Statements of Cash Flows for the Years Ended 31 December
(Thousands of Russian Roubles, unless otherwise indicated)
---------------------------------------------------------------------------------------------
                                                                        2003         2002
---------------------------------------------------------------------------------------------
Cash flows from operating activities
Interest received on loans                                          101,112,617    94,743,781
Interest received on securities                                      30,067,610    32,767,528
Interest paid                                                       (72,937,761)  (56,817,683)
Income received from dealing in securities and derivatives           43,442,442    11,713,336
Income received from dealing in foreign currencies                    4,274,093     2,886,561
Fees and commissions received                                        22,096,989    16,929,637
Fees and commissions paid                                              (644,722)     (480,229)
Other operating income received                                       2,305,534     2,190,166
Staff costs paid                                                    (47,149,134)  (40,731,100)
Operating expenses                                                  (19,696,543)  (24,000,002)
Income tax paid                                                      (4,056,763)   (6,267,197)
------------
Operating profits before changes in operating assets and liabilities 58,814,362    32,934,798
------------

Cash flows from operating assets and liabilities
Net (increase)/decrease in assets:
Mandatory cash balances with the CBR*                               (24,084,921)  (22,852,002)
Trading securities                                                  (15,772,527)  (55,783,548)
Due from banks                                                      (38,046,455)  (41,378,278)
Loans and advances to customers                                    (292,737,858) (153,640,094)
Securities available for sale                                       (75,830,911)   (8,141,134)
Securities acquired at original issuance                             21,684,994     4,985,996
Other assets                                                         (3,232,210)    1,584,261
Net increase/(decrease) in liabilities:
Due to banks                                                         30,707,858   (12,367,011)
Deposits from individuals                                           265,228,588   212,790,671
Customer accounts                                                    22,942,794    60,015,812
Own securities issued other than eurobonds                           17,026,397    26,469,692
Other liabilities                                                    (4,949,074)    1,007,387
------------
Net cash (used in) / provided by operating activities               (38,248,963)   45,626,550
------------

Cash flows used in investing activities
Purchase of premises and equipment                                  (11,836,195)   (9,661,646)
Proceeds from sale of premises and equipment                          1,061,772       448,660
Sales of other investments                                              (53,232)            -
Dividend income received                                                110,174        30,144
------------
Net cash used in investing activities                                (10,717,481)  (9,182,842)
------------

Cash flows from financing activities
Eurobond issuance                                                     29,718,636            -
Sale of treasury shares                                                       99          800
Other borrowed funds repaid                                             (427,447)     (95,897)
Dividends paid                                                        (2,177,906)  (1,115,484)
------------
Net cash provided by / (used in) financing activities                 27,113,382   (1,210,581)
------------
Effect of exchange rate changes on cash and cash equivalents            (139,523)     370,723
------------
Effect of inflation on cash and cash equivalents                               -   (8,066,210)
------------
Net (decrease)/increase in cash and cash equivalents                 (21,992,585)  27,537,640
Cash and cash equivalents at the beginning of the year                67,608,513   40,070,873
------------
Cash and cash equivalents at the end of the year                      45,615,928   67,608,513
------------


* the CBR = the Central Bank of the Russian Federation