/KASE, May 25, 07/ - Bank TuranAlem JSC (Almaty), securities of which are traded in Kazakhstan stock exchange's (KASE) category "A" official list had spread the press-release with the next contention:

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As of April 1, 2007 assets of Bank TuranAlem increased since the beginning of year by 18.5% and made $19.4 bn., as the result stake of BTA on assets on the market made 24.6%. The main growth was provided by the growth of credit portfolio of the bank, stake of which in assets increased as of end of first quarter of year 2007 to 66.5%. Credits to small, middle business and retail credits made as of end of first quarter made about 40% from whole credit portfolio.

Net income as of April 1, 2007 made $103 m. that is 1.9 times bigger than this indicator for the similar period of last year and consists mainly from income on percents - 65%, interests and commissions - 15%, and also trade deals of treasury - 20%. ROAA made 2.17%, ROE 24% and сost to income 27.6%.

Volume of deposits in the first quarter increased by 23.1%. Deposits provided the funding of 24.6% assets. Stake of deposits of physical entities in liabilities as of end of first quarter of year 2007 made 21.1%., stake of deposits of juridical entities - 15.5%. At that rates of growth of deposits' base of BTA exceeding the rates of growth of deposits' base of STB by 3%.

Borrowing on foreign capital markets are still the important source of bank's growth funding. Bank intends to follow the announced in the beginning of year plan of borrowing on foreign markets. According to the given plan, bank intends to make public borrowings through issue of eurobonds and syndicated credits in total amount up to $2 bn. At that bank will observe the market conjuncture and will find the most favorable windows of entering the market, thus the cost of borrowing will be critical factor for bank while acceptance of decision about exiting to market.

One of the strategic principles of BTA is the support of adequate capital level. The joint shareholders capital of BTA as of April 1, 2007 totaled $1.966 bn., level of coefficient of adequacy of capital K1 totaled 12.22%, K2 - 13.99%.

In February 2007 by shareholders of the bank was accepted the decision about offering of 11 issues of shares in size of $1.5 bn. among existing shareholders, main part of which (about $1 bn) will be offered during second quarter of year 2007. Total offering of shares will lead to doubling of main part of equity capital to the end of year 2007, which will provide the support of capitalization on the adequate level with the planned growth of assets and will let to realize the strategy of Group's consolidation.

In the beginning of year 2007 bank had purchased 34%-ge stake in Turkish bank Sekerbank T.A.S. during year 2007 Bank intends to consolidate the network of affiliated banks in other countries of CIS, and open the daughter bank in China (western China, Urumqi).

After purchasing of control shareholding of shares of Temirbank the consolidated assets of BTA as of April 1, 2007 exceeded the assets of KKB by 2.6% and as the result BTA had become the largest private bank in Kazakhstan.

With the second largest subsidiary network (22 regional subsidiaries and 229 cash-payment points) and clients base in Kazakhstan BTA is the universal bank with significant stake on the market of clients' deposits, making 17.5% from market and second in size credit portfolio. Bank intends to strengthen its internal positions, increasing the stake of market in all business fields to 25%.

In April 2007 the international edition Euromoney conferred Bank TuranAlem JSC the reward as the leading bank in corporate management on the markets of developing Europe - Corporate Governance 2006, and also had confirmed BTA the one of most effectively managing banks in Central and eastern Europe and Central Asia - Best Managed Companies 2007.

Fundamental economical and credit indicators of the bank remains on the very high levels, which reflects in high credit ratings of the bank, re-proved by rating agencies.

On May 17, 2007 Fitch Ratings confirmed the ratings of Bank TuranAlem (BB+, Positive). Ratings of Bank TuranAlem JSC reflect the probability of acceptance of support from powers of Kazakhstan in case of need. Positive forecast on RDI of BTA in foreign currency reflects the forecast on sovereign RDI. RDI of bank in foreign currency, possibly will be increased in case of increasing of sovereign rating. The individual rating also takes into consideration the significant clients' base of BTA in Kazakhstan, good financial indicators of activities and acceptable levels of bank's liquidity.

On May 4, 2007 Moody's announced about possible re-consideration of rating on liabilities of the bank in foreign currency of the number of Kazakhstan banks, including BTA. Re-consideration of ratings of senior and subordinated liabilities is connected only with re-consideration by the agency of its methodology of support estimation. At the same time agency had left the individual credit rating of the bank in foreign currency without changes (Ba1, Stable).

High financial indicators and effectively working infrastructure of BTA provided the bank with significant advantage in terms of current positive trend of economic development and ability to growth together with market. Bank is adapting to changing character of Kazakhstan banking market due to increase of amount and quality of products and increase of profitability of business.

Bank TuranAlem JSC (BTA) is one of the largest banks and leader in creation of banking network on the territory of countries of CIS. For year 2007 is planned the consolidation of assets of bank in CIS with increasing to $50 bn. to year 2015.

For contacts with mass media: in Almaty: 8 (327) 266-47-97, e-mail: press@bta.kz

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[2007-05-25]