OREANDA-NEWS  On 16 September was announced, that according to a review of the financial statements in 1H 2008, BTA assets grew by 9.5% (USD 2.3 billion) up to 3.356 billion tenge (USD 27.8 billion). Balance capital increased by 4.9% to 474 billion tenge (USD 3.9 billion) due to a growing income of the current year.

In the reference period BTA has retained its highest capitalization position in Kazakhstan. The capital adequacy ratio of the Group calculated in line with recommendations of the Basel Committee made 19.8%, which is a highest figure for banks both in Kazakhstan and abroad.

Funding. The rise in the assets is attributed to an increase in the local client deposits. As of July 1, 2008 they totaled 747.7 billion tenge (USD 6.2 billion), a 15% rise, including retail client savings up by 10% and corporate client deposits up by 18%. At that BTA share in the aggregate increment of private deposits among second-tier banks of Kazakhstan in the first half of 2008 exceeded 90%. This indicates strength and robust image of BTA as a backbone financial institution of the republic.

These financial highlights are an onset of the long-term strategy of BTA persistent growth that is targeted at enhancing the local funding sources. Thus, BTA is committed to ramping up its share in the deposit market.

Floatation of subordinated bonds in excess of USD 500 million on the local market was an additional funding source in the reporting period.

BTA remains an unbeaten leader in the trade and structured financing. It is a reliable partner to bolster and back up the real sector of economy. Its trade finance transactions in January-June 2008 exceeded USD 1 billion.

Loan portfolio. The loan portfolio in January-June increased by 3.6% year-to-year to 2,465 billion tenge (USD 20.4 billion). As of July 1, 2008 BTA contributed 27.7% to the lending market of second-tier banks of Kazakhstan and accounted for 19.3% of loans to individuals and 31.0% of corporate loans.

The loan loss provision ratio was 6.5% vs. 5.4% at the end of 2007 and 3.6% as of July 1, 2007 which adequately features the current market behavior. Therefore the total provisions doubled as compared to H1 2007.

Foreign liabilities. The Bank continues successful discharge of its foreign liabilities as it repaid USD 560.9 million in the reporting half-year. Meanwhile in July – December 2008 BTA Bank pays off USD 637.4 million, which is less than 2.3% of its consolidated assets.

Profit. Owing to the efficient corporate management that rests on a system approach to clients, tight quality estimation of the loan portfolio and limited expenses the

Bank has adapted to the global liquidity squeeze. Concurrently it doubled provisions and received consolidated profit of 27,830 million tenge (USD 231 million).

As of July 1, 2008 RoAE was 12.0% and RoAA made 1.8%. The net interest margin rose to 6.1% in the period under review from 5.3% a year ago.

A record low cost-to-income that made 31.8% as of July 1, 2008 features BTA performance.

BTA financials in the first half of this year prove it is able to resist challenges and discharge tasks assigned in early 2008.

Acquisitions:

In July 2008 the Bank finalized an acquisition of Russia’s BTA Bank OJSC (formerly Slavinvestbank). As a result BTA stake in the bank rose to 52.8% and gained an efficient control over the Russian bank as its subsidiary starting from July 2008.

For BTA this acquisition is a next step within the asset consolidation against the toughening competition in the banking and financial markets of Kazakhstan and the CIS.

It was a next move in the implementation of the BTA’s 2015 Development Strategy that was announced to secure top positions in the CIS and gains, in particular at least a 2% share in the banking sector of Russia.