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

/IRBIS, Galina Tsalyuk, June 16, 05/ - Kazinvestbank JSC (Almaty hereinafter - bank), whose common shares are included in official securities list of Kazakhstan Stock Exchange (KASE) under "A" category, has provided KASE with auditor's report made by Ernst & Young (Almaty) on the bank's financial statement for 2004 prepared in compliance with international accounting standards (IAS). Result of the bank's financial and economic activity as on December 31, 2004 according to audit statement is as follows (th. KZT, unless otherwise specified): ------------------------------------------------------------- as of as of Indicator Dec 31, 03 Dec 31, 04 ------------------------------------- ---------- ---------- Authorized capital (paid) 1,000,000 1,450,000 Shareholders' equity 1,056,714 1,508,959 Total assets 1,182,491 8,588,769 Liquid assets 96,019 4,483,207 Accounts in credit institutions - 431,665 Borrowings to clients (net) 972,999 3,200,157 Total liabilities 125,777 7,079,810 Debt to banks 12,582 4,299,221 Clients' accounts and deposits 108,666 2,775,087 Net interest income before reserves 99,052 274,479 Commission and fees (net) -1,357 66,830 Net non-interest income 6,105 33,702 Operational expenses 97,438 312,427 Renewal of reserve (reserve) 92,470 (54,559) Net income for the year 77,210 2,245 Income per share, KZT 77.21 1.83 ------------------------------------- ---------- ---------- Calculated by audit statement's data: ------------------------------------- ---------- ---------- Return on equity (ROE), % 7.31 0.15 Return on assets (ROA), % 6.53 0.03 Balance cost of 1 share, KZT 105.67 104.07 ------------------------------------------------------------- Audit of the bank's financial statement for the year 2004 was made by Ernst & Young company in compliance with international auditing standards. Without reservations, Ernst & Young company draws attention to notes 9 and 14 to financial statement, which reveals concentration of commercial loans and amounts of debts to clients correspondingly. In the opinion of Ernst & Young company, financial statement in all essential aspects gives authentic notion of bank's financial position as on December 31, 2004, about results of its activity and cash flow for the year, ended on the above date, according to ISFR. [2005-06-16]