PricewaterhouseCoopers (PWC) has submitted its independent auditors' report approving Center-invest Bank's financial statements for the first half of 2008.

While Center-invest Bank has been working in accordance with international financial reporting standards (IFRS) for the past 12 years, this is the first time that PwC have approved the Bank's half year accounts (produced by Center-invest specialists).

The confirmation by a leading international auditor that southern Russia's largest bank is continuing to grow sends a positive signal to global markets which are looking for stable, high-growth, transparent companies in which to invest. With the publication of its IFRS half year accounts, Center-invest draws the attention of the major international financial institutions to the real economy of southern Russia. Center-invest has an excellent reputation as a reliable partner operating in a rapidly developing region. It is known for its work with some of the most promising SMEs and for its wide range of retail banking services for customers in southern Russia.

Center-invest Bank already works with leading international investors: the European Bank for Reconstruction and Development, KfW (Germany's state bank), DEG, and IFC. One of Europe's longest standing savings banks, Erste Bank (Austria) recently became a shareholder in Center-Invest. In the first half of 2008 Center-invest attracted international syndicated loans totaling more than RUR6bn.

At the end of Q2 2008 Center-invest Bank's shareholders’ equity was RUR5,462,797,000 (+4.5%); assets were RUR44,294,391,000 (+12.2%), its loan portfolio and leases amounted to RUR34,131,824,000 (+18.8%); customer accounts totalled RUR20,850,524,000 (+8.3%); and net profits were RUR393,767,000 (+56.1% compared with the same period of last year).

The key principles of the international standards on the preparation of financial statements include: accruals, materiality, consistency of preparation, and going concern. The IFRS are more stringent with respect to the way in which assets and liabilities are presented in the balance sheet. The new standard IFRS-7 'Financial Instruments: Disclosures', which entered into force in 2007, introduces additional disclosure requirements for reporting on risks and risk management procedures, the quality of assets and liabilities, and other information for users of financial statements.