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Annual Meeting of Shareholders

Center-invest Bank held its annual meeting of shareholders at its head office in Rostov-on-Don on 2 June 2016. Ahead of the meeting, the bank organised a series of meetings between its shareholders and its managers and customers. This approach helps to overcome misconceptions in Europe about southern Russia’s economy and the risks in its financial sector.

The bank’s shareholders noted the effectiveness of our system of “nurturing” new generations of employees. They saw that the bank’s employees are very competent and that they are knowledgeable about leading technologies, the bank’s customers, and its development strategy. Employees demonstrated a good understanding of social responsibility and also an ability to assess and effectively manage the risks posed by the Russian environment and the uncertainty in global markets.

The discussions showed that Center-invest Bank is a successful example of transformational banking, which the global financial system is transitioning towards. Center-invest Bank’s employees have real opportunities for personal development and they acquire skills and knowledge that are in demand internationally.

Hans Unterdorfer from Erste Bank (Austria) said that he was struck by the high level of professionalism shown by employees at all levels, the quality of their work, their corporate culture, their commitment to environmental and social responsibility, their candour when responding to questions, and their commitment to the success of the whole team.

Independent director Franz Flosbach noted that the bank’s employees are aware of their role as pioneers in the building of a new global financial system, but that they also consider risks very carefully and maintain balance between the operations of the different departments, effectively managing liquidity, profit and risks.

The chairman of the Executive Board, Yuri Bogdanov, views these conversations with the bank’s international shareholders as a form of brainstorming. It allows the bank to see new approaches to working in the financial markets, with due regard for the risks posed by unscrupulous competitors, and the need for appropriate protective measures (working with international auditors and judicial and law enforcement agencies).

The bank’s shareholders visited a number of customers. They included tourism companies that are preparing for the FIFA World Cup in 2018, and Rostov Universal Port. It was noted that, “Thanks to loans from Center-invest Bank, the port has become a modern transport infrastructure company. Although there is a long project implementation timescale, the port has a bright future. It is already attractive for investors.”

The meeting of shareholders approved Center-invest Bank’s annual report for 2015 (financial statements and integrated reporting) and the allocation of profits proposed by the Board of Directors. Profits after tax for 2015 were RUB1.1bn. Of this, RUB296.3m was allocated to dividend payments, and RUB782.8m to increasing the bank’s capital.

The Board of Directors had already approved the bank’s 2016-2018 Strategy “Global Competitiveness in Transformations”. This strategy will enable the bank to adopt flexible solutions at a time of risk and volatility on global and national markets, and to use its competitive advantages to develop the ecosystem of the bank, its shareholders, customers, partners and employees.