Organisation Structure

Business Divisions
We have five business divisions: Private Client Activities, Capital Markets, Investment Banking, Asset Management and Property Activities. Our head office provides group-wide integrating functions.

Board of Directors
The Board is responsible for establishing and maintaining an effective system of internal control, including but not limited to the safeguarding of assets against unauthorised use or disposition; maintaining proper accounting records; and the reliability of financial information deployed by the firm. The key mechanisms used by the Board to achieve this include regular reports from the Executive Management Board; periodic updates from the Audit Committee based on its review of risk management and internal audit reports by the relevant group functions; discussions with and reports from the external auditors, and regulatory reports.

Committees of the Board of Directors
We have appointed certain members of our Board to serve on various committees of the Board of Directors. The Board of Directors has established three standing committees:

(a) The Audit Committee
(b) Asset and Liability Committee (ALCO)
(c) Investment Committee

a.Audit Committee. The Audit Committee reports to the Board of Directors in discharging its responsibilities relating to our accounting,reporting and financial control practices. The Audit Committee has general responsibility for oversight of financial controls, as well as our accounting, regulatory, and audit activities, and annually reviews the qualifications of the independent auditors. The Audit Committee is composed partially by outside directors.

b.Asset and Liability Committee (ALCO)

The purposes and tasks of ALCO are:

• coordination of the bank’s divisions with respect to asset and liability management
• formation of the optimal structure of the Bank’s balance sheet to provide the maximum profitability, limiting the possible level of risk
• formation of the Bank’s capital markets policy
• control over the capital adequacy and risk diversification
• execution over the uniform interest policy
• monitoring the execution of ALCO’s decisions by the Bank’s divisions
• reviewing the basic performance indicators (ROE, ROA, etc.) as prescribed in the Bank’s policy
• determination of the Bank’s liquidity management policy

The ALCO’s resolutions are binding on all Bank employees.

c.Investment Committee

The Investment Committee determines the Bank’s investment policy and how risk management should be incorporated into the decision making process.
Investment Committee duties include:

• formation of the investment and investment policy and assuring its execution
• control over risk management
• examination of the investment portfolio and reserves
• examination and decision making on loans, guarantees and other investment operations

The Investment Committee has the authority:

• To approve the investment policy and investment procedures
• To set limits on making decisions about investment operations and investment policies
• To set limits of concentration of the investment risk, taking into consideration industrial, geographical and portfolio diversification
• To make decisions on exceeding the limits
• Within its competence, to make decisions on guarantees, overdrafts, other investment operations, including acquiring investment portfolio in both national and foreign currencies
• To make decisions on setting individual interest rate on the investment operation
• To make decision on classification of the investment portfolio and formation of the reserve

The Investment Committee should include not less than 3 persons.

Executive Management Board
The Executive Management Board has responsibility to set, communicate and monitor the application of policies, procedures and standards in areas including operations;finance, legal, commercial and regulatory compliance; human resources and health and safety; information security; property management and theenvironment.They will delegate operating responsibility to their respective Managing Directors and local management teams.