Results of annual general meeting of OJSC "KAZKOMMERTSBANK" (Kazakhstan) shareholders

/KASE, May 31, 00/ - According to listing requirements, OJSC "KAZKOMMERTSBANK" (Almaty, official list of securities, category "A") provided KASE with the minutes of shareholders annual general meeting, the report of the Board and the conclusion of the Revision commission, as well as with auditing report of NAC "Kazakhconsulting" (Almaty) made on 1999 financial statements. Based on the agenda of the meeting, held on April 24, 2000, the shareholders of OJSC "KAZKOMMERTSBANK" decided to: - approve annual financial statements, the report of the Board and the conclusion of the Revision commission of the bank for the year 1999; - not to pay dividends for the year 1999; to allocate the net income of KZT2,199,465 th. following way: KZT5,137 th. for the replenishment of reserve fund; KZT2,194,328 th. for the replenishment of undistributed net income; - approve the changes and amendments to the Charter of the bank in order to make it in conformity with the law "On making changes and amendments in some legislative acts of Kazakhstan" of July 16, 1999; - approve the reorganization program of the bank by creating new subdivisions. Also, the meeting dismissed the bank's previous Board of directors and elected a new one with the following members: Bizakov N.S., Gukasov E.Kh., Klebanov A.Ya., Sembaev D.Kh., Sukhanberdin N.S. At the end of the meeting Abdrazakov E.S. (the chairman of OJSC "Central Asian investment company") informed the shareholders that presently the banks has assigned lead managers to organize and to launch the second issue of the bank's eurobonds in this year, not exceeding the volumes approved by shareholders general meeting of January 25, 99. On behalf of the Board of the bank Vozliublennaya L.P., the managing director of OJSC "KAZKOMMERTSBANK", made a speech. She noted that despite unfavorable tendencies of the beginning of 1999 related to the devaluation of the tenge and overcoming the consequences of the Russian crisis of 1998, the banks had managed to confirm its financial stability and to increase its assets noticeably. By the year-end results, OJSC "KAZKOMMERTSBANK" kept its leading position in the banking sector of Kazakhstan: its assets account for 21% of total assets of the banking sector, capital - 16% of total capitalization, loans to the clients - 32% of all loans granted by the Kazakhstani banks. Growth in mid-term assets by 41.9% by 1998 (up to KZT64.642 bln) was caused by 55.2% increase in loan portfolio, credits to the banks - 51.1%, investments into the shares - 25.2%, investments into fixed and intangible assets - 54.2%, other assets - 102.9%. Relative to 1998 mid-term liabilities of the bank grew 48.6% (up to KZT54.009 bln). Interest liabilities rose 47.4% (up to KZT50.617 bln) mainly due to 30.9% increase in the deposits of the clients, including mid-term - 80.9%. Increase in attracted funds equaled 117.4%, caused by an increase in goal financing of the Ministry of finance of Kazakhstan and that of the Fund for small entrepreneurship support, by getting new syndicated loans from international financial institutions, as well as by servicing the credit lines of the German state fund KFW (development of small entrepreneurship) and that of EBRD (development of the industry). Relative to 1998 operating income of the bank grew 99.2%, expenses - 38.1%. As a result of quickly growing operating income over the expenses, net profit of the bank in 1999 exceeded that in 1998 by 110%, at KZT2.199 bln. In 1999 OJSC "KAZKOMMERTSBANK" retained the highest level of shareholders' equity among the Kazakhstani banks. As of January 1, 2000, the shareholders' equity of the bank equaled KZT2.942 bln, first level capital (less participation in the capitals of other legal entities) - KZT6.271 bln, the bank's own capital (net) - KZT9.437 bln.