Auditing report on 2000 financial statements of Bank TuranAlem OJSC (Kazakhstan)

/KASE, Aug 14, 01/ - Bank TuranAlem OJSC (Almaty) provided the KASE with auditing report of Ernst & Young (Almaty, Kazakhstan) made on its 2000 consolidated financial statements. Based data of an independent auditor the following are financial and economic results of the issuer's activity as of December 31, 1999 and 2000 (in m KZT, unless otherwise specified): ------------------------------------------------------------------------------- As of Jan 1, As of Jan 1, Indicator 00 01 --------------------------------------------------- ------------ ------------ Authorized capital (paid) 8,757 11,931 Shareholders' equity 5,083 8,935 Total assets 45,922 79,205 Total liquid assets 11,640 17,261 Commercial loans and prepayment (net) 26,989 53,806 Liabilities to the Government and NBK 700 766 Liabilities to the banks and financial institutions 9,023 16,218 Liabilities to the clients 28,224 46,933 Operating income 7,004 13,141 Total expenses 6,093 12,244 Net income 911 897 --------------------------------------------------- ------------ ------------ Calculated based on the auditor's data: --------------------------------------------------- ------------ ------------ Return on equity (ROE), % 17.92 10.04 Return on assets (ROA), % 1.98 1.13 Earnings per share (EPS), KZT 1,040.31 751.82 Price earnings ratio 12.02 13.73 Book value of a share, KZT 5,804.50 7,488.89 ------------------------------------------------------------------------------- Auditing was conducted by Ernst & Young in compliance with the 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 major divisions and subsidiaries of the bank, whose financial statements had been consolidated are: TuranAlem Securities LLP (Almaty, Kazakhstan, stock market activities, ownership - 100.0%), BTA Leasing OJSC (Almaty, Kazakhstan, lease, ownership - 100.0%), as well as Kazko Construction (Almaty, Kazakhstan, construction) and Samal Properties (Almaty, Kazakhstan, real estate management), were the bank has no ownership, but has a control over them in compliance with IAS. In the opinion of Ernst & Young, consolidated financial statements of the bank for the years 1999-2000 gives true picture of financial situation of Bank TuranAlem OJSC in all essential aspects as of December 31, 1999 and 2000, as well as the results of its income and cash flow statements in compliance with International Accounting Standards. Now following securities of Bank TuranAlem OJSC are traded within official list of the KASE under category "A": - from September 9, 1999 - common inscribed shares (KZ1C34920412, trade code - BTAS); - from February 19, 2001 - first issue subordinated coupon bonds (KZ2CUY08A320, trade code - BTAS; $100; $20m; Feb 19, 01 - Feb 19, 09; semiannual coupon at 12% APR, current market yield - 11.50% APR); - from July 19, 2001 - euronotes (XS0131688227, trade code - BTASe1; $100m; June 28, 01 - June 28, 04; semiannual coupon at 11.5% APR), issued by its subsidiary TuranAlem Finance B.V. (Rotterdam, Netherlands) under 100% guarantee of the bank.