Auditors' report on consolidated financial statements of Kazkommertsbank JSC (Kazakhstan) for 2004

/IRBIS, Galina Tsalyuk, March 9, 05/ - Kazkommertsbank OJSC (Almaty), whose securities are circulating in Kazakhstan stock exchange's (KASE) official "А" listing category, presented KASE auditors' report prepared by Deloitte (Almaty) on the bank's consolidated financial statements for 2004. Financials for 2004 were prepared in compliance with International Financial Reporting Standards (IFRS). According to the auditor's data, the following describes bank's financial position and results of its activities as of December 31 of 2003 and 2004 (in th. KZT, unless otherwise specified): --------------------------------------------------------------------------- As of As of Index Dec 31, 03 Dec 31, 04 ------------------------------------------------- ----------- ----------- Issued authorized capital (paid) 4,018,930 4,197,179 Weighted average issued shares, units 325,817,299 346,141,258 Shareholders equity 45,578,892 57,306,680 Total assets 434,241,157 704,056,563 Sum of liquid assets 141,362,097 191,881,376 Issues and loans to clients (net) 283,062,443 494,930,550 Issues and loans to banks (net) 38,582,824 41,833,562 Liabilities, total 383,957,640 641,281,814 Indebtedness before banks 76,221,919 170,331,348 Indebtedness before clients 151,589,416 197,827,313 Bonds issued (excl subordinated) 98,233,366 207,840,717 Subordinated debt (incl subordinated bonds) 8,732,914 19,447,698 Other attracted resources 3,525,473 4,463,967 Net interest income 16,482,385 28,754,800 Net non-interest income 9,923,839 12,014,954 Operating expenses 8,969,071 9,511,039 Net income 8,760,761 8,689,299 Earnings per share, KZT (basic and diluted) 25.89 24.26 ------------------------------------------------- ----------- ----------- It's been calculated according to auditor's data: ------------------------------------------------- ----------- ----------- Return on equity (ROE), % 19.22 15.16 Return on assets (ROA), % 2.02 1.23 Earnings per share (EPS), KZT* 139.89 165.56 --------------------------------------------------------------------------- * - calculated as weighted average number of shares. Deloitte audited statements in compliance with International Standards on Auditing. Accounting journal entries and accounts of bank's foreign subsidiaries were correspondingly corrected in order to bring it in compliance with international accounting standards. The bank's consolidated financial statements comprises financial statements of the following daughter companies in which the bank owns 100% stake of issued shares: Kazkommerts Securities OJSC (Almaty, brokerage house), Processing company LLP (Almaty, operations on payment and other crads), Kazkommerts International B.V. (Rotterdam, the Netherlands, SPV for borrowing capital at international capital markets), as well as IC Kazkommertspolis OJSC (Almaty, insurance. 65.0% of shares issued), Kazkommertsbank Kyrgyzstan (Bishkek, banking activity, 93.58% of shares issued). Financial statements of bank's daughter companies Kazkommerts Capital - 2 B.V. and Kazkommerts Finance 2 B.V. were ignored in consolidation of group's financial statements because of immateriality of operations. In December the Bank sold 100% in Kazkommerts Invest JSC (Almaty, financial services) company. In the auditor's opinion, the consolidated financial statement exactly in all significant aspects reflects consolidated financial position of Kazkommertsbank JSC and its consolidated daughter companies as of December 31 of 2003 and 2004, consolidated results of their activity and cash flow for each year, which ended by the mentioned dates, in compliance with IFRS. [2005-03-09]