Alliance Bank JSC (Kazakhstan) informed about results of its activities for 9 months of year 2007

/KASE, December 7, 07/ - Alliance Bank JSC (Almaty), shares and bonds of which are traded in Kazakhstan stock exchange's (KASE) category "A" official list had provided KASE with the press-release in which the following is informed: Quotation begin Alliance Bank increased its income for nine months of 2007 to USD 249.5 million 7.6* times exceeding corresponding figures of 2006. Financial performance highlights:** - Assets - USD 10 118.3 million - Equity - USD 1 215.8 million - Loans to clients - USD 7 314.5 million - Customer accounts - USD 1 953.7 million - Net profit - USD 249.5 million - Earnings per share - USD 30.7 - RoАE - 36.1%*** - RoАА - 3.8 %*** * in dollar expression. ** Assets and liabilities are converted at the US Dollar exchange rate as at September 30, 2007, as reported by the NBK, of KZT 120.96 per USD 1; profit is converted at the average US Dollar exchange rate for the nine months ended September 30, 2007, as reported by the NBK, of KZT 123.15 per USD 1. *** In annual expression. Total assets of Alliance Bank have increased by 33% during nine-month period of 2007 and amounted to KZT 1 223 908 million (KZT 920 750 million as of 2006 year-end). As a result the Bank's market share by total assets increased from 10.4% to 10.7%. Loans to customers as of September 30, 2007 (less allowance for impairment losses) have expanded by 43% compared with the beginning of 2007 reaching KZT 884,756 million. The retail portion of the Bank's loan portfolio increased by 62% relative to the beginning of 2007, reaching KZT 437 295 million. As a result of its continued retail oriented strategy Alliance Bank maintains 20% market share in retail lending. Alliance Bank maintained strong diversification of its loan portfolio by customers and industries. 49.4% of the Bank's loan portfolio (less allowance for impairment losses) was represented by loans granted to individual customers, 13.5% - construction industry, wholesale - 5.9 % and population related services - 9.6%. For the nine months of 2007 provisions for impairment losses increased by KZT 14 657 million and as of September 30, 2007 totaled to KZT 35 770 million, while at the end of 2006 this figure was KZT 21 113 million. The effective reserve rate on customer loans totaled 3.9 percent and 3.3 percent as at September 30, 2007 and 31 December 2006 respectively. The Bank's non-performing loans of the gross loan portfolio accounted for 3.0% as at September 30, 2007. As at the end of September 2007, the Bank's total liabilities amounted to KZT 1 076 850 million, reflecting an increase of 28.1% compared to December 31, 2006. As at the end of Q3 2007, the Bank's total equity amounted to KZT 147 058 million having increased by 1.8 times compared to end of 2006. Such high growth for nine months of 2007 was a result of injections to the authorized capital, capitalization of income of the last year and growth of net profit obtained for the nine-month period of 2007. Authorized capital for the nine-month period of 2007 increased by 60.6% up to KZT 96 380 million from KZT 60 013 million as of the end of 2006 due to additional capital injections during nine months of 2007. The principal shareholder of the Bank is an investment company Seimar Alliance Financial Corporation holding 74.7% of the entire Bank's voting shares. The remaining 25.3% belongs to minority portfolio investors. The Bank's Tier 1 and total capital adequacy ratios calculated in accordance to BIS as of the end of September 30, 2007 were 16.3% and 18.1% respectively. Operating income of the Bank for the nine-months period of 2007 including net interest income and net non-interest income - increased by 345% compared to nine months of 2006 and amounted to KZT 56 960 million. Net interest income constituted 90.4% of operating income, increased 5.1 times and amounted to KZT 51 497 million compared with similar period of the last year. The Bank's net interest margin increased to 9.4% for the nine-month period of 2007 compared to 7.1% for 2006, which reflected the higher margin products share. Net non-interest income constituted 9.6% of operating revenue and increased by 96% up to KZT 5 463 million for 9 months of 2007. Gross fee and commission income has doubled compared to the same period of 2006 and amounted to KZT 9 030 million. Operating expenses of the Bank for nine months of 2007 increased by 132% to KZT 15 584 compared to the same period of the last year. The Bank's net profit for the nine-month period ended September 30, 2007 amounted to KZT 30 725 million reflecting more than a seven-fold increase from KZT 4 034 million for the same period in 2006. A trend of positive growth in interest income and fee and commission income resulted in further growth of the Bank's profitability in 2007. As a result, ROAE and ROAA ratios calculated on the average balances amounted to 36.1% and 3.8% as of October 1, 2007 respectively while at the end of 2006 the figures were 25,9% and 2,2% respectively. Quotation end [2007-12-07]