AFS of state of financial market and financial organizations on April 1 of 2006

/IRBIS,Assel Omarova, May 10, 06/ - Agency of the Republic of Kazakhstan on regulation and supervision of financial market and financial organizations (AFS) spread press-release of state of financial market and financial organizations on April 1 of 2006, in which the following is said: the beginning of quotation Bank sector As of April 1 of 2006 bank sector of the republic is represented by 34 banks of the second tier, 14 banks of which are with foreign funds (including 9 subsidiary banks - non-residents of the Republic of Kazakhstan). As of April 1 of 2006 aggregate settlement shareholders' equity of the bank sector made KZT673.8 bn., having increased by KZT18.4 bn. for a month or by 2.8%. Aggregate assets of banks have increased for a month by KZT331.8 bn. (7,1%) till KZT4,987.3 bn. The indicators of adequacy of equity for reporting date made k1 - 0.10; k2 - 0.13 (on March 1 of 2006: k1 - 0.10; k2 - 0.15). Banks' loan holding (taking into account of interbank loans) increased by KZT82.8 bn. (2,6%) till KZT3,243.8 bn. In the structure of credit holding of banks as of April 1 of 2006 the stake of standard credits made 57.5%, doubtful - 39.9%, hopeless - 2.6%. At that, as of March 1 of 2006 the stake of standards credits made 58.7%, doubtful - 38.8%, hopeless - 2.5%. Total sum of deposits borrowed by banks at juridical and physical persons (excluding banks and international financial organizations) made KZT1,873.2 bn. with increasing by 5.3% for a month, including the sum of deposits of juridical persons - KZT1,234.7 bn. with augmentation by 6.4%, the sum of deposits of physical persons - KZT638.5 bn. with augmentation by 3.2%. Deposits of subsidiary organizations of a special assignment made KZT952.9 bn., having increased by 12.6% for a month. Aggregate sum of revenue of the banks of the second tier on April 1 of 2006 made KZT164.8 bn., having increased by 72.0%. in comparison with analogical period of past year. The sum of expenditures made KZT147.3 bn., having increased by 72.5% in comparison with analogical period of past year. Unallocated net income (uncovered loss) of banks made KZT17.4 bn. that was higher than given indicator by 68.9% for analogical period of past year. For infringement of bank legislation for March of 2006 the banks have been pronounced 2 compulsory mandates for performance, 1 letter-obligation, to 1 bank sanctions have been taken. As of April 1 of 2006 in the process of compulsory liquidation on court decision there are 13 banks. Insurance market As of April 1 of 2006 on financial market of the republic in compliance with given licenses by Agency 38 insurance organizations act, under this, licenses on activity realization on insurance of life have 3 organizations, on compulsory insurance. Civil responsibility of owners of vehicles represents 29 organizations. Also, on the market of insurance services 12 insurance brokers realize their activity, 30 actuators, 36 audit companies and 70 auditors having licenses for the right of realizing insurance audit. For three months of current year aggregate assets of insurance organizations increased by 14.3%, having made 1 KZT83.8 bn. on April. Aggregate shareholders' equity increased by 15.7% and made KZT52.4 bn. The sum of insurance reserves made KZT41.6 bn. The volume of insurance bonuses on April 1 of 2006 made KZT24.7 bn., that was higher by 39.5% than indicator for analogical period of past year. Including volume of insurance bonuses on compulsory insurance that increased by 55.6% and made KZT2.8 bn., on voluntary personal insurance - KZT2.2 bn.(increase by 57.1%) and on voluntary property insurance - KZT19.7 bn. (augmentation by 36.8%). In comparison with analogical period of 2005, the volume of insurance bonuses gathered for three months of 2006 in the sector лlife insurance¬ increased 2.1 times or up to KZT0.47 bn., and the stake of life insurance in aggregate insurance bonuses reached 1.9% against 1.3% on April 1 of 2005. The sum of insurance bonuses passed for re-insurance made KZT12.0 bn.or 48.6% from the total volume of insurance bonuses, at that, non-residents have been passed 46.6% from total volume of insurance bonuses for re- insurance (as of April 1 of 2005 the stake of insurance bonuses passed for re-insurance to non-residents made 35.7%). The volume of insurance payments made for three months of 2006 made KZT2.86 bn. that was higher than indicator of past year by 14.9%. Including the volume of insurance payments on compulsory insurance made KZT1.41 bn. (72.0%), on voluntary personal insurance - KZT0.33 bn. (augmentation by 10.0%) and on voluntary property insurance - KZT1.12 bn. (decrease by 18.8%). At present, 31 insurance (re-insurance) organizations take part in the system of insurance payments securing. On March of 2006 in the aim of eliminating infringements of legislation regulating activity of insurance market, 4 letters-directions were forwarded by Agency in the address of insurance organizations. As of April 1 of 2006 in the process of compulsory liquidation on court decision there are 8 insurance companies. In March 2006 by Board of Agency with the aim of further improving of insurance legislation have been considered and adopted enactments of "approval of Regulations of unprofitableness ratio calculation of insurance (re-insurance) organization, "of approval of Instructions of norm values and the method of calculations of prudential norms of insurance (re-insurance) organization, forms and terms of representing the reports of prudential norms performance¬, "of approval of Instructions on requirements to the method of valuation and to the principles of calculation of insurance tariffs due to classes (kinds) of insuring of insurance (re-insurance) organizations". Accumulative pension system As of April 1 of 2006 there are 14 accumulative pension funds in the republic, which have 76 affiliates and 77 representation offices in the regions of the republic. 10 organizations fulfills Investment management by pension assets of accumulative pension funds, at that, 3 accumulative pension funds among them having license for self-management by pension assets: Accumulative pension fund SAPF JSC, APF of Halyk Bank of Kazakhstan JSC and APF BTA Kazakhstan JSC. The quantity of personal pension accounts (hereinafter-the account) of depositors (recipients) on liabilities of pension dues as of April 1 of 2006 made KZT7,813,203. For March of current year the quantity of depositors' accounts (recipients) transferring compulsory pension dues, increased by 62,286 (0.80%). The quantity of depositors' accounts (recipients) on voluntary pension dues increased by 137 (0.42%) for March and made 32,551 on April 1 of 2006 with total sum of pension accumulation at KZT521.9 m. The quantity of depositors' accounts on voluntary professional pension dues grew by 17 (0.47%) for March and as of April 1 of 2006 made 3,646 with total sum of pension accumulation at KZT21.3 m. For March of current year the sum of pension accumulation of depositors (recipients) increased by KZT20.4 bn. (2.95%) and as of April 1 of 2006 made KZT714.0 bn. At that, total receipt of pension dues increased by KZT13.6 bn. or by 2.53% for March and made KZT549.3 bn. on April 1 of 2006. The sum of net investment income from investing of pension assets (minus commission remuneration), allocated on individual pension accounts of depositors (recipients), increased by KZT7.7 bn. (4.27%) for March of 2006 and as of April 1 of 2006 made KZT187.0 bn. In total sum of pension accumulation of depositors (recipients) the stake of net investment income makes 26.20% or increased by 0.33% for March of current year. Pension payments out of pension funds as of April 1 of 2006 made KZT39.4 bn. For March of current year pension payments out of pension funds made KZT0.99 bn., having increased by 2.56%. Pursuant to agreement of pension annuity pension accumulation dues made KZT28.6 m. including KZT8.8 m. for January-March of current year. Dues of pension accumulation of depositors (recipients) from one fund into another increased by KZT3.1 bn. for March and as of April 1 of 2006 made KZT102.9 bn. Weighted average ratio of nominal income of pension assets of accumulative pension funds made 22.76% for the period of March 2003 till March 2006, accumulated inflation rate for specified period made 24.21%. Securities market On the market of corporate securities the number of JSCs with actual issues on April 1 of 2006 made 2,277 societies that was by 16 lower in comparison with analogical indicator on March 1 of 2006. Also, there are 63 brokers- dealers, 17 registrars, 11 banks-custodians, 10 organizations fulfilling investment management by pension assets (OOIUPA) and 28 managers of investments holdings. On March of 2006 35 issues shares were registered (taking into account issues shares in the specifications of which changes have been made and substitution of certificate of state registration has been made), 39 issues shares were annulled. As of April 1 of 2006 года there were 2,440 actual issues shares in circulation. Also, in March of current year 7 issues bonds were registered by total face value at KZT41.2 bn., including 5 issues bonds to the sum of KZT37.0 bn., having been registered within frameworks of bonds programs. As of April 1 of 2006 there were 182 actual issues CS in circulation, summary face value of which made KZT762.3 bn. Since the beginning of 2006 7 shares investments funds have been registered in connection with it the quantity of actual securities of shares investments funds on the market increased up to 52 (41 - closed, 5 - opened and 6 - interval) as of April 1 of 2006. For three months of current year aggregate assets of shares investments funds increased by KZT4,076 m. and as of April 1 made KZT16,387 m. Also, during the first quarter of 2006, 4 stock investments funds have been registered, thus, 9 stock investments funds are functioning on the market, aggregate assets of which totaling to KZT23,607 m. as of April 1 of 2006, having increased by KZT6,129 m. since the beginning of the year. As of April 1 of 2006 the quantity of issues CS of issuers of the Republic of Kazakhstan included in KASE's official "А" listing category made 192 issues and in "В" category - 47 issues. In the first quarter of 2006 for violation of legislation of the Republic of Kazakhstan on securities market the following measures of influencing in relation with professional participants of securities market and of accumulative pension funds were taken by Agency: 5 directions were forwarded to the address of organization, implementing investment management by pension assets, managing by investment holding and to organizations fulfilling broker and dealer activity on securities market, and also 3 fines were imposed. In March 2006 by Board of Agency the following standard legal acts were taken: "Of approval of the form of reporting of results of offering shares of shares investment fund", "of incorporation of additions and changes in the enactment of Board of the National Bank of the Republic of Kazakhstan dated October 27, 2003 #382 "Of approval of Regulations of conducting the state register of issued securities". Sector of organizations fulfilling separate kinds of bank operations As of April 1 of 2006 there are 7 mortgage companies and 12 organizations, implementing separate kinds of bank operations on the basis of actual licenses on financial market of the republic. For reporting month main indicators increased characterizing the activity of mortgage companies. As of April 1 of 2006 the sum of aggregate assets made KZT84.5 bn., having increased by 6.7% for a month, aggregate liabilities reached KZT70.7 bn., augmentation by 7.4%, the size of shareholders' equity makes KZT3.7 bn., having increased by 2.2% for a month. The size of credit holding of mortgage companies for April 1 of 2006 made KZT74.7 bn. that by 3.2 bn. tenge or by 4.5% were higher the indicator for March 1 of 2006. In the structure of aggregate credit holding of mortgage companies as of April 1 of 2006 the stake of standard credits makes 98.7%, doubtful - 0.9% and hopeless - 0.4%. As of March 1 of 2006 the stake of standard credits made 98.5%, doubtful - 1.3%, hopeless - 0.2%. Consumers' interests protection of financial services In March 2006 74 complaints came to the Agency from physical and juridical persons, and also 5 requests from subjects of financial market. Corresponding explanations up to 37 have been presented, and 26 are under consideration. Out of general number of application 8% of letters toughed matters on activity of the banks of the second tier, 38% of letter are on matters of activity of insurance organizations, 11% -of accumulative pension funds, 5% - of activity of the subjects of securities market and 38% are of other matters of financial market. Also in March explanations were presented and disputable matters were regulated up to 45 earlier incoming appeals. Besides, on results of consideration of complaints of respondents to two insurance organizations the measures of influencing have been taken in kind of imposing of 5 administrative fines pursuant to article 174, part 2 КоАП for not fulfilling of insurance payment on agreements of compulsory insurance in planting and its untimely fulfilling on agreed contracts of compulsory insurance of civil responsibility of owners of vehicles. Along with it, in March Agency checked one of the insurance organizations resulted in pronunciation of Protocol of administrative violation. In the stage of checking there is one of the banks of the second tier. In the aim of bringing standard legal act with conformity with the Law of the Republic of Kazakhstan "Of pension security in the Republic of Kazakhstan", increasing of transparency degree of efficiency of functioning of accumulative pension system and rights protection and depositors' interests protection of compulsory pension dues and recipients of pension payments out of accumulative pension funds by resolution of Board of Agency dated March 25, 2006 #70 changes were taken in the project of enactment of Board of the National Bank of Kazakhstan dated April 21, 2003 #138 "Of approval of typical pension contracts at the expense of compulsory, voluntary and voluntary professional pension dues". In March in connection with accepting of enactment #2 dated January 9, 2006 by Board of Agency "Of approval of Regulations of remuneration rates calculation by STBs under disseminating the information of remuneration values on financial services", Agency has presented for all STBs explanations in written form on the method of calculation of remuneration rates. End of quotation [2006-05-10]