Results of "NEFTEBANK" (Kazakhstan) in the second quarter of 1999

/KASE, Aug.24, 99, Nadir Jakupov, Galina Chudinova/ - According to the listing requirements "Neftebank" (Aktau, official list of securities, category "B") provided Kazakhstan Stock Exchange (KASE) with financial reports as of July 01, 99: balance sheet, income statement, and statement of cash flows. Following are the results of the emitter for the second quarter of 1999 ('000 tenge): First half of First half of Increase / Indicator 1998 1999 decrease., % ------------------------- ------------- ------------- ------------ Authorized capital (paid) 449,488 551,141 +22.6 Owners' equity 727,227 992,231 +36.4 Balance sheet value of assets 1,328,146 1,989,171 +49.8 Liquid assets 192,610 496,495 +157.8 Borrowings and deposits 583,563 937,204 +60.6 Credits given 906,713 1,137,543 +25.5 Profit from operating activities 237,819 284,500 +19.6 Total expenses 234,016 238,435 +1.9 Net profit 3,803 46,065 +1,111.3 ------------------------- ------------- ------------- ------------ According to new edition of the charter, announced authorized capital of the bank makes 10,000,000 (ten million) US dollars and consists of 1,000,000 (one million) common inscribed stocks with the nominal value of USD10 each. At the moment, due to conversion of authorized capital into US dollars bank is conducting state re-registration of securities issuance. Authorized capital of "Neftebank" has increased by 101.65 mln tenge (22.6%) compared to the same period of last year due to partial placement of stocks of the 6th issue. By the end of the reporting period the fund for long term assets revaluation has risen by 103.82 mln tenge, ending amount of undistributed profit by 63.24 mln, revaluation reserves by 0.16 mln tenge. At the same time amount of current assets exceeding current liabilities has decreased by 3.8 mln, additional paid-in capital by 0.07 mln tenge. As a result, owners' equity has risen relative to the second quarter of 1998 by 265.0 mln tenge or 36.4%. Balance sheet value of stocks has risen by 495.14 tenge (30.6%). Increase in bank's assets by 661.03 mln tenge (49.8% relative to the second quarter of 1998) is due to: loan portfolio increase by 249.62 mln, amount of liquid assets increase by 303.89 mln (it includes: increase in amounts on correspondent accounts by 254.42 mln, currency in cash by 102.34 mln and decrease in bank's securities portfolio by 52.87 mln), salvage value of long term assets and intangibles increase by 87.98 mln, other assets increase by 19.54 mln tenge. Total amount of "Neftebank" liabilities has increased by 396.02 mln tenge or 65.9% compared to the same period of 1998, and it includes: 379.84 mln - increase in amount of receipts ( clients' deposits have risen by 323.75 mln, assets received from the National Bank and from other banks and organizations have increased by 56.09 mln tenge), 16.18 mln - increase in other liabilities. Profits from operating activities have risen by 46.68 mln tenge or 19.6% relative to the same period of last year, which can be explained by increase in non-interest bearing profits by 86.72 mln tenge (99.9%), unexpected profits by 19.60 mln tenge and decrease in interest bearing profits by 59.64 mln tenge (45.2%). Compared to the same period of 1998 sum of total expenses of "Neftebank" has increased by 4.42 mln or 1.9% which is due to increase in interest expenses by 19.70 mln tenge (interest payments for deposits of legal entities and private persons - 12.52 mln, for credits of the National Bank - 0.47 mln, other expenses - 6.71 mln tenge) and increase in reserves for covering losses on classified assets and conditional liabilities by 0.19 mln tenge. Meanwhile, expenses not related to interest payments (non-interest bearing expenses) have decreased by 11.07 mln tenge (administrative expenses - 9.35 mln, office and equipment maintenance - 2.96 mln whereas other expenses have risen by 1.24 mln tenge) and tax payments by 4.40 mln tenge. Due to prevailing increase in profits of the bank over its expenses net profit received during the period has increased by 42.26 mln tenge or 12 times relative to the same period of 1998.