OJSC "VALUT-TRANZIT BANK" (Kazakhstan) - brief description

/IRBIS, May 23, 00/ - Following is a brief description of OJSC "VALUT- TRANZIT BANK" (hereafter - "Bank"), made by the report of the Listing commission of Kazakhstan stock exchange (KASE). Published due to the entering the shares of the bank into KASE official list of the securities under category "B". General information Date of initial registration - October 10, 1991. Legal status: open joint stock company. Ownership: private. Location (address): 103a, Jambyl St., 470061, Karagandy. Activities - banking services. Has the license #43 of the National Bank of Kazakhstan issued on February 29, 2000 to conduct banking operations in tenge and in hard currency. Member of the Association of the banks of Kazakhstan. Activities The bank is a successor of Joint stock bank "Prima-bank", registered with the National Bank of Kazakhstan on October 10, 1991 and reregistered on June 18, 1999 with the Justice department of Karagandy region due to the renaming it into open joint stock company "VALUT-TRANZIT BANK". As of February 1, 2000 the staff of the bank equaled 1,045 people. By the classification of the National Bank the bank was put into the second group in achieving international standards. Presently, based on the size of its equity the bank meets the requirements set by the National Bank for the banks of the first group. The bank can be transferred into the first group only if it presents the National Bank with its 1999 financial statements audited by international standards, which is almost finished. The bank has 29 settlement-cashier departments and 82 currency exchange offices in various cities of Kazakhstan. The bank has established correspondent relations with the following banks: Savings Bank of Russian Federation, Commercial Bank "Dialog-Optim", Deutsche Bank AG, Dresdner Bank AG, Commerzbank AG. Information on the shares of the bank as of April 1, 00 Announced and paid authorized capital - KZT1.0 bln. Face value of a share - KZT200.00. Total of 5,000,000 shares were issued, including 3,750,000 common inscribed and 1,250,000 preferred inscribed shares. constitutive documents of the issuer do not contain the clauses discriminating or limiting the rights of the owners of the securities to transfer (alienate) them. The shareholders' register is maintained by LLP "Agentstvo po registratsii tsennykh bumag" (Karagandy, license #09050019 of the National securities commission of Kazakhstan issued on April 25, 1997). The shareholders of the bank According to the extract from the register of the securities owners, as of January 21, 2000 the bank had 506 shareholders. The following are the owner with more than 5% of voting shares: Partnership "TRADE Elena and Co" (Karagandy; 1,099,939 shares; 22.0% in authorized capital; 934,230 voting shares; 24.9% of all voting shares); partnership "Irina and Co" (Karagandy; 990,180; 19.8%; 931,866; and 24.6%, respectively); partnership "Lilya and Co" (Karagandy; 961,863; 19.237; 929,916; 24.8%); partnership "Olinda and Co" (Karagandy, 930,890; 18.6%; 930,038; 24.8%). Financial indices of the bank The bank provided KASE with its financial statements: for 1997-1998 - annual balance sheets, income and cash flow statements, audited by independent auditor Raimjanov S., for 1998 - annual balance sheet, income and cash flow statements audited by "ELTAL UVEMAN consulting" (Almaty, Kazakhstan). Based on auditing reports, financial statements represent a reliable and objective picture of the bank's financial situation as of December 31, 1997, 1998, and 1999, and that of the results of its income and cash flow statements as of indicated dates in accordance with accounting standards adopted in Kazakhstan. Financial situation of the bank is stable, its solvency and liquidity is solid. Following table shows financial data of the issuer (in th. KZT). The table was made on the basis of financial statements presented in accordance with the requirements of the National Bank of Kazakhstan. As of As of As of As of Ratio Jan.1,98 Jan. 1,99 Jan. 1,00 Apr. 1,00 ----------------------------------- -------- --------- ---------- --------- Authorized capital, paid 200,000 500,000 1,000,000 1,000,000 Shareholders' equity 213,872 523,547 1,041,823 1,047,905 Total assets 421,283 1,672,201 2,846,628 2,989,677 Liquid assets 67,817 120,870 190,468 135,384 Loans granted 260,617 1,160,509 2,408,919 2,291,038 Loans and deposits 207,361 915,639 1,796,066 1,884,916 Income from operating activities 142,490 338,536 656,378 125,736 Net income 20,741 20,181 29,002 5,006 Earnings per common share, KZT 20.55 8.06 2.22 - Book value of a share, KZT 213.87 209.42 208.36 209.58 ----------------------------------- -------- --------- ---------- --------- During the last year the bank was developing fast. The assets grew by 70% relative to 1998, shareholders' equity - by 99%, operating income - 94%, net income - by 44%. By the decision of an extraordinary general meeting of the shareholders held on February 14, 00, during the year 2000 authorized capital of the bank will be increased up to KZT1.3 bln. The prospectus of the seventh issue of the bank shares for KZT300.0 mln was presented to the National Bank of Kazakhstan for approval. Information on the dividends paid According to the Charter of the bank, size of the dividends per common share is set by the Board of the bank and approved by the General meeting of the shareholders. The payment order and minimum size of dividends to preferred shares are set by the prospectus of the issue, which says that the minimum of dividends to preferred shares of the bank is set equal to refinancing rate of the National Bank of Kazakhstan, effective on official payment date. - In 1994 dividends to common shares were charged and paid for a total of KZT652,680 (KZT75.52 per share), to preferred shares - total of KZT200,000 (KZT200 per share). - In 1995 dividends to common shares were not charged, to preferred shares they were charged and paid for a total of KZT200,000 (KZT200 per share). - In 1996 dividends to common shares were charged and paid for a total of KZT2,264,350 (KZT12.65 per share), to preferred shares - total of KZT170,000 (KZT170 per share). - In 1997 dividends to common shares were charged and paid for a total of KZT13,684,360 (KZT23.06 per share for the first quarter, KZT5.64 - for the second through fourth quarters), to preferred shares - total of KZT207,000 (KZT170 per share for the first quarter, KZT37 - for the second through fourth quarters). - In 1998 by the decision of the General meeting of the shareholder held on April 29, 99, dividends to common shares were not paid, the profit of KZT20,131,379.67 was used to increase the authorized capital. Dividends to preferred shares were charged and paid for a total of KZT50,000 (KZT50 per share). - At General meeting of the shareholders, held on April 24, 2000, a decision was made not to pay dividends for the year 1999 to common shares, and to use the remaining profit of the bank to form reserve fund. To preferred shares dividends were announced by the decision of the Board of directors for a total of KZT20,695,236 (KZT16.56 per share).