Bank TuranAlem JSC (Kazakhstan) reviewed activity in 2005 - press-release

/KASE, March 28, 06/ - Bank TuranAlem JSC (Almaty) today spread press release, which informs the following: Start of quotation Today in studio of Intergovernmental tele-radio-company MIR managers of bank TuranAlem JSC hold press conference in format of tele-bridge Almaty- Moscow for Kazakhstan and Russian reporters. Saduakas Mameshtegi, chairman of the Board noted: "Main result of 2005 became strengthening of the bank's trust, attraction of new corporate clients, strengthening of positions in the market of banking retail. This is merit of the whole staff. The bank's consolidated net income in 2005 was $110 m. in comparison with $50.6 m. in 2004, total assets - $7.447 bn., total equity capital - $941 m. (by international standards of financial reporting, as of January 1, 2006). In 2006 it is planned to increase income to $200 m., the bank's assets to $11-12 bn. We will note that as of March 20, 2006 preliminary indexes by Kazakhstan accounting standards were: assets - $8.042 bn., total equity capital - $1.372 bn. Corporate management code, approved by the general meeting of shareholders of Bank TuranAlem JSC on October 14, 2005, allowed clearly to distribute authorities of the bank's Board of directors and the Board, to increase degree of transparency and operation efficiency. Its regulations are elaborated according to acting legislation and international standards, practice of corporate behavior, ethic norms of the company's activity in the market of capitals. BTA is devoted to doctrine to maintain diversified business. The bank actively supports small and medium business, pays attention to support of enterprises of agricultural sector, construction sector and mortgage programs, and also strengthens positions in corporate market. Stake of BTA in the market of urgent deposits of individuals last financial year grew to 21.2%, growth of portfolio was $167 m. In 2005 financing of producers of agricultural production and in remote regions of Kazakhstan started. Credit policy of bank TuranAlem as a whole, in 2005 was based on principles of providing high reliability of investments, decrease of credit risks, high diversification of loan portfolio, long-term financial relations with borrowers. Portfolio of credits to small and medium business of bank TuranAlem in a year increased by 152% to $660 m. Terms of financing of entrepreneurs are increased to 10 years. They were issued 34 th. credits for $1.248 m. Loan portfolio of corporate clients grew by 31% and as of January 31, 2005 was KZT512 bn. or $3.82 bn. Main growth of portfolio on consumer crediting was owing to mortgage crediting and crediting for urgent needs. Volume of mortgage credits by group of BTA for 2005 was $409 m. Growth relative to 2004 was 60%. In 2005 the bank has increased volumes of issue of payment cards by 75%. Bank TuranAlem, expanding presence in CIS countries, has added in 2005 to existing in Russia, Ukraine and China 5 new representative offices: in Byelorussia, Kyrgyzstan, Georgia, Tajikistan and Armenia. In 2006 the bank plans to strengthen positions, increasing its stake in internal market to 25%. The first among Kazakhstan banks BTA floated eurobonds with floating rate for 3 years, for $200 m., ruble eurobonds for RUB3 bn. with circulation term 4 years. Diversifying investment base, the bank actively used also syndicated loans. The biggest of them - for $777 m., the biggest in CIS at the moment of attraction (September 20, 2005). Expanding investment base and diapason of products of international financing, the bank not only strengthened its positions in international markets, but also opened access to Kazakhstan companies to new forms and sources of international financing, assisted to promotion of image of Kazakhstan financial system as one of the most developed in group of countries with developing economy. Signed, for BTA, events of 2005, became joining in the board of shareholders of company BTA Leasing of Japanese corporation ORIX and international financial corporation IFC, creation of pension fund BTA Kazakhstan as a result of merging of APF Kurmet and APF Kazakhstan. In 2005 group of BTA got acknowledgment of famous British financial edition Euromoney. Experts awarded the bank in nominations: The best bank of CIS, The best Bank of Central Asia, and subsidiary company - TuranAlem Securities JSC - award The best investment house in Kazakhstan. Magazine The Banker called BTA The Bank of the Year 2005 in Kazakhstan. Kazakhstan stock exchange awarded BTA, sole listing company, with "gold" diploma. For contacts wit mass media: Valentina Vladimirskaya, press secretary of Bank TuranAlem JSC 8 (3272) 505-464, press@bta.kz End of quotation [2006-03-28]