Halyk savings bank of Kazakhstan JSC informed main results of its activity in 2005

/KASE, February 7, 06/ - Press service of Halyk savings bank of Kazakhstan JSC (Almaty) today spread press-release of the following content: Quotation start Grigoriy Marchenko, Chairman of the Board of Halyk Bank of Kazakhstan JSC announced results of the bank's activity in 2005. Growth of important indexes of Halyk bank certify about execution of strategic tasks for 2005 - keeping of the bank's leadership in retail market and strengthening of positions in corporate business. Halyk bank's net income for the last year was KZT14.1 bn. Assets reached KZT558.5 bn., having increased from the beginning of the year by 40.3% or by KZT60 bn. The bank's equity capital (calculated) as of January 1, 2006 is KZT80.3 bn. including: first rate capital (K1) - KZT47.2 bn., second rate capital (K2) - KZT33.1 bn. Considerable growth of credit portfolio is achieved (gross) (by 61.7%) - volume of credits granted to clients increased to KZT428.4 bn. Including credits to population grew by 127.7% to KZT161 bn. Volume of deposit base was KZT311.6 bn. Investments of population were KZT131 bn. (USD950 m.), out of them urgent - KZT95 bn., to be called for - KZT36 bn. At that growth on deposits of population in comparison with the last year was KZT21 bn. (by 18.8%). The bank stays acknowledged leader by number of acting payment cards, that is over 2.4 m. pieces. Volume of entries to card accounts was KZT363 bn., at that in December record index was reached - KZT47 bn. entered to card accounts of our clients. Servicing net of payment cards from 2005 increased to 586 cash dispensers and has nearly 3,700 POS-terminals and imprinters. At present time more 112 cash dispensers were get and are being installed, and also additionally 300 cash dispensers were purchased. Correspondingly in 2006 nearly 1,000 cash dispensers of Halyk bank will act. On April 19, 2005 the first in Kazakhstan mobile banking system was launched. During a year to Mobile banking system were connected all mobile operators of Kazakhstan. On January 29, 2006 in system were sent millionth message. The bank's branch net by the beginning of 2006 includes 539 structural subdivisions, including 19 oblast an regional, 126 regional branches and 394 cash settlement divisions. Within activation of social responsibility of Halyk bank, 2005 was marked by big charity projects. Budget of rendered charity and sponsor assistance was over KZT55 m. Informational data Growth of important indexes of Halyk bank's activity Last year became for Halyk bank rather valuable in plan of renewed team of top- management and adopted strategy, as well as from the point of view of achieved results. Halyk bank stays acknowledged leader in the market of rendering retail services. This is 23% on deposit base, 25% on retail crediting and 28% on mortgage crediting. Considerably grew volume of utility and other payments, hold through the Bank's cash dispensers. So, it was executed 2 m. payments for the amount over KZT1.7 bn. At that same time, the Bank stays main operator on payment of pensions and scholarships, out of them volume of paid pensions is KZT148.4 bn. The bank's clients continue actively use various services, executed with the help of payment cards. Service Card to Card l isstil innovation, and in a year over 122 th. operations for the amount KZT2.5 bn. were held. Also big popularity has service for opening of credit limit through cash dispenser, with the help of which today 65 th. credits are fixed for the amount over KZT1/6 bn. As of January 1, 2006 the Bank's corporate credit portfolio was KZT237.5 bn., having increased by KZT87.5 bn. or by 68% in comparison with January 1, 2005. Stake of corporate business in the Bank's loan portfolio as of January 1, 2006 was 59.1%. General tendency of the Bank's last years is prolongation of terms of financing according to demand of clients. Stake of credits with term over 1 year grew to 77.8% as of January 1, 2006 from 70.1% by the beginning of the year or by KZT147.7 bn. this index reflects demand of the bank's clients in more long term credits, which the bank issues owing to own funds, as well a within credit lines of international financial organizations. As of January 1, 2006 volume of loan portfolio was KZT238 bn., total number of borrowers - 323 clients. Growth of corporate credit portfolio in 2005 was 68% or KZT90.2 bn. Project to accept custom payments is developed using cards of Halyk bank. Monthly volume of operations increased by KZT2.5 bn. or by 1100%. It is necessary to note growth of number of operations on this service in comparison with last year by 102 th. operations or by 900%. In 2005 volume of custom payments, hold with the held of payment cards through POS-terminals of Halyk bank, established in custom bodies, was KZT33.9 bn. Total number of operations on service Acquiring in trade and service nets in 2005 was 382, 395 operations. Total volume of operations on service Acquiring in trade and service nets in 2005 was KZT7.1 bn. As of January 1, 2006 in system of Halyk bank 3615 non-budget organizations were registered, which are not participants of salary project, (as of January 1, 2005) in system of Halyk bank 2464 clients were registered). Thus, number of attracted clients within expired period was 1151, and growth was 46.7%. Besides, it is necessary to note, that number of issued corporate cards, including cards for payment of custom payments as of January 1, 2006 was 2512, this is by 1299 or by 107%, more than as of January 1, 2005 (1213 cards). Incomes of system Internet-Banking for individuals was in 2005 KZT53.6 m., and total turnover on all 5 types of internet-accounts of system - KZT19 bn., this is over 70% from all system of electronic banking for individuals. On April 19, 2005 the first in Kazakhstan system of mobile banking of such type was launched. Results of 8 months surpassed all expectations. Monthly number of clients increases by 15%. In January to system connected more 5 th. people and by February 2, 2006 system is used by over 35 th. clients of the bank. On the 9th month of work of system on January 29, 2005 in system was sent millionth message. From March 1, 2005, Halyk bank launched Program of small business crediting Business-light. At that, for the first time in Kazakhstan and CIS, the Bank offered such standard terms of crediting as: terms of crediting - to 7 (seven) years, opportunity to credit starting business. In ten months of operation of this program 6,396 loans were issued for the amount KZT23.5 bn., at that stake of financing of starting business is 16% an correspondingly 84% stake of acting business. Since October 5, 2005 realization of new Program of crediting of small business Business-Small was started. Within three months of operation of this Program 268 credits were issued for the amount KZT2.5 bn. Besides, since December 1, 2005 joint with Development of small entrepreneurship fund JSC Program for crediting of Business-SuperLight was introduced under the Fund's guarantee. Estimation of activity in the market of crediting of medium business in 12 months of 2005г. -------------------------------------------------------------------------- 01.01.05, struc- 01.01.06, growth in struc- bn. KZT ture, % bn.KZT 2005г., % ture, % ----------------------- --------- ------- --------- --------- ------- Total loan portfolio 203,0 100% 298,2 46,9% 100% Corporate clients 148,4 73,1% 235,0 58,4% 78,8% Crediting in branches: 54,6 26,9% 63,2 15,7% 21,2% "Business-Medium" 47,3 86,6% 29,7 -37,2% 9,9% " Business -Lights" 22,0 7,4% EBRD 7,3 13,4% 9,1 24,7% 3,1% Other programs of small business 2,4 0,8% -------------------------------------------------------------------------- As of January 1, 2006 in Halyk Bank of Kazakhstan JSC 56,163 clients are servicing, this is nearly 17% from total number of legal entities in Kazakhstan. In 2005 the Bank attracted 1,560 clients, main stake of which are subjects of small entrepreneurship. Within expired period employees of departments on work with clients attracted for servicing 935 clients (1.6% from total number of clients) in segment of serviing of medium business. Press service of Halyk bank GulziraA@halykbank.kz t. 3272- 590 816 Quotation end [2006-02-07]