Results of extraordinary general meeting of the shareholders of JSC Halyk Savings Bank of Kazakhstan

/KASE, March 15, 00/ - JSC Halyk Savings Bank of Kazakhstan (Almaty, official list of Securities, category "A") according to listing requests has granted KASE the protocol of extraordinary General meeting of shareholders, which was held on February 11, 2000. Before the shareholders have begun discussion of scheduled topics, before them G.A. Marchenko, the Chairman of the Halyk Savings Bank of Kazakhstan has spoken. He has noted that the attraction of the population means is now the most important work of all banking system. For its strengthening the National Bank of Kazakhstan in cooperation with the banks of the second tier has undertaken some concrete actions: - First, the project of changes in one of the laws is developed, which will help to observe a bank secret principle, that should result in essential growth of the population' deposits; - Secondly, the fund of insurance of deposit accounts has been created, which now includes 16 Kazakhstan banks, including JSC Halyk Savings Bank of Kazakhstan. Besides it Marchenko has marked that the aim of the National Bank is that before the end of a current year (at a pinch before the first quarter of 2001) all Kazakhstan's banks corresponded to the world standards. According the agenda, the changes and additions to the Bank's Regulations concerning election of the Chairman of Board were considered by the Meeting. (According to the acting Regulations, this question concerns to the exclusive Board of directors competence). The majority has voted against changes and additions in the Bank's Regulations. Besides the Meeting have elected the new eight persons Board of directors with term of office one year, including: - Abdulina Nailja Kurmanbekovna - Vice-president of the National Bank of Kazakhstan; - Abuov Mirbulat Gajsinovich - General director of Delta Ltd; - Dosaev Erbolat Askarbekovich - Vice-minister of Finance of Kazakhstan; - Masimov Karim Kazhimkanovich - Chairman of Board of JSC Halyk Savings Bank of Kazakhstan; - Ospanov Erbolat Serikovich - Chairman of Board of Closed JSC Kazahinstrah Foreign Insurance Company; - Rahanov Maksudbek Smagulovich - Chairman of State Property and Privatization Committee of Kazakhstan; - Sartbaev Medet Maksutovich - Vice-minister of economy of Kazakhstan; - Smagulov Kajrat Moldahmetovich - First deputy of the Chief of the Prime Minister of Kazakhstan Office. After scheduled topics discussion the shareholders have heard the statement of Masimov K.K., the Chairman of Board of JSC Halyk Savings Bank of Kazakhstan, concerning current bank's businesses condition. He has noted that in 1999 escalating of the bank's potential proceeded. Despite of complex financial arrangements, the bank managed to save the yield growth tendency and to receive rather high profit (630.38 million tenge - comment KASE). According to the Strategic plan and the Development Program for 1998-2001 efforts of management were directed to the capitalization and volumes of business increase, deposits base development, expansion of client base and development of bank services system. According to the provisional data for 1999: - bank's assets have grown by 42.8% to the previous year and have made 56.8 billion tenges; - liabilities have grown by 46.0% and have made 51.0 billion tenges (from them 45.5 billions - the clients' deposits, gain is 48.9%); - ownership capital has increased by 20.5% and has made 5,789 million tenges; - authorized capital has increased by 603.2 million tenges and has made 3,615.1 million tenges. - population's deposits have grown by 39% and have made 29 billion tenges; - rests at the legal persons accounts have grown by 68.6% and have made 16.5 billion tenges; - credit portfolio has increased by 15.3% and has made 20.7 billion tenges. It is also stated in the report that one of the main events, which will determine the Bank's strategy for the nearest years, is transfer to the Bank's management JSC Kazpochta. According to the decree of Government of republic from December 12, 99 "About reorganization of the republican state postal service enterprise and its branches" state JSC Kazpochta has been created. The transfer of Kazpochta to the Bank's management will considerably increase potential of both companies. Besides Masimov has listed other strategic problems of the Bank: - updating of the company through revision of strategy, procedures and operations with the subsequent redistribution of money and human resources with the purposes of competitiveness increase; - development of the information technologies, in particular - introduction of the KORVUS Russian operational system, which allows to accelerate payments, to reduce operational risks, grants additional control opportunities. The statement was finished by the massage concerning opening on November 24, 1999 of the Bank's Representation in Peking that is the first stage of realization of the Bank's business interests outside Kazakhstan. In the ending Smagulov K.A., the First deputy of the Chief of the Kazakhstan's Prime Minister Office has explained why Government (block of shares - 50% plus one share) has voted against modification and additions in the in the Bank's Regulations. Asd he said, the JSC Halyk Savings Bank of Kazakhstan is one of the backbone banks of republic. In this connection it is correct to conduct policy of the bank with a definite share of conservatism. The bank should be stable. In the nearest 2-3 years privatization of the Bank is not planned.