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

/IRBIS, Assel Omarova, July 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 July 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), 15 - with foreign participation (including 10 daughter banks of banks-non-residents of the Republic of Kazakhstan) and Development Bank of Kazakhstan JSC. 25 second tier banks have branch networks, total number of banks' branches on the country's territory is 362 (within the reporting month permissions for opening of 5 branches were given), including branches of Halyk savings bank of Kazakhstan JSC - 149, Kazkommertsbank JSC - 23, BANK CASPIAN JSC - 27, 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 1,059 (within the reporting month permissions for opening of 13 CSO were given, permissions for opening of 2 CSO were cancelled), including CSO of Halyk savings bank of Kazakhstan JSC - 386, Bank TuranAlem JSC - 191. 18 representatives of foreign banks are functioning in the republic. At the beginning of July, 26 auditing organizations and 50 auditors had licenses for auditing banks. According to AFN's data, by the reporting date total shareholders equity of the banking sector equaled to KZT263.1 bn. (as of June 1, 04 - KZT261.9 bn.). Total assets of banks rose in June by 3.4% to KZT2,021.7 bn. (as of June 1 of 2004 assets equaled to KZT1,956.1 bn.). Adequacy indicators were k1 - 0.089; k2 - 0.154 (as of June 1 of 2004. k1 - 0.091, k2 - 0.156). Loan portfolio of banks including interbank loans rose by 2.9% within reporting month or by KZT38.7 bn. to KZT1,358.4 bn. Stake of standard credits was 62.1%, doubtful - 35.7%, bad - 2.2%. As of June 1 of 2004 stake of standard credits was estimated by AFN at 63.5%, doubtful - 34.0%, bad - 2.5%. Total sum of deposits attracted by banks from juridical and physical persons (excluding banks and international financial organizations) by the beginning of July was KZT1,241.6 bn. having increased within the month by 3.3% (including deposits of juridical persons - KZT825.1 bn., grew by 3.3% due to the current and card clients; deposits of physical persons - KZT389.5 bn., grew by 3.2%). Total sum of second tier banks' revenues as of July 1 of 2004 was KZT143.6 bn. having increased in comparison with similar period of last year by 36.8%. Total expenses were KZT119.4 bn. having increased in comparison with similar period of last year by 34.2%. Undistributed net income (uncovered loss) of banks was KZT24.2 bn. having increased within the reporting month by KZT6.1 bn. In comparison with similar period of last year it grew by 51.2%. Besides, AFN informs that on June 12 of 2004 the Board of AFN made resolution #157 "About approval of the Rules of coordination of candidates for the posts of senior officials of financial organizations". In addition, AFN informs that as of July 1, 04, 15 banks in Kazakhstan were in the process of liquidation by the court's decision. [2004-07-15]