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

/IRBIS, Galina Tsalyuk, June 7, 05/ - DANABANK JSC (Pavlodar), whose common shares are circulating in Kazakhstan stock exchange's (KASE) official "B" listing category, has presented to KASE report of Deloitte & Touche (Almaty) made on the bank's financial statement for year 2004 prepared in compliance with international accounting standards (IAS). According to the auditor's data, result of the bank's financial and economic activity as of December 31 of 2004 as follows (th. KZT, unless otherwise indicated): ------------------------------------------------------------- as of as of Indicator Dec 31, 03 Dec 31, 04 ------------------------------------- ---------- ---------- Authorized capital (paid) 1,000,000 1,050,000 Shareholders' equity 1,041,924 1,094,449 Total assets 2,286,397 2,665,314 Total liquid assets 273,257 222,561 Offerings and loans to banks (net) 2,718 6,652 Loans and advances to clients (net) 1,782,241 2,074,101 Liabilities, total 1,244,473 1,570,865 Indebtedness to the state budget 246,997 295,717 Indebtedness to clients 980,744 1,104,985 Banks' deposits - 150,000 Net interest income (before reserves) 77,459 117,718 Net non-interest income 49,241 47,263 Operational costs 106,562 143,440 Deductions to reserves 16,813 9,822 Net income 1,142 2,525 Earnings per share (basic), KZT 1.4 2.5 ------------------------------------- ---------- ---------- Calculated by auditor's data: ------------------------------------- ---------- ---------- Return on equity (ROE), % 0.11 0.23 Return on assets (ROA), % 0.05 0.09 Book value per share, KZT 1,041.92 1,042.33 ------------------------------------------------------------- Price earnings ratio (P/E) was not calculated because market price of banks' shares was absent. Audit was performed by Deloitte & Touche in compliance with international auditing standards. The bank's financial statement was correspondingly corrected in order to bring it in conformity with IAS. In the auditor's opinion, the financial statement exactly in all significant aspects reflects financial position of the bank as of December 31 of 2004, and also results of its activity and cash flow for the year, which ended on that date, in compliance with IAS. [2005-06-07]