Auditor's report on financial statement of Temirbank JSC (Kazakhstan) for 2004

/IRBIS, Galina Tsalyuk, April 18, 05/ - Temirbank JSC (Almaty), whose securities are circulating in the official "А" 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 consolidated financial statement for 2004 prepared in compliance with international accounting standards (IAS). Result of the bank's consolidated financial and economic activity as of December 31 of 2004 is presented by the following indexes (th. KZT, unless otherwise specified): ------------------------------------------------------------------ Indicator 2003 2004 ------------------------------------------ ---------- ---------- Authorized capital (paid) 3,077,500 3,700,000 Shareholders' equity 4,398,452 5,531,024 Total assets 28,818,895 42,926,070 Total of liquid assets 10,312,643 12,221,997 Offerings and loans to banks (net) 16,589,865 28,671,675 Loans and advances to clients (net) 3,875,443 3,336,514 Liabilities, total 24,420,443 37,395,046 Indebtedness to clients 12,178,559 19,890,455 Indebtedness to banks 8,774,189 12,445,554 Other amounts due 1,145,999 1,702,755 Issued bonds 2,035,282 3,181,473 Net interest income before provisioning 1,766,260 2,172,651 Net noninterest income 1,227,429 1,045,768 Operational expnses 2,476,043 2,145,261 Deduction to reserves 166,701 426,960 Net profit 290,417 509,066 ------------------------------------------ ---------- ---------- Calculated according to audited statement: ------------------------------------------ ---------- ---------- Return on equity (ROE), % 6.60 9.20 Return on assets (ROA), % 1.01 1.19 Book value of one share, KZT 94.64 137.93 Earnings per share (EPS), KZT* 10.72 7.25 Price earnings ratio (Р/Е) 1,429.23 1,494.87 ------------------------------------------------------------------ Earnings per share (EPS) and price earning ratio (P/E) for 2004 have been calculated taking into account dividends on privileged shares paid by results of 2003. Audit was conducted by PriceWaterhouseCoopers in compliance with international auditing standards. The bank's financial statement was correspondingly corrected in order to bring it in conformity with IAS. The bank's consolidated financial statement comprises financial statement of daughter companies, in which the bank owns 100% of issued shares: - Temir Capital B.V. (Rotterdam, Netherlands), and Temirleasing OJSC (Almaty). In the auditor's opinion the consolidated financial statement in all essential aspects for sure reflects the bank's financial condition as of December 31 of 2004, and also consolidated results of its activity and cash flow for the year, which ended by the mentioned date, in compliance with IAS. [2004-04-18]