Russian Financial Sector Update

The Central Bank of the Russian Federation Bank of Russia FINANCIAL SECTOR OVERVIEW SECURITIES MARKET (2) Russian equity market remains undervalued despite strong performance in recent years Figure 22: Russian MSCI index vs EM peers (05.01.15 = 100%) EM EMEA -China India Russia Brazil Turkey South Africa 9 175% 150% 125% 100% 75% 50% 25% 12.14 03.15 06.15 09.15 12.15 03.16 06.16 09.16 12.16 03.17 Source: Thomson Reuters, Moscow Exchange 06.17 09.17 12.17 03.18 06.18 3 4 5 6 7 8 Figure 23: Forward P/E ratio of just 5.7x and a dividend yield above 5.5% 12.14 03.15 06.15 09.15 12.15 03.16 06.16 09.16 Forward P/E, Ihs -Div/Yield, rhs 6 12.16 03.17 06.17 09.17 12.17 03.18 06.18 3 4 3.5 5 4.5 5.5 33

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