VTB Group 1H2007 financial results Expanding on strong new capital.

Assets up by 26.4%
Operating income up 14.2%

Moscow, September 27, 2007 - VTB, Russia's leading universal banking group, has today announced its consolidated IFRS financial results for 1H2007.

By the end of June 2007, the VTB Group's total assets increased by 26.4% to US$66,223 million. Total gross loan portfolio of the Group grew by 21.7% to US$36,811 million, with loans to individuals up by 62.1% outperforming market averages. Net interest income before provisions increased by 26.4% year-on-year to US$1,004 million, and net fee and commission income went up by 65.8% amounting to US$267 million. In the reporting period, operating income of the Group increased by 14.2% to US$1,477 million from US$1,293 million in the first six months of 2006.

Financial Highlights

Profit and Loss Account (as compared to 6M2006):

• Interest income increased to US$2,235 million, up 36.4% and fee and commission income increased to US$300 million, up 64.8%;
• Net interest income before provisions increased to US$1,004 million, up 26.4% or US$210 million;
• Net fee and commission income increased to US$267 million, up 65.8% or US$106 million. Adjusted for IPO related depositary appointment fee in the amount of US$57 million net fee and commission income grew by 30.4% to US$210 million, reaching 14.8% of operating income in the first half of 2007;
• The Group's effective taxation rate (consolidated) in the first six months of 2007 increased to 24% from 16% in the comparable period of 2006, reflecting gradual substitution of non-taxable FX and securities gains by interest and commission income;
• Consolidated net profit for 6M2007 amounted to US$504 million, down 12.5%, mostly due to a decrease in securities gains, which in 6M2006 included income from sale of KamAZ shares in the amount of US$116 million;
• Earnings per share stood at US$8.6 per 100,000 shares as compared to US$10.6 in the comparable period of 2006.

Assets and Funding (as compared to December 31, 2006):

• Total gross loans and advances to customers increased by 21.7% to US$36,811 million. Gross loans to individuals grew strongly by US$1,573 million or 62.1% and totaled US$4,106 million. The share of loans to individuals in total gross loan portfolio increased to 11% by the end of June 2007 compared to 8% at the end of December 31, 2006. Corporate loan portfolio (gross) increased by 18.1% to US$32,705 million from US$27,702 at the end of 2006;
• Securities portfolio totaled US$14,055 million as compared to US$8,957 million (including approximately 5% of shares of European Aeronautic Defense and Space Company (EADS));
• Customer deposits increased to US$25,083 million, up 25.5%, with deposits of individuals up by 21.2% to US$8,876;
• Wholesale funding (which includes debt securities issued, other borrowed funds and subordinated debt) increased by 10.8% to US$19,053 million. The major debt transactions closed in the first half of 2007 include: VTB EUR 1,000 million Eurobond with a floating rate of EURIBOR + 0.6% p.a. maturing in March 2009, VTB GBP 300 million Eurobond with an interest rate of 6.332% p.a. maturing in March 2010, and VTB Europe US$500 million Floating Rate Notes at LIBOR+0.625% p.a. maturing in April 2009.

6M2007 Important Events:

• VTB completed the Initial Public Offering (IPO) of its shares in May 2007. On 24 May 2007, the Central Bank of Russia registered the issuance of 1,513,026,109,019 additional ordinary shares by VTB (22.5% of VTB number of shares after the increase) with a nominal value of RUR 0.01 each. The offer price per share was RUR 0.136 (USD 0.00528). The total number of shares placed in the form of GDRs was 983,387,340,000. Each GDR is worth 2,000 shares. The PO proceeds totalled US$7,977 million.
• Vneshtorgbank was officially renamed to JSC VTB Bank;
• OJSC Industry and Construction Bank was renamed into OJSC Bank VTB North-West;
• Banco VTB Africa SA with 66% shareholding of VTB started its operations in Angola in March 2007.

6M2007 Major Acquisitions:

• VTB purchased 50% plus one of the share capital of the CJSC Slavneftebank in Belarus for US$25 million in April 2007;
• VTB purchased 25% plus one share in OJSC Terminal for US$40 million in March 2007.

Comments:

Andrei Kostin, President-Chairman of the Management Board:

"The first half of 2007 was characterized by rapid change and some significant developments in our business. The completion of our global IPO, the largest yet by a Russian issuer, was a major step in preparing the bank for our future growth plans. In these turbulent times, we are very pleased to be able to grow safe in the knowledge that our capital base is fully secured. We are very pleased to see strong growth across all business lines and, in particular, substantial progress in our retail business development, in the first six months of 2007. We are keen to continue implementation of our strategy for the benefit of our shareholders."

Nikolai Tsekhomsky, Member of the Management Board and CFO:

"The confidence placed in us by domestic and international equity investors has given us a platform for growth that is outstanding in Russia and the CIS. This capital will support our future growth and has already allowed us to accelerate towards our targets. We have already begun to deploy the increased capital in a measured way and are glad to report that the turbulence of the past weeks has had no effect on our ability to fund the business. Indeed, with a Tier 1 ratio of 17.4% we feel well placed to serve the best interests of both clients and investors through the difficult times that still exist in global markets."

Operating Performance

• Net interest income reached US$1,004 million as compared to US$794 million in the first six months of 2006, which was attributable to growth in all of the components of interest income partially offset by the growth of interest expense. The increase in interest income (+36.4%) reflected the ongoing expansion of the Group's lending business, particularly in the retail segment;
• Operating income increased by 14.2% to US$1,477 million, compared to US$1,293 million in 6M2006, primarily due to an increase of net interest and net fee and commission income;
• Staff costs and administrative expenses increased by 40.2% to US$809 million, reflecting organic growth of the Group`s network in Russia which entailed increased staff, marketing and advertising expenditures;
• Sustained increase in VTB's interest and commission income was provided by growth throughout the Group's key strategic areas. Net customer loans increased by 22.0% to US$35,693 million comprising 53.9% of total assets as of June 30, 2007. Total customer deposits increased by 25.5% to US$25,083 million in 6M2007 (49.2% of total liabilities), of which deposits from individuals represented US$8,876 million.

Loan Quality and Concentration

• The share of overdue and rescheduled loans in total loans reduced to 1.8% from 2.1% at the end of 2006; allowances for loan impairment expressed as % of total loans decreased to 3.0% from 3.2% at the end of 2006;
• Coverage of overdue and rescheduled loans by allowances for loan impairment stood at 172.0%;
• The rate of provisioning decreased to 0.8% in the first six month of 2007 from 1.8% in 2006 reflecting sound quality of VTB's loan portfolio;
• The Group's exposure to ten largest borrowers as a percentage of gross customer loans decreased to 17% from 18% at the end of 2006.

Capitalization and Capital Adequacy

• The Group's total equity increased to US$15,216 million as of June 30, 2007 from US$6,992 million as of December 31, 2006, largely due to the net equity increase related to the Global IPO proceeds;
• As of June 30, 2007 the VTB Group's consolidated BIS Tier 1 capital was US$14,581 million, compared to US$6,357 million as of December 31, 2006, and total BIS capital was US$15,858 million, compared to US$7,646 million as of December 31, 2006. The Group's BIS Tier 1+2 capital adequacy ratio increased to 19.0% from 14.0% as of December 31, 2006, which is well above the 8.0% minimum set by the Basel Accord. VTB and all of its subsidiary banks continue to monitor and follow the capital adequacy requirements set by their respective local regulatory authorities.

Consolidated Balance Sheet (expressed in millions of US dollars)

Consolidated Statements of Income (expressed in millions of US dollars)

Consolidated Statements of Cash Flows (expressed in millions of US dollars)

JSC VTB Bank and its subsidiaries (the VTB Group or the Group) are a leading Russian commercial banking group, offering a range of banking services and products across Russia, certain CIS countries and in selected countries of Western Europe, Asia and Africa. As of June 30, 2007, the Group conducts its banking business in Russia through 4 subsidiary banks with its network of 155 branches, including 57 branches of VTB, 46 branches of CJSC "Bank VTB 24" and 52 branches of OJSC "Bank VTB North-West", located in major Russian regions. The Group operates outside Russia through 12 bank subsidiaries, located in the Commonwealth of Independent States ("CIS") (Armenia, Georgia, Ukraine (2 banks), Belarus), Europe (Austria, Cyprus, Switzerland, Germany, France and Great Britain), Africa (Angola) and through 4 representative offices located in India, Italy, China and Belarus. VTB has operated under a full banking license, № 1000, from the Central Bank of the Russian Federation since 1990.

The Group operates in the commercial banking sector and provides services including deposit taking and commercial lending, support of clients' export/import transactions, FX, securities trading, and trading in derivative financial instruments. The Group had 31,682 employees as of June 30, 2007. VTB's majority shareholder is the Russian Federation state, acting through the Federal Property Agency, which holds 77.47 % of VTB's issued and outstanding shares at 30 June 2007 (31 December 2006: 99.9 %), the decrease was due to initial public offering completed in May 2007. For more information please visit www.vtb.ru.

Some of the information in this presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of JSC VTB Bank ("VTB") and its subsidiaries (together with VTB, the "Group"). Such forward-looking statements are based on numerous assumptions regarding the Group`s present and future business strategies and the environment in which the Group will operate in the future. We caution you that these statements are not guarantees of future performance and involve risks, uncertainties and other important factors that we cannot predict with certainty. Accordingly, our actual outcomes and results may differ materially from what we have expressed or forecasted in the forward-looking statements. These forward-looking statements speak only as at the date of this presentation and are subject to change without notice. We do not intend to update these statements to make them conform with actual results.

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