Based on the audited financial results for the first half of 2005, Alfa-Bank Group, which embodies Alfa-Bank and its subsidiaries, reported a record net profit after tax growth of 64.1% to US$ 87.3 mln up from US$ 53.2 mln in the first half of 2004. This growth was mainly driven by a strong increase of net interest income and strict cost control. While Alfa-Bank Group’s net profit after tax has been impacted in the past by large, one off, profitable investment banking deals, the 2005 year to date results have been driven by recurring interest margin, commissions and on-going business related activities.

In the audited reporting period Alfa-Bank Group’s total assets grew by 22.4 % to US $8.2 bn from US $6.7 bn in the same period 2004. Alfa-Bank Group’s loan portfolio increased by 19.5% to $4.9 bn in the first half of 2005 from $4.1 bn in the first half of 2004.

The volume of funds raised from individuals and corporate clients was nearly $4.7 bn, compared to $4.2 bn in the first half of 2004. In an effort to diversify its funding sources, Alfa-Bank Group has been very active in the syndicated loan, ECP and MTN markets. Syndicated loans, ECP and MTN notes made up approximately US$ 1.3 bn of liabilities in the first six months 2005 compared to US$ 0.9 mln at the end of 2004.

In the first half of 2005, total equity of the Alfa-Bank Group increased to $776.1 mln up from $613.4 mln in the first half of 2004.

In the first nine month 2005, Alfa-Bank Group’s net profit after tax grew further to US $138 mln. During the same period, the loan portfolio grew by 54.8 % to US $5.4 bn. Total assets reached US $8.8 bn versus US $5.9 bn in September 2004. The funds raised from individuals and corporate clients increased by 28.7% to US $4.8 bn compared to US $ 3.8 bn in the first nine months of 2004.