PricewaterhouseCoopers (PWC) has submitted its independent auditors' report approving Center-Invest Bank's IFRS financial statements. (http://www.centrinvest.ru/ru/reports.html)

The IFRS financial statements had been prepared at the beginning of the year by Center-Invest Bank specialists who have 12 years' experience of working with the international standards.

At FYE 2007 Center-Invest Bank's shareholders' equity was 5,226,720,000RUR (+24.8%); capital calculated in accordance with the 1988 Basel Capital Accord (Basel I) was 5,537,639,000RUR (+29.3%); assets were 39,461,061,000RUR (+65.6%), the loan portfolio and leases amounted to 28,723,331,000RUR (+81.6%); client accounts totalled 19,245,060,000RUR (+55.7%); and net profits were 700,916,000RUR (+36.6%).

In the Bank's consolidated financial statements, Teploenergo, previously a subsidiary company, is now shown as an associate company. Teploenergo increased its shareholder capital by 132,833,000RUR, and the EBRD became one of its shareholders last December. Center-Leasing is still considered to be a fully-owned subsidiary.

The key principles of the international standards on the preparation of financial statements include: accruals, materiality, consistency of preparation, and going concern. In contrast to Russian standards, the value of land and buildings in IFRS financial statements is given in terms of its market price as determined by an independent expert evaluation. The IFRS are more stringent with respect to the way in which assets and liabilities are presented in the balance sheet. The new standard '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.

     Key Financial Indicators (IFRS), RUR millions