AFS characterized the banking sector of Kazakhstan as of February 1, 2009

/IRBIS, Dinara Mukasheva, February 24, 09/ - Agency of Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial 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 February 1, 2009. As of February 1, 2009, according to AFS, the banking sector of the republic was represented by 37 second tier banks. Changing of main characteristics of condition of Kazakhstan banking sector (in bn. KZT) -------------------------------------------------------------------------- Changing (in %) relative to values ------------------------------ As of As of As of As of Indicator Feb 1, 09 Jan 1, 09 Dec 1, 08 Feb 1, 08 --------------------------------- --------- --------- ---------- --------- Joint assets 11,922.6 +0.2 +2.0 +2.1 Joint rated shareholders equity 1,939.5 -0.7 +8.9 +8.9 Loan portfolio 9,117.0 -1.3 +2.8 +3.1 Loans for RK nonresidents 1,533.7 -0.2 +8.5 - Doubtful of 5th category and hopeless 818.1 +9.9 2.9 times - Overdue debt more than - 90 days 527.8 +10.4 - provision volume on loans 1,085.5 +6.4 - - Total sum of deposits from legal entities and individuals 6,935.2 +0.9 +8.0 +7.6 Legal entities 3,193.3 -40.6 -35.8 -36.0 subsidiaries 2,235.5 -2.1 - - individuals 1,506.4 +0.4 +4.0 +3.5 The joint liabilities 10,478.8 +0.4 - - Before nonresidents 4,610.1 -1.7 - - The joint sum of revenues 697.7 -76.2 -61.2 4.0 times The sum of charges 692.0 -76.1 -56.1 3.5 times Undistributed net income 4.6 -70.1 0.02 times -69.5 -------------------------------------------------------------------------- In the structure of loan portfolio of banks as on February 1, 2009, the stake of standard loans made 41.3 %, doubtful loans - 53.9 %, hopeless - 4.8 %. As of February 1, 2008 the stake of standard loans made 41.7%, doubtful loans - 56.5%, hopeless - 1.8%. Pawns in economic branch (except individuals) made KZT7,099.7 bn., having decreased for a month by KZT60.4 bn. or 0.8 %. Along with this, there is a decreasing for the reported month in the following fields: non productive sphere - by 5.7 %, construction - by 4.8 %. At that, increasing is observed in the field of: post and connection - by 19.5 %, industry - by 7.0 %, transport - by 2.2 %, trade - by 0.9 %, individual enterprise - by 9.4 %, agriculture - by 4.9 %. Indicators of adequacy of capital as of February 1 of the current year made k1 - 0.13; k2 - 0.15 (as of February 1, 08: k1 - 0.12; k2 -0.14). The stake of liquidity assets to joint bank's assets makes 14.1 %. For violations of banking legislation in January 2009, banks were rendered 1 written notification, 4 letter-obligation and 2 written directions. As of February 1, 2009 there are 5 banks in the process of forced liquidation by the decision of Court (Valut-Transit Bank JSC, Nauryz Bank Kazakhstan JSC, Businessbank OJSC, Kazpochtabank OJSC, Komirbank OJSC). As of February 1, 2009 Kazakhstan fund of guaranteeing deposits JSC by the third sequence group satisfied 15.67 % of total debt sum of liquidated Valut-Transit Bank JSC. In January 2009 AFS Board adopted the list of regulations on regulating activity of commercial banks and banking conglomerates: - On admitting the lapse of the Resolution # 288 of the Board of the Agency of Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations, dated December 11, 2006 "On ways and terms of publishing report on following prudential standards and data on assets and conditional liabilities classification (provisions) by the banks"; - On including additions into the Resolution # 358 of the Board of the Agency of Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations, dated September 30, 2005 "On establishing the Instruction on criterion values and calculation methodology of prudential standards for second tier banks"; The Board of AFS also adopted the Resolutions "On rejection to open Subsidiary Orda Credit Bank JSC". February 2, 2009 by results of AFS conclusion, The Government of Republic of Kazakhstan decided to acquire 29,915,425 additional shares issue of BTA Bank by National Welfare Fund Samruk-Kazyna JSC. The decision was made in compliance with article 17 of 17-2 Law of Republic of Kazakhstan "On banks and banking activity in Republic of Kazakhstan". The reasons of applying this article are the following: 1. according to results of inspectorate check-out in 2008, the Agency recommended to form 24.9 % provisions of loan portfolio. Formation of provision along with the current amount of capital might lead to violation of Agency's requirements to adequacy of shareholders equity; 2. unfulfilled payment orders of clients and obligations before the National Bank of Kazakhstan in December 2008 and January 2009, what tells on violation of liquidity standards. The Chairman of the Board of directors - M. Ablyazov and the first deputy of Chairman of the Board - Zh. Zharimbetov were removed from their positions for risk credit policy, aroused by the absence of proper control on the side of the Board of directors and Executive body (Board), for admitted and not eliminated violations of the current legislation of Republic of Kazakhstan, including those which made while granting the credits to nonresidents without estimation of their financial responsibility, designation and funds monitoring, which led to violation of depositors` rights. [2009-02-24]