Auditors' report on financial statements of Halyk savings bank of Kazakhstan JSC (Kazakhstan) for 2004

/IRBIS, Galina Tsalyuk, April 22, 05/ - Halyk savings bank of Kazakhstan JSC (Almaty), whose securities are circulating in Kazakhstan stock exchange's (KASE) official "А" listing category, presented KASE auditors' report conducted by Ernst & Young (Almaty) on bank's financial statements for 2004, prepared to International Financial Reporting Standards. According to the auditor's data, the following describes bank's position and financial results as of December 31 of 2004 (in m. KZT, unless otherwise specified): ---------------------------------------------------------------------------- Index as of as of Dec 31, 03 Dec 31, 04 ---------------------------------------------------- ----------- ----------- Issued authorized capital (paid excluding withdrawn) 9,881,061 15,742,686 Shareholders equity 21,238,258 35,036,024 Total assets 249,523,242 393,253,900 Total current assets 75,507,686 124,397,799 Amounts due from banks 7,290,929 695,379 Loans and advances to clients (net) 163,888,497 254,590,193 Liabilities, total 228,081,728 358,000,847 Demand and time deposits 154,845,698 231,501,361 Deposits from banks and financial organizations 62,405,064 76,963,571 Issued bonds 8,582,604 44,939,974 Net interest income before provisions 15,013,040 20,191,300 Commissions and fees (net) 6,563,781 9,318,421 Operating income 2,818,562 3,064,751 Operating expenses 10,602,525 13,542,933 Provisions 5,521,209 8,940,724 Net income 7,460,278 8,088,143 Basic and diluted earnings per share, KZT* 75.68 79.21 ---------------------------------------------------- ----------- ----------- It's been calculated according to auditor's data: ---------------------------------------------------- ----------- ----------- Return on equity (ROE), % 35.13 23.09 Return on assets (ROA), % 2.99 2.06 Book value of one share, KZT 214.94 313.09 Price earnings ratio (P/E) 1.59 1.39 ---------------------------------------------------------------------------- * - as per auditor's data. Auditing of the bank's and its daughter companies (the Group) financial statement was conducted by Ernst & Young in compliance with international standards on auditing. The consolidated financial statements of the Group include financial statements of the following daughter companies, in which the Bank possesses 100% ownership: Halyk Leasing CJSC (Almaty, leasing), Kazteleport CJSC (Almaty, telecommunications services), Halyk Finance (Almaty, brokerage-dealer services, 100%), Accumulative pension fund of the Halyk Bank of Kazakhstan JSC (Almaty, pensions collection and investment management); Khelbny AKB (Tchelyabinsk, Russia, 76.88%), Halyk Bank OJSC (Bishkek, Kyrgyz Republic, 100%), Agency for investment return research LLP (Almaty, research activities) and HSBK (Europe) B.V. (Amsterdam, the Netherlands, financial services). In opinion of Ernst & Young, the financial statements exactly in all significant aspects reflect the Group's financial position as of December 31 of 2004, and consolidated results of its financial and economic activity and cash flow for the year ended as of mentioned date in compliance with international accounting standards. [2005-04-22]