Board of Directors of IFC-Bank approves development strategy for 2011-2015

21 September

OJSC JSCB International Financial Club (hereinafter — IFC Bank) reports the key results of the meeting of the Board of Directors held on September 21, 2011.

— Viktor Vekselberg was elected new Chairman of the Board of Directors of IFC Bank to replace Alexander Abramov. However, the membership composition of the Board of Directors did not change; a new development strategy of IFC Bank for 2011-2015, including the dividend policy, was approved;
— CJSC PricewaterhouseCoopers Audit was approved as an independent consultant to audit the Bank’s IFRS financial statements for 2011;
— The need for and advisability of additional capitalization of the Bank, based on the 2011 year-end results, is expected to be considered in March 2012.

The key item on the agenda of the meeting of IFC Bank’s Board of Directors was approval of a new strategy for 2011-2015, the financial model of which provides for the development of four primary lines of business:

1. Balanced development of traditional banking and mezzanine lending with a view to achieving the 50/50 ratio between their portfolios. By the end of 2011 the commercial loan portfolio is expected to be as much as 23.5 bn rubles. In addition, the Bank will focus on developing mezzanine lending which includes, among other things, provision of professional consulting services on bad debt restructuring and normalization of borrowers’ financial standing in partnership with the Deposit Insurance Agency (DIA). The expected rate of return on investment projects is at least 30%.

2. Active development of private banking. Among the strategic objectives of the Bank in this area is a 50% increase in both the liability base and the loan portfolio by the end of 2015.

3. Operations in the financial markets. The objectives of the Treasury Department include liquidity management through securities portfolio, REPO transactions, interbank deposit placement as well as arbitrage profit from operations with trading portfolios of financial instruments (stocks, bonds, currency markets).

4. Target regional development in areas with a high concentration of businesses that are of the most interest to the Bank and its shareholders. IFC Bank is interested first of all in the Urals, Siberia, and the Far East. Representative offices may also be opened in the Central Federal District: in Tula and Tver.

“Approval of the new development strategy is a milestone event for IFC Bank. We firmly believe the course we have chosen falls perfectly in line with the development trends of the Russian banking industry and that phased achievement of the declared targets will help further enhance business efficiency for the benefit of the Bank itself, its shareholders and clients”, — notes Oksana Lifar, Chairman of IFC Bank’s Management Board.