LOCKO-Bank demonstrated 33% growth of net profit for 6 months 2011 in accordance with IFRS

LOCKO-Bank announced financial results for six months of 2011 in accordance with IFRS. Net profit for 6 months 2011 amounted to 574 m roubles (+33% against the same period of 2010), return on equity - 18,2% and return on assets – 2,3%. Over the period total capital went up 9,5% to 6.6 bn roubles, capital adequacy according to Basel totaled 14,4% as June 30, 2011 (14,7% as of December 31, 2010).

Over the period under review total assets of the Bank went up 3,2% to 51.6 bn roubles and credit portfolio demonstrated outstripping growth rate. Credit portfolio net of reserves went up by 7,3% over the period and amounted to 35.5 bn roubles as of June 30, 2011. The share of loans in assets totaled 68,8% (against 66.2% as of December 2010). SME being the key segment for LOCKO-Bank accounted for 53% of total credit portfolio as of June 30, 2011.

The Bank follows conservative strategy of securities portfolio management, the sufficient part of the portfolio consists of liquidity reserves. As of June 30, 2011 the fair value of financial instruments portfolio was 11,1 bn roubles, 96,%of the portfolio were debt securities, 67% of the securities are included in CBR Lombard List.

As of June 30 2011 borrowings totaled 45.0 bn roubles, including 20.9 bn roubles on client accounts and deposits,6.5 bn roubles from international and Russian development institutions and 8.4 bn roubles in issued debentures. In February LOCKO Bank issued 3 year rouble bonds for 2.5 bn roubles with buy-back option in one year at 8,5% for the first year. With account of achieved financial results LOCKO-Bank focused on its priority development areas - organic growth and regional development across all business lines as well as the improvement of service quality and business performance while maintaining strong balance sheet ratios and moderate level of risk.