Auditing report on 2000 financial statements of VALUT-TRANZIT BANK OJSC (Kazakhstan)

/KASE, Aug 13, 01/ - VALUT-TRANZIT BANK OJSC (Karagandy) provided the Kazakhstan Stock Exchange (KASE) with auditing report of Deloitte & Touche (Almaty, Kazakhstan) made on its 2000 financial statements. Based data of an independent auditor, who finished working on the report on June 25, 2001, the following are financial and economic results of the issuer's activity as of December 31, 2000 (in th. KZT): -------------------------------------------------- Indicator 2000 --------------------------------------- --------- Authorized capital (paid) 1,300,000 Shareholders' equity 1,877,327 Total assets 6,057,302 Total liquid assets 768,547 Loan portfolio (including leases), net 4,645,887 Liabilities to the banks 699,350 Liabilities to the clients 3,412,601 Operating income 953,203 Total sales 912,073 Net income 41,130 --------------------------------------- --------- Calculated based on the auditor's data: --------------------------------------- --------- Return on equity (ROE), % 2.19 Return on assets (ROA), % 0.68 Earnings per share (EPS), KZT 3.53 Book value of a share, KZT 288.82 -------------------------------------------------- Auditing of VALUT-TRANZIT BANK OJSC financial statements for 1998- 1999, which were made in compliance with the Kazakhstani accounting standards, was conducted by KMPG Janat (Almaty, Kazakhstan). Due to the change of the auditor and the accounting standards used in making the financial statements, there are no comparisons given with the year 1999. Auditing of the bank's 2000 financial statements was conducted by Deloitte & Touche in compliance with International Accounting Standards. Audited financial statements differ from the statements, which had been prepared according to Kazakhstani accounting standards, therefore, they had been corrected in order to meet International Accounting Standards (IAS). The comments 10 of the auditing report reads that up to the year 2000 the bank was making financial leasing agreements at low interest rates and deferred repayments of the principal. These agreements had been made with the members of the Financial-Industrial Association "Valut-Tranzit", where the bank holds a membership. During 2000 the bank increased financial leasing to the members of the association, with the interest rates approaching regular rates and the maturity schedule of the principal was set from the date when the loan was granted. Financial leasing agreements had been signed for up to 12 years. The auditor confirms that as of December 31, 2001, the banks complied with all prudential norms of the National Bank of Kazakhstan. The auditor does not express his opinion regarding the financial-economic activities, cash flows and capital movements in 2000, since he did not audited financial statements for the year 1999 and the work done was not sufficient to express such opinion. The auditor also mentions that since the bank had not prepared its 1999 financial statements in compliance with the International Accounting Standards, then these presented financial statements do not contain comparable information, therefore they do not comply with International Accounting Standards. In the opinion of Deloitte & Touche, the balance sheet reflects financial situation of VALUT-TRANZIT BANK OJSC in all essential aspects as of December 31, 2000 in compliance with International Accounting Standards. Common (KZ1C33291013, trade code - VTBN) and preferred (KZ1C33291018, trade code - VTBNp) shares of VALUT-TRANZIT BANK OJSC are traded within official list of the KASE securities under category "A", where they were admitted on February 5, 2001 (from May 19, 2000 through February 5, 2001 they were traded within official list under category "B").