Investor news

BTA Bank total assets in 2007 increased by 47.7%, net income was up 65.6%

JSC "BTA Bank" reported asset growth for the twelve month ended December 31, 2007 to US$25.5 billion (audited IFRS) and significantly strengthened its positions in the banking sector of Kazakhstan, increasing its market share in assets form 22.8% to 25.5%, in capital - from 22.1% to 32.2%.

Financial Highlights

• Total Assets increased by 47.7% to KZT 3,065 billion (US$25.5 billion).
• Net loans to customers increased by 77.1% to KZT 2,380 billion (US$19.8 billion), market share of the Bank during the year increased from 23.7% to 27.4%.
• Amounts due to customers increased by 23.5% to KZT 652 billion (US$5.4 billion).
• Shareholder’s Equity increased by 132.3% to KZT 452 billion (US$3.7 billion), the Bank maintained its position as the most capitalized bank in Kazakhstan.
• During 2007, the number of retail units increased to 289, the Bank established a network of 160 24-hours self-service terminals, the largest in Kazakhstan.
• Net income increased by 65.6% to KZT 64.7 billion (US$538 million).
• Capital adequacy ratio according to the BIS methodology (Tier 1 Adequacy Ratio) increased by 4.8% to 16.9% compared to 2006.
• Cost to Income ratio slightly increased to 30.1% over 28.7% last year but remains one of the best in Kazakhstan.

JSC "BTA Bank" enters 2008 in a distinctly improved leading position in banking sector of Kazakhstan. The growth of shareholder’s equity in 2007 by US$1.5 billion in combination with the long-term structure of liabilities decreases the Banks vulnerability to the international liquidity crisis" – said the Chairman of Management Board Roman Solodchenko, commenting the results of the Bank, - "On 13 March, 2008 the Bank has paid US$530.9 million, in April-December, 2008 the Bank is still to repay only US$667 million of its international loans, or 2.6% of assets, while the shift from corporate to SME and retail on the basis of previously created retail units and ATMs will allow us to increase transaction volumes in 2008 even if the negative trends at the financial markets persist".

Net Income of the Bank was recorded as KZT 64.7 billion, exceeding last year’s indicator by 65.6%. The most important profitability driver was the increase of net interest margin due to higher loan portfolio returns and the increased share of loans in assets.

Net interest income (before impairment charge) in 2007 increased by 2.8 times and amounted KZT 144.2 billion, and was influenced by the increased share in assets from 64.7% to 77.7%, while the growth of average cost of the Bank’s liabilities in 2007 by 0.6% to 8.2% was compensated by the rise of return of loan portfolio by 1.3% to 14.7%.

Net non interest expenses during 2007 almost doubled to KZT 61.6 billion and was influenced by the increase of business scales of the Bank and accompanying growth of salaries and other employee benefits. During 2007 the number of employees increased by 36.6% to 7,184; the number of retail units of the bank increased to 289. Cost to income ratio increased insignificantly to 30.1% over 28.7% last year and remains one of the best in Kazakhstan.

Return on average equity (RoAE) and return on average assets (RoAA) in 2007 were 22.4% and 2.4% respectively compared to 35.8% and 3.0% in 2006.

Total assets of the Bank increased by 47.7% and as of January 1, 2008 amounted to KZT 3,065 billion (US$25.5 billion), due to high growth rates in the Assets of the Bank in the banking sector of Kazakhstan, which increased by 22.8% to 25.5%.

Loan portfolio of the Bank (less allowance for impairment) in 2007 increased by 77.1% and amounted to KZT 2,380 billion. The change in structure of assets operations of the Bank allowed exceeding growth rates of the loan portfolio towards reducing the share of operations in financial markets, the increase in the resources base in 2007 was used to finance customers. Allowances for impairment equaled 5.4% of the loan portfolio (5.0% in 2006).

Amounts due to customers of the Bank in 2007 increased by 23.5% to KZT 652 billion, the share of JSC "BTA Bank" in customers’ deposits in Kazakhstan equaled 23.7% (corporate deposits – 24.9%, retail - 19.5%).

Shareholder’s Equity increased by 2.3 times and amounted to KZT 452 billion. The significant growth of shareholder’s equity was provided by capital injection from shareholders in 2007.

Tier I Capital adequacy ratio and Total Capital Adequacy Ratio according to BIS methodology were up to 16.9% and 17.6% compared to 12.1% and 17.5% in 2006.

Bank at a glance

JSC "BTA Bank" is one of the largest banks in Kazakhstan and a leader in CIS expansion. JSC "BTA Bank" provides banking services to more than 1.2 million retail and 95.6 thousand corporate customers. Its strategic partner banks cover Russia, Ukraine, Belarus, Georgia, Armenia, Kyrgyzstan and Turkey.

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JSC "BTA Bank" will be hosting a teleconference call for analysts and investors tomorrow, April 17th at 2 pm London time (9 am New York/ 5 pm Moscow/ 7 pm Almaty) with its senior management to announce BTA's audited consolidated results for the year ended 31 December 2007 and to reply to questions of investors and analysts.

The conference call can be accessed by dialing: + 44 (0) 20 7138 0821
Access code is: 8427764
Participants should register for the call at least ten minutes before the start of the presentation.
The call and presentation will be also broadcast live over Internet:
http://www.thomson-webcast.net/de/dispatching/?event_id=6771ecbd6dcd06a8829b4a9e7d141aac&portal_id=70718af7715c8da678375d4e1efa04f7

IR contacts
Mr. George Iosifian
Member of the Management Board
e-mail: iosifian@bta.kz

Mr. Sadyr Shaguzhayev
Director
Loan&Capital Markets and Investor Relations
e-mail: shaguzhayev@bta.kz
tel: +7(727)250-06-71

Mr. Damir Seisebayev
Investor Relations
e-mail: seisebayev@bta.kz
tel: +7(727)312-46-71

Ms. Marina Kahiani
Investor Relations
e-mail: kahiani@bta.kz
tel: +7(727)266-72-41

Table. Key financial indicators of Bank's performance in 2007:

Notes: all indicators are translated into USD at the official NBK exchange rates: December 31, 2007 – 120.3 KZT/USD, December 31, 2006 – 127.0 KZT/USD, December 31, 2005 – 133.98 KZT/USD