Astana-finance OJSC (Kazakhstan): Financial ratios

/IRBIS, May 29, 05/ - Following is brief characteristics of financial and economic activities of Astana-finance OJSC (Astana), taken from the conclusion of the Listing commission of the Kazakhstan Stock Exchange (KASE), which is made due to the transfer of the company's common shares (KZ1C37671418, trade code - ASFI) from official list of the KASE securities under category "B" into category "A". The management of Astana-finance OJSC is fully responsible for the reliability of the information presented by the Listing commission of the KASE. Information is published by IRBIS as it may the attentions of potential investors. Following is the table that was created by the KASE specialists on the basis of non-consolidated data of the issuer's financial statements (in th KZT, unless otherwise specified): -------------------------------------------------------------------- as of as of as of as of Ratio Jan 1.99 Jan 1.00 Jan 1.01 Apr 1.01 ------------------------- --------- ---------- ---------- ---------- Authorized capital (paid) 100,000 102,436 1,808,320 1,808,320 Shareholders' equity 234,618 2,298,229 2,173,558 2,186,911 Total assets 7,965,635 12,796,996 12,713,231 12,787,424 Loan portfolio 4,605,367 9,547,455 2,965,098 5,038,437 Accounts receivable 3,089,280 1,451,425 6,877,608 3,724,232 Funds attracted 5,821,132 8,750,386 9,393,607 9,643,223 Accounts payable 1,909,885 1,740,120 1,142,832 954,056 Operating income 507,696 6,266,610 7,256,077 276,136 Total expenses 507,696 4,580,072 6,817,441 262,783 Net income 0 1,519,312 185,238 13,353 Return on assets (ROA), % - 11.87 1.46 - Return on equity (ROE), % - 66.11 8.52 - -------------------------------------------------------------------- The next table was created by the KASE specialists on the basis of consolidated data of Astana-finance OJSC financial statements (in th KZT, unless otherwise specified): ------------------------------------------------ as of as of Ratio Jan 1.00 Jan 1.01 --------------------------- --------- ---------- Authorized capital (paid) 102 436 1 808 320 Shareholders' equity 1 623 714 2 119 163 Total assets 9 585 175 13 457 243 Loan portfolio (net) 5 358 926 2 698 556 Accounts receivable (total) 1 856 801 4 878 078 Funds attracted 7 388 978 9 828 261 Accounts payable 569 040 1 503 403 Operating income 2 352 362 832 260 Total expenses 249 734 674 701 Net income 1 518 392 128 877 Return on assets (ROA), % 15,84 0,96 Return on equity (ROE), % 93,51 6,08 ------------------------------------------------ The auditing of Astana-finance OJSC 1998-2000 financial statements based on international standards was made by Arthur Andersen (Almaty, Kazakhstan). In the opinion of Arthur Andersen, consolidated financial statements of the company for the years 1999 and 2000 and non- consolidated statements for 1998-2000 give true and precise financial situation of Astana-finance OJSC and its subsidiaries, as well as the results of its activities and cash flows during the years ended on these dates, in compliance with the Kazakhstani accounting standards. INCOME Income structure of Astana-finance OJSC ------------------------------------------------------------------------------ 1998 1999 2000 ------------ --------------- ------------ Income articles th KZT % th KZT % th KZT % ------------------------------------ ------- ---- ---------- ---- ------- ---- Income from deposits 3,254 0.6 24,129 0.45 68,024 10.3 Income from the securities transactions 0 0.0 1,806,726 33.8 38,679 5.9 Income from lending activities 55,590 11.0 389,299 7.3 240,528 36.4 Income from financial lease 0 0.0 875 0.02 1,492 0.2 Other income from banking activities 425,671 83.8 3,064,847 57.5 100,159 15.2 Income from secondary activities 23,181 4.6 46,398 0.9 211,801 32.1 Total income 507,696 100 5,332,,274 100 660,683 100 ------------------------------------------------------------------------------ In 1998-1999 the greatest proportion of the company's income was derived from the "Other income from banking activities", which is due to re-evaluation of the credits granted in tenge and tied to the U.S. dollar, based on exchange rate differences and their values, as well as due to an increase in the volume of loan portfolio (in 1999). In 2000 the proportion of this article in total income of the company fell noticeably as a result of the stabilization of the national currency's exchange rate against the U.S. dollar, as well as due to a decrease in the volume of loan portfolio because of write-offs of the loans and their interests for a total of KZT9.8 bln. Within the income structure received from the transactions with the securities in 1999, 98.95% came from the income from a single deals made by selling the mortgage certificates of power facilities of Astana by Astanaenergoservis OJSC. Arthur Andersen points out that in 1999 financial results of Astana-finance OJSC was affected by a deal made with non-consolidated subsidiary. The company assumed an income of KZT1,788.4 mln on account of transferring mortgage certificates of power facilities of Astana. These certificates were sold for KZT3,931 mln, and received as a collateral for the loans amounting to KZT2,142 mln at the time of the transfer. Part of total accounts receivable at KZT3,931 was converted into the shares of the subsidiary and the residual amount should by paid out each month within five years. No interest is accrued on this long-term debt, and in these financial statements it was taken into account at face value. The Ministry of Finance of Kazakhstan confirmed that the income received from this deal can be taken into account fully in 1999. As of Jan 1, 2001, the proportion of lending activities increased by 29.1% in total income of the company relative to 1999, at 36.4%. Income from secondary activities (income from sales of apartments, renting the real estate objects, fines and others) increased by 31.2%, at 32.1%. EXPENSES Expenses structure of Astana-finance OJSC -------------------------------------------------------------------- 1998 1999 2000 ------------ -------------- ------------ Expenses articles th KZT % th KZT % th KZT % --------------------------- ------- ---- --------- ---- ------- ---- Interest on attracted funds 51,846 15.2 230,117 7.3 45,785 10.5 Other expenses 264,861 77.6 2,842,853 90.0 229,629 52.6 Administrative expenses 24,483 7.2 89,580 2.8 161,457 37.0 Total expenses 341,190 100 3,162,550 100 436,871 100 -------------------------------------------------------------------- During 1998 and 1999 the most of the company's expenses were other expenses, which includes exchange rate and price re-evaluation of the loans attracted (foreign currency loans, and loans tied to the dollar's exchange rate). In 2000 their proportion fell noticeably due to the stabilization of the national currency's exchange rate against the U.S. dollar. Increase in the proportion of the administrative expenses in 2000 was caused by an increase in the personnel and necessity of modernization of the workplaces due to the expansion of the company's activities. Decrease in interest expenses in 2000 on the funds attracted was due to the settling its debt to the Ministry of Finance of Kazakhstan and decrease in the liabilities to Fond razvitiya malogo predprinimatelstva CJSC (Small Entrepreneurship Development Fund). SHAREHOLDERS' EQUITY Throughout the company's activities the shareholders' equity of Astana- finance OJSC increased 9.3 times both as a result of public offerings of the shares and capitalization of the income in 1999-2000. Decrease in shareholders' equity in late 2000 against 1999 by 5.42% is explained by the removal of the provisions from the reserve capital for KZT496.5 mln. Shareholders' equity structure of Astana-finance OJSC (th KZT) --------------------------------------------------------------------- Ratio 1998 1999 2000 ------------------------------------- ------- ----------- ----------- Authorized capital 100,000 5,000,000 3,100,000 Unpaid capital - (4,897,564) (1,291,680) Reserve capital 134,618 676,481 180,000 Undistributed income (uncovered loss) of the reporting year 0 1,519,312 185,238 ------------------------------------- ------- ----------- ----------- TOTAL shareholders' equity: 234,618 2,298,229 2,173,558 --------------------------------------------------------------------- As of Jan 1, 01, announced and issued (registered) authorized capital of Astana-finance OJSC equaled KZT3,100 mln, paid - KZT1,808.3 mln, of which KZT100.0 mln - first issue shares, and KZT1,708.3 mln - second issue shares. Total of unpaid second issue shares - KZT1,291.7 mln. Decrease in announced authorized capital of the company as of late 2000 by KZT1.9 bln relative to 1999 was done in accordance with the decision of the general shareholders meeting of the company, which was held on October 5-7, 2000, in order to cut the allocations from net income to create reserve capital, as well as to meet the requirements of the National Bank of Kazakhstan on authorized capital size in order to obtain the bank license for conducting guarantee activities.