Credit Europe Bank NV

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COMPANY PROFILE

COMPANY PROFILE

Table of Contents:

COMPANY OVERVIEW 1

FINANCIAL HIGHLIGHTS (AS REPORTED) 2

BUSINESS ACTIVITIES 2

DISTRIBUTION CAPACITY AND MARKET SHARE 4

OWNERSHIP AND STRUCTURE 4

Subsidiaries 5

COMPANY MANAGEMENT 5

COMPANY HISTORY 6

PEER GROUP 6

SUBSIDIARIES RATED BY MOODY’S 6 RELATED WEBSITES AND INFORMATION SOURCES 7

MOODY’S RELATED RESEARCH 7

Analyst Contacts:

LONDON +44.20.7772.5454

Arif Bekiroglu +44.20.7772.1713 Assistant Vice President – Analyst

arif.bekiroglu@moodys.com

Carola Schuler +49.69.70730.766 Managing Director

carola.schuler@moodys.com

This report, exclusively provided to you by Moody’s, presents a convenient summary of as reported, publicly available information. The information is not adjusted for Moody’s analytic purposes. For Moody’s Ratings, Opinion and Analytics on this company, please [Click here]. To access the latest Moody's Credit Opinion on this company, please [Click here].

Credit Europe Bank NV

Amsterdam, Netherlands

Company Overview

Credit Europe Bank NV (Credit Europe Bank) is a Netherlands-based, internationally oriented bank that provides corporate clients with project finance, international trade and commodity finance, and working capital loans. Moreover, the bank provides retail customers with deposit-taking, loan, credit card and insurance services. Its clients also include small and medium-sized enterprises (SMEs).

As of 31 December 2013, Credit Europe Bank serviced over 4.2 million customers through a network of 184 branches, 21,870 sales points, 957 ATMs and over 22,600 point-of-sale terminals in 11 countries. Its main markets include Russia, Romania, Turkey, and developed European countries such as the Netherlands and Germany.

The bank was established in 1994 as Finansbank (Holland) NV, and was rebranded as Credit Europe Bank during 2006–07 following the sale of Finansbank A.S. to National Bank of Greece. As of 31 December 2013, Credit Europe Bank was wholly owned by Credit Europe Group NV, which in turn was ultimately owned by Hüsnü M. Özyeğin through the investment company FIBA Holding AS.

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Financial Highlights (as Reported)

Note: The financials presented below are those reported by the entity and are not adjusted for Moody’s analytic purposes. For Moody’s generated ratios on Credit Europe Bank NV, please see <Credit Europe Bank NV page on moodys.com>.

EXHIBIT 1

Latest Full-Year Results

Credit Europe Bank NV

(in € Million) 31-Dec-13 31-Dec-12 31-Dec-11

% Change 13/12

% Change 12/11

Total Assets 10,158 9,237 10,505 9.97 (12.07)

Total Shareholders’ Equity 641 649 739 (1.16) (12.16)

Shareholders’ Equity excluding Minority Interest 638 640 726 (0.42) (11.78)

Total Capital 1,050 916 989 14.64 (7.42)

Tier 1 Ratio (%) 9.29 10.29 10.76 (100) bps (47) bps

Net Income 94 78 94 20.78 (17.18)

Net Income Attributable to Equity Holders 94 77 93 21.41 (16.49)

Note: Consolidated financials are considered

Source: Company Reports (annual report Dec 2013 and Dec 2012)

Business Activities

Credit Europe Bank offers project finance, international trade and commodity finance, and working capital loans to its corporate clients, and deposit-taking, loan, credit card and insurance services (through external insurance providers) to its retail customers. Its clients also include SMEs. Credit Europe Bank operates through the following seven reportable business segments: West Europe Retail; West Europe Wholesale; Russia Retail; Russia Wholesale; Romania Retail; Romania Wholesale; and Other. In the financial year ended 31 December 2013 (2013), the largest contributor to the bank’s net interest income was the Russia Retail segment (57.0%).

West Europe Retail: This segment includes the loans to and the deposits of the bank’s retail customers

in Western Europe, including Belgium, Malta, Germany and the Netherlands. As of 31 December 2013, it reported total consolidated assets of €387.3 million, and accounted for 4.0% of the bank’s net interest income in 2013.

West Europe Wholesale: This segment includes loans to and deposits of the bank’s non-retail

customers in Belgium, Germany, Malta, the Netherlands and Switzerland. As of 31 December 2013, it reported total consolidated assets of €4.7 billion, and accounted for 13.9% of the bank’s net interest income in 2013. In this segment, there is also €402 million in non-cash outstanding exposure as of 31 December 2013, stemming mainly from international trade and commodity activities of the bank.

Russia Retail: This segment includes the loans to and the deposits of the bank’s retail customers in

Russia. As of 31 December 2013, it reported total consolidated assets of €2.4 billion, and accounted for 57.0% of the bank’s net interest income in 2013.

This publication does not announce a credit rating action. For research publications that reference Credit Ratings, please see the ratings tab on the issuer/entity page on

www.moodys.com for the most updated Credit Rating Action information and rating history.

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Russia Wholesale: This segment includes the loans to and the deposits of the bank’s non-retail customers in Russia. As of 31 December 2013, it reported total consolidated assets of €987.6 million, and accounted for 11.0% of the bank’s net interest income in 2013.

Romania Retail: This segment includes the loans to and the deposits of the bank’s retail customers in

Romania. As of 31 December 2013, it reported total consolidated assets of €577.9 million, and accounted for 5.1% of the bank’s net interest income in 2013.

Romania Wholesale: This segment includes the loans to and the deposits of the bank’s non-retail

customers in Romania. As of 31 December 2013, it reported total consolidated assets of €831.1 million, and accounted for 4.7% of the bank’s net interest income in 2013.

Other: This segment includes the bank’s operations in Dubai and Ukraine. As of 31 December 2013, it

reported total consolidated assets of €272.2 million, and accounted for 4.3% of the bank’s net interest income in 2013. At the end of 2013, Dubai also had €35million in off balance sheet risk in its books. Source: Company Report (annual report Dec 2013)

EXHIBIT 2

Business Segment

(% of Net Interest Income, consolidated, for 2013)

Source: Company Report (annual report Dec 2013, Pg: 71)

EXHIBIT 3

Net Profit/(Loss) per Business Segment (consolidated, in € Million)

Source: Company Report (annual report Dec 2013, Pg: 71 and 72)

Russia Retail 57%

West Europe Wholesale 14% Russia Wholesale 11% Romania Retail 5% Romania Wholesale 5%

West Europe Retail 4% Other 4% 3 33 42 23 (21) (11) 9 1 18 41 28 (13) 4 14 (30) (20) (10) 0 10 20 30 40 50

West Europe Retail West Europe Wholesale

Russia Retail Russia Wholesale Romania Retail Romania Wholesale

Other 2012 2013

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Distribution Capacity and Market Share

As of 31 December 2013, Credit Europe Bank serviced over 4.2 million customers through a network of 184 branches, 21,870 sales points, 957 ATMs and over 22,600 point-of-sale terminals in 11 countries. The bank’s main markets include Russia, Romania, Turkey, and developed European countries such as the Netherlands and Germany.

As of 31 December 2013, Credit Europe Bank distributed its services in Russia through a network of 114 branches, 802 ATMs, 13,960 point-of-sale terminals and 14,200 sales points. As of that date, the bank provided its services in Romania through a network of 65 branches in 31 cities. The bank had a market share of 17% in terms of credit cards in Romania, with over 280,000 active credit cards as of 31 December 2013. In addition, Credit Europe Bank maintains representative offices in Istanbul and Shanghai, as well as a branch in Frankfurt where the retail banking activities of Credit Europe Bank N.V. is managed.

The geographical distribution of Credit Europe Bank’s gross loans to customers was as follows:

EXHIBIT 4

Credit Europe Bank NV

Gross Loans to Customers (%)

Geographical Segment 31-Dec-13 31-Dec-12

Russia 49.8 49.9

Romania 15.7 19.0

Turkey 11.2 10.0

Ukraine 1.8 1.6

Other Emerging Markets 1.2 0.7

Developed Markets 20.3 18.8

T

Total 1100.0 1100.0

Source: Company Report (annual report Dec 2013), Moody’s research

Ownership and Structure

As of 31 December 2013, Credit Europe Bank operated as a wholly owned subsidiary of Credit Europe Group NV, which was ultimately owned by Hüsnü M. Özyeğin through the investment company FIBA Holding AS.

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Subsidiaries

As of 31 December 2013, the subsidiaries of Credit Europe Bank were as follows:

EXHIBIT 5

Credit Europe Bank NV

Company Country % Held

Credit Europe Bank (Dubai) Ltd. United Arab Emirates 100.00

Credit Europe Bank (Suisse) SA Switzerland 100.00

Credit Europe Leasing (Ukraine) LLC Ukraine 100.00

Stichting Credit Europe Custodian Services Netherlands 100.00

PJSC Credit Europe Bank (Ukraine) Ukraine 99.99

Credit Europe Leasing (Romania) Romania 99.99

Credit Europe Bank (Romania) SA Romania 98.93

Credit Europe Bank (Russia) Ltd. Russia 99.58

Credit Europe Leasing (Russia) LLC Russia 98.40

Cirus Holding BV Netherlands 50.00

Ikano Finance Holding BV Netherlands 50.00

Source: Company Report (annual report Dec 2013)

Company Management

Managing Board Current Title Age

Enver Murat Başbay Credit Europe Bank: Chief Executive Officer 45 Şenol Aloğlu Credit Europe Bank: Deputy Chief Executive Officer 48 Umut Bayoğlu Credit Europe Bank: Chief Financial Officer 40

Scott Cheung Credit Europe Bank: Chief Risk Officer 38

Levent Karaca Credit Europe Bank: Board Member 43

As of Feb 2014

Supervisory Board Affiliation Age Committees

Hector de Beaufort Credit Europe Bank: Chairman;

Clifford Chance: Senior Corporate Partner

57 Corporate Governance & Nomination Committee (C), HR & Remuneration Committee Murat Özyeğin Credit Europe Bank: Vice Chairman;

Fiba Group: Head of Strategic Planning and Business Development;

Fina Holding and Fiba Holding: Executive Board Member; Turkish Industry and Business Association: Member; Ozyegin University and World Wildlife Fund: Member of the Board of Trustees;

Global Relations Forum and OECD’s Business, Industry Advisory Council: Board Member;

Harvard University: Member of Global Advisory Council

37 Corporate Governance & Nomination Committee, HR & Remuneration Committee

Frits Deiters Credit Europe Bank: Independent Board Member; Stichting Vrienden van het Singer Museum: Treasurer

73 Audit & Risk Committee (C), Compliance Oversight Committee

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Supervisory Board Affiliation Age Committees

Mehmet Güleşci Credit Europe Bank: Board Member; Fiba Group: Chief Financial Officer

51 Audit & Risk Committee, Corporate Governance & Nomination Committee

Korkmaz Ilkorur Credit Europe Bank: Independent Board Member; Oliver Wyman: Member of the Senior Advisory Board; Robert College, Istanbul: (Emeritus) Trustee

69 Audit & Risk Committee, Compliance Oversight Committee (C)

F. Onur Umut Credit Europe Bank: Board Member; Fiba Group: Board Member

51 HR & Remuneration Committee (C), Compliance Oversight Committee

As of Feb 2014

(C) = Committee Chairman

Source: Company Report (annual report Dec 2013)

Company History

Credit Europe Bank traces its roots to 1994, when Finansbank (Holland) NV was established in the Netherlands. Until August 2006, Finansbank (Holland) NV was indirectly owned by Finansbank AS. That month, it was acquired by National Bank of Greece, which sold its international holdings, including Finansbank (Holland) NV to FIBA Holding AS. Consequently, Finansbank (Russia) Ltd., Finansbank Romania and Finansbank (Suisse) have become subsidiaries of Finansbank (Holland) NV. During 2006–07, Finansbank (Holland) NV was renamed Credit Europe Bank. Subsequently, all subsidiaries have also been renamed Credit Europe Bank.

During 2008, licences for 2 more subsidiary banks were obtained from local authorities and PJSC Credit Europe Bank Ukraine and Credit Europe Bank (Dubai) started their activities.

In 2010, Credit Europe Bank acquired a 95% stake in the Turkey-based bank Millennium Bank AS from Banco Comercial Portugues. In 2011, Millennium Bank AS was renamed Fibabanka AS. In December 2012, the bank spun off Fibabanka AS to its parent company, FIBA Holding AS. Source: Company Reports (annual report Dec 2013, Dec 2011 and Dec 2010), Moody’s research

Peer Group

» Demir-Halk Bank (Nederland) N.V. » GarantiBank International N.V.

Subsidiaries Rated by Moody’s

» Credit Europe Bank Ltd.

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Related Websites and Information Sources

For additional information, please see:

» The company’s website: www.crediteuropebank.com » The regulator’s website: www.dnb.nl

MOODY’S has provided links or references to third party World Wide Websites or URLs ("Links or References") solely for your convenience in locating related information and services. The websites reached through these Links or References have not necessarily been reviewed by MOODY’S, and are maintained by a third party over which MOODY’S exercises no control. Accordingly, MOODY’S expressly disclaims any responsibility or liability for the content, the accuracy of the information, and/or quality of products or services provided by or advertised on any third party web site accessed via a Link or Reference. Moreover, a Link or Reference does not imply an endorsement of any third party, any website, or the products or services provided by any third party.

Moody’s Related Research

Credit Opinion:

» Credit Europe Bank NV

Credit Focus:

» Credit Europe Bank N.V.: Challenges Amid Fast-Changing Market Conditions, February 2014 (160675)

Banking Statistics:

» Credit Europe Bank NV, January 2013 (148860)

Banking System Outlook:

» Banking System Outlook: Netherlands, February 2014 (164988)

Banking System Profile:

» Banking System Profile: The Netherlands, February 2014 (164970)

To access any of these reports, click on the entry above. Note that these references are current as of the date of publication of this report and that more recent reports may be available. All research may not be available to all clients.

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Report Number: 170848 Authors Arif Bekiroglu Na Luo Editor Karen Wong Production Specialist Shubhra Bhatnagar

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