REFERENCE: Temirbank OJSC (Kazakhstan) - dynamics of indicators

/IRBIS, information of the KASE Listing commission, Sept 12, 01/ - The following information is published due to the admittance of second issue bonds of Temirbank OJSC into the official list of the Kazakhstan Stock Exchange (KASE) under category "A". Assets of Temirbank OJSC grew by KZT10.8bn in 1998-2000 or 4.3 times. As of July 1, 2001 they were at KZT14.5bn. Stable growth of bank assets was due to a growth in profitable assets, whose volume equaled KZT4.5bn as of Jan 1, 2000 (88.9% growth to 1999), as of Jan 1, 2001 - KZT12.5bn (47.1% to 1999), as of July 1, 2001 - KZT12.7bn. The growth of Temirbank OJSC assets in 1999 by 71.0% and 50.3% in 2000, and 3.4% in I half of 2001 was a result of increase in commercial loans and securities portfolios, amounts in correspondent accounts in National Bank of Kazakhstan and in other foreign banks. Loans to clients (net) constitute the most of the assets of Temirbank OJSC: 42.1% (KZT2.4bn) of total assets in 1998, 58.5% (KZT5.5bn) in 1999, 59.9% (KZT8.4bn) in 2000, 61.5% (KZT8.9bn) as of July 1, 2001. In 2000 and as of July 1, 2001 about 90% of loans was granted to corporate clients, and 10% is consumer loans. Most of the financing was directed to wholesale trade (36.2% in 2000 and 34.1% as of July 1, 2001), agriculture and food industry (21.1% and 28.9%), chemical and mining (10.0% and 3.8%). Main financing is made on short-term basis: in 1998 - KZT2.4bn or 95.2%, in 1999 - KZT4.8bn or 84.2%, in 2000 - KZT6.7bn or 75.0%, as of July 1, 2001 - KZT7.9bn or 82.4%. The proportion of mid-term and long-term loans increased from 4.8% to 17.6% during this time. Data on loan portfolio quality of Temirbank OJSC ---------------------------------------------------------------------- 1998 1999 2000 As 1998 1999 2000 of July 1, 01 ------------- ------------- ------------- ------------- Loan portfolio m KZT % m KZT % m KZT % m KZT % -------------- ------- ----- ------- ----- ------- ----- ------- ----- Standard 1,681.8 66.9 3,499.8 61.1 3,806.4 42.5 4,817.9 50.0 Substandard 579.4 23.0 1,954.9 34.2 3.854.7 43.0 4,121.1 42.8 Unsatisfactory 68.7 2.7 143.0 2.5 924.3 10.3 291.7 3.0 Doubtful 34.1 1.4 28.8 0.5 36.3 0.4 110.0 1.1 Bad debt 150.1 6.0 97.4 1.7 338.9 3.8 295.0 3.1 -------------- ------- ----- ------- ----- ------- ----- ------- ----- Total 2,514.1 100.0 5,723.3 100.0 8,960.7 100.0 9,636.7 100.0 ---------------------------------------------------------------------- Data on loan provisions of Temirbank OJSC -------------------------------------------------------------- 1998 1999 2000 As of 1998 1999 2000 July 1, 01 ----------- ----------- ----------- ----------- Loan portfolio m KZT % m KZT % m KZT % m KZT % -------------- ----- ----- ----- ----- ----- ----- ----- ----- Standard - - - - - - - - Substandard 32.2 15.1 110.5 44.0 250.3 30.5 291.9 41.0 Unsatisfactory 14.3 6.7 29.0 11.6 214.5 26.1 69.8 9.80 Doubtful 17.0 8.0 14.1 5.6 18.2 2.2 55.5 7.8 Bad debt 150.1 70.2 97.4 38.8 338.9 41.2 295.0 41.4 -------------- ----- ----- ----- ----- ----- ----- ----- ----- Total 213.7 100.0 251.0 100.0 822.0 100.0 712.2 100.0 -------------------------------------------------------------- Increase in provisions in 1998-2000 reflects the increase in volume of loan portfolio 3.6 times, as well as increase in bad debt from 10.1% to 14.5%. As of July 1, 2001 standard and substandard loans accounted for 92.8% of loan portfolio, the proportion of bad debt fell to 7.2% in I half of 2001. To lower the credit risk, Temirbank OJSC requires a collateral from the borrowers. It accepts cash, guarantees, securities, real estate, consumer goods and major assets as a collateral. As of July 1, 2001 unsecured loans accounted for 1.3% of loan portfolio. Ratio of assets and liabilities and equity based on their terms as of July 1, 2001 (m KZT) ----------------------------------------------------------------------------- From 1 From 3 From 6 More Till 1 to 3 to 6 to 12 than month months months months 12 months Total -------------------------- ------- ------- ------- ------- --------- -------- Cash 1,434.9 0 0 0 0 1,434.9 Deposits in other banks 1,897.9 234.4 0 0 0 2,132.3 Securities 29.3 337.1 14.7 24.9 513.1 919.1 Loans to clients, gross 1,276.1 812 2,270.2 3,579.8 1,698.6 9,636.7 Investments 0 0 0 0 7.6 7.6 Others 0 0 0 0 386.6 386.6 -------------------------- ------- ------- ------- ------- --------- -------- Total assets 4,638.2 1,383.5 2,284.9 3,604.7 2,605.9 14,517.2 -------------------------- ------- ------- ------- ------- --------- -------- Liabilities to Government and National Bank 3.2 8.7 20.6 25.2 82.8 140.5 Liabilities to other banks 0 18.3 0 14.6 1,055.5 1,088.4 Client deposits 5,084.3 2,301.1 512.7 1,990.8 295.5 10,184.4 Issued bonds 0 0 0 0 731.0 731.0 Other liabilities 332.2 4.1 1.0 9.7 14.0 361.0 -------------------------- ------- ------- ------- ------- --------- -------- Total liabilities 5,419.7 2,332.2 534.3 2,040.3 2,178.8 12,505.3 ----------------------------------------------------------------------------- Shareholders' equity of Temirbank OJSC, which is calculated based on the method of the National Bank of Kazakhstan, increased by KZT144.6m, or 10.1% in 1998-2000 as a result of core capital increase caused by increase in net income of reporting period. In 2000 increase in shareholders' equity by KZT648.6m or 41.2% was due to an increase in core capital increase by KZT470.4m mainly due to the floatation of the 10th issue of shares and increase in supplementary capital by KZT178.2m caused by an increase in net income of reporting period. In I half of 2001 shareholders' equity fell by KZT99.5m or 4.5% relative to 2000 because net income of the I half of this year was added into II level of shareholders' equity calculations (net income in I half of 2001 equaled KZT174.7m, which exceeds similar figure of last year by KZT64.4m). Following are comparisons of the bank's figures with average figures of three comparable banks. Average figures were calculated by financial statements presented by the banks to the Exchange, who are the members of the Exchange holding "B" category (right to participate in currency trades). Comparable data with other commercial banks as of July 1, 2001 (th. KZT, unless otherwise specified) ------------------------------------------------------------------------------ Share- holders' Net k1 (min k2 (min k4 (min ROА, ROE, Title equity Assets income 0.04) 0.08) 0.20) % % -------------- --------- ---------- ------- ------- ------- ------- ---- ----- Temirbank OJSC 2,208,979 14,732,632 263,196 0.12 0.16 0.82 1.79 11.91 Average value 2,848,066 25,927,195 277,608 0.07 0.14 0.69 1.07 9.67 ------------------------------------------------------------------------------