Euromoney called KAZKOMMERTSBANK OJSC the best bank in Kazakhstan for the seventh time

/IRBIS, August 9, 02/ - Authoritative international financial publication Euromoney Publications recognized KAZKOMMERTSBANK OJSC (Almaty) as the best bank in Kazakhstan and awarded it "Reward for Perfection". "This is the seventh (beginning since 1995) reward of Kazkommertsbank, given by this publication", - it is said in the bank's press-release, which was distributed today. It is said in the press-release that "Kazkommertsbank (KKB) - the leading bank of Kazakhstan, again retains its leading positions in this year confronted with strengthening competition of Bank TuranAlem (BTA). Though the market share of BTA is growing, KKB continues to remain the biggest bank of the country". Being mainly a corporate bank, KKB begins to extend its retail operations. Despite the fact that it refused purchasing at tender of the state market share in the amount of 33% in Halyk Bank of Kazakhstan OJSC, that would provide it with significant strengthening of retail banking transactions change its base of financing, KKB attracts increasing share of deposits of Kazakhstan population. KKB remains dominating bank in corporate banking. It has strong positions not only in oil and gas sector, which gives quick economic growth, but in many other branches as well. In 2001 net profit of KAZKOMMERTSBANK OJSC equaled to USD35m - this is 50% of the profit, which had been received by Kazakhstan banking sector. Within the same period the bank's loan portfolio increased two times as much. According to KKB's information, every third credit in Kazakhstan is given by it, its assets amount to 22% of total volume of aggregate banking assets of the country. The bank is well known by operators at international financial markets. In the last months KKB according to its indicators was raised its credit rating from international rating agencies Fitch and Standard & Poor's, and in December of 2001 it managed to attract the biggest in the history of Kazakhstan syndicated loan in the amount of USD100m, which had been organized by Deutsche Bank. Euromoney writes about all of this in its July edition, which has been published in the current year. Criteria of the estimation, as it is said Euromoney's message, were position and market share, innovational initiatives, new products, new issues, the system of management, professionalism of the personnel, structure of balance, indicators of profitability, shareholders' equity and bank's deals within last 12 months. The decision is made on the basis of questioning of different financial institutes, rating agencies, financial analysts, investors. KAZKOMMERTSBANK OJSC also informs that in March 2002 authoritative international financial journal Global Finance, which is published in the USA, also called it the best bank of Kazakhstan in 2002. After three months Euromoney called Kazkommertsbank "The best financial borrower" among East Europe countries. "The fact that the most authoritative financial journal recognized Kazkommertsbank as the best bank, undoubtedly, reflects objective estimation of financial institutes, taking into account international deals made by the bank, and the fact that the bank smartly and in time fulfilled all its obligations, never made defaults, within the country and on external liabilities as well", - the first Deputy President of KAZKOMMERTSBANK OJSC Nina Zhusupova comments on decision of Euromoney. "Certainly, only large banks have this rating - the ones, which make international transactions, and in Kazakhstan there are many good regional banks, which are out of international experts' sight. But on the other hand, among other large banks competition in Kazakhstan has become more severe. If before competition between western banks and Kazkommertsbank was traditionally spoken about, today other domestic banks are spoken about more and more often - first of all Bank TuranAlem and Halyk Bank. They also make borrowings in Kazakhstan and abroad as well, their assets have significantly increased. But speaking about effectiveness estimation, Kazkommertsbank - is the most profitable bank. In comparison with the nearest banks-competitors our branch network is incommensurable, we have less branches on works with clients, less number of employees, but as a result the profit, which we have received for the year, is significantly more", - added Nina Zhusupova. Below is data about three biggest banks of Kazakhstan as of February 1, 02 according to the information of Kazkommertsbank OJSC press-service, which appeals to the bank's annual reports audited by Deloitte&Touche and Ernst&Young. -------------------------------------------------------------------------------------- Term Net Number Number Number of Assets, Capital, deposits, income, of em- of bran- servicing Bank th KZT th KZT th KZT th KZT ployees ches offices --------------- ----------- ---------- ---------- --------- ------- -------- --------- Kazkommertsbank 194,343,507 24,423,028 74,188,084 5,288,901 2,392 20 68 Bank TuranAlem 157,329,000 14,883,000 43,665,000 1,591,000 3,298 24 246 Halyk Bank 127,123,908 6,903,023 97,875,976 31,062 8,261 177 457 -------------------------------------------------------------------------------------- [2002-08-09]