“The achievements of our Bank are the results of everyday activities combined with creative approach and professional attitude of the Bank's team. But none of these achievements would have been possible without the trust from our clients and partners. On behalf of the Bank's management I express my sincere gratitude to all of our members, clients and counterparties for their support and I feel very confident that our further cooperation will be even greater in future than what we have achieved today”.

In April 2007, INCREDBANK will celebrate its first anniversary: we will be 5 years old. At the doorstep of this event we would like to get through of what we have done for these years and what we have achieved following the strategy that seems to be successful.

COMMERCIAL BANK FOR INDUSTRIAL CREDIT (Closed Type Joint Stock Company), or INCREDBANK for short, was established in 2002. It is a modern financial institution. The primary objective is to provide our clients with high quality service and superior banking products.

From the very beginning, the Bank has been firmly following its business principles: to act as a reliable financial partner for different business circles, to maintain a high level of professionalism, and to find the best solutions for its partners and clients. The Bank’s chosen strategy determined its successful and dynamic development: last year INCREDBANK ranked 29th among the most rapidly growing banks of the CIS. Kommersant First Rating included the Bank in Russia’s top 200 banks by net assets as at 01.10.2006. The rating was published on 15 January 2007.

Last year INCREDBANK obtained a license for individual deposit taking, became a member of the deposit insurance system, an associated member of VISA, MASTERCARD and the Russian National Association of SWIFT members. In addition to the head office and three additional offices, we opened three more additional offices in Moscow and a branch in St. Petersburg for the purpose of being even closer to our clients. One of the highlights of the past year was the fact that a main shareholder of INCREDBANK, Chairman of the Board of Directors, German Gorbuntsov, signed an agreement for the full acquisition of the group of companies with the core asset being the world famous hockey club SPARTAK - MOSCOW.

The main principles of INCREDBANK's activities on the interbank market and in the corporate and retail business consist of providing an international level of services, developing and promoting state-of-the art banking products.

Last year INCREDBANK developed a large product range for individual customers. In December 2006, the Bank launched mortgage lending program secured by acquired and available real estate. Special credit and investment programs enabled the Bank to achieve a significant expansion of its base of corporate clients and partners.

In 2006, INCREDBANK established the International Club “FINANSIST”, which is a major step forward in the interbank cooperation: the Club members get an opportunity of expanding their clientele in Russia, the CIS and foreign countries. By using documentary and trade finance instruments, the Club members increase the level of services offered to their clients, acquire new customers and generate more revenues.

For the purpose of establishing higher level of service for our clients and expanding our presence in banking retail side, in 2006, INCREDBANK became the settlement centre of the international money transfer system LEADER. This system is expected to develop into one of the major players of the money transfer market of Russia and the CIS. LEADER is a convenient, reliable and modern money transfer system and it is undoubtedly the best solution for our clients. The establishment of this system will allow the Bank to reach a new level in individual customer service and expand its presence inside the retail and interbank markets. For individuals, the system offers low transfer fees (from 1.5%), a high speed (5 minutes), and an option of crediting transferred funds to the beneficiary's bank account as well as additional services provided free of charge. The bank members of the system get 45% of the total charged fee which gives them the ability to increase their income proportionally to their customer growth rate and attract new clients.

Today, the size of authorized capital of the Bank is 500 million rubles, total assets exceed 5 billion rubles, but we do not want to stop there. The Bank’s plans for the coming year include further development of its correspondent network in Russia, the CIS and foreign countries. In the nearest future, the Bank intends to perfect its services in all interbank market segments and secure a position of the main clearing bank for its correspondents from the CIS countries. Development of the new correspondents and partners network with foreign countries becomes one of the primary objectives for 2007. The Bank strives for enlarging and streamlining its product mix for individuals and corporations. We want our clients to get high-class banking services and hope that the Bank will make yet another breakthrough on the Russian and International financial markets.