AFS of state of financial market and financial organizations on May 1 of 2006

/IRBIS,Assel Omarova, May 30, 06/ - Agency of the Republic of Kazakhstan on regulation and supervision of financial market and financial organizations (AFS) spread press-release of state of financial market and financial organizations on May 1 of 2006, in which the following is said: the beginning of quotation Bank sector As of May 1 of 2006 banking sector of the republic is represented by 34 banks of the second tier, 14 banks of which are with foreign funds (including 9 subsidiary banks - non-residents of the Republic of Kazakhstan). As of May 1 of 2006 aggregate settlement shareholders' equity of the banking sector made KZT696,4 bn., having increased by KZT22.7 bn. for a month or by 3.37%. Aggregate assets of banks have increased for a month by KZT113.9 bn. (2.3%) till KZT5,101.2 bn. The indicators of adequacy of equity for reporting date made k1 - 0.10; k2 - 0.15 Banks' loan holding (taking into account of interbank loans) has increased for a month by KZT149 bn. (4.6%) till KZT3,392.8 bn. In the structure of credit holding of banks as of May 1 of 2006 the stake of standard credits made 58.3%, doubtful - 39.9%, hopeless - 2.6%. Total sum of deposits borrowed by banks from juridical and physical persons (excluding banks and international financial organizations) made KZT2,810.1 bn. with decreasing for a month by 0.6%, including the sum of deposits of juridical persons - KZT2,141.7 bn. having decreased by 2.1%, the sum of deposits of physical persons - KZT668.4 bn. with augmentation by 4.7%. Deposits of subsidiary organizations of a special assignment made KZT984.4 bn., having increased for a month by 3.3%. Aggregate sum of revenue of the banks of the second tier on April 1 of 2006 made KZT238.4 bn., having increased by 79.2%. in comparison with analogical period of past year. The sum of expenditures made KZT147.3 bn., having increased by 72.5% in comparison with analogical period of past year. Unallocated net income (uncovered loss) of banks made KZT27.6 bn. that was higher than given indicator by 78.0% for analogical period of past year. For infringement of bank legislation for April of 2006 the banks have been pronounced 2 compulsory mandates for performance, to 1 bank sanctions have been taken. As of May 1 of 2006 in the process of compulsory liquidation on court decision there are 13 banks. At a regular meeting of Agency's Board in April 2006 the range of enactments was considered and adopted targeting at further improvement of regulatory and supervisory functions for activity of STBs, including: " Of acknowledgement an enactment of Board of the National Bank of the Republic of Kazakhstan dated May 28, 1999 # 122, having become invalid, " Of approval of Methodological recommendations on organization of systems of risks management and internal control in bank holdings". Insurance market As of Mayl 1 of 2006 on financial market of the republic in compliance with given licenses by Agency 39 insurance organizations act, under this, licenses on activity realization on insurance of life have 4 organizations, on compulsory insurance. Civil responsibility of owners of vehicles represents 29 organizations. Also, on the market of insurance services 12 insurance brokers realize their activity, 30 actuators, 36 audit companies and 70 auditors having licenses for the right of realizing insurance audit. In April 2006 the license for the right of realizing insurance in the sphere of "insurance of life" was given to Subsidiary company of Kazinstrakh on life insurance "Halyk-Life". For four months of current year aggregate assets of insurance organizations increased by 16.2%, having made KZT85.2 bn. on May 1. Aggregate shareholders' equity increased by 18.3% and made KZT53.6 bn. The sum of insurance reserves made KZT43.1 bn. The volume of insurance bonuses as of May 1 of 2006 made KZT30.7 bn., that was higher by 37.7% than indicator for analogical period of past year. Including volume of insurance bonuses on compulsory insurance that increased by 43.5% and made KZT3.3 bn., on voluntary personal insurance - KZT3.3 bn.(increase by 37.5%) and on voluntary property insurance - KZT24.1 bn. (augmentation by 36.9%). In comparison with analogical period of 2005, the volume of insurance bonuses gathered for four months of 2006 in the sector лlife insurance¬ increased in 2.7 times or up to KZT0.896 bn., and the stake of life insurance in aggregate insurance bonuses reached 2.9% against 1.3% on May 1 of 2005. The sum of insurance bonuses passed for re-insurance made KZT15.3 bn. or 49.8% from the total volume of insurance bonuses, at that, non-residents have been passed 45.6% from total volume of insurance bonuses for re- insurance (as of May 1 of 2005 the stake of insurance bonuses passed for re-insurance to non-residents made 36.1%). The volume of insurance payments made for four months of 2006 made KZT3.75 bn. that was higher than indicator of past year by 17.9%. Including the volume of insurance payments on compulsory insurance made KZT1.67 bn. (56.1%), on voluntary personal insurance - KZT0.45 bn. (augmentation by 2.3%) and on voluntary property insurance - KZT1.63 bn. (decrease by 2.4%). As of May 1, 2006 3,097.4 thousand contracts on insurance are valid, 60.0% of which made contracts on compulsory insurance. At that, for four months of current year 1,113.1 thousand contracts have been made. Total volume of liabilities (insurance sum) on acting contracts of insurance made KZT8,888.3 bn. At present, 31 insurance (re-insurance) organizations take part in the system of insurance payments securing. In April of 2006 in the aim of eliminating infringements of legislation regulating activity of insurance market, 4 letters-directions were forwarded by Agency in the address of insurance organizations. As of May 1 of 2006 in the process of compulsory liquidation on court decision there are 6 insurance companies. In April of current year the liquidation process of 2 insurance companies, liquidated compulsorily, was completed. In April 2006 by Board of Agency with the aim of further improving of insurance legislation have been considered and adopted enactments: "Of approval of Regulations of requirements to automatization of insurance (re- insurance) organization, "Of insertion of changes and additions into enactment of Board of the National Bank of the Republic of Kazakhstan dated June 3, 2002 #211 "Of confirmation of Instruction about requirements to the methodology of calculation of insurance reserves of insurance (re- insurance) organizations of the Republic of Kazakhstan. Accumulative pension system As of May 1 of 2006 there are 14 accumulative pension funds in the republic, which have 76 affiliates and 77 representation offices in the regions of the republic. It's necessary to note that ABN AMRO CaspiyMunayGas Accumulative pension fund JSC has changed its name onto Accumulative pension fund GRANTUM JSC (Subsidiary organization of Kazkommertsbank JSC). 10 organizations fulfills Investment management by pension assets of accumulative pension funds, at that, 3 accumulative pension funds among them having license for self-management by pension assets: Accumulative pension fund SAPF JSC, APF of Halyk Bank of Kazakhstan JSC and APF BTA Kazakhstan JSC. The quantity of personal pension accounts (hereinafter-the account) of depositors (recipients) on liabilities of pension dues as of May 1 of 2006 made KZT7,873,175. For April of current year the quantity of depositors' accounts (recipients) transferring compulsory pension dues, increased by 59,972 (0.77%). The quantity of depositors' accounts (recipients) on voluntary pension dues having increased for April by 175 (0.54%) and made 32,726 on May 1 of 2006 with total sum of pension accumulation at KZT534.3 m. The quantity of depositors' accounts on voluntary professional pension dues grew for April by 12 (0.33%) and as of May 1 of 2006 made 3,658 with total sum of pension accumulation at KZT22.7 m. As of May 2006 the sum of pension accumulation of depositors (recipients) made KZT738.7 bn. or with augmentation by 3.46% in comparison with April 1, 2006. At that, total receipt of pension dues increased for April by KZT13.4 bn. or by 2.43% and made KZT562.7 bn. on May 1 of 2006. The sum of net investment income from investing of pension assets (minus commission remuneration), allocated on individual pension accounts of depositors (recipients), having increased for April 2006 by KZT12.2 bn. (6.54%) and as of May 1 of 2006 made KZT199.3 bn. In total sum of pension accumulation of depositors (recipients) the stake of net investment income makes 26.98% or increased by 0.78% for April of current year. Pension payments and transfers into insurance organizations out of accumulative pension funds as of May 1, 2006 made KZT40.3 bn. or as of April of current year increased by KZT0.94 bn. (2.39%). In Insurance organizations pursuant to contract of pension annuity the transfers of pension accumulation made KZT35.0 m., including January-April of current year - KZT15.1 m. Dues of pension accumulation of depositors (recipients) from one fund into another one having increased for April by KZT3.1 bn. and as of Mayl 1 of 2006 made KZT105.9 bn. Weighted average ratio of nominal income of pension assets of accumulative pension funds made 23.43% for the period of April 2003 till April 2006, accumulated inflation rate for specified period made 24.44%. Securities market On the market of corporate securities the number of JSCs with actual issues as of May 1, 2006 made 2,238 societies that was by 39 lower in comparison with analogical indicator as of April 1, 2006. Also, there are 63 brokers- dealers, 17 registrars, 11 banks-custodians, 10 organizations fulfilling investment management by pension assets (OOIUPA) and 29 managers of investments holdings. In April 2006 25 shares issues were registered (taking into account shares issues in the specifications of which changes have been made and substitution of certificate of state registration has been made), 53 shares issues were annulled. As of May 1, 2006 2,397 actual shares issues were in circulation. Also, in April of current year 3 bonds issues were registered by total face value at KZT22.0 bn., including 5 bonds issues to the sum of KZT17.5 bn., having been registered within frameworks of bonds programs. As of May 1, 2006 188 actual CS issues were in circulation, summary face value of which made KZT801.4 bn. In April 2006 5 shares investments funds have been registered in connection with it the quantity of actual securities of shares investments funds on the market increased up to 57 (45 - closed, 6 - opened and 6 - interval) as of May 1, 2006. 9 joint-stock investment funds also are functioning. As of May 1 of 2006 the quantity of issues CS of issuers of the Republic of Kazakhstan included in KASE's official "А" listing category made 196 issues and in "В" category - 55 issues. In April 2006 for violation of legislation of the Republic of Kazakhstan on securities market by Agency: 29 directions were forwarded to the address of professional participants of securities market and accumulative pension funds. In April 2006 on matters of activity regulation of professional participants of securities market by Board of Agency the following standard legal acts were taken: "Of insertion changes and additions into the enactment of Board of the National Bank of the Republic of Kazakhstan dated April 21, 2003 #139 "Of approval of forms of model custodian contracts", "Of insertion of changes and additions into the enactment of Board of the National Bank of the Republic of Kazakhstan dated April 21, 2003 # 137 "Of approval of Regulations on activity management of investment holding", "Of insertion of changes and additions into the enactment of Board of Agency of the Republic of Kazakhstan for regulation and supervision of financial market and financial organizations dated July 30, 2005 # 269 "Of approval of Regulations for state registration of CS issue and consideration of reports on results of offering and maturity of bonds", "of approval of Regulations for obtaining consent for voluntary reorganization or liquidation of special financial company". Sector of organizations fulfilling separate banking operations As of May 1, 2006 there are 7 mortgage companies and 12 organizations, implementing separate kinds of bank operations on the basis of actual licenses on financial market of the republic. For reporting month main indicators increased characterizing the activity of mortgage companies. As of May 1 of 2006 the sum of aggregate assets made KZT96.9 bn., having increased by 14.7% for a month, aggregate liabilities reached KZT73.7 bn., augmentation by 4.2%, the size of shareholders' equity makes KZT23.3 bn., having increased by 69.3% for a month. The size of credit holding of mortgage companies as of May 1 of 2006 made KZT79.2 bn. that by 4.5 bn. tenge or by 6.0% were higher the indicator for April 1 of 2006. In the structure of aggregate credit holding of mortgage companies as of May 1, 2006 the stake of standard credits makes 98.8%, doubtful - 0.9% and hopeless - 0.3%. As of April 1, 2006 the stake of standard credits made 98.7%, doubtful - 0.9%, hopeless - 0.4%. End of quotation [2006-05-30]