Results of "Narodnyi Bank Kazakhstana" in first half of 1999

/KASE, Sep.17, 99, Galina Chudinova, Galina Tsalyuk/ - "Narodnyi Bank Kazakhstana" (Almaty, official list of securities, category "A") according to listing requirements provided KASE with its financial reports (balance sheet and income statement) as of July 01, 99. Based on the data provided by the emitter, following are the results for the first half of 1999 (in 000' tenge): First half of First half of Increase / Indicator 1998, '000 1999, '000 decrease., % -------------------- ------------- ------------- ------------ Authorized capital, paid 1,700,000 3,011,900 +77.2 Shareholders' equity 3,735,249 4,842,085 +29.6 Balance sheet value of assets 46,628,617 46,623,720 -0.01 Liquid assets 15,678,201 16,858,808 +7.5 Loans and deposits 40,064,091 39,219,896 -2.1 Loans granted 22,877,799 19,747,871 -13.7 Income from operating activities 4,072,219 8,426,160 +106.8 General expenses 4,020,405 7,991,620 +98.8 Net income of the period 51,814 434,540 +738.7 -------------------- ------------- ------------- ------------ Shareholders' equity of "Narodnyi Bank Kazakhstana" rose by 1,106.84 mln tenge (29.6%) compared to similar period of last year. Increase in shareholders' equity is primarily due to augmentation of the bank's authorized capital by 1,311.90 mln tenge (77.2%) as a result of placement of the shares third issue (registered on July 17, 1998), and also due to growth of additional paid-in capital (excess of placement price over par value of shares) by 298.80 mln and reserve fund - by 155.67 mln, despite decrease in: undistributed income of the bank by 602.20 mln; fund for re-evaluation of fixed assets by 49.23 mln; fund for industrial and social development by 4.96 mln; reserves for re-evaluation by 3.14 mln. Balance sheet value of one share has decreased by 59.0 tenge (26.8%), which is due to significant increase in numbers of issued shares whereas shareholders' equity has grown. Total volume of bank assets decreased by 4.90 mln tenge or 0.01% relative to corresponding period of 1998 due to the reduction in the volume of a loan portfolio by 3,129.93 mln tenge and investments by 128.50 mln, compensated by an increase in: bank's liquid assets by 1,180.61 mln tenge (increase of securities in bank's portfolio by 1,622.76 mln tenge while decrease of currency by 339.91 mln and money on correspondent accounts by 102.25 mln tenge); intangible assets by 148.30 mln; fixed assets by 81.24 mln; other assets by 1,843.38 mln. Liabilities of the bank decreased compared to similar period of 1998 by 1,111.73 mln tenge (2.6%) due to decrease in volumes of loans attracted by 1,452.65 mln, which is partially compensated by an increase in: amounts of deposits made at the bank by 220.50 mln; other liabilities by 120.42 mln; Operating income of the bank grew by 4,353.94 mln tenge (106.9%) relative to the first half of last year), including: interest bearing proceeds by 681.58 mln tenge (from credits granted by 592.47 mln, from operations with securities by 74.70 mln, from deposits, made at other banks by 14.41 mln); non-interest bearing incomes by 3,672.36 mln tenge or 194.0% (increase in re-evaluation incomes made 3,446.58 mln tenge, other incomes - 283.46 mln, from financing operations - 64.48 mln, with decrease in commissions by 122.16 mln). Compared to similar period of 1998 total expenses of "Narodnyi Bank Kazakhstana" grew by 3,971.22 mln or 98.8%. Growth of interest expenses made 202.21 mln tenge, including: interest payments on client deposits made at the bank grew by 310.09 mln, whereas interest payments on assets attracted to the bank decreased by 107.88 mln. of the total growth 1,258.38 mln tenge accounts for non-interest expenses (not related to interest payments), including: expenses for the bank's personnel grew by 1,055.15 mln; other expenses by 218.61 mln; extraordinary losses by 9.12 mln; losses from sales of assets by 3.69 mln; expenses for office and equipment maintenance decreased by 28.19 mln. Moreover, 2,532.31 mln or 4 times bigger reserve for covering losses on classified assets and conditional liabilities was formed in the first half of current year compared to 1998, while tax payments shrank by 21.68 mln tenge. As a result of excessive growth of incomes of the bank over expenses, net income received in this period made 434.54 mln tenge, that is by 51.81 mln or 8 times more than that for the similar period of last year.