interests can be withdrawn at any cash dispenser at any time.
Crediting of Physical Persons
Structure of Credit Portfolio of Physical Persons
1 559 891
1 600 000
1 200 000
400 000 209 062
70 456 166 759
Car purchase credits
Credits to people with personal subsidiary plots
The portfolio overdue debt at the end of 2006 was 1.2%
At 01.01.07, the portfolio of retail credits exceeded 2.3 billion roubles. Thus, the
outstanding debt has grown over the year more than 2-fold. At 01.01.2007, the share of OAO
AIKB Tatfondbank in the total amount of credits of physical persons of independent banks of the
Republic of Tatarstan was 11.4%.
The development of the branch network enabled the Bank in 2006 to provide credit
products to clients in the Republic of Tatarstan and such beyond its borders.
In the course of 2006, the Bank has changed the conditions for a number of the existing
products and developed new offers for crediting: educational loans, car purchase loans with
possibility of trade-in purchase, housing construction (purchase) loans to people living in rural
In 2006, the Bank began issuing credit cards. It also launched a project of overdraft
crediting of employees of companies transferring the wages onto the plastic cards of the Bank.
OAO AIKB Tatfondbank also took an active part in the National Project of developing the
agro-industrial complex, under which the loans are being granted to people living in rural areas
and having their personal subsidiary plots.
The issue and servicing of bank cards and offering the related services is a promising
area of developing the Bank’s retail banking business.
In the reporting period, the Bank paid much attention to increasing the volume of bank
card sales, developing the infrastructure of their servicing and offering additional opportunities to
One of the most important events in 2006 was the Bank’s undergoing the certification of a
processing centre within the MasterCard International payment system for the issue of its own
MasterCard cards, which enabled the Bank to develop the attractive tariffs for clients and ensure
prompt issue and servicing of the cards.
The launch of its own processing centre for work with plastic cards of international
payment systems enabled the Bank to improve the quality of client service through significant
reduction of time intervals required for issue of new cards and replenishing the cash card
accounts, as well as made it possible to expand the range of retail services and additional
services. Having its own processing centre, the Bank managed, over a relatively short period of
time from November 2005 (12,288 Visa cards) to December 2006, to achieve the mark of over
100,000 Visa cards.
The year 2006 saw a considerable growth in the issue of plastic cards and of the
balances of card accounts. At 1 January 2007, the number of the Bank’s cards in circulation is
125,139, of them 102,356 Visa cards, 932 MasterCard cards, 13236 Golden Crown cards, and
8615 Union Card cards. The amount of client funds on card accounts has grown by 394.8 million
roubles compared to the beginning of the year and totalled at 01.01.2007 617.2 million roubles.
In 2006, the Bank concluded 381 agreements with organisations and enterprises of
different patterns of ownership for work under the “wages” project, having increased the number
of such projects to 701.
The decreased number of issues of Union Card cards is explained by termination of the
term of their validity and switching over, in 2006, to service of Visa International cards.
Количество карт в обращении Остатки средств на картсчетах
140000 700000 (тыс. руб.)
40000 62 227 200000
01.01.06г. 01.01.07г. 01.01.06г. 01.01.07г.
Количество зарплатных договоров
Во всех диаграммах убрать – г. после годов (06. 07 и т.д.)
Диаграмма с красной линией: Cards in circulation
Диаграмма с зеленой линией: Balances of cash card accounts (‘000 roubles)
Диаграмма с синей линией: Number of wages agreements
Actively developing is the bank card acceptance infrastructure. By 01.01.2007, the Bank
has increased the number of devices used for acceptance of payment cards almost 2-fold.
120 93 91
01.01.2006 г. 01.01.2007 г.
Банкоматы Терминалы в ПВН Терминалы в ТСП
Во всех диаграммах убрать – г. после годов (06. 07 и т.д.)
Банкоматы – Cash dispensers
Терминалы в ПВН – Terminals in cash dispensing points
Терминалы в ТСП – Terminals in shopping and service centres
Money Market Operations
Операции на финансовых рынках
Operations with Securities
Операции с ценными бумагами
OAO AIKB Tatfondbank is an active participant of the securities market of the Russian
The Bank has been successfully issuing own debt securities: bills of credit, certificates of
deposit, and bonds. The Bank performed three bond issues and one of the best in the Russian
stock market bills programme.
It has been 5 years now from the moment when the Bank launched its bills programme.
The programme is being carried out by the Bank in cooperation the REGION Group of
Companies, which is the largest operator of the bills market of Russia.
From the moment of the bills programme launching the Bank raised over 15 billion
roubles, of them 3.8 billion roubles was raised in 2006. The volume of repaid bills exceeded 12
Currently in circulation is the third bond issue to the amount of 1.5 billion roubles. The
bonds of the third issue are on the first level (“A”) quotation list of ZAO FB MICEX and are in free
float in the stock market. The daily stock turnover testifies to a significant interest of investors in
the Bank’s bonds.
OAO AIKB Tatfondbank offers a full range of broker services and trust management
services in the stock market. Today the clients of the Bank can benefit from both classical broker
service in the largest Russian exchanges and a scheme of service through the Internet trading
system, and a service of individual trust management in the securities market.
The priority area for the Bank is the further improvement of quality and expansion of the
range of services in the stock market offered to clients. In 2006, the clientele base has grown by
more than 30% with simultaneous growth of the share of legal entities and significant growth of
turnovers connected with transactions of its clients from among the legal entities. Clients of
Tatfondbank got an opportunity to perform REPO transactions and ex pit term transactions in the
debt market with the largest operators of this market.
On 23 May 2006, OAO AIKB Tatfondbank became one of the first in the Republic of
Tatarstan to register the general bank management funds (GBMF) and offered to a broad range
of investors an opportunity to produce profit in the debt market through its broad branch network.
The interest in the collective form of investment on the part of the population has existed for a
long time and was quite high.
The Bank established two funds:
FUND FOR RUSSIAN SHARES. The strategy of the Fund is aimed at ensuring a stable
growth of value of the property through investment in the portfolio consisting of the fixed
profitability instruments (bonds, bills, etc.) and the instruments of the term market (stock and ex
STABLE INCOME FUND. The strategy of the Fund is aimed at ensuring a stable growth
of value of the property through investment in the portfolio consisting of the shares of Russian
issuers and in depository receipts in respect of such shares (including ADRs and GDRs) and the
term market instruments.
The GBMF clients included some 300 physical persons and legal entities, many of them
being not from Kazan but from other towns and district centres of the republic, and the city of
Cheboksary. Those who wish to become a founder of GBMF management can do it in 41
structural divisions of the Bank. The aggregate value of net assets of both funds at the end of
2006 exceeded 66 million roubles.
According to the Association of Investors Information Rights Protection (AIIRP), the Fund
for Russian Shares ranked 29th among 122 Russian GBMFs in the volume of net assets.
According to estimates of the Bank’s experts, this Fund ranked 8th in profitability among 86
GBMFs throughout Russia.
The year 2006 was marked by a considerable growth of the Bank’s investment portfolio.
Its securities portfolio grew almost 4-fold, having exceeded the figure of 4 billion roubles. The
changes also took place in the structure of the portfolio. The Bank’s securities portfolio is broadly
diversified and is represented by more than 150 issuers.
Special stress was put in the last year on debt securities. Considerable growth was also
achieved in the volume of operations with documentary securities. At the end of 2006, the share
of bills in the structure of the securities portfolio exceeded 28%. The use of the conservative
strategy of the portfolio management made it possible to build a balanced investment portfolio
with the optimal for Bank risk to profitability ratio.
In 2006, OAO AIKB Tatfondbank, apart from the rapid increase of the securities portfolio,
was actively developing as a professional participant of the market. The results of the work done
in the reporting period enabled the Bank to win the following positions among the leading
participants of the securities market.
Dealer Ranking at MICEX*
Position held in the turnover in roubles at the
end of December 2006
Leading market operators – bonds: negotiation transactions mode 14
Leading market operators – bonds: REPO trade mode 37
Leading market operators – bonds: main trade mode 21
List of leading operators of state treasury bills/federal bond loans market 15
*TOP-50 leading stock market operators according to MICEX www.micex.ru (http://www.micex.ru/stock/topoperators/)
At the end of 2006, OAO AIKB Tatfondbank ranked 55th among the underwriters in the
market of corporate rouble bonds. The total volume of participation was 1,580 million roubles.
The Bank took part in the placement of bonds of 18 issuers.
Operations with Precious Metals
Операции с драгоценными металлами
OAO AIKB Tatfondbank is the largest operator of the Republic of Tatarstan in the market
of precious metals. The Bank obtained the license to conduct banking operations with precious
metals on 18 April 2004. Starting from the end of 2004, the Bank conducts operations with coins
of precious metals, and starting from the mid-2005 – the operations with ingots of precious
In 2006, OAO AIKB Tatfondbank continued to expand the range of its services in the
market of precious metals.
At present, the Bank performs the following operations with precious metals:
- purchase and sale of coins of precious metals;
- purchase and sale of ingots of precious metals;
- forward transactions with precious metals.
In 2006, actively developing were the operations with coins of foreign issuers (Australia,
Cambodia). OAO AIKB Tatfondbank is a distributor of the Bank of Russia in sales of coins of
gold, silver, platinum, and palladium to physical persons and legal entities. The Bank offers for
sale over a hundred kinds of coins.
In the reporting period, the Bank sold 2039 coins of precious metals, which is 3.5 times
more compared to 2005 (579 coins).
In 2006, another 5 additional offices started performing operations connected to sales of
coins of precious metals, and the total number of such points of sale is now 24.
Nowadays, OAO AIKB Tatfondbank offers for sale a wide range of ingots of gold, starting
from 5 to 1000 g.
Operations with Foreign Exchange
Операции с иностранной валютой
Performing the functions of a currency control agent, OAO AIKB Tatfondbank is governed
in its activity by normative acts in the field of exchange regulation of the Russian Federation and
offers the following services:
- evaluation of compliance of provisions of foreign trade contracts with the current rules of
- recommendations on the execution of foreign trade contracts in accordance with
requirements of exchange regulation and currency control of the Russian Federation;
- execution of passports of transactions connected to export and import operations within
a working day, and, in individual cases, in the presence of the client;
- support and servicing of operations under loan agreements in roubles and foreign
exchange between residents the non-residents;
- support and servicing of operations with accounts of non-residents in roubles;
- preparation, by request of clients, of settlements statements in respect of particular
contracts within a working day;
- providing foreign exchange in cash for business trips;
- rendering consultancy services related to:
- execution of documents required for passing the customs and banking examination of
foreign trade transactions;
- issues of evaluating the compliance of currency operations to currency legislation in
force, including the examination of foreign trade contracts;
- other issues of exchange regulation and currency control;
The successfully functioning system of currency control is attractive for clients of the
Bank. In 2006, the Bank accepted for servicing 449 contracts and agreements in US dollars,
Euros and Russian roubles to the total amount of 10.1 billion roubles.
International Activity of the Bank
Международная деятельность Банка
On 28 February 2006, OAO AIKB Tatfondbank performed a transaction related to the first
issue of the Bank’s Credit Linked Notes (CLNs) in Russia and the second issue of debt
securities in foreign exchange among banks, which are not on the Top 30 list. The demand for
CLNs has considerably exceeded the supply and totalled over US$ 110 million, after which it has
been decided to increase of the volume of issue of CLNs from the planned US$50 - 70 million to
90 million on the following conditions: maturity of 2 years with the fixed rate of the semiannual
coupon of 9.5% per annum. The issue envisions a put option expiring in 1 year from the date of
credit notes placing.
The total number of investors who took part in placing was over 40, including, among
others, representatives of Switzerland, United Kingdom, Singapore, Germany, Luxembourg, the
Netherlands, Hungary, Chile, Italy, Russia, the Baltic States and other countries. The portion of
the issue placed in the Western market was over 75%.
The B3 rating of Moody’s Rating Agency and improving the outlook from “stable” to
“positive” has contributed significantly to the Bank’s entry to the international capital market.
On 3 July 2006, OAO AIKB Tatfondbank signed a bilateral loan agreement with Standard
Bank London to the amount of US$5 million to finance enterprises engaged in agro-industrial
sector against the pledge of agricultural loans issued by Tatfondbank.
In November 2006, the Bank borrowed the first syndicated loan to the amount of 600
million roubles at the interest rate of 9.2% per annum. For the first time ever, the organisers
were represented by three leaders of the market of participations for Russian banks: Raiffeisen
Bank, Austria, International Moscow Bank and Vneshtorgbank. All in all, 7 banks took part in this
On 1 December 2006, OAO AIKB Tatfondbank signed a Cooperation Agreement with the
International Finance Corporation of the World Bank Group in the field of supporting the
introduction of energy-efficient technologies in Tatarstan.
The agreement signed within the framework of the IFC programme encouraging the
investment in energy-saving envisions the development of a targeted financial product of
Tatfondbank for crediting of energy-saving projects.
All work done by the Bank for the development of investment and international business
is just the basis for large-scale actions aimed at raising substantial financial resources from
One of the obligatory conditions of the Bank’s development, promotion of bank products and
services is the availability of a broad branch network. OAO AIKB Tatfondbank takes the lead
among the banks of the Republic of Tatarstan in terms of regional presence.
At the end of 2006, the branch network of the Bank consisted of 71 separate structural
subdivisions, including 9 branches, 53 additional offices, and 9 cashier’s offices. Over the year,
the Bank opened 14 structural subdivisions, including branches in Cheboksary, Perm, and
Moscow. At present, the number of employees working within the branch network has exceeded
The branches, just like the head office, are successfully developing all kinds of activities,
starting from traditional corporate to the vigorously developing retail and investment banking.
In 2006, the assets of the branch network of the Bank increased from 6.2 to 13.2 billion
roubles, or by 112.9%. The own resource base of the branches totalled 9.03 billion roubles
having increased by 6.3 billion roubles, or by 234.4%.
From the beginning of the year, the working assets of the branch network have increased by
6.4 billion roubles, or by 111%, of them provision of crediting accounting for 77.8%.
Share of Regional Network in Business of the Bank
60 48 Funds raised
40 Household deposits
40 33 35
2005 2006 2007
Динамика роста активов в филиальной сети Банка
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
01.01.2005 01.01.2006 01.01.2007
Во всех диаграммах убрать – г. после годов (06. 07 и т.д.)
Диаграмма: Динамика роста активов в филиальной сети Банка
Assets Growth in the Bank’s Branch Network
Набережночелнинский филиал Naberezhnye Chelny branch
Буинский филиал Buinsk branch
Зеленодольский филиал Zelenodolsk branch
Чистопольский филиал Chistopol branch
Нижнекамский филиал Nizhnekamsk branch
Альметьевский филиал Almetyevsk branch
Динамика роста привлечённых денежных средств юридических лиц в филиальной сети Банка
Набережночелнинский Буинский филиал Зеленодольский Чистопольский Нижнекамский филиал Альметьевский
филиал филиал филиал филиал
01.01.2005 01.01.2006 01.01.2007
Диаграмма: Динамика роста привлеченных денежных средств юридический лиц в
филиальной сети Банка
Growth of Funds Attracted from Legal Entities in the Bank’s Branch Network
Набережночелнинский филиал Naberezhnye Chelny branch
Буинский филиал Buinsk branch
Зеленодольский филиал Zelenodolsk branch
Чистопольский филиал Chistopol branch
Нижнекамский филиал Nizhnekamsk branch
Альметьевский филиал Almetyevsk branch
Динамика роста привлечённых вкладов населения в филиальной сети Банка
1 200 000
1 000 000
01.01.2005 01.01.2006 01.01.2007
Диаграмма: Динамика роста привлеченных вкладов населения в филиальной сети
Growth of Household Deposits in the Bank’s Branch Network
Набережночелнинский филиал Naberezhnye Chelny branch
Буинский филиал Buinsk branch
Зеленодольский филиал Zelenodolsk branch
Чистопольский филиал Chistopol branch
Нижнекамский филиал Nizhnekamsk branch
Альметьевский филиал Almetyevsk branch
These diagrams show the growth of volume indicators of all branches. The positive
changes are observed in respect of the funds attracted from legal entities and physical persons,
which testifies to the growth of trust in our Bank on the part of our clients.
At 01.01.2007, the largest clients of our branches are such enterprises and organisations
as OAO VAMIN “Tatarstan”, OAO Zainsk Sugar Plant, OAO Buinsk Sugar Plant, GUP UPS
Tatarstan Pochtasy, GUP RT Zelenodolsk Plywood Works, GUP Zelenodolsk Vodokanal, FGUP
PO Plant n.a. Sergo, OAO n.a. N.E. Tokarlikov, TransTechService Group of Companies, OAO
Kamsnab, ZAO Kamtent, OOO PKP BIST, OAO Chistopol Confectionery Factory, OAO
Yelabuga Dairy Works, OAO PO YelAZ, ZAO TPK Beryozka, OOO Pique Garment Factory,
OAO Nizhnekamsk Bread-Making Plant, Greenwich Group of Companies, Bekar Group of
Companies, Information Computation Networks Group of Companies, Mashinny Dvor Group of
Companies, etc. All in all, the branches serve over 10,000 legal entities and individual
entrepreneurs and more than 140,000 physical persons.
The programme of regional development is just gaining momentum. The plan for 2007
envisions the Bank’s expansion to St.-Petersburg, Yekaterinburg, and Chelyabinsk.
Количество обособленных подразделений
01.01.06 01.01.07 01.01.08
Диаграмма: Количество обособленных подразделений
Number of Separate Subdivisions
At 01.01.2006, the Bank had 59 separate subdivisions.
Separate Subdivision 01.01.07 01.01.08
Branches 9 14
‘Universal’ Additional Office 27 30
‘Basic’ Additional Office 10 13
‘Retail’ Additional Office 1 4
‘Small Retail’ Additional Office 15 15
‘Operational’ Additional Office 9 11
Total 71 87
The Bank’s regional policy envisions further expansion of the branch network and includes
not only the opening of new subdivisions, but also the further improvement of the management
system in the existing ones. In accordance with the Bank’s development strategy, there has
been started the reorganisation of the regional network of the Bank, which resulted in
distinguishing the key branches based on the territorial principle. Also, all subdivisions were
switched to the common automated accounting system, UBS. At the same time, additional
offices began working in the on-line mode.
These measures will help distinguish in the Bank’s organisational structure of the front,
middle and back subdivisions and optimise the activities of its branches.
Along with the reorganisation of its regional network, the Bank revised the interrelations
between food subdivisions of the Bank’s head office and its branches, which resulted in
launching the measures aimed at building, in addition to the existing administrative and
managerial relations, of the functionally vertical relations between the head office and separate
subdivisions, and namely: within the boards for crediting of legal entities and the legal board, the
internal control service and the department for information technologies there have been
established the departments working directly with branches: the department for monitoring of
credit operations, the department for legal support of activities of the branches, the department
for branch network security, and the department for support of the branch network.
As a result of these measures, the prerequisites were created for offering the common
standard of service (standard organisational structure of the branch and additional office and
standard business processes) in all separate subdivisions and for creation of a dynamic and
flexible system of channels of sales of banking products and services. At the same time, the
Bank will continue perfecting its regional network management system in the following areas:
Maintaining feedback with the Bank’s clients,
Aiming the products and points of sale at the market needs,
Sales technologies optimisation,
Creation of a system of integrated study of regional markets,
Increasing the clientele base,
Ensuring the implementation of the Bank’s Strategy,
Territorial development of the Bank’s brand and image,
Increasing the Bank’s profit through increasing the aggregate volume of operations,
and market ones in particular.
The fulfilment of these objectives will enable the Bank to use its resources more efficiently,
coordinate the work of its structural divisions, introduce new banking products, intensify
substantially its activities in the market of bank services, especially in its retail segment.
The risk management system used in OAO AIKB Tatfondbank is governed by the strategic
objectives of the Bank and embraces all its business processes.
The Board of Directors of the Bank adopts and approves the basic procedures connected
with risk management and the development of the strategy in the field of risk control
management. The Board of Directors is responsible to owners of the Bank for ensuring full and
adequate understanding of risks and possible value of losses, and for taking all necessary
measures by the Board of the Bank to maintain the efficiency of the risk management and
The Bank established the Audit and Risk Management Committee to ensure the everyday
control on the part of the Board of Directors over financial and economic activities of the Bank
and observance by the Bank of the requirements of law and regulatory bodies, as well as to
provide conditions for appropriate risk management.
The basic principle governing the functioning of the risk management system of the Bank in
2006 was ensuring an optimal balance between the tasks of liquidity maintenance and the tasks
of business development.
The objectives set for risk managers included:
Liquidity risk management;
Market risks level control (stock, currency, interest);
Coordination of implementation of administrative decisions related to risk management;
Development of control and supervisory procedures in the field of financial (including
An integrated risk management system established in the Bank has been constantly
improved over the entire period of its operation in accordance with the volume and structure of
operations performed by the Bank, the requirements of regulatory and supervisory bodies and
recommendations of the Basel Committee on Banking Supervision.
Financial Risks Management
Управление финансовыми рисками
The success of the Bank’s activities is determined by efficient management of financial risks.
The credit risk, and particularly the risk of the counterpart not repaying the debt to the Bank on
time and in full, remained to be the main risk for OAO AIKB Tatfondbank. The general volume of
the credit risk, the target values of the volume and structure of the credit portfolio are approved
annually by the Board of Directors of the Bank within the framework of the Bank’s development
plan for the current year. Decisions connected with credit risks management, setting the limits of
crediting and selection of the basic conditions for crediting were made by the Credits
Committees, Financial Committee, and the Board of the Bank. The limits for counter-agent
banks and issuers of debt securities were set by Financial Committee or the Board of the Bank
depending on the size of the limit. The decision on the issue and the amount of credits to other
borrowers (legal entities and physical persons) lied within the competence of the Credit
Committee of the Bank within the limits set by the Financial Committee or the Board of the Bank.
The credit risk management included:
Accessing the ability of clients to fulfil their obligations;
Monitoring of borrowers on the basis of the creditworthiness analysis techniques;
Establishing the probability of the credit risk materialisation depending on the ratings set;
Creation of a reserve, the volume of which would be regulated depending on the change in
the degree of risk.
Creation of reserves for possible losses connected with loan and similar debts was
performed in accordance with the current regulatory documents of the Central Bank of the
Russian Federation and was formed on the basis of the assessment of the probability of the
borrower’s failure to fulfil his obligations under the credit.
To minimise the liquidity risk in the form of mismatching in time between the assets and
obligations, the following measures were taken:
Regular analysis of the gap between time of repayment of calls and liabilities of the Bank;
Regulation of cash flows for purposes of bringing the schedule of liabilities closer to the
schedule of assets;
Analysis of liquidity of money markets and formation of liquid assets sufficient for fulfilment
of the Bank’s current liabilities;
Limiting the positions on all financial instruments, including such in the market of interbank
credits and the securities market.
The main credit risk factors for the Bank were:
Concentration of the Bank’s portfolio of credits, and a high percentage of credits to
agriculture in particular.
Planned growth of the portion of credits to small businesses and an active development of
crediting of physical persons as the most profitable and, at the same time, the most risky
kinds of crediting.
The measures taken by the Bank for liquidity management helped meet the liquidity criteria
set by the Bank of Russia, maintain the optimal balanced structure of the balance, and thus
enabled the Bank to fulfil its obligations to creditors on time and in full.
The market risks management was performed on the basis of minimisation of currency,
interest, and stock risks in accordance with the regulatory acts of the Bank of Russia. The
market risks were understood as the risks of possible losses of the Bank in view of the changed
value of financial instruments.
To minimise the currency risk, the Bank observed the limits of aggregate foreign exchange
exposure and the limits broken down by currency.
The ratio between the aggregate foreign exchange exposure and the Bank’s capital in the
reporting period did not exceed 20 per cent limit. To reduce the impact of this risk, the Bank has
been taking measures to maintain the foreign exchange exposure close to zero.
For purposes of reducing the impact of the interest risk arising as a result of the changed
interest rates in the market, the following measures were taken:
- Periodic analysis of active and passive financial instruments broken down by interest rates,
interest margin, and the overheads margin;
- Regular analysis of gaps between the time of paying the calls and obligations;
- Monitoring and analysis of market interest rates;
- Control over the degree of overheads through approving the amount of overheads as a part
of the Bank’s development plan for the forthcoming year and control over the actual
implementation of the overhead budget.
Besides, the minimisation of the interest risk was supported by the right of the Bank
envisaged in the operating contracts for provision (attraction) of cash funds, to change the
interest rates in view of the changed market conditions.
The stock risk arising in the course of change of prices for securities and other financial
instruments was regulated with the help of diversification of investment broken down by sectors
of the financial market and issuers and with the help of setting the following limits on operations
- general limit on investment in securities, including such broken down by sectors;
- limit on cash investments per each trader;
- limits on issuers of debt securities;
- establishing and execution of stop loss orders;
- creation of reserves for possible losses.
The observed general growth of the stock risk index significance for the Bank is connected,
first of all, with the planned growth of the volume of the Bank’s operations with securities,
including the increased volume of the Bank’s participation in the initial placement of bonds.
Functional Risks Management
Управление функциональными рисками
In 2006, the Bank paid more attention to such kinds of risk as the strategic, operational, and
legal risks, and to the business reputation risk.
The team of risk managers worked to develop the necessary internal documents and
methodical materials for purposes of organising the work to control the mentioned risks. Also
working was a multi-tiered system of committees, whose authorities (within the limits set by the
Board of Directors and internal documents) are determined by the Board depending on the kind
and degree of the risks under consideration. In particular, the Financial Committee approves,
within its scope of competence, the limits which restrict the credit and operational risks of the
Bank and the modes of their revision and programmes reducing the risks on the Bank’s
counterparties. The credit committees make, within their scope of competence, the decisions on
the expediency of performing the transactions with counterparties of the Bank proceeding from
the need to minimise the risk of non-fulfilment by them of their obligations to the Bank (credit
risks), as well as the need to maximise the degree of economic efficiency of such operations and
approve the programmes of the Bank’s credit risks reduction.
In the course of its activities the Bank inevitably meets various kinds of risks affecting, to this
or that degree, the results of its work. The quite conservative policy, timely monitoring of all risk
factors and prompt reaction to possible negative tendencies enabled the Bank in 2006 to avoid
losses and preserve the leading positions of the Bank in the market of the Republic of Tatarstan.
Further improvement of the methodological base and the development of a concept of an
integrated risk management system will enable the Bank in the future to control the degree of
possible losses and ensure the preservation of capital.
The competition in the banking sector is shifting rapidly towards the quality and
promptness of rendering of services, which in its turn depends on how well developed is the
protection of information, speed of settlements performance and time required for making
decisions, the potential for technological development, and, after all, on the efficiency of the
Bank’s operation as an integrated system. The high level of information technologies is
considered by OAO AIKB Tatfondbank as the most important competitive advantage.
The implementation of the further development plan of the Bank is impossible without
drastic changes in its IT element. For purposes of enhancing the reliability and manageability
and for ensuring further expansion of business a decision was made to transfer to a centralised
architecture of the information system that would meet the current requirements and standards.
In the second half of 2006 the basic elements of the Targeted Information System of the
Bank have been chosen. Analysing the possible options, the strict requirements have been set
for the development of information technologies in accordance with the selected business
strategy, and the solutions were studied from those available in the market. As a result, the
architecture of the future information system has been determined, and the budget of the project
and the implementation plan were developed.
The project will be implemented in 2007-2009. The new software and hardware complex
will be put in operation in the early 2008 in the Chistopol branch of the Bank. After that, in 2008 -
2009, the system will be introduced into commercial use in the head office of the Bank. Since the
system will be centralised, the branches and additional offices will be connected to the base
according to the developed model. Multiplication will be organised in the form of personnel
training and connecting the Bank’s subdivisions to the common information system. One of the
key expected results of the project will be the improved quality of the client service.
The main task of the Bank’s personnel policy in 2006 was to maintain and further improve
the system of human resources management under the conditions of organisational changes
and intensive growth of the Bank’s territorial network. The resolution of this task was ensured by
taking the relevant measures in three areas:
- attraction of personnel;
- retaining of personnel;
- development of personnel.
The priority in the field of personnel selection was placed on the preservation of a balance
in attraction of qualified employees with rich experience in banking and the young talented
specialists coming from institutions of higher education. An active work was being done with
graduates of universities of Tatarstan: organising internships and initiation of a grant programme
which enabled the Bank to select the best students for work in the Bank.
In 2006, the Bank carried out an active work to unite the employees, elaborate the
standards of corporate culture of a large and branchy network bank. Implementation of these
tasks was supported by the corporate newspaper, Vestnik tfb.ru, which covered the most
interesting events and achievements in life of the Bank and its employees. To develop a
common team spirit and implement the creative potential of its employees, the Bank also held
corporate events (joint holidays, sports events, trainings in team-formation for executive
In 2006, the Bank, for the first time in its history, conducted the evaluation of performance
of employees based on professional and personal competence, which enabled it to create the
personnel reserve and improve the process of internal rotation of the personnel. Besides, there
has been developed a system of the career growth of employees. For purposes of increasing the
motivation of the personnel, a system of bonuses has been revised, which was reflected in the
labour agreement. In 2006, the Bank started introducing a system of bonuses based on the key
performance index (KPI). There has also been developed a social package granting the
employees with the right for compensation of expenses related to medical treatment and sports
activities, education and rest of employees. All this enabled the Bank to become more attractive
in the labour market and reduce the outflow of personnel.
In 2006, the Bank introduced new software in the field of personnel management and
wages, which made it possible to ensure the centralised collection and registration of personnel-
related information in the Bank and simplify the preparation of analytical information on the
personnel. At the same time, the Bank continued to optimise and regulate the personnel-related
procedures, which helped it increase the efficiency of personnel management and foster the
personnel processes in the Bank.
A special place belongs to the work aimed at improving the qualification of the Bank’s
employees. The Bank organised training on the basis of its Training Centre attracting own and
invited specialists. Great attention is being paid to training of front-office employees aimed at
improving the skills of working with clients and improving the quality of service. The Bank’s
employees undergo training in the leading Russian and foreign centres.
Consolidating and developing the existing traditions, the Bank sees its task for the near
future in the development of an integrated system to manage the efficiency of work of its
employees, in the development of corporate culture, and in further improvement of the personnel
LIMITED LIABILITY COMPANY
INN 1655009292; 44/6-85, Dostoyevsky Street, Kazan, 420043;
Phone/fax: (843) 236-29-26; Phone: (843) 260-94-62; e-mail: email@example.com
Settlement Account: 40702810800000000943 at AKB TatInvestBank, Kazan, BIK 049209767;
Correspondent Account: 30101810900000000767
on Financial (Accounting) Statements
Shareholders of the Open-end Joint Stock Company “Joint Stock Investment Commercial Bank
Name: “Bankovsky Audit” Limited Liability Company,
Location: 44/6-85, Dostoyevsky Street, Kazan, 420043,
Main State Registration Number: 1021602834912 of 31 October 2002,
The License No. E 005371 to conduct audit activity has been issued by the Ministry of Finance
of the Russian Federation on the basis of the Order No. 387 of 9 December 2003 for the term of
Is a corporate member of the Institute of Professional Accountants and Auditors of Russia and
the Territorial Institute of Professional Accountants (Certificate Series D No. 00234/32 of 30
March 2005 of a corporate member of the Institute of Professional Accountants and Auditors of
Russia and the Territorial Institute of Professional Accountants).
Full name: Open-end Joint Stock Company “Joint Stock Investment Commercial Bank
Short name: OAO AIKB Tatfondbank
Location: 43/2, Chernyshevsky Street, Kazan, 420111
Date of registration by the Central Bank of the Russian Federation: 24 August 1994,
Registration number: 3058,
Main State Registration Number: 1021600000036 of 19 July 2002.
We have conducted an audit of the attached financial (accounting) statements of the Open-end
Joint Stock Company “Joint Stock Investment Commercial Bank “Tatfondbank” for the period
from 1 January to 31 December 2006 inclusive. The financial (accounting) statements of the
Open-end Joint Stock Company “Joint Stock Investment Commercial Bank “Tatfondbank”
consist of the following:
- Accounting balance sheet,
- Profit and loss account,
- Information on the capital adequacy, value of reserves for covering doubtful loans and
The responsibility for the preparation and submitting these financial (accounting) statements is
borne by the executive body of the Open-end Joint Stock Company “Joint Stock Investment
Commercial Bank “Tatfondbank”. Our responsibility is to express an opinion on validity of these
statements in all material aspects and the compliance of keeping the accounting records with
legislation of the Russian Federation on the basis of the conducted audit.
We have conducted an audit in compliance with:
- Federal Law “On Audit Activity” approved by the President of the Russian Federation on 7
August 2001, No. 119-FZ;
- Federal Rules (Standards) of audit activity approved by Resolutions of the Government of
the Russian Federation of 23 September 2002, No. 696, of 4 July 2003, No. 405, of 7
October 2004, No. 532, of 16 April 2005, No. 228, of 25 August 2006, No. 523;
- Internal rules (standards) of audit;
- Regulatory acts of the Bank of Russia.
The audit has been planned and conducted so as to obtain reasonable confidence that the
financial (accounting) statements do not contain material misstatements. The audit has been
conducted on a sample basis and included the study, on the test basis, of evidence proving the
numeric data in the financial (accounting) statements and the disclosure in it of information on
financial and economic activities, the evaluation of observance of principles and rules of
accountancy used for preparation of financial (accounting) statements, the consideration of the
main estimated figures obtained by the management of the audited entity, and the evaluation of
submitting of financial (accounting) statements. We believe that the conducted audit provides
sufficient grounds for expressing our opinion on the validity of financial (accounting) statements.
29 March 2007
Director (Signature) Gennady Timokhin
OOO Bankovsky Audit
Chief Executive of the Audit (Signature) Gennady Timokhin
(Qualification Certificate No. K 018278 of 05.08.2004
for the right to conduct audit activity in the field of
bank audit for an unlimited term)