AFN of Kazakhstan characterized the republic's banking sector as of May 1

/IRBIS, Assel Omarova, May 18, 04/ - Kazakhstan agency for regulation and supervision of financial market and financial organizations (AFN) in its scheduled press-release dedicated to the condition of the republic's financial market has characterized the country's banking sector as of May 1 of 2004. According to AFN's data, by the mentioned date 35 second tier banks functioned in Kazakhstan, including 1 state-owned (House-building savings bank of Kazakhstan JSC), 16 - with foreign participation (including 10 daughter banks of banks-non-residents of the Republic of Kazakhstan) and Development Bank of Kazakhstan JSC. 24 second tier banks have branch networks, total number of banks' branches on the country's territory is 354 (within the reporting month permissions for opening of 1 branch were given, permissions for opening of 5 branches were cancelled), including branches of Halyk savings bank of Kazakhstan JSC - 149, Nauryz Bank Kazakhstan and Bank TuranAlem JSC - 22 each. 21 banks have cash-settlement offices (CSO) out of bank's position. Total number of CSO of banks reached 1,038 (within the reporting month permissions for opening of 9 CSO were given, permissions for opening of 17 CSO were cancelled), including CSO of Halyk savings bank of Kazakhstan JSC - 380, Bank TuranAlem JSC - 190. 20 representatives of foreign banks have been opened in the republic. At the beginning of April, 26 auditing organizations and 48 auditors had licenses for auditing banks. According to AFN's data, in April of 2004 total shareholders equity of the banking sector rose by 7.5% to KZT267.6 bn. (as of April 1, 04 - KZT249.1 bn.). Total assets of banks rose in April by 5.24% to KZT1,878.9 bn. (as of April 1 of 2004 assets equaled to KZT1,758.6 bn.). Adequacy indicators were k1 - 0.096; k2 - 0.167 (as of April 1 of 2004. k1 - 0.099, k2 - 0.164). Loan portfolio of banks including interbank loans rose by 5.5% within reporting month or by KZT64.5 bn. to KZT1,238.9 bn. Quality of the laon porfolio did not changed significantly as of May 1. Stake of standard credits was 63.4%, doubtful - 33.8%, bad - 2.8%. As of April 1 of 2004 stake of standard credits was estimated by AFN at 62.8%, doubtful - 34.6%, bad - 2.6%. Total sum of deposits attracted by banks from juridical and physical persons (excluding banks and international financial organizations) by the beginning of May was KZT1,164.3 bn. having increased within the month by 8.3% (including deposits of juridical persons - KZT792.9 bn., grew by 10.6% due to deposits of daughter organizations of special purpose; deposits of physical persons - KZT371.4 bn., grew by 3.6%). Total sum of second tier banks' revenues as of May 1 of 2004 was KZT93.9 bn. having increased in comparison with similar period of last year by 40.1%. Total expenses were KZT81.1 bn. having increased in comparison with similar period of last year by 37.2%. Undistributed net income (uncovered loss) of banks was KZT12.9 bn. having increased within the reporting month by KZT3.5 bn. In comparison with similar period of last year it grew by KZT4.9 bn. Besides, AFN informs that on April 15 of 2004 the Board of AFN issued following resolutions concerning activity of banks in Kazakhstan: - #115 "About approval of Major measures on improvement of regulation and supervision of the financial sector taking into account directives of the European Union and the Plan of measures on realization of Major measures on improvement of regulation and supervision of the financial sector taking into account directives of the European Union for 2004", - #118 "About inclusion of addition in the resolution of the Board of the National Bank of Kazakhstan dated July 25 of 2003 #250 "About approval of the Rules about prudential norms for banks groups", registered in the Ministry of justice of Kazakhstan under the number #2465"; - #112 "About approval of forms and terms of presentation of reports about the structure of second tier banks' securities portfolio and second tier banks' investments into capital of other juridical persons"; - #117 "About inclusion of changes and additions in the joint resolution of Boards of the National Bank of Kazakhstan dated January 24 of 2004 #10 and Kazakhstan agency for regulation and supervision of financial market and financial organizations dated January 24 of 2004 #259 "About the list, forms and terms of presentation and publication of the annual financial statement by second tier banks", registered in the Ministry of justice of Kazakhstan under the number #2702". In addition, AFN informs that as of May 1, 04, 15 banks in Kazakhstan were in the process of liquidation by the court's decision. [2004-05-18]