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

/IRBIS, Assel Omarova, June 15, 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 June 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), 18 - 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 357 (within the reporting month permissions for opening of 3 branches were given), including branches of Halyk savings bank of Kazakhstan JSC - 149, Bank Caspian JSC - 24, Kazkommertsbank - 23, 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 1,048 (within the reporting month permissions for opening of 16 CSO were given, permissions for opening of 2 CSO were cancelled), including CSO of Halyk savings bank of Kazakhstan JSC - 386, Bank TuranAlem JSC - 190. 19 representatives of foreign banks have been opened in the republic. In early June 25 auditing companies and 50 auditors had licenses for auditing banks. AFN conducted corrections in estimations of shareholders equity related to provisions according to International financial reporting standards. In May total shareholders equity of the banking sector fell by 2.1% to KZT 261.9 bn. (as of May 1, 04 - KZT 267.6 bn.). Total assets of banks rose by 4.1% to KZT 1,956.1 bn. (as of May 1 assets equaled to KZT1,878.9 bn.). Adequacy indicators were k1 - 0.091; k2 - 0.159 (as of May 1 of 2004. k1 - 0.096, k2 - 0.167). Loan portfolio of banks including interbank loans rose by 6.5% within reporting month or by KZT 80.8 bn. to KZT1,319.7 bn. Share of standard credits was 63.4%, doubtful - 34.1%, bad - 2.8%. As of May 1 of 2004 stake of standard credits was estimated by AFN at 63.4%, doubtful - 33.8%, bad - 2.8%. Total sum of deposits attracted by banks from legal entities and individuals (excluding banks and international financial organizations) by the beginning of June was KZT 1,202.5 bn. having increased within the month by 3.3% (including deposits of legal entities - KZT 825.1 bn., grew by 4.1% due to deposits of daughter organizations of special purpose; deposits of individuals - KZT 377.4 bn., grew by 1.6%). Total sum of second tier banks' revenues as of June 1 of 2004 was KZT 117.8 bn. having increased in comparison with similar period of last year by 39.9%. Total expenses were KZT 99.8 bn. having increased in comparison with similar period of last year by 36.0%. Undistributed net income (uncovered loss) of banks was KZT 18.1 bn. having increased within the reporting month by KZT 5.2 bn. In comparison with similar period of last year it grew by KZT 7.2 bn. Besides, AFN informs that on May 24 of 2004 the Board of AFN issued following resolutions concerning activity of banks in Kazakhstan: - #149 "About inclusion of modifications and additions in the resolution of the Board of the National Bank of Kazakhstan dated June 3 of 2002 #213 "About approval of the Rules about prudential norms for second tier banks ", registered in the Ministry of justice of Kazakhstan under the number #1902"; - #148 "About cancellation of the resolution of the Kazakhstan Agency for Regulation and Supervision of Financial Market and Financial Organizations dated March 15, 2004 #76 "About approval of the Rules about audit reporting requirements for banks, insurance and pension funds". In addition, AFN informs that as of June 1, 04, 15 banks in Kazakhstan were in the process of liquidation by the court's decision. [2004-06-15]