VTB BANK TO RENDER ASSISTANCE TO ITS BRANCHES

ARKA
Nov 12, 2008

YEREVAN, November 12. /ARKA/. The VTB Bank will render all possible
assistance to its branches in the context of the international
financial crisis, Board Chairman Andrey Kostin stated during a
space bridge between the VTB Bank and its three branches in Armenia,
Ukraine and Belarus.

He pointed out that the unprecedented economic crisis resulted in a
recession in the world economy and affected many countries in America,
Europe and Asia.

However, he said, Russia has sufficient resources to assist banks
and companies, stir up demand and crediting of Russian economy.

"In Ukraine the crisis created a rather difficult situation, whereas
in Armenia and Belarus the impact of the international crisis is far
less serious due to the fact that the countries’ financial systems
are not greatly integrated into the world economy," Kostin said.

According to him, Armenia and Belarus are less subject to the crisis,
through it certainly affects economic growth.

Kostin reported that the VTB Group has modified its plans in the
context of the crisis – some programs will be scaled down.

"However VTB (Moscow) will not allow our branch banks to sustain
losses and is ready to provide all the necessary resources to them and
render all possible assistance to them for their normal operation,"
Kostin said.

He stressed the need for branch banks to be=2 0self-sufficient and
intensify their activities on the local markets by attracting deposits
and cooperating with enterprises.

Kostin pointed out that the bank expects problems in closing this year.

The VTB Bank (Armenia) CJSC (before June 20, 2006, Armsavingsbank)
joined the VTB Bank in April 2004. The bank is currently fully owned
by the VTB Bank.

The authorized capital of VTB Bank (Armenia) is 13.9bln AMD. On October
1, 2008, the bank’s equity capital totaled 23.2bln AMD, assets 98bln
AMD, credit portfolio 74bln AMD, liabilities to clients 38bln AMD,
net profit 2.4bln AMD (the fourth largest profit in January-September
2008).

According to the information at ARKA’s disposal, in the 3rd quarter of
2008, the bank registered the fourth largest assets and liabilities,
and the second largest total capital and credit investments.