Auditor's report on financial statement of Kazinvestbank JSC (Kazakhstan) for 2003

/IRBIS, Galina Tsalyuk, July 1, 04/ - Kazinvestbank JSC (Almaty, before - Kazakhstan International Bank OJSC), whose common shares are in the official "B" listing category of Kazakhstan stock exchange Inc. (KASE), has presented to KASE auditor's report made by PriceWaterhouseCoopers (Almaty), which was made on the bank's financial statement for 2003 prepared in compliance with international accounting standards (IAS). Result of the bank's financial and economic activity in 2003 is as follows, in accordance with audited statement's data (th. KZT, unless otherwise specified): ---------------------------------------------------------------- Indicator 2002 2003 ------------------------------------------ --------- --------- Authorized capital (paid) 1,000,000 1,000,000 Shareholders' equity 979,504 1,056,714 Total assets 1,100,005 1,182,491 Liquid assets 179,391 96,019 Accounts in credit institutions 159,864 - Loans to clients (net) 769,908 972,999 Liabilities, total 120,501 125,777 Indebtedness to banks 89,597 12,582 Clients' accounts and deposits 25,610 108,666 Net interest income 100,172 99,052 Net non-interest income 33,219 4,748 Restoring of reserve (reserve) (174,651) 92,470 Net income (loss) (109,848) 77,210 ------------------------------------------ --------- --------- Calculated according to audited statement: ------------------------------------------ --------- --------- Return on equity (ROE), % -11.21 7.31 Return on assets (ROA), % -9.99 6.53 Book value of one share, KZT 97.95 105.67 Earnings (loss) per share (EPS), KZT (10.98) 7.72 ---------------------------------------------------------------- Audit was conducted by PriceWaterhouseCoopers in compliance with international auditing standards. The bank's financial statement made in compliance with the requirements of Kazakhstan legislation was correspondingly corrected in order to bring it in conformity with IAS. The auditor pays attention on the following things: loans given by the bank to 5 borrowers for a total of KZT935,228 th. are equal to 88% of total size of its credit portfolio as of December 31 of 2003; the borrowed deposit of one client for KZT100,000 th. is equal to 99% of total size of deposits placed in the bank as of December 31 of 2003. In the auditor's opinion the financial statement in all essential aspects for sure reflects the bank's financial condition as of December 31 of 2003, and also results of its activity and cash flow for the year, which ended by the mentioned date, in compliance with IAS. [2004-07-01]