Auditors' report on financial statements of Development Bank of Kazakhstan JSC for 2004

/IRBIS, Galina Tsalyuk, February 24, 05/ - Development Bank of Kazakhstan CJSC (Astana, the Bank), whose bonds are circulating in Kazakhstan stock exchange's (KASE) official "А" listing category, presented KASE report on audit results conducted by Ernst & Young LLP (Almaty) on bank's financial statements for 2004, prepared in compliance with International Accounting Standards (IAS). The report confirms following financial results of the company for the period ended December 31, 2003 and 2004 (in th of KZT unless otherwise specified): -------------------------------------------------------------------- Index 2003 2004 ---------------------------------------------- ---------- ---------- Issued (paid) authorized capital 37,700,000 48,351,300 Shareholders equity 41,721,072 55,416,813 Total assets 84,094,208 99,622,205 Total current assets 64,282,248 70,751,794 Loans granted to clients (net of bad debt) 19,310,848 28,574,224 Deposits in other FIs (net) 9,972,294 4,582,083 Liabilities, total 42,373,136 44,205,392 Clients' deposits 353,289 363,786 Borrowings from banks 4,720,552 6,794,902 Issued outstanding bonds 32,811,489 27,788,513 Net interest income 4,849,777 6,560,777 Net interest expense 1,790,744 2,435,003 Noninterest income (net) -983,059 596,692 Commissions and fees 36,098 -4,325 Other expenses 710,453 886,158 Net income 1,210,669 3,044,441 ---------------------------------------------- ---------- ---------- Financial ratios calculated based on auditor's data: ---------------------------------------------- ---------- ---------- Return on equity (ROE), % 1.44 3.06 Return on assets (ROA), % 2.90 5.49 -------------------------------------------------------------------- Bank's financial statements compliant with IAS were audited by Ernst & Young adherence to International Standards of Auditing. In the auditor's opinion, the financial statement exactly and in all significant aspects reflects the bank's financial position as of December 31 of 2004, and results of its activities, cash flow for the year, ended on December 31 of 2004, in compliance with international accounting standards. Primary activity - rendering of banking activities (except attracting of deposits and opening of accounts for physical and juridical entities, excluding opening and maintaining of accounts of conditional deposits, reserve accounts in compliance with agreements on loans that are guaranteed by the state, and also on servicing of investment projects, which are financed at the expense of means of Republican and local budgets). [2005-02-24]