BANK CASPIAN OJSC: Comments of the Listing commission

/IRBIS, July 20, 01/ - The conclusion of the Listing commission devoted to inclusion of bonds of BANK CASPIAN OJSC into category "A" of the official listing presents following: Credit portfolio During first quarter 2001 credit portfolio of BANK CASPIAN OJSC increased by KZT2,818m or 84.7%. The shares of standard credits increased from 73.1% to 80.6%. The amount of standard credits grew up by KZT2,524m (90% of the growth of credit portfolio), substandard - KZT294m (10%). Nevertheless, significant growth of credits for such short time could imply additional changes in the portfolio structure in future. Size of equity capital The shareholders equity of BANK CASPIAN OJSC in the amount required for inclusion of securities into category "A" of the official listing was formed by emission of shares, whose value has exceeded nominal amount by KZT230m. Another contribution was made thought revaluation of long-term investments (sovereign euronotes) - KZT125m and increase in undistributed profit - KZT14.2m. Revenues By results of 1998-2000 the net operational income (after reserving) was negative (-24.6m, -127.7m and -6.8m) correspondingly. Positive financial results were reached for the account of single non-banking operations (sale of assets, unforeseen items). Negative income figures are explained by constant increase of the non- interest income. Beside, non-interest expenses exceed corresponding revenues. This difference has grown with each year (27.2m, 143.0m and 346.9m). According to the Bank's data growth of non-interest expenses was stipulated by increase in for staff, office and equipment expenses. In first quarter of 2001, the net operational income (after reserving) was positive and reached KZT28.2m. However, last year first quarter figure also gave positive results, while annual figure was negative.