PK7. Audit organisation: Audited organisation:

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1 PK7 Accountants & business advisers Our ref. Ne 05-0'1/ May 2015 AUDITORS' OPINION on the financial statements of Joint stock company "Belarusian-Swiss Bank "BSB Bank" for the year ended 31 December 2014 prepared in accordance with International Financial Reporting Standards (IFRS) To Mr. V.A. Kazbanov - Chairman of the Manaoement Board Audited organisation: Joint stock company "Belarusian-Swiss Bank "BSB Bank" (JSC "BSB Bank"); 2313 Pobediteley ave., , Minsk, Belarus. Registration of statutory documents: Unified State Register # , by the decision of the National Bank Executive Committee # 195 of 07 October, State registration certificate of a proprietary organization: NB # Audit organisation: FBK-Bel LLC: Logoisky highway , 13'n floor, Minsk, Belarus. State registration certificate: issued by Minsk Municipal Executive Committee of February 06, 2009, taxpayeas identif ication number We have audited the accompanying financial statements of Joint stock company "Belarusian-Swiss Bank "BSB Bank" (the "Bank" thereafter) comprised of: Statement of Financial Position; Statement of Comprehensive Income; Statement of Cash Flows, Statement of Changes in Equity; Notes to the Financial Statements. Directtel +375(17) Diecttax +375 (17) fbk@fbk.by FBK-Bel LLC Logoisky highway 22A-201, 13'n floor Minsk. 22OO9O Belarus FB K Be LLC is a member nrm ol lhe PKF lnlernationa Lrmrted nenlork ot tela ty i.depende tums and does nol accepl any respo.s b I ty or rab ily tor lhe acl ons or nactdns on the oart of anv orher ifdiv dua member i.m or f ms

2 Accountants & business advise$ Management responsibilities of the audited organisation for the preparation of financial statements lvlanagement of the Bank is responsible for the preparation and presentation of the financial statements In accordance with International Financial Reporting Standards as of 31 December 20'14. This responsibility includes developing, implementing and maintaining of appropriate internal control system, which ensures preparation and fair presentation of financial statements that are free of material misstatements wnether due to error or fraud; selection and applying proper accounting policies and reasonable estimates. Responsibilities of the audit organisation Our responsibility is to express an opinion based on our audit on the reliabilitv of these financial statements. We performed our audit in accordance with International Standards on Auditing. Those standards require that we comply with professional ethical requlrements, that we plan and perform the audit to obtatn reasonable assurance whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financlal statements. The choice of audit procedures was based on the professional judgment of our auditors taking into account the risk of material misstatement of the financial statements due to en-or or fraud. While assessing the risk of material misstatement we considered the internal control system of the Bank, that is responsible for preparation and fair presentation of the financial statements, in order to define the extent of further audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of this system. Our audit also included evaluating the appropriateness of accounting principles used by the Bank, the reasonableness of accoununq estimates and the overall presentation of the financial statements. We believe that in the course of our audit we have obtained sufficient and appropriate evidence to provtoe a reasonable basis for our ooinion. Auditors' opinion In our opinion, the financial statements of JSC "BSB Bank", prepared in accordance with International Fln?ngi?l Reporting Standards, present fairly in all material respects the financial position of JSc "BSB Bank" as of December 31, 2014 and its financial performance for the year then ended. Head of the audit organization: Director Auditor in-charge Auditors' opinion received on 28 Mav 2010

3 statement of management's responsibilities for the preparation and approval of the financial statements for the year ended 3l December 2014 Management is responsible for the preparation of the financial statements that present fairly, in al material respects, the financial position of Joint stock company "Belarusian-swiss Bank "BsB Bank" (JSc "BSB Bank", the Bank) as of 31 December 2014, the results of its operations, cash flows and changes in equity for the year then ended, in accordance with International Financial Reporting standards (lfrd). In preparing the financial statements, management is responsible for:. properly selecting and applying accounting policies;. presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;. providing additional dlsclosures when compliance with the specific requirements in IFRSs is in sufficient to enable users to understand the impact of particular transactions, other events and conditions on the Banks's financial position and financial oerformance: o making an assessment of the Bank's ability to continue as a going concern. Management is also responsible for:. designing, implementing and maintarning an effective and sound system of internal controls throughout the Bank;. maintaining adequate accounting records that are sufficient to show and explain the Bank's, also disclose with reasonable accuracy at any time the financial position of the Bank, and which enable them to ensure that the financial statements of the Bank comply with IFRS;. maintaining statutory accounting records in compliance with legislation and accounting rules of the ReDublic of Belarus: o taking such steps as are reasonably available to them to safeguard the assets ofthe Bank; ano. detecting and preventing financial and other irregularities. The financial statements of the Bank for the year ended 31 December 2014 werc approved on 28 May On behalf of the Management Board of the Bank V. A. Kazbanov Chairman of the Management Board T.V. Avramenko Acting Chief Accountant

4 JSC "BSB Bank" Financial statements for the year ended 31 December 2014 (nillions of Belarusian roubles restated in terms of purchasing power of Belarusian rouble as of 31 December 2014) Cash and cash equivalents Precious metals Obligatory reserves in the National bank Financial assets at fair value through profit or loss Deivative fi nancial assets Secunlies,n trading portfolio Loans and accounts receivable Amounts due from banks Loans to customers Financial assets available for sale Property and equipment and intangible assets Investment property LIABILITIES Financial assets at fair value Financial assets at amortised cosr Amounts due to other banks Amounts due to customers Subordinated loans Unused vacation provisions Current income tax liabilities Deferred income tax liabilities Other liabilities The accompanying notes are an integral part of these financial statements. Signed and authorized for release on behalf of the Board of the Bank V. A. Kazbanov Chairman of the Management Board T.V. Avramenko Acting Chief Accountant

5 JSG "BSB Bank" Financial statements for the year ended 31 December 2014 (millions of Belarusian roubles restated in terms of purchasing power of Belarusian rouble as of 31 December 2014) 1, Comments on the statement of financial position During the preparation of the financial statements in accordance with the principles of the International Financial Reporting standards the Bank has applied transformation adjustments to the accounting data prepared in accordance with local GMP. Adjustments that had affected on profit for the yeai ended 31 December 2014 grouped according to their economic content and are presented below: Profit for the year in accordance with local GAAP Adjustments that have influenced the current year profit: hyperinflation of property and equipment, intangible assets, other assets orner.aojustments on property and equipment, intangible assets, other assets adlustments on deferred tax fair value of derivative financial instruments hyperinflation of retained earnings tax expenses on stock transactions with foreign currency fair value of precious metals net allowance for impairment of financial assets and other provisions hyperinflation of share caoital other adjustments Total IFRS adjustments Profit for the year after IFRS adjustments

6 JSC "BSB Bank" Financial statements for the year ended 3l December 2014 (millions of Belarusian roubles restated in terms of purchasing power of Belarusian rouble as of 31 Decenber 2014) Commission and fee income Commission and fee expense Net commission and fee income Net income on financial instruments at fair value through profit or loss Net income on precious metals Net foreign exchange income Realised income on financial assets available for sale Net other income Net operating income Operating expenses Allowance for impairment of financial assets Provisions for contingent liabilities and commitments Profit before income tax and loss on net Income tax exoense Loss on net monotary position due to inflation

7 JSC "BSB Bank" Financial statements for the year ended 3i December 2014 other COMPREHENSTVE TNCOME (LOSS) Items that may be subsequenfly reclassified to profit or loss: Net changes in fair value of investments available for sale Net result carried forward into profit or loss on financial assets available for sale Deferred tax assets Total other comprehensive income, which reclassified to loss The accompanying notes are an integral part of these financial statements. Signed and authorized for release on behalf of the Board of the Bank V. A. Kazbanov Chairman of the Management Board T.V. Avramenko Acting Chief Accountant

8 Share capital Revaluation reserve of financial assets available for sale Retained earnings 1 January 2013 Transactions with shareholderc Dividends oaid Total comprehensive income for the period Net profit for the year Net change in fair value of financial assets available for sale Balance as of 31 December 2013 Transactions with shareholders Dividends paid Increase of share capital by retained earnings distribution with additional issue of snares Total comprehensive income for the period Net profit for the year Net change in fair value of financial assets available for sate Balance as of 3l December 2014 The accompanying notes are an integral part of these financial staremenrs. Signed and authorized for release on behalf of the Board of the Bank V. A. Kazbanov Chairman of the Management Board T.V. Avramenko

9 Interest paid Fees and commissions received Fees and commissions Daid Income received from trading in foreign currencies Income received from operations with precious metals Income received from operations with derivatives Income received from financial assers available for sale otheroperatins income t'.%1? t'r'rx? Operating expense paid ( ) (j63 O4j) f ncome tax paid _ (41 0i 9) (4 734) changes in operating assets and liabitities Sl 725 Net increase in operat rg assefs Precious metals Obligatory reserves in the National bank Amounts due from banks Loans to customers Financial assets at fair value through profit or loss Financial assets available for sale Other assets Net increase in operating liabilities Amounts due to other banks Amounts due to customers Cash flows from investing activities Purchase of property and equipment and intangible assets Proceeds from sale of property and equipment Proceeds from sale/(purchase) of available for sale financlal assets Net cash used in investing activities

10 (nillions of Belarusian roubres restated in terms of purchasing power of Berarusian roubre as of 31 December 2014) Cash flows from financial activities Repayment of borrowings in cash and cash Etfect of exchange rates changes on cash and cash equivalents Effect of hyperinflation on cash and cash cash and cash equivateng-t thet6liiiii! of the vear Cash and cash equivalents at ttte end The accompanying notes are an integral part of these financial statements. Signed and authorized for release on behalf of the Board of the Banr V. A. Kazbanov Chairman of the Management Board T,V. Avramenko Acting Chief Accountant