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

/IRBIS, Dinara Mukasheva, August 21, 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 August 1, 2008. As of August 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 Aug. As of June As of Jan As of Aug. Indicator 1, 08 1, 08 1, 08 1, 07 ------------------------------- ---------- ---------- --------- ---------- Joint assets 12,187.1 +0.1 +4.3 +8.8 Joint rated shareholders equity 1,982.8 +0.5 +11.3 +24.3 Loan portfolio 8,955.3 +0.2 +1.0 +4.6 Past-due debt on main debt and accrued bonus 222.9 +18.6 +89.9 Х Total sum of deposits attracted by banks from juridical and 6,975.8 +1.2 +8.6 +10.5 physical persons The joint liabilities incl. 10,645.7 +0.003 Х Х Before nonresidents 5,102.0 -3.3 Х Х The joint sum of revenues 1,512.1 +16.6 -15.8 +63.0 The sum of charges 1,413.5 +15.0 -10.3 +80.2 Undistributed net income 75.8 +11.6 -65.8 -47.0 ------------------------------------------------------------------------------ In the structure of loan portfolio of banks, the stake of standard loans made 41.4 %, doubtful loans - 55.8 %, hopeless - 2.8 %. 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 KZT503.4 bn and in joint loan portfolio their stake made 5.6 %. Provision volume on loans made KZT717.8 bn. or 8 % of loan portfolio with the growth by 37.6 % since year beginning. Pawns in economic spheres (except physical entities) as of August 1, 20008made KZT6,759.9 bn., having increased for a month by KZT37.8 bn. or 0.6 %. Along with this, there is a decreasing for the reported month in the following spheres: non productive sphere - by 1.2 %, individual enterprise - by 0.1 %. At that, increasing is observed in the sphere of: transport - by 7.3 %, agriculture - by 4.2 %, connection - by 1.7 %, construction - by 0.9 %, trade - by 0.8 %, industry - by 0.1 %. Since year beginning, loans in economy spheres increased by KZT240.9 bn. or by 3.7 %. The stake of overdue debt as of August 1, 2008 in joint loan portfolio made 2.5 %. Loans with overdue debt on the main debt and announced interest with term of 90 days made KZT200.9 bn. or 2.2 % of bank's loan portfolio. Total sum of deposits of juridical persons made KZT5,480.7 bn. having increased for July by KZT63.9 bn. or by 1.2 %, including deposits of daughter organizations of special assignment made KZT2,458.4 bn. having decreased for a month by KZT73.9 bn. or by 2.9 %. Sum of deposits of physical persons made KZT1,495.0 bn., having increased for July, 2008 by KZT18.1 bn. or by 1.2 %, since the beginning of current year by KZT47.2 bn. or 3.2 %. Indicators of adequacy of capital for reporting date made k1 - 0.12; k2 - 0.15 (as of January 1, 08: k1 - 0.11; k2 -0.14). The stake of liquidity assets to joint bank's assets makes 14.1 %. For violations of banking legislation in July 2008, banks were rendered 1 written notification, 1 written agreement, 2 letter direction and 4 letters- liabilities. As of August 1, 2008 there are 7 banks in the process of forced liquidation by the decision of Court. In July 2008 concerning questions of regulating the activity of second tier banks and banking conglomerates by the Board of Agency were accepted several resolutions: - "About abolishing the resolution of Board of Agency of Republic of Kazakhstan for regulating and supervision over financial market and organizations dated April 28, 2008 # 57 "On including additions to the resolution of Board of Agency of Republic of Kazakhstan for regulating and supervision over financial market and organizations dated December 25, 2006 # 296 "On confirmation of Rules of classification assets, conditional liabilities and creating provisions (reserves) against them and including changes to the resolution of Board of Agency of Republic of Kazakhstan for regulating and supervision over financial market and organizations dated March 26, 2005 # 116 "On including changes to some standard legal acts of Kazakhstan republic in re of regulating and supervision over financial market and organizations". - "On including additions to the resolution of Board of Agency of Republic of Kazakhstan for regulating and supervision over financial market and organizations dated December 25, 2006 # 296 "On confirmation of Rules of classification assets, conditional liabilities and creating provisions (reserves) against them and including changes to the resolution of Board of Agency of Republic of Kazakhstan for regulating and supervision over financial market and organizations dated March 26, 2005 # 116 "On including changes to some standard legal acts of Kazakhstan republic in re of regulating and supervision over financial market and organizations". - "About confirmation of Direction on mobile training of commercial banks". AFS also provided preliminary data on development of banking conglomerates as of July 1, 2008 As of July 1, 2008 there are 13 banking conglomerates, which are consisted of 14 banks in republic. For initial 6 months of 2008 assets of banking conglomerates have increased by KZT333.1 bn. (2.84 %) and made KZT12,083.2 bn. as of reported date. Joint balance shareholders equity of banking conglomerates made KZT2,230.4 bn. having increased by KZT722.3 bn. or by 47.9 % since year beginning. Joint liabilities made KZT9,852.8 bn., what is less than the same indicator as of year beginning by KZT389.2 bn. or 3.8 %. Net income, received by banking conglomerates for initial 6 months of current year made KZT105.9 bn., what is more than the same indicator of last year by KZT4.7 bn. or 4.67 %. Joint calculative shareholders equity of banking conglomerates made KZT2,262 bn., having increased by KZT410.2 bn. or 22.1 % since year beginning. The indicator of capital adequacy of banking conglomerates according to prudence standards made k - 0.156 (as of January 2008: k - 0.135). For violations of banking legislation in the second quarter of 2008, parent organizations of banking conglomerates were rendered 1 written direction. [2008-08-21]