Results of annual meeting of OJSC "NEFTEBANK" (Kazakhstan) shareholders

/KASE, July 11, 00/ - OJSC "NEFTEBANK" (Aktau, official list of securities, category "B"), in accordance with listing requirements, provided KASE with the materials of annual shareholders general meeting, which was held on March 29, 2000 (minutes, the report of the Board and 1999 report of the Revision commission). Based on approved agenda of the meeting, the shareholders of OJSC "NEFTEBANK" approved financial statements, the report of the Board and 1999 act of the Revision commission, as well as: - approved the report on 1999 revenues and expenses estimates and delegated the Board of directors to examine and approve 2000 revenues and expenses estimate; - made a decision to direct KZT175 mln undistributed income of previous years to dividends and declare dividend payments at 32.1% per share with subsequent use of dividends for the capitalization of the bank; - approved the changes and amendments into the Charter of the bank to make it to comply with the Decree of the President of Kazakhstan "On banks and banking activities"; - approved the assignment of "Arthur Andersen" as an independent auditor of the bank for the year 2000; - made a decision to sell 50% stake in the brokerage company LLP "NB Service", established in 1997 with the participation of the bank. In addition, the matter on authorized capital of the bank, which equaled 10 mln U.S. dollars after the registration of the 7th issue of shares (with immediate cancellation of the 5th and 6th issues) on October 15, 1999, was discussed at the meeting. By the recommendation of the National Bank of Kazakhstan, the banks-residents should issue their shares in national currency, and therefore, conduct conversions not later than July 1, 2000. To comply with this recommendations, as well as with other requirements of the National Bank on minimum amount of authorized capital, the authorized capital is to be increased by KZT321 mln through the contributions of the shareholders, or using the expenses of the bank. Due to the fact that these terms were considered unacceptable, the shareholders approved following decisions: - intercede with the National securities commission of Kazakhstan (NSC) for canceling the 7th issue of shares for a total of 10 mln U.S. dollars and restoration of the 5th and 6th issues for a total of KZT1 bln; - in case of the NSC's denial, convert the authorized capital at the exchange rate, which was effective on the registration date of the 7th issue (KZT132.10 per dollar) and announce the 8th issue for an amount of KZT1,321 mln. The chairman of the Board of OJSC "NEFTEBANK", Suindinov J. made a speech on 1999 results. It was said that despite the difficulties of the year 1999, the bank had been able to retain its clients and kept working on expansion and development of its range of services. The bank has 1,900 legal entities and 15,000 private persons as its clients. The payment turnover of the bank in 1999 was about KZT59.89 bln. The currency of the balance sheet increased from KZT1.57 bln to KZT2.46 bln within a year, shareholders' equity - from KZT0.85 bln to KZT1.03 bln. In 1999 income equaled KZT604.31 mln, expenses - KZT536.79 mln, before tax income - KZT67.52 mln. net profit - KZT41.11 mln. The amount of attracted deposits of private persons is KZT516.33 mln. In 1999 under the program of small and middle business support of the Ministry of finance KZT223.85 mln worth of loans were granted through OJSC "NEFTEBANK". Granting loans is the major direction of the bank's activities. In 1999 total amount of loans equaled KZT1.53 bln. Among the branches of the economy they were distributed as follows: oil and gas industry - 10.9% of the loan portfolio, processing industry - 7.2%, transportation - 8.2%, utilities - 8.5%, trade and commerce - 3.2%, communication - 1.9%, agriculture - 1.8%, hotel business - 3.3%, others - 45.4%. Volume of provisions formed by the end of 1999 equaled KZT119.96 mln, or 7.7% of the loan portfolio. In 2000 the agreement was signed with CJSC "Eximbank Kazakhstan" for an amount of 1.5 mln U.S. dollars to get financing for the construction of a dairy plant. To satisfy the needs of the clients completely in 2000 OJSC "NEFTEBANK" plans to offer safe services and get into the market of plastic cards (preliminary agreement of the international VISA International permitting the bank to join in this organization was obtained).