1 1 IBA: Stable Growth in Challenging Environment Emil Mustafayev First Deputy Chairman , Vienna

2 Azerbaijan – safe harbor for investment Working economy and stable financial system Sufficient national reserves Immunity of a small economy Fitch (BB+) and Moody’s (Ba1) confirmed ratings at previous levels; recently received a new one from S&P (BB+) Low level of foreign indebtness and their timely servicing Healthy slow down of rapid economic growth and reduction in inflation Development of entrepreneurial culture

3 Measures Taken By Azerbaijan State Reduce key refinancing rate Increase liquidity by reducing mandatory reserve requirements National Bank provides loans to commercial banks Intention of government to allocate funds from State Oil Fund to commercial banks Continue investments into infrastructural projects Support real economy, financial sector SME, agriculture, construction

4 IBA – Core of the Azeri Banking System Stable performance and growing customer base Largest creditor of the national economy Recently confirmed ratings from Fitch at BB+ and Moody’s at Baa2 Dominate position in the banking system Well diversified asset base Strong shareholder support Trust of customers and investors Wide branch network and international presence

5 IBA’s Asset Structure and Quality 5 Loan Portfolio Diversification Assets – Currency Structure Non-Performing Loans (NPL) Assets Growth in August-December 2008

6 IBA’s Assets Dynamics 6 Strong Loan Portfolio and Assets Growth (in USD millions)

7 IBA’s Liabilities – Funding Mix Repayment of foreign totaling almost 600 mln. USD Freed up 225 mln. USD as a result of reduction of mandatory reserve by NBA Consistently growing deposit base even during August – December

8 IBA’s Liabilities Dynamics Customer Accounts (USD millions) 8

9 IBA’s Shareholders Equity Dynamics 9 Total Equity and Share Capital (USD millions) *

10 IBA’s Capital Adequacy and Ownership Structure 10 IBA’s main shareholder is Azerbaijan Republic Ministry of Finance (50.2%) In order to increase its capitalization, IBA has undertaken 4 large emissions in the last 6 years Tier 1 Total CAR Shareholders structure Last emissions

11 IBA’s Financial Performance 11 Income Growth (USD millions) Operating Income Growth (USD millions) * ROA (Return on Assets) ROE (Return on Equity)

12 International diversification Subsidiaries abroad: IBA – Moscow IBA- Georgia IBA – Qatar (planned) Representative offices abroad: Frankfurt London Luxembourg Dubai New-York