What a Customer Wants Trade Finance Conference Minsk March, 2018

CONTENTS Bank BelVEB Profile Trade and Structured Finance: Key Performance Indicators What a Customer Wants

Bank BelVEB Profile POSITIONING Being one of the country’s leading banks, the Bank operates as a credit and financial institution serving the real sector of the economy and focusing on foreign trade transactions MISSION The Bank sees its Mission in facilitating and assisting customers from Russia and Belarus to successfully implement their mutual business initiatives 2016-2019 STRATEGIC GOALS Increasing the number of Russia-Belarus trade transactions in the Bank’s corporate portfolio, including Russia exports target financing, promoting integration and facilitating joint projects. Becoming a high-tech bank due to introduction of up-to-date customer-centered banking technologies and raising the share of products and services provided via distant banking. Keeping the Bank’s equity sufficient to ensure safety of shareholders’ investment into the authorized capital.

Bank BelVEB Profile MARKET SHARE In 2017, Bank BelVEB managed to slightly increase its market position in terms of assets, customer loans exposure and equity, which is in line with its goals. 4

Key Performance Indicators Major Market Drivers and Trends further increase of risk-appetite of European banks to accept Belarusian risks due to Belarus upgrade by OECD and Fitch; grows in foreign trade turnover; recovery in corporate investment activity; excess liquidity in hard currency in Belarusian market; TF products starts loosing to domestic loans; Basel III (LCR and NSFR) implementation; new approach of the National Bank to export financing. 5

Banks provide full range of import TF instruments Key TF Products of Belarusian Banks Import Export Documentary Credits + Documentary Credits Confirmation LC Post-financing Buyer’s Credit +/- Buyer’s Bank Credit Guarantees Factoring Banks provide full range of import TF instruments 6

Key Performance Indicators Major drivers and trends Decrease of interest rates for loans in BYN Decrease of interest rates for loans in hard currency Tough competition Shrinkage of margin Interest rates for new corporate loans in 2017 Average all-in price for documentary operation in 2016-17 BYN Hard currency 7

Trade and Structured Finance KEY PERFOMANCE INDICATORS +17.8% In 2017, the corporate loan portfolio went up by 3.6% while documentary operations exposure showed growth of 17.8% 20% Bank BelVEB is remaining second in Belarusian Trade Finance with a share of 20% +31% In 2017, 1the total value of documentary obligations grew by 31% +68% In 2017, the quantity of documentary obligations grew by 68% 8

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Trends and Expectations Drivers Export financing in demand the Government and customers are keen on further development of export financing system cooperation between Belarus and Russia in support of common export new rule for export financing Interest rates downtrend state policy for dedollarization of the economy escape from excess liquidity in hard currency Restrained growth in documentary business foreign trade recovery investment activity recovery special state programs for export support pressure of sectoral sanctions Basel III Moderate growth in long-term financing investment programs resume growing number of long-term clean limits for Belarusian banks is expected Increase in ‘Russian’ transactions share growing Russian-Belarusian trade turnover development of Russian exports financing system TF in Belarus. Forecast for Y2018 10

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