Operating Income. Operating Expenses 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 25,000 20,000 15,000 10,000 5,000 6,167

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1 Operating Income 45, 4, 35, In Billion RLS 3, 25, 2, 15, 1, 5, 12,687 17,85 2,74 29,434 38,51 4, BSI Group 25, Operating Expenses 2, In Billion RLS 15, 1, 23,217 24, , 6,167 1,356 11,52 15,156 BSI Group BSI Group's operating income experienced a growth of 7.6%, from Rls 38,51 billion in 27 to Rls 4,954 billion in 28. Meanwhile operating expenses grew by 3.6% from Rls 23,217 billion to Rls 24,52 billion in 28. The increase in operating expenses is mainly due to the payment of the depositors' shares.

2 Provisions 6, 5, In Billion RLS 4, 3, 4, , 4,6 4,15 1, 2,928 2,865 1,458 BSI Group Tax 6 5 In Billion RLS BSI Group

3 Net Profit 5, 4, In Billion RLS 3, 2, 4, , ,49 1,525 2,811 BSI Group BSI Groups profit resulting from banking operations, shows a growth of 84% in the year ended 2.March 29 in comparison with the previous year. 3, Customer Deposits In Billion RLS 2, 1, 89,48 117,26 134, , , , , , , BSI Network Group BSI Group offers short, medium and long term deposit accounts in both Rials as well as foreign currencies. Depositors include individuals, small, medium and large corporations. In 28, customer deposits increased by 2.2% in value of accounts. At balance sheet date BSI Group held Rls 271,138 billion deposit accounts.

4 Customer Loans 4, In Billion RLS 3, 2, , 1,767 19, , , , , , , ,234 BSI Network Group BSI offers different types of credit facilities all following the principles of Islamic, usury free banking. Customers include individuals as well as corporations engaged across the entire spectrum of economic activities. The majority of loans are secured by some type of collateral including residential or commercial properties, share of companies listed on the Tehran Stock Exchange and other negotiable instruments. In 28, the volume of customer loans increased by 12 % to reach Rls 245,234 billion.

5 Shareholders Equity 35, 3, In Billion RLS 25, 2, 15, 1, 19,56 19,63 23,75 19,44 19,645 24,95 3,299 3,181 28, , BSI Network Group Deposits Received At the balance sheet date, BSI Network had Rls 271,138 billion in deposits out of which Rials 134,956 billion were held in accounts with BSI Tehran and the rest in accounts with the provincial subsidiaries. The deposits are categorized into term deposits, Qardal Hassaneh (demand deposits, saving accounts) and other deposits. On a Group level, demand deposits consist mainly of current account (65%) and Payment Orders on BSI (16.8%). In BSI Tehran current account constitute only 55% of the demand deposits and payment orders 26%. The balance is made up temporary creditors and transfers to the bank. Other deposits on a Group level consist largely of Forex term deposits (79%) and advance payments under letters of credit (11%). In BSI Tehran these two categories account for 87% and 7.8% respectively.

6 Breakdown of Deposit Type 14, 12, In Billion RLS 1, 8, 6, 136,436 BSI Group 4, 2, 57,432 33,99 68,53 7,953 26,265 35,662 39,97 Term Deposits Demand Deposits Saving Accounts Other Deposits On a group level total deposits consist of demand deposits(25.3%), saving & similar deposits(9.7%), term deposits (5.3% ) and other deposits(14.7%). Saving & similar deposits and term deposits show a growth of 17% and 27% respectively in the year ended in comparison with the previous year. 3, Breakdown of Term Investment Deposits 25, In Billion RLS 2, 15, 29,76 BSI Group 1, 5, 6,737 17,836 1 Year Deposits 2,629 6,325 2 Year Deposits 829 2,7 3 Year Deposits Year Deposits 12,591 5 Year Deposits 2,689 3,22 Deposit Certificate

7 InterBank loans BSI Network has paid 23% of its loans to the services sector followed by loans to the Industry and Mine sector (32%), to the construction and housing sector (18%) and loans to the agriculture sector (16%). 2, Sector Allocation & Tenor Breakdown 15, In Billion RLS 1, 184, , , 61,48 64,165 39,492 44,856 3,364 36,76 29,468 31,784 19,542 16,819 1,749 2,7 2,756 3,518 Industry & Mine Productive services Construction & Housing Agricultural Internal Trade Export Import Breakdown of Loans Granted by Contract Type The facilities granted to the public sector consist of 1.3% of total facilities, the greatest proportion of which is related to Jo'aleh (3%), Instalment Sale (28%) and F/X facilities granted (24%) according to the contracts. The facilities granted to the private sector consist of 86.7% of total facilities, the greatest proportion of which is related to Instalment Sale (41%), Civil Partnership (11%) and Mozarebe (6%). Meanwhile, 12% of total facilities granted is due under letters of credit and Forex Bills.

8 Capital Adequacy Ratio According to regulations of Central Bank of Iran and in all financial systems, the Capital Adequacy Ratio is very important as a key indicator. Appropriate and adequate capital is one of the essential conditions to preserve the banking system and therefore banks and credit institutions must always keep a suitable ratio between capital and their risk weighted assets to ensure stability in their activities. Capital Adequacy Ratio and Capital Base of the bank as of 2 March 27 and 2 March 28 are as follows: Capital Adequacy Ratio (BIn RLS) Paid Capital Legal reserves & other reserves Retained Profit Changes due to foreign exchange rate unification Exchange rate Profit/ Loss (main capital) Complementary Capital Complementary capital surplus to main capital Investment in banks & subordinated credit institutions Capital Base Risk Weighted Assets Capital adequacy ratio(percent) 2,227 6, ,245 1,551 12,85 18,457 (6,372) 24,17 (1,874) 22,296 31, % 2,227 3,99 4,719 1,245 1,733 13,914 18,625 (4,711) 27,828 (1,971) 25, ,932 8%

9 Financial Statements

10 Excerpts from the Auditors' Report 1. The consolidated and nonconsolidated balance sheets of Bank Saderat Iran (BSI) as of March 2, 29 and the consolidated and nonconsolidated profit and loss accounts and cash flow statements of BSI for the year ended at the same date, together with descriptive notes, have been audited by this organization. The Board of Directors of the Bank is responsible for the content of the financial statements and it is the responsibility of this organization to comment on the financial statements based on the performed audit and to report cases of noncompliance with monetary and Banking rules as well as regulations on usuryfree banking, as stipulated in the Commercial Code as amended and the Bank's articles of association. 2. The audit by this organization has been accomplished based on auditing standards. According to these standards, this organization has programmed and performed an optimized audit to reasonably ensure the nonexistence of significant mistakes and distortions. The audit included random checks of evidence and documents supporting the figures in the financial statements. The audit also included inspection of accounting policies implemented, assessments made by the board of directors and inspection of the overall accounts presented. This organization believes the performed audit produced a reasonable base of opinion on the financial statements. 3. In the opinion of this organization the abovementioned financial statements show that the consolidated and nonconsolidated financial status of Bank Saderat Iran as of March 2, 29 and the consolidated and nonconsolidated results of its operations and cash flows for the fiscal year ended on the same date, are in all important aspects consistent with the accounting standards. August 27,29 Audit Organization Alireza Asadi Mir Majid Vakil Zadian

11 Bank Saderat Iran Group Balance Sheet As at 2 March,29 (Revised) Assets: Cash Due from central banks Due from banks & credit institutions Due from Government Facilities granted & claims from public sector Facilities granted & claims from private sector Due under letters of credit & forex bills Participation bonds & other similar bonds Investments & participations Investment in affiliated companies Fixed assets Goodwill Other assets Items in transit Assets Note billion Rls *million USD billion Rls million USD 5, , ,228 4,652 4,453 4,51 21,33 2,191 21,123 2,355 21,667 2,228 14,164 1,579 3, , ,346 21,942 18,344 2,15 28,877 2,97 33,985 3,789 11,572 1,19 12,133 1,353 3, , , , ,987 2,158 22,33 2,486 4, ,515 1,94 19,281 2,149 1,217 1,51 18,466 2,59 48,185 41, ,263 43,62 Liabilities: Due to central bank Due to banks & credit institutions Demand deposits Saving & similar deposits Term investment deposits Other deposits Provision & other liabilities ,63 31,816 68,53 26, ,436 39,97 24,347 3,147 3,272 7,48 2,71 14,32 4,14 2,54 1,894 3,12 94,197 22,447 17,479 41,29 22,76 1,214 3,358 1,51 2,52 11,982 4,63 2,537 Due under letters of credit & forex bills 26 21,77 2,239 26,895 2,998 liabilities 379,674 39,49 356,82 39,697 Shareholders equity: Share capital 27 16,83 1,728 16,83 1,873 Reserves 28 3, ,276 7 Changes due to foreign exchanges rate unification 29 1, , Exchange rate profit / (loss) 3 1, , Retained profit /(loss) bank`s shareholders equity Minority interest shareholders' equity liabilities & shareholders' equity Letters of credit 31 4,719 28, ,511 48,185 2, ,93 2 2,932 41,981 2, ,438 3,743 3, ,263 25, , ,365 43,62 2,858 Letters of guarantee 39,888 4,12 31,997 3,567 Commitments 12,79 1,315 14,61 1,629 Managed & similar funds 12,558 1,292 12,661 1,411 *USD/RLS exchange rates as of and are 897 and 9723 respectively. Therefore,decrease in the USD figures in the presented financial statements,compared with the previous year, is due to the increase in the exchange rate.

12 Bank Saderat Iran Group Profit & Loss Account For the Year Ended 2 March, 29 (Revised) Income from joint investments: 1 Profit & compensation on delay of payment Other revenues Subtotal Profit paid on depositors Fees for management of investment deposits Net depositors share Bank's fees & income from joint investments Note billion Rls million USD billion Rls million USD 24,85 2,477 19,778 2, ,318 2,51 19,97 2,226 (14,285) (1,469) (11,393) (1,27) (14,82) (1,448) (1,875) (1,212) 1,236 1,53 9,95 1,14 Income from own investments: Profit & compensation on delay of payment Commission received Other revenues Subtotal banks' revenues ,244 2,182 1,56 12,932 23, ,33 2,383 7,468 1, ,152 19, ,132 2,146 Operating revenues of subsidiaries Operating expenses of subsidiaries Subtotal Profit from operating investments bank's revenues & Operating revenues of subsidiaries ,51 (3,49) 11 23, (359) 1 2,384 6,32 (4,437) 1, , (495) ,393 Expenses: Profit paid (except depositors' profit) Commission paid General expenses Net Other Operating Revenues and Expenses expenses (5,74) (11) (13,798) (436) (2,75) (59) (1) (1,419) (45) (2,65) (6,67) (63) (12,999) (1,47) (2,176) (676) (7) (1,449) (117) (2,249) Operating profit Financial expenses Net other Incomes & nonoperating expenses Subtotal 3, ,287 (21) 6 (24) 143 (23) 1 (23) Profit before calculation of bank's share of subsidiary companies 3, , Bank's share of the profit (loss) of subsidiary companies Profit before tax Tax Net profit Minority interest EPS(RLS) 3,14 (293) 2, (3) ,835 (31) 1, (35) The bank's investment resources are divided into "Joint Investments "and "Own Investments" to distinguish between Tehran deposit funds on the one side and GharzAlHassaneh funds and its own equity on the other side.further explanation can be found in the "banking industry "section.

13 (Revised) Bank Saderat Iran Group Statement of Earnings For the Year Ended 2 March, 29 (Revised) Net profit of the year Retained earnings at the beginning of the year Prior year adjustments Retained earnings at the beginning of the year adjusted Allocable profit year adjustments Note 45, single article of Budget law of the year 29 Legal reserve R & D reserve Other reserves Dividend Board members' Bonus Sub Retained earnings at the end of the year Minority Interest Note billion Rls million USD billion Rls million USD 2, (227) 563 3,374 3,396 (69) (881) (186) (293) (1) (2,51) 4, (23) (71) (91) (19) (3) () (211) 485 1,525 4,45 (3,93) 475 2, 624 (385) (592) (214) (87) (1,437) (438) (43) (66) (24) (97) (16) Bank Saderat Iran Group Comprehensive Statement of Earnings For the Year Ended 2 March, 29 Net profit of the year Exchange rate profit / (loss) Fiscal year profit Prior year adjustments Recognized comprehensive profit from last reporting date Minority Interest Note billion Rls million USD billion Rls million USD 2, ,993 (227) 2, (23) 38 1, ,631 (3,93) (2,299) (438) (256) 44

14 (Revised) Bank Saderat Iran Group Cash Flow Statement For the Year Ended 2 March, Operating Activities: Net cash flow from operating activities billion Rls million USD billion Rls million USD 11,9 1,132 11,83 1,319 Interest & dividends: Paid Interest from interbank Facilities Dividends paid to mother company shareholders Net cash flow from interest & dividends (1,871) (385) (2,256) (192) (4) (4) (2,989) (496) (3,485) (333) (55) (389) Income tax: Paid income tax (343) (35) (91) (1) Investment activities: Paid amount for direct investments & legal partnerships & goodwill Received amounts from direct investments & Legal Participations Paid amount for purchase of tangible fixed assets Received amounts from sale of tangible fixed assets Net cash flow from investment activities Net cash flow before financing activities 3,231 (2,119) 1,22 2,134 1, (218) 15 (113) 945 (3,566) (2,141) 49 (5,298) 2,146 (398) (239) 46 (591) 239 Financing Activities : Increase (decrease) in received financial Facilities Exchange rate Profit (loss) Net cash flow from financing activities Net changes in cash Cash balance at the beginning of the year Cash balance at the end of the year (1,988) (182) (2,17) 8,374 9,575 17,949 (24) (19) (223) ,76 (5,719) (16) (5,825) (3,679) 13,255 9,576 (638) (12) (649) (41) 1,478 1,68

15 Bank Saderat Iran Network Balance Sheet As at 2 March, Assets: Cash Due from central banks Due from banks & credit institutions Due from Government Facilities granted & claims from public sector Facilities granted & claims from private sector Due under letters of credit & forex bills Participation bonds & other similar bonds Investments & participations Fixed assets Other assets Items in transit assets billion Rls *million USD billion Rls million USD 5,63 45,228 21,33 21,667 3,11 213,346 28,877 11,545 4,26 2,987 18,598 1,217 44, ,652 2,191 2, ,942 2,97 1, ,158 1,913 1,51 41,611 1,849 4,453 21,123 14,164 4, ,53 33,985 11,991 7,691 2,367 12,49 18,466 37, ,51 2,355 1, ,46 3,789 1, ,271 1,383 2,59 41,348 Liabilities: Due to central bank Due to banks & credit institutions Demand deposits Saving & similar deposits Term investment deposits Other deposits Due under letters of credit & forex bills Other liabilities & provisions liabilities 3,63 31,834 68,53 26, ,436 39,97 21,77 24, ,638 3,147 3,274 7,48 2,71 14,32 4,14 2,239 2,499 39,45 1,894 3,121 94,3 22,447 17,479 41,29 26,895 17, ,25 1,214 3,358 1,513 2,52 11,982 4,63 2,998 1,987 39,158 Shareholders equity: Share capital Reserves Changes due to foreign exchanges rate unification Retained profit / (loss) Exchange rate profit / (loss) shareholders equity liabilities & shareholders' equity Letters of credit Letters of guarantee Commitments Managed & similar funds 16,83 3,987 1,245 1,182 1,733 24,95 44,588 2,217 39,888 12,79 12,558 1, ,566 41,611 2,79 4,12 1,315 1,292 16,83 2,448 1,245 (2,42) 1,551 19,645 37,895 26,396 24,734 6,86 12,97 1, (268) 173 2,19 41,348 2,943 2, ,349 *USD/RLS exchange rates as of and are 897 and 9723 respectively. Therefore,decrease in the USD figures in the presented financial statements, compared with the previous year, is due to the increase in the exchange rate.

16 Bank Saderat Iran Network Profit & Loss Account For the Year Ended 2 March, Income from joint investments: Profit & compensation on delay of payment Other Revenues Subtotal Profit paid on depositors Fees for management of investment deposits Net depositors share Bank's income from joint investments billion Rls million USD billion Rls million USD 26, ,29 (14,285) 23 (14,82) 12,947 2, ,78 (1,469) 21 (1,448) 1,332 2, ,824 (11,393) 518 (1,875) 9,949 2,3 21 2,322 (1,27) 58 (1,212) 1,19 Income from own investments: Profit & compensation on delay of payment Received commission Other Revenues Subtotal bank revenues 9,25 2,182 1,55 12,937 25, ,331 2,662 7,468 1, ,152 2, ,132 2,241 Expenses: Paid interest (excluding depositors' profit) Paid commission General expenses Other expenses expenses Profit before tax Tax Net Profit (5,74) (11) (13,791) (432) (2,64) 5,82 (293) 5,527 (59) (1) (1,418) (44) (2,64) 599 (3) 568 (6,67) (63) (12,692) (867) (19,689) 412 (13) 39 (676) (7) (1,415) (97) (2,195) 46 (11) 34 Bank Saderat Iran Network Statement of Earnings For the Year Ended 2 March, Net profit of the year Retained earnings at the beginning of the year Prior year adjustments Retained earnings at the beginning of the year adjusted Allocable profit: Note 12, single article of Budget law of the year 28 Reserves Profit share Sub Retained earnings at the end of the year billion Rls million USD billion Rls million USD 5,527 (2,175) (227) (2,42) 3,125 (69) (971) (282) (1,943) 1, (224) (23) (247) 321 (71) (1) (29) (171) ,8 (3,869) (2,69) (1,76) (385) (257) (642) (2,42) (431) (231) (196) (43) (29) (72) (268)

17 Bank Saderat Iran Network Comprehensive Statement of Earnings For the Year Ended 2 March, Net profit /(loss) of the year Unification of foreign exchange results Exchange rate profit /(loss) Fiscal year profit Prior year adjustments Sub billion Rls million USD billion Rls million USD 5,527 1, ,954 (227) 6, (23) , ,66 (3,869) (2,29) (431) (246) Bank Saderat Iran Network Cash Flow Statement For the Year Ended 2 March, billion Rls million USD billion Rls million USD Operating Activities: Net cash flow from operating activities 1,366 1, Interest and dividends: Received dividends (1,871) (192) (414) (46) Paid dividends to depositors (385) (4) (497) (55) Net cash flow from Interest and dividends (2,256) (232) (911) (12) Income tax: Income tax paid (293) (3) (12) (11) Investment activities: Paid amounts for direct investments & Legal Partnerships (1,473) (164) Received amounts from direct investments & Legal Participations 3, Paid amounts for purchase of tangible fixed assets Received amounts from sale of tangible fixed assets Net cash flow from investment activities Net cash flow before financing activities (2,127) 1,587 (54) 7,277 (219) 163 (56) 748 (1,322) 5 (2,745) (3,611) (147) 6 (36) (43) Financing activities : Net received (paid) from financial facilities Received amounts from capital increase Foreign exchange (profit) / loss Net decrease (increase) in cash Cash balance at the beginning of the year Cash balance at the end of the year (1,988) 8, ,73 9,246 17,949 (24) ,846 (3,611) (16) (3,717) 12,963 9,246 (43) (12) (414) 1,445 1,31

18 (Revised) Bank Saderat Iran Balance Sheet As at 2 March, 29 Assets: Cash Due from central banks Due from banks & credit institutions Due from Government Facilities granted & claims from public sector Facilities granted & claims from private sector Due under letters of credit & forex bills Participation bonds & other similar bonds Investments & participations Fixed assets Other assets Items in transit assets Note billion Rls *million USD billion Rls million USD 2,28 25,711 12,779 12,735 2,532 13,11 15,778 1,614 6,746 18,53 12,593 12, , ,644 1,314 1, ,64 1,623 1, ,93 1,295 1,319 24, ,51 15,881 7,339 3,675 85,712 2,332 9,164 6,4 18,325 8,718 4, , ,12 1, ,555 2,267 1, , ,95 Liabilities: Due to central bank Due to banks & credit institutions Demand deposits Saving & similar deposits Term investment deposits Other deposits Provision & other liabilities Due under letters of credit & forex bills liabilities ,97 2,767 33,99 7,953 57,432 35,662 14,94 11,56 212,193 3,82 2,136 3, ,97 3,668 1,537 1,189 21,824 9,791 24,155 35,941 6,825 37,1 37,34 11,199 16,28 178,559 1,92 2,693 4, ,136 4,163 1,248 1,87 19,96 Shareholders equity: Share capital Legal Reserves Changes due to foreign exchanges rate unification Retained profit / (loss) Exchange rate profit / (loss) shareholders equity liabilities & shareholders' equity Letters of credit Letters of guarantee Commitments Managed & similar funds ,83 2,11 1,245 2, ,75 235,943 11,11 21,437 6,762 8,598 1, ,443 24,266 1,132 2, , ,245 (1) ,63 198,189 15,613 16,962 12,782 8,544 1, ,188 22,95 1,741 1,891 1, *USD/RLS exchange rates as of and are 897 and 9723 respectively. Therefore,decrease in the USD figures in the presented financial statements, compared with the previous year, is due to the increase in the exchange rate.

19 (Revised) Bank Saderat Iran Profit & Loss Account For the Year Ended 2 March, 29 (Revised) Income from joint investments: Profit & compensation on delay of payment Other revenues Subtotal Paid profit on depositors Fees for management of investment deposits Net depositors share Bank's income from joint investments Note billion Rls million USD billion Rls million USD 9, ,55 (5,677) 8 (5,597) 3, (584) 8 (576) 47 8, ,498 (4,153) 185 (3,968) 4, (463) 21 (442) 55 Income from own investments: Profit & compensation on delay of payment 34 8, , Received commission 35 1, , Other revenues 36 1, Subtotal 11,11 1,143 8, bank revenues 15,63 1,549 12,931 1,442 Expenses: Paid profit (except depositors' profit) 39 (5,64) (58) (5,597) (624) Paid commission 4 (71) (7) (43) (5) General Expenses Other Expenses expenses (4,96) (115) (1,786) (51) (12) (1,19) (5,828) (561) (12,29) (65) (63) (1,341) Profit before tax Tax Net profit EPS (RLS) 4,277 (134) 4, (15) Bank Saderat Iran Statement of Earnings For the Year Ended 2 March, 29 Net profit of the year Retained earnings at the beginning of the year Prior year adjustments Retained earnings at the beginning of the year adjusted Allocable profit Note billion Rls million USD billion Rls million USD 4, , (665) (68) (1,659) (185) (1) (257) (29) 4, Note 45, single article of Budget low of the year 29 Legal Reserve Other Reserve Sub Retained earnings at the end of the year (69) (621) (1,311) 2,831 (71) (64) (135) 291 (384) (144) (116) (646) (1) (43) (16) (13) (72) ()

20 (Revised) Bank Saderat Iran Comprehensive Statement of Earnings For the Year Ended 2 March, 29 (Revised) Net profit of the year Exchange rate profit (loss) Comprehensive Profit Prior year adjustments Recognized comprehensive Profit Note billion Rls million USD billion Rls million USD 4, ,277 (665) 3, (68) (1,659) (694) (185) (77) Bank Saderat Iran Cash Flow Statement For the Year Ended 2 March, Operating Activities: Net cash flow from operating activities billion Rls million USD billion Rls million USD 8, , Interest and Dividends : Paid dividends to financial activities (1,87) (192) (2,778) (31) Paid dividends to depositors (385) (4) (496) (55) Sub (2,255) (232) (3,274) (365) Income tax: Paid income tax (49) (42) (48) (54) Investment activities: Increase/decrease in direct investments & Legal partnerships Paid amounts for purchase of tangible fixed assets Received amounts from sale of tangible fixed assets Net cash flow from investment activities Net cash flow before financing activities (742) (1,369) 952 (1,159) 4,571 (76) (141) 98 (119) 47 (1,553) (943) 262 (2,234) (3,96) (173) (15) 29 (249) (435) Financing activities : Increase /decrease in received financial activities Exchange rate profit (loss) Net cash flow from financing activities Net cash flow Cash balance at the beginning of the year Cash balance at the end of the year 1,867 (134) 1,733 6,34 8,14 14, (14) , (63) 81 (3,15) 11,245 8,14 96 (7) 89 (346) 1,254 97

21 Bank Saderat Iran Notes to the Financial Statments For the Year Ended 2 March, Basis for Preparation of the Financial Statements The Group's financial statements as well as Bank Saderat Iran have been prepared on a historical cost basis while the current values have also been applied if needed. In addition, immovable properties and goodwill of the Bank have been revaluated in 1992 and 24 and the changes have duly been reflected in the accounts. 2. Significant Accounting Policies 2.1. Investments Evaluation Method Longterm Investments: Investments in subsidiaries included in the consolidation Investments in affiliated companies Other longterm investments Current investment: Group Included in the consolidation Net worth Cost price (after provision in case of a permanent decrease in the value of the investment) BSI Cost price (after provision in case of a permanent decrease in the value of the investment) Cost price (after provision in case of a permanent decrease in the value of the investment) Cost price (after provision in case of a permanent decrease in the value of the investment) Immediate disposal investments Lower cost price and net market value of the whole investments Lower cost price and net market value of the whole investment Other current investments Lower cost price and net market value of each investments Lower cost price and net market value of each investment Revenue Recognition Method: Investments in subsidiaries included in the consolidation Investments in affiliated companies Other longand short Term investments Included in the consolidation Net worth At the time of approval of dividends by the GAM of the investee company (until the balance sheet date) At the time of approval of dividends by the GAM of the investee company (until the approval date of financial statements) At the time of approval of dividends by the GAM of the investee company (until the approval date of financial statements) At the time of approval of dividends by the GAM of the investee company (until the approval date of financial statements)

22 2.2. Tangible Fixed Assets Tangible Fixed assets are recorded at cost price. Renovation and substantial repairs, which significantly increase the capacity or useful life of the fixed assets, are considered as capital expenditures and are depreciated over the remaining useful life of such assets. Maintenance expenses and minor repairs, which are sustained to preserve the economic interests expected by trade units, are considered as current expenses, under profit & loss Account Immovable assets and goodwill were revaluated in 1992 and 24 by an amount of RLS.93 billion and Rls.13,646 billion respectively, both as assets and as the increase in capital from the early 26, based on depreciation schedule pursuant to article 151 of the Direct Taxation Act, depreciation is no longer calculated for the goodwill With respect to decree number 177 issued by the Monetary and Credit Council dated ( ) from 26 the depreciation of fixed assets are calculated based on depreciation schedule pursuant to article 151 of the Direct Taxation Act. Some of the rates and methods of depreciation are set out as below: Assets Depreciation Depreciation method Building & equipments Motor vehicles Furniture & computer hardware Computer hardware (P.C) 7 % 25 % 1 years 1 years Reducing Balance Reducing Balance Straight line Straight line The depreciation at revaluated buildings of the Bank at the end of 24 is calculated with the depreciation schedule pursuant to Article 151 of the Direct Taxation Act at the rate of 3.5 percent and declining procedure. Note: Depreciation of fixed assets of the foreign units are calculated according to the depreciation schedule of the host country.

23 2.3. Goodwill accounting of commercial entities is conducted by the purchase method. Surplus of cost price of attracting investments in consolidated companies to the group's share in the net fair value of their assessable assets and liabilities at the time of purchase is recognized as goodwill and depreciated on a straight line basis over 2 years. Goodwill which is derived from ownership of a subsidiary is reflected in the consolidated balance sheet as the book value of longterm investment Recognition of Bank's Revenues Registration of all bank's group consolidated revenues are recognized with the credit method in accordance with related accounting standards Foreign Currency Exchange Rate Local Units: Monetary items in foreign currency are exchanged at the exchange rate of the balance sheet date and nonmonetary items (cost price) in foreign currency are exchanged at the exchange rate of disposal date. The derived differences are recognized and recorded as revenues or expenses of the occurrence period Foreign Units: All monetary and nonmonetary items (except for shareholders' equity) of foreign units are exchanged at the exchange rate of the balance sheet date. Shareholders' equity is exchanged at the exchange rate of equity formation date. Profit and Loss figures are exchanged at the average rate of the fiscal year.the differences caused by conversion in financial statements are recognized and recorded as shareholders' equity Provision for Doubtful Debts Local Units: A) General Provision: In line with the prevailing banking regulations as administered and enforced by the Central Bank of Iran, all banks are required to set aside 1.5% of their loan portfolio as a general provision for doubtful debts.

24 B) Specific Provision: The amount of specific provision for each category is calculated as follows: a. Overdue Debts. 1% b. Outstanding Debts 2% c. Doubtful Debts 5 to 1% d. Advances which are overdue for 5 years or more (including principal + interest) 1% Foreign Units: Provisions for doubtful debts of foreign units are made based on the host country's accounting rules and regulations and independent auditors' comments. The debtors' situation in the bank attorneys' point of views acts as basis for debt provisions.in some cases, a general provision is made in the accounts in proportion to the total debts. in accordance with directive issued by the Monetary and Credit Council are categorized and evaluated according to the period of payment delayed, customer's credit report, situation and condition of the customer's activity, as shown below: 1) Current group 2) Overdue group 3) Outstanding group 4) Doubtful group 2.7. Provision for Work Termination Benefits Provision for employees' termination benefits is calculated and recorded based on each employee's most recent monthly base salary for each year of employment Categorization of Assets The facilities granted by the bank, which are

25 29. Obligations related to retirement benefits Present value of the obligations related to retirement benefits relevant to the staff's services in the previous years (the retired and pensioners included in the retirement plan) is calculated based on actual assumptions. 21. Due from Government Due from government is divided into two parts: The first part consists of the obligations of the government, expected in the principles of granting facilities, which has been considered directly as government's debt and the second part, secured by the Organization of Management & Planning is overdue and classified as due from the government under following conditions: a) Outstanding granted facilities resulted from failure of the borrower to repay the loan, non sufficiency of the related securities or uselessness of the bank's actions to collect the loan. b) Overdue granted facilities related to the execution of the plans relevant to the acquisition of the capital assets. c) Granted facilitates to Ministry and Public Institution. 3. Basis for Paid Interest on Depositors In implementation of the NonUsury Banking Operation Act approved in 1983 and related regulations and also in line with the Central Bank of Iran Decree No.1799 dated , all interest received from financial facilities, investments in shares and participation bonds are recognized as profit and depositor's share of profit is proportional to their net balance. According to the agreement between Bank Saderat Iran, its provincial subsidiaries and depositors, the Bank is the legal attorney of the depositors to invest their money. The basis for calculation of interest paid on deposits are the deposits held by the entire Bank Saderat Group (Bank Saderat Iran and provincial banks). 4. Basis for Consolidation 4.1. financial statements are derived from the financial statements of Bank Saderat Iran and its subsidiaries after deduction of intragroup transactions and uncertain profit and loss.

26 4.2. The operational outcome of purchased and sold subsidiaries are included in the consolidated profit and loss statement from the time of such transfers The fiscal years of Ghadir Investment Company, Bank Saderat PLC and Bank Saderat Tashkent end on December 21 and December 31 respectively. The results are reflected in the consolidated accounts without any changes. In case of any significant changes in the accounts, they are reflected as adjustment in the accounts. 5. Cash Cash in Rials Cash in Forex Cash with banks Cash in Transit Petty Cash Non consolidated March2,29 March2,28 March2,29 March2,28 5, ,62 1, ,177 1, , Due from Central Banks Statutory deposits Current accounts with Central Bank Current accounts with other Central Banks Term deposits with Central Bank Advance payments for Forex with Central Bank Forex demand deposits with Central Bank Others Non consolidated March2,29 March2,28 March2,29 March2,28 33,917 5,23 2, , ,228 36,713 2,485 1, ,453 14,416 5,23 2, ,45 25,711 14,324 2,485 1, ,51

27 7. Due from Banks and Credit Institutions Foreign branches loans to Iranian banks Loans to foreign banks Forex balance with other banks Loans & credit to local banks Clearing other banks' cheques Demand deposits with local banks Deposits with other banks Subtotal Doubtful debts provision Non consolidated March2,29 March2,28 March2,29 March2,28 5,351 1,535 5,368 1,741 5,725 5,27 3,518 3,64 3,966 3,91 2,382 1,12 2,377 1,98 2, , ,339 21,141 12,815 15,897 (36) (18) (36) (16) 21,33 21,123 12,779 15, Due from Government Due from Government Principal & profit of participation Bonds matured and secured by Government Provision for doubtful debts Non consolidated March2,29 March2,28 March2,29 March2,28 15,224 11,134 6,179 4,174 6,686 3,227 6,683 3,227 (243) (197) (127) (62) 21,667 14,164 12,735 7, Facilities Granted and Claims from Public Sector Loans Overdue debts Outstanding debts Bad debts Doubtful debts provision Non consolidated March2,29 March2,28 March2,29 March2,28 2, (347) 3,11 4, (33) 4,867 2, (34) 2,532 3, (37) 3,675

28 91. Facilities granted to public sector are categorized in following contracts: Instalment sale Civil partnership Hire purchase Loans Modharabah Forward deals Jo'aaleh Qardalhasanah L/Cs paid debtors L/Gs paid debtors Former Housing Loans Granted facilities in Forex Profit received from financial facilities Less : profit of future years Outstanding profit Uncollected fulfilled profit Non consolidated March2,29 March2,28 March2,29 March2, , ,36 (285) (26) (258) 2,611 1, , , ,584 (384) (212) (181) 4, ,839 (248) (258) (26) 2, , , ,245 (248) (212) (18) 3,65 1. Facilities Granted and Claims from Private Sector Facilities granted Overdue debts Outstanding debts Doubtful debts Doubtful debts Provision Non consolidated March2,29 March2,28 March2,29 March2,28 189,715 4,765 14,176 22,976 (18,286) 213, ,775 4,54 14,949 13,978 (15,412) 18,344 89,227 1,674 8,74 14,986 (11,49) 13,11 72,682 1,393 12,883 9,82 (1,328) 85,712

29 1.1. Facilities granted to private sector are as follows: Instalment sale Civil partnership Hire purchase Mozarebeh Salaf Jo'aaleh Qardalhasanah Debt purchase L/Cs paid debtors L/Gs paid debtors Housing loans (previously extended) Granted facilities in Forex Interest receivable from facilities Customers debt for foreign exchange difference Instalment sales for foreign exchange difference Excess withdrawal Loan & credit Purchased documents & bills Loans & credit granted to clients of Bank Saderat PLC Sub Less: Profit of coming years Amounts received from Mozarebeh Outstanding profit Uncollected fulfilled profit Non consolidated March2,29 March2,28 March2,29 March2,28 87,741 24, ,739 5,597 9,682 1,949 8,9 5, ,649 9,986 9, ,572 5,199 1,832 2, ,81 (15,853) (2) (5,692) (1,548) 189,715 76,84 2,367 1,427 14,631 7,413 9,77 8,289 1,623 5, ,22 6, ,386 5,18 8,43 2, ,829 (14,562) (5) (5,154) (1,333) 162,775 28,952 6, ,62 1,827 5,624 2,738 7,945 3, ,319 3, ,572 5,199 1,832 1,531 (5,85) (1) (4,914) (539) 89,227 25,925 4, ,276 1,369 5,12 2,94 1,322 3, ,465 2, ,386 5,18 8,43 83,518 (5,611) (2) (4,762) (462) 72, The Bank Claims under L/Cs & Forex Bills Net balance of L/Cs & Forex bills debtors for Rls.28,877 billion is related to the clients' liabilities concerning Finance & Usance L/Cs by semi annual maturity which is described as follows: Due from term bills of exchange & L/Cs Provision for doubtful debts Non consolidated March2,29 March2,28 March2,29 March2,28 29,37 (16) 28,877 34,142 (157) 33,985 15,842 (64) 15,778 2,395 (63) 2,332

30 12. Participation Bonds and Other Similar Bonds Public sector participation bonds Debt securities bonds Private & public bonds Private sector participation Non consolidated March2,29 March2,28 March2,29 March2,28 11, ,572 1,263 1, ,133 1, ,614 8, , Investments and Participations Investment in unlisted companies Legal participations Investment in listed companies Investment deposits Investment in provincial subsidiary banks Share & foreign participations Direct investments Subtotal Provision Non consolidated March2,29 March2,28 March2,29 March2,28 4 3, ,116 (1,48) 3,68 4,397 3, ,71 (1,17) 8,63 3,61 2,28 1, ,794 (1,48) 6,746 3,598 2,28 1, ,68 (1,676) 6,4

31 14. Investment in Affiliated Companies Investment in Ghadir Investment Co. ( affiliated company) Increase in investment share resulted from previous years' dividend Provision for decrease in share value March2,29 1,21 3,642 (51) 4, Fixed Assets Movable assets: Furniture Vehicles Machinery Equipment & Moulds Immovable assets: Land Building Goodwill Assets under Completion Orders & capital prepayments Trusts Capital items in warehouse Subtotal Cost Price Accumulated Depreciation Book value March2,29 March2,28 March2,29 March2,28 2, ,965 6,49 1,545 16,594 2,165 1, (6) 4,255 23,814 1, ,41 1,426 1,426 2,827 1, ,564 6,49 9,119 15,168 2,165 1, (6) 4,255 2,987 1, ,553 6,22 9,8 15,12 2,129 3, ,648 22,33

32 Table of accumulated depreciation cost price of fixed Assets of Bank's principal company is as follows: Movable assets: Furniture Vehicles Immovable assets: Land Building Goodwill Assets under Completion Orders & capital prepayments Accumulated Depreciation March2, ,565 9,983 15,548 2,151 1, ,4 March2,29 Book value ,565 8,611 14,176 2,151 1, ,53 March2, ,521 8,35 13,871 2,111 1, ,325 Movable assets: Furniture Vehicles Immovable assets: Land Building Goodwill Accumulated Depreciation March2, ,372 1,372 1,897

33 16. Goodwill Cost price at the beginning of the year Acquired goodwill during the year Assigned goodwill share during the year Transfer to goodwill from acquiring affiliated companies Cost price at the end of the year Accumulated depreciation at the beginning of the year Depreciation of the year Adjustments Depreciation of assigned goodwill share during the fiscal year Accumulated depreciation at the end of the year Book value Loss from decreasing value of investmentsaffiliated companies Amount at the end of the year March2,28 4, (73) 5, (11) 1,26 4,726 4, Other Assets Receivable profit and commissions Receivable accounts and commercial documents store inventory Governments share profit BSI Provincial Banks for sale of Ghadir Share Participation bonds Tax advance payments Possessory Collaterals Difference of L/Cs exchange rate (Debt to Central Bank) Overseas branches debtors Others Less: Provisions for doubtful debts Coming years profit by government Non consolidated March2,29 March2,28 March2,29 March2,28 3,245 1, ,73 6,1 1, ,353 22,326 (18) (3,73) 18,515 4,637 3,899 3,66 3,31 2, ,731 22,51 (189) (3,31) 19,281 1,785 1, , ,236 12,971 (58) (32) 12,593 2, , ,233 9,136 (62) (356) 8,718

34 18. Items in transit Debit items: Capital paid to foreign branches Loans & credit to foreign branches Forex demand deposits with foreign branches Forex Term deposits with foreign branches Loans & credit granted to other foreign branches Demand deposits with other foreign branches Term deposits with other foreign branches Due from Head Office/demand deposits with H/O Due from Head Office/Term deposits with H/O Due from Head Office/Network Finance Due from Head Office/Network Refinance Due from Head Office/Network discount of L/Cs claims from Head Office Branches Account Head Office account Head Office account /Forex debit items Final Balance Credit items: Capital of foreign branches Loans & credit received from Head Office Forex Head Office demand deposits Forex Head Office Term deposits Loans & credit received from other foreign branches Demand deposits of other foreign branches Term deposits of other foreign branches Demand deposits of foreign branches with Head Office Term deposits of foreign branches with Head Office Finance by foreign branches Refinance by foreign branches Discount of L/Cs foreign branches Debit account to foreign branches Branches' Account Head Office account Head Office account / Forex credit items March 2,29 March 2, ,387 1,815 2, ,284 1,815 2, ,564 1,44 2,36 2, ,819 4, ,7 64,279 38,669 4, ,946 1,217 2,658 1,42 1,394 2, ,88 4,539 1,818 45,599 48,44 4, , , , , , ,939 1, , ,788 5, ,878 55, ,869 18,466 2,412 1,56 (542) 13, ,37 5,641 14,959 38,14 82,43

35 18. Items in transit are divided as follows: Debit items: Capital paid to foreign branches Loans& credit to foreign branches Forex demand deposits with foreign branches Forex Term deposits with foreign branches Loans & credit granted to other foreign branches Demand deposits with other foreign branches Term deposits with other foreign branches Due from Head Office/demand deposits with H/O Due from Head Office/Term deposits with H/O Due from Head Office/Network Finance Due from Head Office/Network Refinance Due from Head Office/Network discount of L/Cs claims from Head Office Branches Account Head Office account Head Office account /Forex debit items Final Balance Credit items: Capital of foreign branches Loans & credit received from Head Office Forex Head Office demand deposits Forex Head Office Term deposits Loans & credit received from other foreign branches Demand deposits of other foreign branches Term deposits of other foreign branches Demand deposits of foreign branches with Head Office Term deposits of foreign branches with Head Office Finance by foreign branches Refinance by foreign branches Discount of L/Cs foreign branches Debit account to foreign branches Branches' Account Head Office account Head Office account / Forex credit items March 2,29 March 2, ,347 1,815 2, ,284 1,815 2,947 3,564 1,44 2,36 2, ,819 4,48 1,7 11,641 4,372 5,429 12,823 2,658 1,42 1,394 2,293 1,88 4, ,817 4,775 37, , , , ,488 2,939 1, , ,788 5,57 14,878 9,999 54,963 4,453 2,412 1,56 (542) 13, ,37 5, ,78 8,613 2,687 5,51

36 19. Due to Central Bank Facilities received from FX Reserve Government petty cash (Central Bank) Due to Central Bank for the balance of the current account Others Non consolidated March 2,29 March 2,28 March 2,29 March 2,28 9,839 2,764 3,63 8,15 1,743 1, ,894 9,27 2,763 29,97 7,34 1, , Due to Banks and Credit Institutions Term deposits of banks Loans & credits received from banks Demand deposits of banks Others Non consolidated 2,29 March 2,28 March 2,29 March 2,28 March 21,486 24,53 16,521 17,98 5,958 3, ,93 4,151 2,2 4,161 3, ,816 3,12 2,767 24, Demand Deposits Interest Free Current Account in Rials /Forex Sold bank cheques Payment orders on Bank Saderat Sundry creditors Others Non consolidated March 2,29 March 2,28 March 2,29 March 2,28 44,571 4,737 11,542 5,654 2,26 68,53 45,122 24,564 16,218 6,333 1,96 94,197 18,785 3,73 8,739 2, ,99 16,289 1,113 4,922 3,453 1,164 35, Saving & Similar Accounts Interest Free Saving Accounts in Rials Interest Free Saving Accounts in Forex Others Non consolidated 2,29 March March 2,29 March 2,28 March 2,28 24,448 21,44 6,271 5,56 1,87 1,392 1,677 1, ,265 22,447 7,953 6,825

37 23. Term Investment Deposits Shortterm deposits Longterm deposits Others Non consolidated March 2,29 March 2,28 March 2,29 March 2,28 58,523 59,2 18, ,436 52,579 48,758 6,142 17,479 22,969 25,526 8,937 57,432 18,183 16,987 1,93 37,1 24. Other Deposits Term deposits in Forex Advances received under letters of credit Letter of guarantee cash deposits Others Non consolidated March 2,29 March 2,28 March 2,29 March 2,28 31,55 4,193 3, ,97 33,24 4,596 2, ,29 31,146 2,794 1, ,662 32,851 3,118 1, , Provision and other Liabilities Provision for expenses Present value of future commitments of the staff retirement fund Provision for work termination benefit Payable accounts and documents Funds received from sales of participation bonds Provision for short term & long term deposits interest Principal & interest received from the Central Bank for participation bonds Tax provision Staff leave of absence Domestic creditors (foreign branches) Others Non consolidated March 2,29 March 2,28 March 2,29 March 2,28 3,674 6,44 2, , ,51 24,347 2,638 5,279 2,91 1,763 1, ,992 22,76 2,544 2, , ,697 14,94 2,41 2, , ,462 11,199

38 26. Due under Letters of Credit & Forex Bills The Bank's liabilities for Rls.21,77 billion is related to the Deferred Payment L/Cs and Forex Bills, the documents of which have been delivered to the applicant and bank is liable to pay at the maturity. At the maturity date, the due amount, is usually funded by the applicant and effected to beneficiary. 27. Share Capital Bank Saderat Iran was established on 7 September 1952 in Tehran Company Registration Department under registration No.3833 and its capital reached to 18 Billion Rials by the year In the year 1992, the bank's capital was increased by 948 Billion Rials from surplus resulted from revaluation of some of fixed assets and investment in the provincial banks. In the year 2, according to article 93 of the law of the third economic, social and cultural program of the Islamic Republic of Iran and processverbal No.396 dated 11 March 2 of the banks' Extraordinary General Assembly, capital of the bank increased by 1,887 Billion Rials. In execution of the content of the Note 2 of article 161 of the amendment of the Commercial Code, approval of the year 1995 and article 62 of the Law of Third Economic Development, the bank's capital increased by 16,83 Billion Rials from revaluation of fixed assets and reserve for exchange rate profit (loss). Meanwhile, all shares belong to the government. 28. Reserves Legal reserve Capital reserve Other reserves Non consolidated March 2,29 March 2,28 March 2,29 March 2,28 2, ,65 3,99 1, ,427 6,276 1, ,

39 29. Changes due to Foreign Exchanges Rate Unification Forex adjustment due to fixed exchange rate in the amount of Rls 1,245 billion relates to the statutory balance exchange rate in early 22 in accordance with Central Bank rules and regulations. After auditing, this amount was reflected in the shareholders' equity as "Due to the Government". 3. Exchange Rate Profit (Loss) Adjustment for assets and liabilities in the amount of Rls 1,733 billion was made into shareholders' equity in accordance with Central Bank Decree No. 1844, approvezd on Minority Interest Share capital Reserves Accumulated profit (loss) March 2,29 March 2, ,991 1, , Profit and Compensation on Delay of Payment Interest received from financial facilities Delay penalties received from facilities Interest from participation bonds Interest received from investments and participations Others Non consolidated March 2,29 March 2,28 March 2,29 March 2,28 14,412 4,865 2,28 2,6 24,85 14,8 3,879 1, ,778 5,47 1,832 2, ,471 5,251 1,391 1, ,44

40 33. Other Revenues: Other revenues in the amount of Rls 233 billion relates to the prizes of statutory deposits of Bank Saderat Iran, Network which were calculated and made in the accounts in accordance with the directive of the Central Bank of Iran at a rate of 1% on the average balance of statutory deposits during the year. 34. Profit & Compensation on Delay of Payment for Non Interest Revenues: Noninterest revenue from other amounts due Interest received on paid letters of credit Interest received from interbank loans Profit of Loans & credits granted to Banks Forex received revenue from facilities granted Bank Saderat PLC, Bank Saderat Tashkent revenues Qhardal hasaneh and compensation on delay of payment Prizes for other deposits Others Non consolidated 2,29 March 2,28 March 2,29 March 2,28 March 2,114 1,521 1,521 1, , , ,283 1,92 4,691 3,512 9,244 7,468 8,563 6, Fees & Commissions Received Letters of credit Purchased and discounted L/Cs Guarantees Foreign branches & brokerage International Division Forex transactions Domestic Branches International Affairs Fees on state accounts (Representation of CBI) Others Non consolidated March 2,29 March 2,28 March 2,29 March 2, , , , ,222

41 36. Other Revenues Disposal of movable & immovable assets Miscellaneous revenues of foreign branches Post, phone & telegraph Interest received from transactions in Forex Others Non consolidated 2,29 March 2,28 March 2,29 March 2,28 March , , , Operating Revenues of Subsidiaries Operating revenues of subsidiaries in the amount of Rls.3,51 billion is mainly related to Sepehr exchange company in the amount of Rls.3,495 billion being sale of exchange in the form of payment order and according to reference rate of Central Bank of Iran or agreed rate to customer. 38. Operating Expenses of Subsidiaries Cost price from sale of good & presented services in the amount of Rls.3,49 billion is totally related to Sepehr exchange company. 39. Profit paid (except profit of depositors) Profit paid (except profit of depositors) in the amount of Rls 5,74 billion ( the profit paid in the previous fiscal year was 6,67 billion) relates to profit paid to Forex Term Investments by foreign branches, Bank Saderat PLC and Bank Saderart Tashkent. The profits paid for the facilities received from the banks in the Network are as follows: Profit paid by foreign branches Profit paid for usage of resources of other branches Expenses of resources deficit (Central Bank & Bank Melli Iran) Others Non consolidated 2,29 March 2,28 March 2,29 March 2,28 March 2,3 2,34 2,3 1,853 1,871 1,71 1,87 1, , ,75 1, , ,74 6,67 5,64 5,597

42 4. Commission Paid Commission paid in the amount of Rls. 11 billion is mainly included to commission paid by BSI Network. 41. General Expenses Personnel expenses Provision for doubtful debts Administrative expenses Depreciation Others Non consolidated 2,29 March 2,28 March 2,29 March 2,28 March 6,164 5,623 1,818 1,71 2,312 3, ,272 3,619 2,77 1,684 1, , ,798 12,999 4,96 5, Other Operating Revenues and Expenses: Net other operating revenues and expenses are as follows: 421Cost of Qard al Hassaneh Prizes in the amount of Rls. 436 billion is related to BSI Network. 43. Interest Paid on Depositors Depositors' share of profit Profit paid to depositors Payment deficit Attorney fees to apply investment deposits Payable down payment difference balance in comparison to final payments Non consolidated March 2,29 March 2,28 March 2,29 March 2,28 14,285 (14,82) 23 (23) 11,393 (1,875) 518 (518) 5,677 (5,596) 8 (8) 4,153 (3,968) 185 (185)

43 44. Prior year Adjustments Receivable profit & commissions Administrative expenses credit items Tax FX transactions Profit (loss) Legal reserve Others debit items Group March 2, (23) (164) (4) (18) (551) (227) 45. Transactions included in Article 129, Amendment of commercial law and with affiliated persons A.Transactions included in Article 129, Amendment of commercial law: There has been one transaction under Article 129, Amendment of Commercial law. B.Transactions with the affiliated persons: Transactions with the affiliated persons during the fiscal year 28 29, were as follows: Name of the Company Type of affiliation Description Amount Million Rls Repairing and keeping ATM machines, Kharazmi Company Joint Member of Board of Director Supporting and maintaining traveler's cheque system, comprehensive provision system, Human resources comprehensive system Treasury and SWIFT comprehensive system 72,9 Bank Saderat Iran Provinces Shareholders: Bank Saderat Iran Income resulted from rental of BSI's immovable properties to be used by the provinces for one year 11,841 Bank Saderat Iran Provinces Bank Saderat Iran Provinces Shareholders: Bank Saderat Iran Shareholders: Bank Saderat Iran Provinces' joint expense Resource surplus profit 24, ,7

44 46. Comparison of Approved Budget & Performance Non consolidated Non consolidated March,2,29 March,2,29 Supplement Supplement Performance Performance Budget Budget Revenues: Interest received 1,328 9,55 Land & building 1,4 1,114 Noninterest revenues 11,7 11,189 Machineries & major equipments 17 5 Operating expenses: 13,472 11,52 Vehicles 22 3 Wage Furniture & Administrative equipments Privilege Extraordinary Automation Goodwill Retirement & Saving Researches Exports Bonus ,879 1,369 Administrative expenses 1,592 1,684 Present value of future commitments of the staff retirement fund 484 Depreciation Doubtful debts 2, Work termination benefit Profit (loss) 78 4, Commitments Capital Commitments: At the balance sheet date the bank's capital commitments stood on Rls. 126 billion related mainly to the purchase of properties (building and office equipments) and renewing branches and offices as well as the purchase price of movable properties including administrative machineries, computers and furniture. 48. Contingent Liabilities At the balance sheet date, the Bank had no significant contingent liabilities.

45 49. Post Balance sheet events Post Balance sheet events equal to 6% of Bank Saderat Iran's shares presented by Stock Exchange Company and assigned to real and legal persons. Combination of Bank's Shareholders group in real and legal persons separately and percentage of each group ownership is as follows: Shareholders Group Number of persons Number of share Percentage ownership Real Persons Legal Persons Personnel Government of Islamic Republic of Iran Edalat Shares Brokerage Company 4, , ,485 62,529,3 387,65,997 84,15, 8,233,47, 6,721,2, 16,83,,

46 Bank Saderat Iran Subsidiaries & Branches Abroad

47 98

48