AFS characterized the banking sector of Kazakhstan as of May 1, 2008

/IRBIS, Dinara Mukasheva, May 22, 08/ - Agency of Republic of Kazakhstan for regulating and supervision over financial market and organizations (AFS) in its regulating press-release, dedicated to state of financial market and financial organizations of the republic, had characterized the banking sector of Kazakhstan as of May 1, 2008. As of May 1, 2008, according to AFS, the banking sector of the republic was represented by 35 second tier banks. Changing of main characteristics of condition of Kazakhstan banking sector ----------------------------------------------------------------------- Changing (in %) relative to values ----------------------------- As of May As of Apr As of Jan As of May Indicator 1, 08 1, 08 1, 08 1, 07 ------------------------------- --------- --------- --------- --------- Joint assets 11,692.5 -0.3 +0.1 +21.9 Joint rated shareholders equity 1,841.3 +0.8 +3.3 +37.4 Loan portfolio 8,856.2 -0.1 -0.1 +26.4 Past-due debt on main debt and 187.9 -1.4 +60.1 Х accrued bonus Total sum of deposits attracted 6,639.3 +1.0 +3.4 +19.6 by banks from juridical and physical persons The joint sum of revenues 845.7 +28.7 -52.9 +73.1 The sum of charges 802.3 +27.5 -49.1 +98.8 Undistributed net income 43.4 +57.2 -80.4 -38.1 ----------------------------------------------------------------------- Indicators of adequacy of capital for reporting date made k1 - 0.13; k2 - 0.14 (as of January 1, 08: k1 - 0.11; k2 -0.14). The level of liquidity of bank system remained on surplus level. Consolidated ratio of current liquidity as of May 1, 2008 made 1.44 at minimal amount for separate bank 0.3, short term liquidity ratio - 1.03 at minimal amount - 0.5. The stake of liquid assets to consolidated bank's assets makes 14.3%. In the stuctire of loan portfolio of banks, the stake of standard loans made 41.1%, doubtful loans - 56.5%, hopeless - 2.4%. As of January 1, 2008 the stake of standard loans made 39.7%, doubtful loans - 58.8%, hopeless - 1.5%. The sum of credit, as doubtful loans of 5 category and hopeless (except homogeneous credits) made KZT404.2 bn (growth for month- by 5.5%) and in joint loan portfolio their stake made 4.6% (according to portfolio of homogeneous credits, not working loans are considered as the sum of actually created provisions) Remains of economic credits make KZT6, 589.5 bn., having increased in a month by KZT15.8 bn. Decreasing of this indicator was conditioned by decreasing in the following sectors: transport - by 5.36%; nonproduction sphere - by 2.75%; agriculture - by 1.32%, trade - by 0.36%. At that, increasing is observed in the sphere of: connection - by 4.68%, construction - by 2.94%, individual enterprise - by 1.96%, industry - by 1.84%. Since year beginning, remains on economic credits increased by KZT70.5 bn. According to results of 1-st quarter, 2008 the volume of crediting of juridical persons made 776.8 bn. In the 1-st quarter credits in the volume of KZT151.5 bn. were given to physical persons. At that, in January-March, 2008 credits were given for consumer purpose in amount of KZT9.4 bn., on construction and housing purchase - KZT30.3 bn. Total sum of deposits of juridical persons made KZT5,126.2 bn. having increased for April by KZT55.1 bn., including deposits of daughter organizations of special assignment made KZT2,498.7 bn., increased for month by KZT53.2 bn. Sum of deposits of physical persons made KZT1,513.1 bn., increased for April, 2008 by KZT13.1 bn. or by 0.9%. Liabilities before nonresidents decreased from year beginning by KZt182.8 bn. or by 3.3% and made for reporting date KZT5,281.0 bn. (decreasing for the month made KZT4.2 bn. or 0.1%). Liabilities before nonresidents with maturity term of 1 year (till May 1, 2009) made KZT1,592.2 bn., reducing since year beginning - by 4.04% or KZT67.2 bn. At that, relation of liquid assets to short term liabilities ratio (under 1 year) before nonresidents makes 1.1. Improvement of mentioned indicators is observed, compare to corresponding indicators as of January 1, 2008 - 13.9% and 0.99% relatively. For violations of banking legislation in April 2008, banks were rendered 1 written notification, 5 letters-liabilities, and 1 written agreement. As of May 1, 2008 there are 9 banks in the process of forced liquidation by the decision of Court. In April 2008 concerning questions of regulating the activity of second tier banks and banking conglomerates by the Board of Agency were accepted 4 resolutions: - "About approving of regulations of issuing of bank guarantees and bails by second tier banks" - "About inclusion of additions and changes to resolution of Board of Agency of Republic of Kazakhstan for regulating and supervision over financial market and organizations dated September 30, 2005 # 358 "About confirmation of Instruction on regulatory value and method of calculation of prudential normative standards for second tier banks"; - "About inclusion of changes to resolution of Board of Agency of Republic of Kazakhstan for regulating and supervision over financial market and organizations dated December 25, 2006 # 300 "About inclusion of Rules of provision of statements by second tier banks of the Republic of Kazakhstan and inclusion of changes to resolution of Board of Agency of Republic of Kazakhstan for regulating and supervision over financial market and organizations dated August 27, 2005 # 310 "About inclusion of additions and changes to some legal normative deeds concerning questions of documents supply to Agency of Republic of Kazakhstan for regulating and supervision over financial market and organizations"; - "About inclusion of additions and changes to resolution of Board of Agency of Republic of Kazakhstan for regulating and supervision over financial market and organizations dated December 25, 2006 # 296 "About confirmation Rules of assets classification, conditioned liabilities and creating of provisions (reserves) against them and inclusion of changes in resolution of Board of Agency of Republic of Kazakhstan for regulating and supervision over financial market and organizations dated March 26, 2005 # 116. [2008-05-22]