Jsc Halyk Reg S Regulatory News (HSBK)

15 Dec 2006 11:09

Credit Suisse Securities (Eur) Ltd15 December 2006 **NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND POSSESSIONS), CANADA, JAPAN OR AUSTRALIA** This press release is not a prospectus but an advertisement. Investors shouldnot subscribe for any transferable securities referred to in this announcementon the basis of this information. For Immediate Release 15 December 2006 JSC HALYK SAVINGS BANK OF KAZAKHSTAN ANNOUNCES NOTICE OF THE END OF STABILISATION ACTIVITIES RECEIVED JSC Halyk Savings Bank of Kazakhstan ("Halyk Bank" or the "Bank") todayannounces that it has received notice from Credit Suisse Securities (Europe)Limited, acting as the Stabilisation Manager on its Global Offer of globaldepositary receipts ("GDRs"), that stabilisation activities have ceased and thatall 4,250,000 GDRs have been sold in full. The underwriters will not exercisetheir put option to sell GDRs back to Holding Group Almex JSC. Including the over-allotment GDRs, the total size of the Global Offer was46,750,000 GDRs or US$748 million. Halyk Bank is one of Kazakhstan's leading banks, with the largest retailcustomer base and distribution network of any bank in Kazakhstan. The Bank isdeveloping as a universal financial services group offering a broad range ofservices (banking, pensions, insurance, leasing, brokerage and asset management)to its retail, SME and corporate customers. Credit Suisse, Deutsche Bank and Halyk Finance acted as Joint GlobalCo-ordinators of the Global Offer. Credit Suisse and Deutsche Bank acted asJoint Bookrunners of the Global Offer. Contact details Halyk Bank Dauren Karabayev +7 3272 59 88 66Galym Pirmatov +7 3272 59 60 81Ainur Ilyassova +7 3272 59 04 27 Credit Suisse Securities (Europe) Limited +44 20 7888 8888Nick Koemtzopoulos Deutsche Bank AG (London Branch) +44 20 7545 8000Daniel JacobowitzJulian Macedo Notes to Editors Information on Halyk Bank The Bank is one of Kazakhstan's leading financial services groups, with thelargest customer base and distribution network of any bank in Kazakhstan. TheBank is developing as a universal financial services group offering a broadrange of services (banking, pensions, insurance, leasing, brokerage and assetmanagement) to its retail, small and medium enterprise ("SME") and corporatecustomers. As at 30 September 2006, according to statistics published by the Agency ofKazakhstan on Regulation and Supervision of Financial Markets and FinancialOrganisations (the "FMSA"), the Bank had the largest retail deposit base inKazakhstan (with a 21.7 per cent. market share), as well as the largestportfolio in the fast growing mortgage loan market (a 21.8 per cent. marketshare) and had issued the largest number of payment cards in issue (a 50.1 percent. market share). In addition, the Bank was also the third largest bank inKazakhstan in terms of total assets. As at 30 September 2006, amounts due to theBank's retail customers were KZT 207,511 million while total amounts due tocustomers were KZT 481,631 million, mortgage loans were KZT 97,248 million whiletotal gross loans were KZT 540,613 million and total assets were KZT 797,012million. For the nine months ended 30 September 2006, the Bank had net incomeafter income tax expense of KZT 18,263 million and operating income (netinterest income plus net fees and commissions and other non-interest income) wasKZT 40,072 million. As at 30 September 2006, total shareholders' equity was KZT86,708 million. As at 30 September 2006, the Bank had some 5.9 million retail customers, (thelargest customer base in Kazakhstan), approximately 62,000 SME customers andapproximately 300 corporate customers. With the most extensive retaildistribution network in Kazakhstan, the Bank, as at 30 September 2006, servedits customers through 593 retail outlets, including regional and districtbranches in all 14 regions of Kazakhstan as well as through some 700 ATMs, thelargest ATM network in Kazakhstan. Other distribution channels used by the Bankinclude the Internet and mobile banking and in-store points of sale located atcertain shopping centres and supermarkets in Kazakhstan. In addition, the Bankuses the distribution channels established by some of its other business lines,principally the pensions and insurance businesses. The Bank operates in three core business lines: retail, SME and corporatebanking. Through subsidiary companies, the Bank's operations also includepensions, insurance, leasing, brokerage and asset management. According to FMSAstatistics as at 30 September 2006, the Bank's pension fund business had thelargest market share in Kazakhstan of approximately 27 per cent. and itsinsurance business had the largest network. The Bank offers a wide range of retail banking products and services, includingcurrent accounts, term deposits, consumer loans, mortgages, credit and debitcards, traveller's cheques, currency exchange, Internet and mobile banking andATM services. The Bank's corporate banking business provides a range ofwholesale banking products and services (including loans, payroll services andcash management) to corporate and SME business customers, financial institutionsand Government entities. Summary of Financials As at As at As at As at 31 December 31 December 31 December 30 2005 2004 2003 September 2006 (KZT millions)Total 797,012 559,665 393,254 249,523assets..................................Loans to customers...................... 504,383 411,097 254,590 163,888Amounts due to customers .................. 481,631 320,630 231,501 154,846Total shareholders' equity............. 86,708 64,444 35,568 21,796 Nine months ended 30 Years ended 31 December September 2006 2005 2005 2004 2003 (KZT millions)Net interest income 22,839 11,555 19,259 12,237 10,637Fees and commissions, net 14,403 11,021 15,248 9,318 6,803Operating income 40,072 26,188 38,926 24,620 20,259Net income after income tax 18,263 11,440 15,828 8,093 7,498 The official exchange rate as of 14 December 2006 was KZT 127.98 per US$1.00. Some of the information in this press release may contain projections or otherforward-looking statements regarding future events or the future financialperformance of the Bank. You can identify forward looking statements by termssuch as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similar expressions. TheBank wishes to caution you that these statements are only predictions and thatactual events or results may differ materially. The Bank does not intend toupdate these statements to reflect any events or circumstances occurring afterthe date hereof or to reflect the occurrence of unanticipated events. Manyfactors could cause the actual results to differ materially from those containedin projections or forward-looking statements of the Bank, including, amongothers, general economic conditions, the competitive environment, risksassociated with operating in Kazakhstan, as well as many other risksspecifically related to the Bank and its operations. Neither this press release nor any copy of it may be taken or transmitted,directly or indirectly, into the United States (including its territories anddependencies, any State of the United States and the District of Columbia),Australia, Canada or Japan. This press release does not constitute or form partof any offer or invitation to sell, or any solicitation of any offer to purchasenor shall it (or any part of it) or the fact of its distribution, form the basisof, or be relied on in connection with, any contract therefor. The offer and thedistribution of this press release and other information in connection with thelisting and offer in certain jurisdictions may be restricted by law and personsinto whose possession any document or other information referred to herein comesshould inform themselves about and observe any such restriction. Any failure tocomply with these restrictions may constitute a violation of the securities lawsof any such jurisdiction. This communication is only directed at (i) persons who are outside the UnitedKingdom or (ii) to investment professionals falling within Article 19(5) of theFinancial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to whom it maylawfully be communicated, falling within Article 49(2)(a) to (d) of the Order(all such persons together being referred to as "relevant persons"). Any personwho is not a relevant person should not act or rely on this communication or anyof its contents. This document does not constitute or form part of any offer or invitation tosell or issue or any solicitation of any offer to purchase or subscribe for anysecurities. These materials are not an offer for sale of, or a solicitation of an offer topurchase or subscribe for, any securities of Halyk Bank in the United States.Securities of the Bank may not be offered or sold in the United States absentregistration or an exemption from registration under the U.S. Securities Act of1933, as amended. The Bank has not registered and does not intend to registerany portion of the offering in the United States or to conduct a public offeringof any securities in the United States. Information contained in this press release does not constitute a public offeror an advertisement of the GDRs in Kazakhstan, is not an offer, or an invitationto make offers, to purchase GDRs in Kazakhstan. The GDRs have not been and willnot be registered in Kazakhstan and are not intended for "placement" or "publiccirculation" in Kazakhstan. This information is provided by RNS The company news service from the London Stock Exchange