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

/IRBIS, Galina Tsalyuk, June 8, 05/ - Tsesnabank JSC (Astana), whose securities are circulating in the official "A" listing category of Kazakhstan stock exchange Inc. (KASE), has presented to KASE auditor's report made by Ernst & Young (Almaty) on the bank's financial statement for year 2004 prepared in compliance with international accounting standards (IAS). Result of the bank's financial and economic activity in 2004 is as follows, according to the audited data (th. KZT, unless otherwise specified): ---------------------------------------------------------------- as of as of Indicator Dec 31, 03 Dec 31, 04 ---------------------------------------- ---------- ---------- Authorized capital (paid) 531,067 777,413 Shareholders' equity 1,333,839 2,000,510 Total assets 12,146,159 20,300,405 Liquid assets 3,943,727 7,341,873 Loans to clients (net) 7,522,837 12,022,151 Funds in of credit institutions 529,444 2,220,843 Liabilities, total 10,812,320 18,299,895 Indebtedness to clients 8,936,524 14,354,528 Borrowed loans (excluding bonds) 1,843,744 2,344,814 Issued bonds - 1,467,258 Net interest income before reserves 848,405 1,076,711 Net commission income 330,610 423,957 Net non-interest income 156,853 127,123 Operational expenses 797,328 1,165,283 Deductions to reserves 171,695 14,728 Net income for the year 319,038 420,325 Basic and watered earning per share, KZT 600.75 636.81 ---------------------------------------- ---------- ---------- Calculated by audited statement: ---------------------------------------- ---------- ---------- Return on equity (ROE), % 23.92 21.01 Return on assets (ROA), % 2.63 2.07 Price earnings ratio (P/E) - 1.57 Book value of one share, KZT 2,511.62 2,571.70 ---------------------------------------------------------------- Audit of the bank's financial statement for year 2004 was made by Ernst & Young in compliance with international auditing standards. In the auditor's opinion the financial statement in all essential aspects for sure reflects the bank's financial condition as of December 31 of 2004, and also results of its activity and cash flow for the years, which ended by the mentioned dates, in compliance with IAS. The auditor draws attention on note 21 of the auditor's report concerning the negative difference between bank's assets and liabilities as of December 31 of 2004 and plans of its governing body on removal of this negative difference. [2005-06-08]