BANK CASPIAN OJSC (Kazakhstan): revenues and expense, sources of financing

/IRBIS, July 20, 01/ - The main source of cash flows of the Bank is deposits. In first quarter 2001 deposits reached KZT7,699m and increased 215.8% compared the same period of last year. As of Apr. 01, 2001 deposits of legal entities equaled 90.1% of total amount. As of Jan.01, 2001, total volume of deposits reached KZT6,629m (230.6%). Demand deposits took 40.4% of the total value. Structure of financial sources of BANK CASPIAN OJSC (KZT thousands) --------------------------------------------------------------------------------------------- Item 1998 1999 2000 1 q. - 2001 ----------------------------------------------- --------- --------- --------- ----------- Demand deposits 1,470,027 1,682,867 4,374,064 4,007,422 Time deposits 100,442 256,577 2,253,947 3,683,294 Saving deposits 1,419 65,614 1,298 8,287 Total deposits of clients 1,569,357 2,005,058 6,629,309 7,699,003 Debt to the National Bank 170 170 170 170 Account and loans of the financial institutions 107,250 530,037 144,500 727,250 Other 123,441 144,804 995,903 1,448,622 ----------------------------------------------- --------- --------- --------- ----------- Total 1,801,636 2,688,012 7,781,154 9,875,045 --------------------------------------------------------------------------------------------- The major depositors are corporate clients, small and medium scale enterprises and individuals. Beginning from 1999, the Bank repays interest at rates of 2-4% for USD demand deposits and of 2-5% for KZT demand deposits. Profitable assets of BANK CASPIAN OJSC (KZT thousands) --------------------------------------------------------------------- As of Apr.01, 01 Item 1998 1999 2000 ------------------ --------- --------- --------- ---------------- Profitable assets 1,805,207 2,592,608 7,074,894 9,433,137 Interbank deposits 161,123 615,202 580,845 126,719 Interbank credits 257,739 347,378 33 - Credits to clients 866,035 874,300 3,326,723 6,144,760 Securities 520,310 755,728 3,167,293 3,161,658 --------------------------------------------------------------------- Structure of the net interest income of BANK CASPIAN OJSC (KZT thousands) ---------------------------------------------------------------------------------------- As of Apr.01, 01 Item 1998 1999 2000 ------------------------------------------- ------- ------- ------- ---------------- Interest income: 192,935 179,368 616,337 288,575 Income from credits to clients 128,363 133,841 377,766 195,199 Income from banking credits and deposits 33,603 38,027 31,476 4,288 Interest on securities 30,969 7,500 206,913 89,088 Income from repo operations - - 182 - Interest expenses: 57,553 35,445 180,789 94,054 Expenses on deposits of clients 43,186 25,512 130,090 62,678 Expenses for banking loans and deposits 7,741 9,893 35,458 24,549 Interest on loans of financial institutions - 1,632 2,636 363 Other expenses related to interest payments 6,626 40 15,241 6,827 Net interest income 134,108 138,003 442,742 194,521 ---------------------------------------------------------------------------------------- As of Apr. 01, 2001, the gross interest income equaled KZT289m that is 196.9% higher than in first quarter of 2000. Net interest income grew by 176.4%. the gross interest income in 2000 grew up 243.6% and equaled KZT616m. Growth of interest income was mainly caused by increase of shares of the profitable assets in the assets portfolio. As of Apr. 01, profitable assets grew up almost 3 times or from KZT3,165m to KZT9,433m. During last year profitable assets increased 172.6%. The gross interest expenses for first quarter 2001 increased by 250.7% and on year to year basis (2000 to 1999) by 410.1% that is higher than growth of interest income. Such excess was stipulated by increased volume of attracted funds and more higher annual rate of attracted funds denominated in foreign exchange. In first quarter 2001, commission income of the Bank reached KZT107m or 35% higher than in similar period of 2000. In 2000, commission income grew up 85.9% and equaled KZT427m compared to KZT230m in 1999. Higher growth of commissions was caused by increase in revenues from account's management and money transfers. The growth rates of non-interest expense during first quarter 2001 and 2000 were significantly higher than growth of non-interest income. In 2000, non-interest expenses of the Bank increased by 41.1% and 69.5% compared to 1999 and 1998. The gross non-interest expenses exceeded revenues by KZT91m in first quarter 2001 and KZT343m in 2000. This is explained by increase in expenditures on staff, office and equipment. During 2000 staff expenses grew by 41.7% and took 46.7% of the total expenses (increase in number of employees). The non-interest revenues fell down due to lowering of such operations as sale of buildings, equipment, etc. Such sales largely depend on market price fluctuations. In 2000, revenues from sale of fixed assets equaled KZT67m compared to KZT154m in 1999.