STRATEGIC OBJECTIVES

PSB strategic objective is to become Russia’s privately owned bank №1 by market value by 2015.

STRATEGIC PRIORITIES
PSB established the following strategic priorities for the period up to 2013:

• maintain maximum profitability;
• diversify loan portfolio and income base;
• improve quality of  client base;
• attract and develop top professionals;
• strengthen our brand;
• enhance client service level;
• implement innovative products and technologies;
• improve operating efficiency;
• develop branch network and alternative sales channels.

2010 OBJECTIVES
PSB key objectives for 2010 are to maintain profitability and operating efficiency. Accordingly the bank sets the following major tasks:

• assure expansion of credit activities focusing on  high quality client base;
• assure high margins maintaining acceptable risk level;
• minimize the volume of non-performing loans;
• increase commission income ;
• update product range for each business line with modern innovative products;
• improve client service level;
• increase brand awareness;
• increase centralization and automation of operations;
• enhance remote channels functionality .

BUSINESS SEGMENTS OBJECTIVES

Corporate business will remain the major business line for PSB. PSB plans to retain its leading positions in corporate loans and corporate deposits markets. Key Corporate Banking development objectives up to Y2013 are:

• Strengthen its position in factoring, international finance and standard lending product segments;
• Establish a stable and diversified revenue base through increased fee and commission income;
• Implement a service model targeted at higher service quality and maximizing client potential.

The goal of our SME Banking is to become one of Russia’s Top 5 banks by SME lending by 2013.
Priorities will be given to the following areas:

• Improve product range
• Establish full-range high-quality client service system;

Develop differentiated sales and service channels for various client segments;

Retail Banking plays an important role in diversifying PSB assets and liabilities portfolio, and in improving our business profitability. Retail Baking’s goals up to Y2013 are to become one of Russia’s Top 5 banks by retail deposits and Top 10 by retail lending.
PSB will focus on affluent and upper mass clients as a target client segments.

PSB Retail Banking priorities are to:

• Develop  bundled products ;
• Increase client service quality;
• Develop remote services and partner programs.

Private Banking will also be a priority business line for PSB. By 2013 we plan to become Top 5 bank  in terms of attracting  customers assets. In this field PSB plans to launch special programs for VIP-clients, develop new products (deposits, investment products, non-banking products) and increase the number of VIP offices.

International Business, Investments and Financial Markets division plays an important role in ensuring our ability to offer a full range of services to our clients.  By 2013 PSB plans to become a leader in debt instruments market (one of Top-5 Russia’s banks in 2- and 3-tier RUB-denominated corporate bond issuance, one of Top-5 banks in structured instruments issuance for Russian issuers, including CLN and Eurobonds, retain stable Top-3 position in debt instruments secondary market).In the long-term PSB also seeks to consolidate its leading positions among clearing banks, to develop trade financing activities with CIS banks, attract mid- and long-term funding, assure that the bank meets its demand for capital.

Success of a universal bank depends on its ability to fully unlock the synergy effect of all business areas. Therefore, overall goals for all PSB business segments up to 2013 are:

• Dynamically develop cross-sales;
• Maximize the number of products per client;
• Increase fee and commission and other non-interest income.

In addition, an important PSB long-term objective is to actively implement state-of-the-art technology supporting full-scale strategic management cycle, which includes external and internal analysis, strategic goal-setting, long-term planning, strategy cascading, as well as monitoring and regular update of strategic plans.