Auditors' report on financial statements of Bank TuranAlem JSC (Kazakhstan) for 2004

/IRBIS, Galina Tsalyuk, May 11, 05/ - Bank TuranAlem JSC (Almaty), whose securities are circulating in Kazakhstan stock exchange's (KASE) official "А" listing category, presented KASE auditors' report conducted by Ernst & Yong (Almaty) on bank's financial statements for 2004, prepared in compliance with International Accounting Standards. According to the auditor's data, the following indexes are result of the bank's financial and economic activity as of December 31 of 2003 and 2004 (in m. KZT, unless otherwise specified): -------------------------------------------------------------------------- Index 2003 2004 ---------------------------------------------------- --------- --------- Issued authorized capital (paid excluding withdrawn) 20,351 27,804 Shareholders equity 30,683 50,328 Total assets 373,064 618,302 Sum of liquid assets 119,269 190,812 Loans advances for clients (net) 239,847 409,517 Liabilities, total 341,051 566,307 Liabilities before clients 140,318 226,710 Liabilities before banks 117,051 143,256 Issued bonds 74,174 182,079 Net interest income before provisions 15,055 24,960 Net non interest income 10,203 16,716 Operating income 10,021 14,222 Net income 4,620 7,303 ---------------------------------------------------- --------- --------- It's been calculated according to auditor's data: ---------------------------------------------------- --------- --------- Return on equity (ROE), % 15.06 14.51 Return on assets (ROA), % 1.24 1.18 Earnings per share (EPS), KZT 2,526.03 2,953.08 Price earnings ratio (P/E) 6.09 4.33 Book value of one share, KZT 14,470.52 17,335.00 -------------------------------------------------------------------------- Auditing financial statements of the Bank and affiliated companies (the Group) was made by Ernst & Yong in compliance with international auditing standards. The consolidated financial statements of the Group comprises financial statement of the following daughter companies: TuranAlem Securities JSC (Almaty, broker's services), BTA Leasing JSC (Almaty, leasing), BTA Mortgage OJSC (Almaty, mortgage crediting), TuranAlem Finance OOO (Moscow, Russia, financial services), TuranAlem Capital OOO (Moscow, Russia, financial services), TuranAlem Finance B.V. (Rotterdam, Netherlands, financial services), in which the bank owns 100% stakes, and also Insurance company "KBS Garant" OJSC (Almaty, insurance, share of the bank - 57.53%), PAPF "Kazakhstan" (Almaty, collection of pension deposits and pension payments, 87.75%), POAPF "Kurmet" JSC (Almaty, collection of pension deposits and pension payments, 66.0%), LIC Dinastiya CJSC (Almaty, life insurance, 66.0%), Insurance company "BTA" JSC (Almaty, insurance, 49.0%). Besides, the bank's consolidated financial statements comprises financial statement of the companies, in which the bank has not stake in authorized capital but controls their activity -"Kasko Construction" LLP (Almaty, building) and "Samal Properties" LLP (Almaty, eral estate), "Real Estate Commerts" LLP (Almaty, real estate management), "Force Technology" LLP (Almaty, information technologies). In the auditor's opinion, the financial statement exactly in all significant aspects reflects the Group's financial position as of December 31 of 2004 and 2004, about consolidated results of its financial and economic activity and cash flow within the reporting the years in compliance with international accounting standards. [2004-03-23]