Promsvyazbank reaches preliminary agreement to integrate JSC “Nizhny Novgorod Bank” into the Banking Group Promsvyazbank

28.11 | 2008

A preliminary agreement has been reached to integrate JSC “Nizhny Novgorod Bank” (Nizhny Novgorod Bank) into the Banking Group Promsvyazbank. To this effect, OJSC “Promsvyazbank” (PSB) intends to acquire a controlling stake in Nizhny Novgorod Bank.

Financial rehabilitation measures of Nizhny Novgorod Bank are expected to be jointly undertaken by PSB, the state corporation Deposit Insurance Agency and Nizhny Novgorod Bank.

The Banking Group Promsvyazbank continues to expand its business. Earlier in the year, PSB reached an agreement to integrate JSC “Yarsotsbank”, the Yaroslavl region, into the Banking Group Promsvyazbank. The Group also includes Volgoprombank, the Volgograd region.

Information on the terms of the planned transaction is confidential.

About Promsvyazbank

OJSC Promsvyazbank, founded in 1995, is one of the leading privately-owned Russian banks, with total assets of RUB407.6 billion, and total capital of RUB46.7 billion under IFRS as of 30 September 2008. Holding company Promsvyaz Capital B. V. owns 84.68% of the Bank, the remaining 15.32% are owned by Commerzbank Auslandsbanken Holding AG, a subsidiary of the second-largest German bank Commerzbank AG. PSB has the following international credit ratings: “Ba2” from Moody’s Investors Service (stable outlook); “BB-” from Standard & Poor's (negative outlook); “B+” from Fitch Ratings (stable outlook). As of 1 October 2008, the regional network of the Bank in Russia encompassed more than 150 sub-branches, 46 branches and 2 representative offices; a foreign branch in Cyprus; and foreign representative offices in Kyrgyz Republic, Ukraine, China, and India. www.psbank.ru

About Nizhny Novgorod Bank

Nizhny Novgorod Bank, founded in 1990, has total assets over RUB 5.3 billion, and equity over RUB 0.6 billion under RAS as at 30 September 2008, which amounts to 1.3% of PSB’s total assets and equity as at 30 September 2008. The important advantage of Nizhny Novgorod Bank is its network of 10 sub-branches in the city of Nizhny Novgorod and the region. Nizhny Novgorod Bank has issued more than 7,200 plastic cards and has a network of 14 ATMs and 32 payment offices.

Contact e-mail for investors and analysts: ir@psbank.ru