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					                                   AUDITOR CONCLUSION

of “Fincom - audit" independent Company on the results of “Fortune – bank” Public Joint
                    Stock Company financial statements for year 2009


To Shareholders and Board
of “Fortune – bank” JSC
To National Bank of Ukraine
        We have audited the annual financial reports provided by "Fortuna-bank" JSC
(hereinafter - the Bank), including balance sheet, income statement, statement of shareholders'
equity, statement of cash flows, general information about the Bank's activities for the year,
which expired the marked date, description of the accounting policies basic principles and other
explanatory notes to the financial statements for the year as of (the end of the day) December 31,
2009.

       Management responsibility

        Management staff is responsible for the preparation and fair presentation of these
financial statements in accordance with the accounting procedure in banks of Ukraine and
according to the disclosure requirements in accordance with International Financial Reporting
Standards. The responsibility of management personnel comprises: development,
implementation and use of internal controls regarding the preparation and fair presentation of
financial statements that do not contain significant distortions due to fraud or error, selection and
application of appropriate accounting policy and accounting estimates, which correspond to
certain circumstances.


       Auditor responsibility

         Our responsibility is to provide a conclusion on these financial statements based on our
audit. We carried out our auditing in accordance with the requirements of Ukrainian legislation
and the International Standards on Auditing. Those standards require of us observance of ethical
requirements, as well as planning and performing of auditing to obtain reasonable assurance that
financial statements do not contain significant distortions. Auditing envisages implementation of
auditing procedures for the sake of obtaining audit evidence concerning the amounts and
disclosures in the financial statements. Selection of procedures depends on the auditor opinion.
Estimation of risks of essential distortions of financial statements due to fraud or errors is
included in such procedures as well During an estimation of these risks the auditor considers
actions of the internal control of the subject of management on preparation and fair presentation
of financial statements for development of audit procedures that respond the circumstances
         An audit includes an assessment of correspondence of accounting policy applied, the
acceptability of accounting estimates made by management personnel and general presentation
of financial statements, assessment of risks associated with transactions with insiders and related
parties.
         We believe that our auditing provides a reasonable basis for expressing our thoughts.


       Basis for expression of conditionally positive thoughts

        According to the Bank's management, information on the provisions for credit risks in the
financial statements is provided authentically. According to our estimation, the amount of
provision for non-standard credit debt should be increased by 5,740 thousand UAH. Nor can we
assume that the bank pays enough attention to the diversification of loans in connection with
which it is exposed to additional financial risks.

       Conditionally positive thoughts

        The result of inspection, except of the above mentioned aspect, allows us to assert that
the financial statements fairly and accurately, in all essential aspects, reflect the financial
position to the audit findings, except for the issue noted above, allows us to assert that the
financial statements fairly and accurately, in all material respects, reflect the financial position of
the Bank as of the end of the day 31.12.2009, as well as results of its operations and cash flows
for the year ended, in accordance with Ukrainian legislation, the requirements of the National
Bank of Ukraine and Bank's accounting policy.

        Without introducing additional cautions to this conclusion, we draw attention to the fact
that in Ukraine there is an uncertainty about the possible future course of domestic economic
policy, regulatory frameworks and political situation development.
        We have no possibility to envisage possible future changes in these conditions and their
influence on Bank financial circumstances.



“Fincom – audit” auditing Company Director                                         O.A.Mazur

(APU Certificate № 0618, bank auditor certificate 0005
NBU Certificate №0000028 dated 03.12.2009, concerning the entry
 in the register of auditors of banks)

Kyiv, April 15, 2010
                    Report on the disclosure 0f information in accordance
 with the requirements of the Board of the National Bank of Ukraine № 389 dated 09.09.2003.


   1. Assignment and presentation


         According to the contract № 76dated 22.10.2009 signed between "Fincom-Audit"
Auditing Company(Certificate of Audit Chamber of Ukraine on inclusion to the Register of
subjects of auditing № 0618 dated 15 December 2005, and the Certificate of National Bank of
Ukraine № 0000028 dated 03.12 .2009 on inclusion to the Register of auditors of banks) and
"Fortuna-bank" public joint stock company, hereinafter the "Bank", auditing of annual financial
statements of the Bank for the period from 01.01.2009 to 31.12.2009 was carried out.
         Scope of the auditing is determined by auditors in compliance with Article 69 of the Law
of Ukraine "On Banks and Banking Activity" and point 3.3. of "Regulations on submissions by
banks to the National Bank of Ukraine of the auditing reports on the results of an annual auditing
of financial statements, approved by the Board of National Bank of Ukraine dated September 9,
2003 № 389 with amendments and additions.
        The aim of our work was to obtain evidence concerning:
         - correspondence of preparation of annual financial statements of the Bank for the year
         2009 to the Instructions “About preparation and publication of financial statements of
         banks in Ukraine”, approved by Decree of the National Bank of Ukraine № 480 dated
         27.12.2007 with amendments and additions, the letter of the National Bank of Ukraine №
         12-111 / 1791-24239 dated 29.12.2009,
         - "Clarification on the order of preparation of financial statements of banks of Ukraine
         for 2009"; Conformity of volume of assets to liabilities of bank by due dates, which is
         based on analysis of statistical form № 631 "the Report on structure of assets and
         liabilities due dates", confirmed by Decree № 124 of Board of National bank of Ukraine
         dated 19.03.2003 and registered in the Ministry of Justice on 07.05.2003 under №
         353/7674 (with amendments);
         - quality of asset and liability management;
         - qualities of an advances portfolio and the investment portfolio, receivables situation;
         - - Bank reserves and equity adequacy , including, concerning to the formation of the
         Bank's capital, funds, reserves to requirements of normative legal acts of the National
         Bank;
         - assessment of risks of banking operations and transactions with insiders / related
         parties
         - adequacy of accounting procedures, internal audit and controls of the Bank.
         At formation of an auditor conclusion the principle of importance which is defined
depending on influence of the specified aspects on decision-making by users of the financial
information was applied
         The Bank Accounting policy, the data of an annual financial accounting of Bank for 2009
is a source of the information which is used in this report. Auditor check is planned and carried
out through testing by account balance or a transaction type and applications of audit sampling.
         This report is designated for information and use of Bank management and National
Bank of Ukraine and cannot be used by any other party In reading this report it is necessary to
take into account the limited nature of the procedures for the assessment of issues related to the
activities of the Bank and the organization of accounting and internal control.
         Also, please note that the criteria for evaluating the issues, associated with the activities
of the Bank and the organization of the accounting system, may differ from the criteria applied
by the National Bank of Ukraine.


       2. Procedures and conclusions
        2.1. Checking of correspondence of preparation of annual financial statements of the
Bank for the year 2009 to the Instructions “About preparation and publication of financial
statements of banks in Ukraine”, approved by Decree of the National Bank of Ukraine № 480
dated 27.12.2007 with amendments and additions, the letter of the National Bank of Ukraine №
12-111 / 1791-24239 dated 29.12.2009, "Clarification on the order of preparation of financial
statements of banks of Ukraine for 2009";
        Procedures. During the auditing we have covered all the important aspects of the Bank
activity.
          We fix, that financial statements are prepared in accordance with the Laws of Ukraine
"On Banks and Banking Activity" "On Accounting and Financial Reporting in Ukraine" and is
based on the basic requirements for disclosure of information in the financial statements in
accordance with International Financial Reporting Standards, the national provisions (standards)
for accounting, regulatory and legal acts of the National Bank of Ukraine.
          The bank adheres to financial discipline at performance of the operations provided by
the charter and is the provided corresponding source of means for timely settlement of
commitment and Bank development.
        The financial accounting is made on real operations for the period passed which have
been corrected to prove recognitions of financial assets and liabilities at fair cost. Noted
estimations are based on the information, available on the date of drawing up of financial
accounting. Operations which are carried out by bank are displayed in the account in day of
performance of the rights or duties. Transactions in foreign currencies are recorded in the
national currency of Ukraine at the official rate of National Bank of Ukraine at the reporting
date.
        Selective auditing covers all significant balance sheet and makes it possible to conclude
that there is absence of significant deficiencies that could affect the financial results and
statements of the Bank.
        Conclusion: We note: The Bank duly opened general information about its activities
in notes 1 and 2. Presented annual financial statements, in all essential aspects, displays the
results of the Bank activity, its property and financial circumstances. The bank adheres to
financial discipline at performance of the operations provided by the charter and is the
provided corresponding source of means for timely settlement of commitment and Bank
development.

       2.2. Checking of conformity of volume of assets to liabilities of bank by due dates.

         Procedures. The Bank highlighted the information on the analysis of financial assets and
liabilities by maturity, based on expected due dates in its general information about the activities
of the Bank and in the note 37 "Financial Risk Management". As a base for criteria on disclosure
of information about conformity of volume of assets to liabilities of bank by due dates, were
taken the requirements of statistical accounting preparing and algorithm of form № 631 "the
Report on structure of assets and liabilities due dates", confirmed by Decree № 124 of Board of
National bank of Ukraine dated 19.03.2003 and registered in the Ministry of Justice on
07.05.2003 under № 353/7674 (with amendments)
         As of the end of the day on Dec. 31, 2009, total assets / liabilities according to the Bank's
balance sheet amounted to 1,070,285 thousand UAH. 714 156 thousand UAH were involved by
Finance source of active operation and 314 574 thousand UAH was owned capital.
         The volume of highly liquid assets (in cash desks and on correspondent accounts) was
108 357 thousand UAH or 10,1% of the total assets of the Bank
         The calculation of the resource position (liquidity gaps) of the Bank over the balance of
assets and liabilities is carried out in accordance with the timing of their return in accordance
with agreements, treaties and other instruments by currency and common in all currencies.
        The analysis of specifications of liquidity of bank as of 01.01.2010 has shown that the
bank for the named date is capable to provide timely performance of the liabilities, defined by
equation between terms and the sums of repayment of the placed assets and terms and the sums
of settlement of commitment of bank, and also terms and the sums of other sources and
directions of funds use.

        But by currencies and due dates in structure of assets and liabilities of bank there are gaps
in the ratio between assets and liabilities, namely:

       1. In structure of short-term assets and liabilities of bank:

term from 2 to 7 days -20 574 thousand UAH or 1,9% of the assets of the Bank

term from 8 to 31 days 35731 thousand UAH or 3.2% of the assets of the Bank

term from 32 to 92 days 27323 thousand UAH or 2.4% of the assets of the Bank

       2.In the structure of long-term assets and liabilities of the bank there is no discrepancy

Analysis of the inconsistencies of the maturities of assets and liabilities indicates that the level of
liquidity does not exceed recommended by the National Bank of Ukraine limits (no more - 10%
of total assets).

        Negative gap of liquidity on short-term funds is overlapped by longer term liquid funds.
Bank places long-term passives into short-term assets, mainly at the interbank market, as well as
short-term deposits of the clients. Specified negative discrepancy between assets and liabilities
does not bear the big load to the Bank liquidity situation.

       For the analysis of the term gap of liquidity, the Bank carries out centralized policy of
management of liquidity both in national currency, and by separate currencies, carrying out the
continuous control over provision of certain share of liquid assets in the general structure of the
bank balance sheet

        The main tool for measuring market liquidity risk is definition of degree of liquidity of
different kinds of assets of bank and calculation of percentage part of assets with high liquidity
to the general assets of bank and to assets with low liquidity.

       Overall objective of liquidity risks management is assurance of continuous liquidity and
creditworthiness of the bank with observance of all regulated requirements concerned.

        As of 01.01.2010, requirement criterions of the Bank are as follows: criterion of instant
liquidity (Н4) - 39,45 %; criterion of current liquidity (Н5) - 64,92 %; criterion of short-term
liquidity (Н6)-20,71 %.

    Conclusion: a)The given data of the form №631 „Report on structure of assets and liabilities
of bank          by due dates” testifies the sufficient equation by due dates and placing of assets
and liabilities of      bank;

               Assets and liabilities by due dates in general are coordinated between each other;
       liquidity level is sufficient.
       2.3. Auditing of quality of asset and liability management;

         Procedures. Bank's policy on the asset and liability management is focused on the
embodiment of reliability and profitability of operations and maintaining of balance liquidity For
this purpose, the composition of assets is diversified in order to achieve a reasonable balance
between profitability, risk and liquidity in respect of total liabilities and capital.
         The method of the account of assets and liabilities of the Bank is based on validity and
accuracy in the account and the reporting of indicators on corresponding accounts (articles),
reliability of definition of cost of accounting entities in the monetary form. In accounting and
financial reporting are used methods of evaluation of assets and liabilities by initial or fair value
of the acquisition, the liabilities - by sum of funds
         Total assets of the Bank decreased by 87,555 thousand UAH in2009. The overall
structure of the assets of the Bank indicates the weighted ratio of the Bank to the quality of its
assets. This approach allows the Bank to manage it effectively and achieve positive results for
each active transaction. .Asset management resolved a problem of profitableness, observance of
criteria of liquidity and control of risks inherent to Bank.
         Disclosure of information by type of asset in the financial statements of the Bank, meets
the requirements of the National Bank of Ukraine and national regulations (standards) of
accounting.
         Disclosure of information by type of asset in the financial statements of the Bank, meets
the requirements of the National Bank of Ukraine and national regulations (standards) of
accounting.
         In 2009, the amount of liabilities decreased by 222 608 thousand UAH.
         Financial results of the Bank, as an indicator of the Bank's ability to generate sufficient
income to offset all its losses, as well as providing a real return on invested equity capital, are
given in the form of "Income Statement" and footnotes to financial statements.
         Total income and expenses has been confirmed by: contracts, acts, regulations, and
information on the accrual of interest, memo and money orders to the Bank and bank customers.
         According to the auditors, on the results of the auditing procedures on verification of
authenticity of income and expenses of the Bank in 2009, and the reliability of "Report on the
financial results” for 2009, reasonable basis is provided for the auditor's conclusion about the
total net profit of the Bank received in 2009 , which amounts 1 271 thousand UAH.
         Conclusion: a) we certify the quality of asset and liability management of the Bank as
satisfactory, b) the Bank's management, in general, provides asset and liability management at
the proper level.

       2.4. Quality of an advances portfolio and the investment portfolio, receivables situation;

       Procedures. As a basis for criteria of disclosure of information on the quality of an
advances portfolio and the investment portfolio, receivables situation were adopted the
requirements of the “Regulations on the procedure of forming and using the reserve to
compensate possible losses for bank credit operations ", approved by the Board of National Bank
of Ukraine dated July 6, 2000 № 279, with amendments and additions, Regulations on the
“Provision for the operation of Ukrainian banks with securities “About an order of formation of a
reserve for operations of banks of Ukraine with securities”, approved by the Board of National
Bank of Ukraine on February 2, 2007 № 31, with amendments and additions, Regulations “on
the formation and use of reserve by banks to compensate for possible losses on accounts
receivable ", approved by the Board of National Bank of Ukraine dated 13 December 2002 №
505, with amendments and additions, Regulations “on the formation of mandatory reserves for
banks of Ukraine", approved by the Board of National Bank of Ukraine dated March 16, 2006 ,
№ 91, with amendments and additions.
         Quality of an advances portfolio.

        The cumulative credit risk inherent for credit transactions, is moderated, quantity of a
credit risk - moderated, quality of credit risk demands improvement, it is expected that the
direction of risk is such that grows.

       The balance sheet of the Bank loans are reflected by the sum of the principal debt less
provisions for potential losses As of 01.01.2010 the advances portfolio has decreased for 177
074 thousand UAH In comparison with 01.01.2009.

       In structure of balance advances portfolio (without off - balance obligations) the greatest
weight have the loans given to business entities -799 741 thousand UAH, or 95 %. Credits of
physical persons make - 43 492 thousand UAH, or 5 %.

       As of 01.01.2010, negatively classified debts make 53 547 thousand UAH or 5,6% of
advances portfolio, that is considerably less than the indicators of negatively classified credits on
the fourth banking group (13,76 %).

        It should be noted that during the year the Bank attended the concentration of credit
investments on certain economic activities and in the context of one counterparty.
        According to the requirements of the National Bank of Ukraine (Decree № 279) and
internal regulations on the monthly calculation of the reserve, the Bank carries out classification
of credit operations by conducting an inventory of the advances portfolio. As a result, credit
operations (including off-balance sheet obligations) were structured by the Bank by relevant risk
categories as follows:

                             Advances portfolio of the Bank by risk groups
                                                                                         Table №1
                                                                                  (Thousand UAH.)

                    Risk category                        As of 31.12.09       As of 31.12.08


 Standard                                                   115 138               443 357

 Under control                                              424 667               656 421

 Substandard                                                363 620                26 024

 Doubtful                                                    47 593                5 459

 Hopeless                                                     5 954                4 171

 Total                                                      956 973              1 135 432


       For the purpose of control over the loan debts situation the Bank carries out: regulated
procedures for the use of credit products; evaluation of creditworthiness of the borrower in
accordance with the Statutes of the placement of attracted funds on his behalf, on his own terms
and at his own risk, and assessment of his financial situation by its own methods; individual
approach to inter-bank loans and overdrafts; mortgage verification, monitoring the movement of
        funds on customer accounts, tracking of turnover on accounts in other banks, checking of
        balances of goods in circulation, etc.
               As of 01.01.2010 the amount of actually formed provision for unpaid loans made 77 229
        thousand UAH, representing 8% of the total outstanding on credit operations. Classification of
        loans by risk categories is monthly reviewed and approved at the Credit Committee meetings.

               Classification of quality of active operations portfolio, in general, is adequately displayed
        by method of determining of financial situation of the borrower Provisions for losses on
        operating activities can be considered sufficient and such, that cover possible losses.

               During auditing it was established:

               Borrower – “Factor Commerce” LLC (loan agreement № 04КО/4/918/UR dated
        30.01.2009). The amount of the outstanding loan as of 01.01.2010, is 36,786 thousand UAH.
        When checking the assessment of financial situation the fact of over-the category of credit
        transactions is revealed. According to the auditor the category of debts of this credit transaction
        should be defined as "substandard" according to points 4.5., 6.1-6.2 of "Regulations on the order
        of formation and use of reserve for compensation of possible losses on credit transactions of
        banks», approved by Decree of Board of National bank of Ukraine, dated 06.07.2000 № 279,
        with amendments and additions.

        The calculation of the borrower is given in the table 2

                                                                                                 Table №2

                                                                                         (Thousand UAH)


                                                                                                         Deviati
                                                                                                         on
                                                                                                         of
                                                                                                         Loan
                          According to bank                            By results of audit
         Lo                                                                                              the
         an                                                                                              generat
Borro    Cu                                                                                              ed
wer      rre                                                                                             reserve
         nc
          y              Outstandi      Lien                        Outstandi        Lien
                Loan                              Gener
                         ng amount    amount                Loan ng amount         amount      Calcul
               classif                             ated
                          taken to    taken to             classifi taken to       taken to      ated
               icatio                             reserv
                         calculatio   calculati            cation calculatio      calculatio   reserve
                  n                                  e
                             n           on                            n              n

“Factor 98     Under     36 786       0           1 913    Substa   36789         0            7 653     5 740
Comm 0         contro                                      ndard
erce”          l
LLC

Total                    36 786       0           1 913             36789         0            7 653     5 740

               The settlement sum formation completion of reserve makes 5740 thousand UAH, out of
        which - 5518 thousand UAH - formation completion for outstanding balance on the principal
debt, 222 thousand UAH - formation completion of the reserve for off -balance obligations on
these credit operation.



       We notice that it is necessary for Bank to improve constantly system of analysis of
estimation of financial situation of borrowers both at consideration and administration of loans
stage and at its monitoring.

       As of end of day 31.12.2009, according to Bank, values of specifications of a credit risk
accordingly make:

       - Standard maximum exposure to one counterparty H7 (normative value not more than
25%) - 21.39%;

       - Specification of large credit risks H8 (normative value not more than 800%) - 278.38%;

      - Standard maximum size of loans, guarantees and warranties provided by one insider H9
(normative value is not more than 5%) - 1,17%;

        - Specification of maximum cumulative size of loans, guarantees and warranties granted
to insiders H10 (normative value is not more than 30%) - 1,63%

       Conclusion: a) Analysis of the information on credit operations, provided by Bank,
in general, adequately reflects the structure of its advances portfolio. According to the
Bank's management, information on the provisions for credit risks in the financial
statements is provided authentically. We estimate, that the amount of provision for non-
standard loan debt should be increased to 5 740 thousand UAH. Please note that by the
time of auditing the reserve for this credit operation was formed in full. ll. In connection
with that, the completing formation of provision does not require adjustment of the annual
financial statement

      b) the quality of the advances portfolio can be considered satisfactory. At the same time
we note that the Bank pays insufficient attention to the diversification of loans, and therefore
exposed to additional financial risks.



       Quality of the investment portfolio.



        As of the end date of December 31, 2009 the amount the Bank's investments in securities
for sale and maturity are absent.

        Throughout the year, the Bank was carrying our transactions with securities only on
behalf of the clients. The organizational structure for operations with securities meets the needs
of the Bank.

      Provision for possible losses of securities for sale in accordance with the requirements of
normative legal acts of the National Bank of Ukraine is not required.
       Conclusion: Information of the bank adequately reflects the structure of securities
transactions, which were implemented in the bank during the current period.



       Receivables situation.

        Condition and quality of receivables do not carry a significant risk to the financial
situation of the Bank; account receivables have ongoing character and make 368 thousand UAH.
There are no negatively classified receivables as of 01.01.2010. Evaluation of receivables and
formation of the reserve is carried out monthly doesn’t cause any comments.

        Bank forms special and general reserves to cover possible losses on assets, including
deposits, loans, accounts payable, accrued interest on loans, both in national and foreign
currencies, and under the off-balance sheet liabilities of the bank. For the purpose of
classification of assets in the calculation of reserves, Bank uses regulatory legal requirements of
the National Bank of Ukraine. The volume of the generated reserves reduces registration cost of
corresponding asset.

        At the reporting date, reserves formation by Bank are completed, generally, sufficiently
and is real for the repayment of doubtful and bad debt in the event of its occurrence.

        Conclusion: a) accounts receivable situation of the bank is satisfactory; b) receivable
is standard and does not require the formation of an insurance reserve for that asset.

       2.5. - Sufficiency of Bank reserves and equity adequacy , including, concerning to the
formation of the Bank's capital, funds, reserves to requirements of normative legal acts of the
National Bank;

        Procedures. The volume of regulatory capital of the Bank as of the end of the day
December 31, 2009 equals 234,280 thousand UAH. It is sufficient to meet regulatory and
licensing requirements of the National Bank of Ukraine for the implementation of the existing
level of operations.

         Bank Capital by its structure is balanced: its value is the sum of I level capital (fixed
capital - in the amount of 194,072 thousand UAH) and additional capital – in the amount of 40
208 thousand UAH.

        Capital structure prevailing at the end of the year has no signs of the threat to financial
stability, and its absolute size corresponds to the regulatory requirements concerning its size.

        Adequacy level of Bank regulatory capital throughout 2009 was not broken, as of
01.01.2010 years it was - 26,18 % , at specification Н2 not less than 10 %. The weighted average
value ratios of regulatory capital to total assets (H3) at the end of the year - 20.40% standard
value is not less than 9%

        Distribution of profits and size of funds formations at the expense of net profit, are
realized on the basis of the decision of shareholders of the bank.

       The reserve fund is formed by the Bank in accordance with the statute.
       As a result of the analysis of the Bank's capital we have not established evidence of non-
compliance with the Bank the order of formation of reserves and funds in accordance with the
requirements of legal acts of the National Bank.

          Provisions for losses on active operations are adequate and cover potential losses.

       Conclusion: a) the principles of reserves formations and regulatory capital meet
regulatory requirements of the National Bank; b) we note the sufficiency of reserves and the
adequacy of the bank's capital.

          2.6. Assessment of risks of banking operations and transactions with insiders / related
parties

     Procedures. We have carried out tests to verify the accuracy of formation of system of risk
management and assessment of techniques and activities efficiency that are developed and
implemented at the bank in order to optimize the ratio Profit/ risk

          Testing of risk management system procedure was based on auditors’ evidence, namely:

      -    existence of a unique system of identification, assessment, monitoring and risk
          management;
      - existence of mutually agreed policies of identified risks management, WHICH the bank
          considers essential;
      - methodological support and availability of prescribed rules and procedures for risk
          management;
      - distribution of identified risks by the centers of responsibility, control and management;
      - availability of high-tech information processing, analytical database and reporting;
      - identification of means, mechanisms and tools for risk management;
      - operation of the independent risk management procedures at the stage of making
          significant management decisions;
      - implementation and operation of risk-oriented system of internal control;
      - provision of the Supervisory Board and Management Board control over the risk
          management system;
      - review of risk management procedures, taking into account the introduction of new
          banking products and the transformation of the organizational system of the bank;
      - continuous revision of the risk management system correspondence to existing market
          conditions, financial tools, situation in the economy and corporate strategy of values.
        In assessing the risk, the auditors determined and studied as the major financial risks
(credit risk, interest rate risk, liquidity risk, currency risk) as functional risk (the risk of
compliance with the law, operational and technological risk, strategic risk, reputation risk),
which may adversely affect Bank activity.

     It is established that the Bank manages risks in accordance with guidelines of the National
Bank of Ukraine, the internal regulations of the risk management system and in the order,
determined by the internal methods of risk assessment.

      The system of risk assessment and management of the Bank is aimed at preventing the
occurrence of risks and implementation of an early response to the risks system, inherent to the
bank.

     It should be noted that, along with attention to financial risks that directly relate to the bank
balance, it is necessary more balanced approach to functional risk as well, i.e. in the process of
risk assessment and management it is necessary to take into account the interconnection,
existing between all the risks. Therefore, the Bank should analyze and assess not only each type
of risk separately, but also to determine the aggregate level of risk, which consists of the
volumes of individual risks. It would be advisable that the Bank has developed a methodology
for strategic risk management depending on determining the relative importance or likelihood of
any conditions or events may change and negatively affect the bank's financial situation.

      We notice that the level of monitoring of credit risks always needs some work in
evaluating the financial condition of the borrower, the level and type of security and external
factors.

        The Bank monitors the restrictions on the amounts of transactions with related parties,
which are set by the National Bank of Ukraine, according to current legislation.
        During 2009, transactions with insiders and related parties were conducted on normal
terms and had no significant effect on the financial results of the Bank.
        Conclusion: a) on the basis of the work the auditors confirm the presence of moderate
risk for major bank transactions and transactions with insiders / related parties; b) the system of
risk assessment and management in the bank covers all procedures and risks, inherent to the
bank, as a whole is sufficient, but needs continuous improvement.

       2.7. The adequacy of accounting, procedures of internal auditing and control activities of
the Bank.

        Procedures. The Bank complies with the requirements of Ukrainian legislation,
regulations of the National Bank of Ukraine and the requirements of IAS on accounting and
financial reporting. The organizational structure of units engaged in accounting consistent with
the overall organizational structure of the Bank. The accounting system and provision of
information are adequate for making informed management decisions.

       Accounting, as a whole, provides sufficiently detailed transcripts of accounts, allowing
analyzing any deviations, the provision of reliable comparative information on assets, liabilities,
financial situation and results of the bank activity.

       During auditing, we could not establish the moments of concealment, conspiracy, fake,
intended nonreflexion of operations in the account which are swindle elements, so auditors have
the right to perceive the given information, records and documents as authentic. However,
auditors should view with a certain degree of professional skepticism that after checking there
may be circumstances that will cause the question of the presence of fraud and error.

        To limit the risk in carrying out banking transactions, the bank is defined and set the list
of transactions that require additional control especially for documents on expenditures for
internal bank operations, forming the bank's financial results.

        In "Significant accounting policies and financial reporting of the bank" are uncovered
issues of accounting controls. It is indicated that the bank held control, and itemized procedures
and order of conducting initial and follow-up control, the procedure for logical and arithmetic
control over the integrity of reporting.
        The independent operational control of the Bank is assigned to the Internal Audit
(hereinafter - IAS), which is created and operates according to the requirements of the Law on
Banks and Banking Activity and Bank Charter.
        During 2009, the internal audit subdivision of the Bank was independent, reporting
directly to senior management, had direct access to all information concerning the activities of
the Bank.
        During auditing were applied methods of revision, testing of internal control system,
analytical procedures, processes dynamics monitoring, comparison. The task of internal audit is
to monitor compliance with the laws of Ukraine, legal acts of the National Bank of Ukraine and
the decisions of the Bank's management, analysis of the bank's activity, checking of the results of
the current financial performance of the bank.
        The auditing plan of the year 2009 is fully implemented; results of operations are agreed
at a meeting of the Supervisory Board.
        Checks are carried out selectively according to the approved work plan and program.
With this, the principle of surprise inspections is ensured.
        During auditing of the Bank the auditing firm used the acts of an internal auditor.
        The Bank is mainly developed the necessary instructions to officials, three-level system
of protection of information security system of the Bank is created. With this certain rules are
determined for user access to the database of the Bank and operations in the banking system
software.
        The Bank has a system of follow-up control, which consists in testing of already
performed operations in order to verify their correspondence to guidance, instructions and
regulations of current legislation..
        Conclusion: a) the accounting of the bank meets the requirements of normative legal acts
of National Bank of Ukraine and ensures the appropriate level of adequacy to the internal
regulations; b) procedures of internal control and auditing correspond to relevant legal acts of the
National Bank and provide adequate control over the risks of the bank, etc.


“Fincom – audit” auditing Company Director                                      O.A.Mazur
(APU Certificate № 0618, bank auditor certificate 0005
NBU Certificate №0000028 dated 03.12.2009, concerning the entry
 in the register of auditors of banks)

Kyiv, April 15, 2010

				
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