Moody’s international rating agency conferred to the Bank the ratings Â3/Baa2.ru/E+, stable forecast + (the rating was confirmed in 30.07.2008)

Ratings
Category Moody's Rating
Outlook Stable
Bank Deposits B3/NP
NSR Bank Deposits -Dom Curr Baa2.ru/--
Bank Financial Strength E+

Moody's assigns a bank financial strength rating (BFSR) of E+ to First Republic Bank JSC (FRB), which translates
to a Baseline Credit Assessment (BCA) of B3. The BFSR is constrained primarily by the bank's small size and
undeveloped franchise, significant borrower concentration and modest financial performance, but is underpinned
by its experienced management team and sound capitalisation.

Moody's assigns a long-term global local currency (GLC) deposit rating of B3 to FRB. The probability of systemic
support for the bank in the event of a stress situation is judged to be zero, based on the bank's small size and its
relative importance in the Russian banking system. Although parental support cannot be ruled out, its volume and
timing are uncertain. Consequently, the bank's GLC deposit rating is in line with its B3 BCA.

The Bank received the rating of this international rating agency for the first time. According to the methodology accepted by Ìoody’s and Moody’s Interfax Rating Agency, the B3 rating under the international scale reflects qualitative characteristics of the Bank creditability as compared to international emitters, while the Baa2.ru rating under the national scale makes it possible to carry out adequate comparison of the Bank credit quality with regard to local representatives of the financial industry.
Moody’s also believes that optimization of corporate governance and risk management systems can lead to considerable increase of the Bank market positions and, as a consequence, to increase in the Bank ratings in future.
This rating reflects the Bank aspiration to maximum openness and transparency. We regard it as an important step in implementation of the strategy of Deloit and Touche Regional Consulting Services Limited to be among TOP – 100 of Russian banks. Such results of the rating conferred by so authoritative agency enable the Bank to approach international capital markets.

Deloit and Touche Regional Consulting Services Limited prepared the Development Strategy of First Republic Bank (FRB) Joint Stock Company for 2007-2010.

A development strategy of the Bank is worked out together with Deloitte & Touche Regional Consulting Services Limited for a period of 2007-2010.
Its objective is to determine development trends of the Bank, which will promote its recognition on the market as a bank supporting social and family values.
During working out of the strategy Deloitte experts drew conclusion, based on evaluation of the internal opportunities, competitive advantages and priorities of the Bank, on capability of the First Republic Bank Joint Stock Company to achieve the following indicators by 2010:

• amount of bank resources - $1,5 bln, which allows entry into TOP-100 of the Russian banks in terms of bank resources;
• to develop the Bank regional network to achieve its presence in 20 regions and to accumulate as much as 50% of credits and 30% of deposits in regions by 2010;
• to achieve high recognition of the brand of the First Republic Bank as socially oriented and open to individual needs of the Bank clients, what contemplates formation of a product line and a service approach oriented to all members of a family. Creating of conditions to service disabled persons and working out of specialized products for separate social categories of the Bank clients.