Auditors' report on financial statements of Halyk savings bank of Kazakhstan JSC (Kazakhstan) for 2003

/IRBIS, Galina Tsalyuk, April 7, 04/ - Halyk savings bank of Kazakhstan JSC (Almaty), whose securities are circulating in Kazakhstan stock exchange's (KASE) official "А" listing category, presented KASE auditors' report conducted by Ernst & Young (Almaty) on bank's financial statements for 2003, prepared in compliance with International Accounting Standards. According to the auditor's data, the following describes bank's position and financial results as of December 31 of 2003, 2002 (in m. KZT, unless otherwise specified): ------------------------------------------------------------------------------ Index 2001 2002 ---------------------------------------------------- ----------- ----------- Issued authorized capital (paid excluding withdrawn) 9,669,707 9,881,061 Shareholders equity 14,187,119 21,238,258 Total assets 189,282,177 249,523,242 Total current assets 54,486,462 68,216,757 Loans to banks 0 7,290,929 Loans and advances to clients (net) 125,816,039 163,888,497 Liabilities, total 175,095,058 228,081,728 Demand and time deposits 136,918,002 154,845,698 Loans from banks and financial organizations 32,555,935 62,405,064 Bonds issued 4,468,713 8,582,604 Total revenues 26,900,532 34,536,046 Total expenses 25,029,369 27,075,768 Net income 1,871,163 7,460,278 ---------------------------------------------------- ----------- ----------- It's been calculated according to auditor's data: ---------------------------------------------------- ----------- ----------- Return on equity (ROE), % 13.19 35.13 Return on assets (ROA), % 0.99 2.99 Book value of one share, KZT 146.72 214.94 Earnings per share (EPS), KZT 27.22 96.00 Price earnings ratio (P/E) 5.14 1.25 ------------------------------------------------------------------------------ Auditing of the bank's and its daughter companies (the Group) financial statement was conducted by Ernst & Young in compliance with international standards on auditing. The consolidated financial statements of the Group include financial statements of the following daughter companies, in which the Bank possesses 100% ownership: Halyk Leasing CJSC (Almaty, leasing), Kazteleport CJSC (Almaty, telecommunications services), HSBK (Europe) B.V. (Amsterdam, the Netherlands, financial services). Consolidated financial statements also include financial statements of Accumulative Pension Fund of Halyk Bank OJSC (Almaty, collection and investment management of retirement savings), in which the Bank maintains 85% ownership. Group's financial statements for 2002 were correspondingly corrected in order to bring it in compliance with international accounting standards. In opinion of Ernst & Young, the financial statements exactly in all significant aspects reflect the Group's financial position as of December 31 of 2003, and consolidated results of its financial and economic activity and cash flow for the year ended as of mentioned date in compliance with international accounting standards. [2004-04-07]