Implementation of the strategic development plan (year 2014)

Key financial figures as of January 1, 2015 Implementation of the strategic development plan ExpectedActual Equity, BYR trillion10,19 – 14,79,8 Equity adequacy, %13,8 – 17,617,9 Profit, BYR trillion1,0 – 1,621,2 Profitability (profit to cost ratio), %8,2 – 18,211,1

Position in the banking system Implementation of the strategic development plan Position in the banking system Planned Actual data as of January 1, 2015 Equity22 Lending to economy22 Corporate loans22 Corporate deposits23 Retail customer accounts22

Retail business development The bank has extended and improved the range of its savings products by developing new types of deposits,“Big Money 2.0” and “Indexable 2.0”. In 2014 retail customer funds attracted by the bank increased 1,3-fold (to BYR 24,2 trillion), constituting a 16,9% market share as of As of January 1, 2015, Belagroprombank’s retail customer base totalled 1,9 million. By year-end 2014, the bank implemented over 8 thousand salary projects which entailed the issuance of about 820 payment cards. Pensioners who get retirement pay are offered the “Care” Service package entailing a higher interest rate on the account and the issuance of BELCARD co-branding card. As of January 1, 2015, more than 70 thousand “Care” service packages were issued. Belagroprombank offers new possibilities for the participants of the kids’ savings program “Grow Happy”. The additional agreement between Belagroprombank and Belneftestrakh Insurance Company provided the customers with the possibility to get a personal accident insurance in the kid’s name. As part of the programme, the draw of the “Making Dreams Come True” promotional game took place, with a prize found totalling BYR 42,8 million. Implementation of the strategic development plan

Retail business development The loan application review time has been reduced, and the terms and conditions for Visa Instant card loans have been modified. Internet Banking users are now allowed to submit a loan application online via Internet Banking, and preliminary loan decisions can now be obtained through our Contact Centre. Belagroprombank has enhanced the functionality of the Internet Banking service, i.e. new content has been added to the loading page and bank statements, more functions have been added into main sections, as well new possibilities to perform accounting and control functions, user authentification and enhanced safety of online transactions. New remote service channels have been introduced to cardholders, including Mobile Internet Banking service for users of smart phones with the most widely used operational systems, USSD Banking and TV Banking. Over 2014, the number of individuals who use remote banking service increased 44% (to 294 thousand). The bank kept extending its ATM infrastructure and introduced new functionalities to terminals at cash advance outlets at the expense of payment transactions within Unified Settlement and Information Space (USIS). Implementation of the strategic development plan

Corporate business development New and improved banking products have been introduced to corporate clients. Package services have been offered for businesses. The bank carried on with the implementation of state programs aimed at supporting small businesses. The activities have been held to support agroecotourism, including preferential lending, implementation of projects to promote agroecotorism in the Republic of Belarus, and installation of card terminals at agrotourism businesses. Implementation of the strategic development plan

Corporate business development In 2014, within implementation of state programs and initiatives, the bank granted loans to resident businesses in the amount of BYR 10,7 trillion. The bank continued to finance export projects of resident businesses under the Decree of the President of the Republic of Belarus No.534 dated By year-end 2014, the bank’s total corporate loan portfolio reached BYR 54,9 trillion, a 20,7% market share. The Internet Acquiring service has been implemented for merchants, and cards terminals infrastructure was increased by 26%. The corporate customer base reached 48,3 thousand at the end of Implementation of the strategic development plan

International cooperation In 2014 the bank raised about USD 485 million of financing from foreign financial institutions, including the largest for the bank syndicated facility for the amount of USD 70 million and EUR 29 million for 1 year. Belagroprombank cooperates with over 100 financial institutions in 30 countries. Belagroprombank has been accepted by 18 export credit agencies. About USD 1 billion limit set for Belagroprombank by partner banks. About USD 1,3 billion limit set for partner banks by JSC Belagroprombank. The bank continues to optimize its correspondent network. As of January 1, 2015, the bank’s long-term rating on liabilities in foreign and local currency according to Standard & Poor’s is В-, Outlook Stable. Implementation of the strategic development plan

International cooperation The bank implemented a number of landmark projects with the following business partners: The bank’s debut financial deal insured by JSC EKSAR (Russia) jointly with JSCB NOVIKOMBANK (Russia); The bank’s debut deal related to the acceptance of the letter of credit of JSC Bank ZENIT (Russia); The bank’s debut financial deal insured by BAEZ (Bulgaria) jointly with Bulgarian Development Bank AD (Bulgaria); First since 2010 financial deals insured by EXIMBANKA SR (Slovakia) jointly with Vseobecna Uverova Banka а.s. (Slovakia); First since 2010 deals related to the acceptance of the letter of credit and issuance of guarantee with JSC Sberbank Rossia (Russia). The bank is continuing to take part in the events organized by CICA. JSC Belagroprombank, in cooperation with its branch in the Italian Republic (Milan), implemented the financing of projects with Italian counteragents for the amount of more than EUR 5 million. Belagroprombank’s branch in the Italian Republic (Milan) acts as a “contact point” within the preparation for Belarus’ participation in EXPO-2015 World Exhibition in Milan. Implementation of the strategic development plan

Internal control system At the beginning of 2014, as part of the measures to eliminate and prevent a conflict of interests, the functions were redistributed among the Internal Audit Department and Internal Control Department, and the personnel organizational structure of the head office and separate subdivision of the bank was changed. The bank continued to create and update methodological support of internal control procedures, including the adoption of local regulatory legal acts, which regulate the preparation of damage reports and the matters relating to client identification in compliance with FATCA requirements, and aim at optimizing the supervisory functions and powers of the bank related to financial monitoring. The bank implemented a step-by-step incorporation of the internal control department into all kinds of internal control procedures and performed continuous monitoring of the internal control systems. The representatives of the Internal Control Department were involved in the activity of standing meetings and committees, in the implementation of measures related to automation of specific supervisory functions and procedures, improvement of compliance checks, distance learning arrangements and assessment of the bank’s employees knowledge of the internal control system operation, consistent training and presentation of the management reporting regarding the bank’s internal control. Implementation of the strategic development plan

Risk management system In 2014 Belagroprombank continued to improve the organizational structure of its risk management structure: The Asset and Liabilities Management Committee and the Committee for Non-Performing Corporate and Retail Loans have been included into the organizational structure of the bank’s risk management system; An independent structural subdivision on corporate credit risk management has been established to avoid the conflict of interests in lending to corporate customers; Step-by-step centralization of retail underwriting as part of risk management has been initiated, followed by the optimization of the bank’s organizational structure and the unification of approaches to retail credit risk assessment. Continuous involvement of the bank’s governing board in the management and functioning of the risk management system. The concept of corporate credit risk management has been designed, and the process of step-by- step integration of the specialized independent subdivision into the corporate credit risk assessment process has been initiated. Implementation of the strategic development plan

Organizational structure and branch network optimization As part of the bank’s step-by-step migration to the common BIC, 28 branches were reorganized into cash and settlement centres. In 2014, in order to extend its business and enhance availability of its services to clients, the bank opened 4 cash and settlement centres and 5 currency exchange offices. To enhance the performance efficiency of its regional branch network, 12 points of service with low transactions volume have been closed, and 4 cash and settlement centres have been moved to a different location. Implementation of the strategic development plan

Informational technologies development A set of scheduled activities have been implemented aimed at the adoption of the centralized integrated bank system “SC- Bank NT” in the bank’s regional sub-branches, and its large-scale usage within the bank’s system. The Bank started the implementation of the project for the creation of the automated system for the Bank’s Contact Centre. The implementation of the User IT Support System (Service Desk) in the bank’s head office has been completed. A number of application projects related to the automation of specific business areas of the bank have been implemented. Implementation of the strategic development plan