BTA Bank (Kazakhstan) reported performance results by outcomes of the first half of 2008

/KASE, September 12, 08/ - BTA Bank (Almaty), securities of which are traded in Kazakhstan Stock Exchange (KASE) official list, provided to KASE the press release of the following content: Quotation start Assets and capital. According to the financial statements data for 6 months of 2008, BTA assets increased by USD2.3 bn. (9.5%) and made up KZT3,356 bn. (USD27.8 bn.). At the expense of the current year income the balance sheet capital increased by 4.9% and made up KZT474 bn. (USD3.9 bn.). BTA remains one of the capitalized banks of Kazakhstan. The group's capital sufficiency coefficient, calculated in compliance with recommendations of the Basel Agreement made up 19.8%. This indicator is the highest not only for banks of Kazakhstan, but also for foreign financial institutions. Funding. One of the main factors of assets growth is attraction of deposits on the internal market. BTA clients deposit base as of July 1, 2008 increased by 15% and made up KZT747.7 bn. (USD6.2 bn.). The growth of deposits of retail and corporate clients made up 10% and 18%, accordingly. Given this, BTA stake in the aggregate growth of physical persons deposit base among the second-tier banks of Kazakhstan for the first half of 2008 made up more than 90%, that proves stability and trust to BTA as the system forming financial institution of Kazakhstan. The mentioned indicators are the beginning of implementation of the long-term strategy of BTA Bank sustainable development, oriented towards the increase of internal funding sources role, within which BTA intends to continue the increase of its stake in attraction of fund of retail and corporate clients. The additional finding source became placement of subordinated bonds among subjects of the internal market in the amount of USD500 m. Remaining the permanent leader in the area of trading and structural funding, BTA is the reliable partner of development and support of the real economy sector. The volume of transactions related to the trading funding in the first half of 2008 made up USD1 bn. Loan portfolio. Loans to clients by results of the first half of 2008 made up KZT2,465 bn. (USD20.4 bn.), having increased by 3.6% in relation to the past year. As of July 1, 2008, BTA stake makes up 27.7% in loans proposal on the STB market of the Republic of Kazakhstan: physical persons - 19.3%, legal entities - 31.0%. The indicator of the loan portfolio coverage with provisions made up 6.5%, having increased from 5.4% at the end of 2007 and 3.6% as of July 1, 2007 that adequately characterizes the current markets status. Thus, the absolute amount of provisions increased by 2 times, if compared with the similar period of the past year. International obligations. The bank continues successful servicing of obligations to international investors, having paid during the first half of 2008 USD560.9 m. The amount payable in the second half of 2008 - USD637.4 m. that makes up less than 2.3% from the bank's consolidated assets size. Yield. Efficient corporate management based on the system work with clients, strict evaluation of the loan portfolio quality and limitation of costs, allowed the bank adapting to the global liquidity decrease, double the provisions volume and get during the reporting period the consolidated income in the amount of KZT27,830 m. (USD231 m.). As of July 1, 2008, RoAE made up 12.0%, RoAA - 1.8%. The net percentage margin increased in comparison with the similar period of 2007 (5.3%) and made up 6.1%. BTA performance is characterized by historically low level of the cost-to-income coefficient, which as of July 1, 2008 made up 31.8%. BTA performance in the first half of 2008 prove its ability to handle difficult environment and implement objectives, set by the bank at the beginning of the year. Acquisitions: In July 2008, the bank completed acquisition of the stake in BTA Bank (Russia) (former Slavinvestbank). As a result of this acquisition the stake of the bank in BTA Bank (Russia) increased up to 52.8%, that ensured getting by the bank of the efficient control and allowed the bank considering BTA Bank (Russia) as its subsidiary beginning July 2008. For BTA this acquisition is the next step in implementation of the started assets consolidation process, that was conditioned by tough competition on the banking and financial markets of Kazakhstan and CIS. This is the next step in implementation of the announced by BTA Strategy of development till 2015, which stipulates the bank entry to the CIS market key positions and winning, in particular in Russia, of not less than 2% of the banking services market. For Media contacts: ADil Dossymov, press secretary of BTA Bank 8 (727) 266 47 97, e-mail: dosymov@bta.kz Quotation end [2008-09-12]