International Investment Bank rated Baa1 by Moody’s, BBB- by Fitch, both outlooks stable, published its IFRS statements for 2014. The statements were audited by Ernst & Young Vneshaudit, an independent auditor.

While the year 2013 was a «Year of Reform» at the International Investment Bank, 2014 can easily be assessed as a «Year of Expansion». According to the Bank’s just published financial statements, last year its assets increased by almost 50% to EUR 611.5 million, with an increase of 150% in IIB’s loan portfolio alone.

Other key financial indicators of the Bank for 2014 are as follows:

— Loans to banks exceeded EUR 132 million, a more than two times growth compared with 2013;

— Loans to customers exceeded EUR 108 million, an almost three times growth compared with 2013. Significantly increased diversification across sectors of the economy and countries to which loans were disbursed compared with 2013:

• Slovakia — 43% of gross loans to customers, a six times growth compared with 2013;
• Bulgaria — 28% of gross loans to customers, a five times growth compared with 2013;
• Mongolia — 21% of gross loans to customers;
• Romania — 5% of gross loans to customers, first time in IIB’s portfolio after the re-launch of the Bank in 2012;
• Russia — 2% of gross loans to customers.

— NPLs remained at a low level of 3.5% of gross loans to customers despite level of uncollateralized loans amounting to 38%;

— In 2014, the Bank reclassified certain actively quoted securities out of the available for sale category to the held-to-maturity securities in order to have long-term steady income;

— Paid-in capital reached EUR 272.6 million, a 13% growth compared with 2013. In 2014, IIB’s member states began to fulfill their commitments to increase the paid-in capital of the Bank, with Slovakia, Russia, Vietnam and Bulgaria together contributing more than EUR 30 million. This has led to rebalancing of shares, which should continue in 2015, especially in light of Hungary’s expected contribution, after the decision of the 102nd IIB Council Meeting in November 2014 to approve Hungary’s request to rejoin the Bank. After finalizing all Hungarian internal procedures, more than half of IIB’s member states will be EU members;

— Net income reached EUR 4.2 million;

— Total capital comprised more than EUR 389 million;

— Capitalization of the Bank, though decreasing due to IIB’s lending activities and due to attracting finance on debt markets, remains on a high level with Tier-1 capital comprising 71%, CAR — 78%.

— In 2014, the IIB placed two tranches of RUB-denominated bonds on Moscow Stock Exchange in the total amount of RUB 6 billion and EUR-denominated bonds on Bratislava Stock Exchange in the amount of EUR 30 million. It also attracted a long-term loan for USD 25 million;

— The Bank’s liquidity remains at a high level, cash and cash equivalents increased from EUR 20 million to EUR 66 million. Debt to equity ratio comprised 57%.

In 2015, the IIB aims to continue the model of 2014 — remaining ahead of the overall market, minimizing any adverse effects and further expanding its lending and capital markets operations, with a key emphasis on Asia, in light of the «Year of Asia» at the Bank. As noted by the Chairman, Mr. Kosov, «the IIB as an international financial institution will continue to carry out its mission, supporting development of its member states' economies while maintaining its rigorous approach to risk management».

Separate financial statements. Year ended 31 December 2014. Together with Independent auditors' report

Consolidated financial statements. Year ended 31 December 2014. Together with Independent auditors' report