TINKOFF CREDIT SYSTEMS REPORT FOR THE YEAR 2009

TINKOFF CREDIT SYSTEMS REPORT FOR THE YEAR 2009

TCS Group had a very successful year 2009 and remains operationally healthy and
liquid. Its flexible business model with very low fixed cost has enabled it to
respond quickly to changes in the economic environment and move into
‘steady-state' and manage the portfolio that has already been established.
TCS's credit card portfolio increased from 300 thousand to 418 thousand cards in
2009 (39% increase) following a 525% increase in 2008.
The preliminary unaudited profit of the Group for the year ended 31 December
2009 was USD 18,206 thousand (2008: loss of USD 44,747 thousand). On 31 December
2009 the unaudited total assets of the Group were USD 210,987 thousand (2007:
USD 193,942 thousand) and the unaudited net assets were USD 34,747 thousand
(2008: USD 16,468 thousand). Management considers that the financial position,
development and performance of the Group as presented in these consolidated
financial statements are satisfactory given the start up nature of the business
in 2007-2008 and global financial crisis.

TCS's low fixed cost base and cost-reduction programme enabled the Group to
reduce operational expenses and manage total expenses. Effective LLP rate have
been reducing steadily since 2008 due to increasing quality of Credit card
portfolio. Revenue has been robust and has grown since 2008 year by 73%. 

As a result of the improving economic situation and declining risks, TCS resumed
customer acquisition (primarily through mailing campaigns) in the second half of
2009 year. TCS is growing the portfolio organically by reinvesting cash
(received from customer repayments) back into the portfolio through new issuance
and credit limit increases. This is over-and-above accrued financing costs that
are always set aside and an additional prudent ‘liquidity cushion'. 
In addition to the reduction in delinquency, the other issue that TCS
experienced in 2009 year was a decrease in Forex risk exposure. In the
longer-term, TCS has hedged most of its FX risk.
The report published is the preliminary IFRS Financial Statements. The audited
Financial Statements will be signed off in April 2009.

For further details of the program please contact:

Oliver Hughes, President						
tel: +7 495 648 1000						
e-mail: o.hughes@tcsbank.ru 			

Ilya Pisemsky, CFO	
tel: +7 495 648-1000 
e-mail: i.pisemsky@tcsbank.ru

web: www.eginvestments.net/


Bank 'Tinkoff. Credit Systems' is Russia's first monoline bank, specialising
exclusively on the issuing and servicing of credit cards. The bank was founded
by the famous Russian entrepreneur, Oleg Tinkov. In October 2007, the
international investment bank Goldman Sachs became a shareholder. In September
2008, Vostok Nafta Investments Limited also became a shareholder. 

TCS Bank uses modern CRM and risk management systems. The bank employs a remote
service model, providing virtual banking services of the highest quality to its
customers. Service is provided to customers through a sophisticated Call Centre,
Internet, SMS banking and by mail through the Russian Postal system. The
combination of a narrow focus with a hi-tech approach gives the bank a distinct
competitive edge in the rapidly growing Russian credit card market.