Temirbank

Joint Stock Company Temirbank was established on 26 March 1992 with a head-office in Almaty. The branch network of the Bank includes 50 sales outlets, being represented almost in all regional centers of Kazakhstan in the cities with a population of over 100 thousand people. As of 01.01.2006 assets of the Bank equaled KZT 74,402 mln., net profit in 2005 reached KZT 2,617 mln. Bank's personnel comprises about 1,400 people. Today Temirbank is a universal financial institution rendering a wide range of services both to corporate and individual clients. The Bank is authorized to participate in the Small Enterprises Support Fund, financing small and medium sized businesses under programs of European Bank for Reconstruction and Development, Asian Development Bank (ADB) and International Bank for Reconstruction and Development (IBRD). In mid 2005 in view of the growth prospects of retail market, the Bank's management decided to position it as a niche player in retail sector, earning on mass replication of products for individuals. Pursuant to development strategy for 2006-2006 adopted and approved by the Board of Temirbank's Directors, the Bank implemented process of active transition into retail bank. Bank products sales plan in 2006 is based on strategic idea of aggressive development of credit instruments for individuals: mortgage and car loans, consumer and business purpose loans. Temirbank is ready to ensure access to maximal range of bank products for diverse social groups and categories of Kazakhstan population. Calendar of events 2006 On 15 March Temirbank announced a debut placement of Eurobonds with a 9.25% coupon for USD 150 mln. with a 3-year maturity. The issue was done through its subsidiary - Temir Capital B.V. International rating agencies Fitch Ratings and Moody's Investors Services assigned the issue B- and B1 ratings, respectively. Dresdner Kleinwort Wasserstein and TuranAlem Securities acted as lead managers of the deal. On 1 March international rating agency Fitch Ratings confirmed credit ratings of the Bank: long-term credit rating "B-", short-term "B", Individual "D/E", Support rating "5" with a "Stable" Outlook for all ratings. 28 February - international rating agency Moody's Investors Services confirmed the following credit ratings of the Bank: long-term deposit rating "B1", short-term deposit rating "NP" and Financial Strength rating "E+" with a "Stable" Outlook for all ratings. 2005 30 December - Temirbank signed an agreement with a leading Indian software company "3i Infotech Limited" and ICICI Bank on cooperation in introduction of "Triton" universal retail lending technology. In November 2005 the International Rating Agency Fitch assigned the Bank following ratings: "B" short-term credit rating and "B-" long-term credit rating, Individual "D/E", Support rating "5" with a "Stable" Outlook for development of the Bank. Within a KZT 30 bln. bond program the Bank registered three issues of Bank's bonds for KZT 12 bln. with a partial issue of secured bonds (mortgage bonds). November - the Bank sold 41% of Temirleasing shares through Kazakhstan Stock Exchange. Temirbank's shareholding in the capital of JSC "Kunayev Open Accumulative Pension Fund" increased to 48.91% shares. August - Temirbank acquired 100% shares of JSC "First Broker House" licensed to broker-dealer operations and investment portfolio management. On 14 June 2005 the Board of Directors of Temirbank adopted a decision to introduce changes into the structure of the Bank's Board. Mr. Murat Yuldashev was appointed the Chairman of the Board of Temirbank. The updated strategy of the Board of Directors stipulates growth of capitalization, higher quality of services, expansion of customer scope of cooperation. 2004 October - Temirbank acquired a 14.4% share stake in JSC "Kunayev Open Accumulative Pension Fund" May - the Bank launched a private housing construction lending program for individuals. April - the Bank started granting express-loans to individuals. January - Temirbank signed a General Agreement with "Kazakhstan Mortgage Company" on cooperation in granting of mortgage housing loans. 2003 In October 2003 Fitch Ratings, the international rating agency, upgraded Temirbank's Outlook to Stable from Negative. At the same time, the agency has affirmed Bank's ratings at Long-term 'B', Short-term 'B', Individual 'D' and Support '5'. In September 2003 Temirbank signed an agreement with Global Refund company and became its sole agent in Kazakhstan on refund of tax-free cheques. Temirbank is also known as the Organizer of Almaty Interbank Conference of CIS and Baltics. Which in 2003 was held for the fourth time. The forum was attended by more than 300 delegates from 19 Western countries and CIS states. In September the Bank signed Agreement on mutual cooperation with commercial banks of four countries: Kazakhstan, Kyrgyzstan, Latvia and Russia. "Dialog-Optim" Bank (Russia), Ineximbank (Kyrgyz Republic), Temirbank (Kazakhstan) and Trasta Comerc banka (Latvia) became members of the new interbank alliance. The objectives of the new alliance are: To create maximally favorable regime in realization of both own programs of each alliance member and joint projects; Strategic partnership on international financial and CIS markets; Mutual introduction of new banking technologies; Working out mechanism for bank risks minimization. Besides, participating banks have already signed and planned to enter into a number of bilateral agreements, which would create a structure for mutual participation in the capital of each other and establish a legal base for interaction on market of each alliance participant. In June in cooperation with Kazakhstan insurance Company "Kommesk-Omir" the Bank apart from interest remuneration started to provide its depositors a free of charge medical insurance. Thereby, the Bank became the first Kazakhstani bank to render such service to its clients. In June 2003 Temirbank signed Share Purchase Agreement and thereby became a major shareholder of Kyrgyz Ineximbank, having acquired 46% shares of additional issue. Temirbank's entry in Kyrgyzstan was due to considerable growth in the number of small and medium sized enterprises, whom Temirbank paid special attention in working with and increase of trade volume between the two countries. In May the Bank raised its third USD 20 mln. syndicated loan. Full and timely repayment of previous loans allowed the Bank to receive a new loan on more favourable conditions (longer term, bigger amount and lower interest rate). Raised funds were used by the Bank for refinancing of its corporate clients contracts. The European Bank for Reconstruction and Development is acquiring a 25 per cent stake in the Kyrgyz Republic's Ineximbank through a $1.4 million investment aimed at helping the sixth-largest Kyrgyz bank to develop into a strong medium-sized lending institution with a focus on small enterprises and retail loans. In March 2003 Temirbank had insured its banking risks with a USD1 mln. cover. The insurance policy (known generally as "Bankers' Blanket Bond", or simply BBB) is an integral attribute of reliability, security and business reputation of the Bank. Financial insurance was received from international insurance company AIG through Marsh (insurance brokers). As of 1 January 2003 PriceWaterhouseCoopers undertook a review of Bank's corporate governance and risk management systems with regard to their compliance to international standards. Under the results of the review the audit company prepared a report evidencing that basic risks management system, as well as internal control and internal audit of the Bank comply to generally accepted practices. 2002 In December 2002 Temirbank increased its share capital by amount equal to USD 9.2 mln. Capital increase was done in two stages: during the first stage ordinary voting shares of the Bank were placed on the internal stock exchange market of Kazakhstan among pension funds and asset management companies, at the second stage Global Depositary Receipts were placed on European stock exchange markets, making Temirbank the third Kazakhstani bank after Kazkommertsbank and Bank TuranAlem to place its depositary receipts on the international stock exchange markets. As a result of share placement the paid-in share capital of the Bank almost doubled and reached KZT 2,825 mln. This allowed the Bank to not only improve its financial indicators, but also positively influenced its rating among depositors and partners on Kazakhstani and the international stock exchange markets. In September 2002 "Temirleasing" JSC, a 100% subsidiary of the Bank was created. Temirleasing is dealing with lease of liquid equipment, special machinery, transport vehicles and agricultural equipment. The Company considers projects, realized on the territory of Kazakhstan irrespective of their geographical location. In 2002 Bank's management adopted a decision on forced entry on retail services market. Therefore, in May 2002 the Bank acquired an associated membership in the international Visa International payment system and started issue own cards, and also entered into an agreement with AMERICAN EXPRESS to launch distribution of cards and payment cheques of this company among its clientele. Retail and mortgage lending program was also worked out and launched. In May 2002 the Bank raised its second USD 15 mln. syndicated loan. Raised funds were used by the Bank for refinancing of its corporate clients contracts. In future Temirbank team intends to continue working on syndicated loans market. 2001 Temirbank is active on international capital markets. Since the new team stepped-in in April 2001, the Bank raised and placed four syndicated loans. In August 2001 the Bank acted as the arranger of the first Kazakhstani syndicated loan for Russian bank (International Bank "Astana"), and three months later in November, received its first syndicated loan for USD 10 mln. In April 2001 under the decision of Shareholders Meeting the authority of previous Board of the Bank was terminated ahead of scheduled time. The newly elected Board headed by Oleg Kononenko has a longstanding work experience in largets Kazakhstani and international financial institutions (Kazkommersbank, ING Bank, ABN Amro Bank Kazakhstan). For a less than one year period the new team managed to almost double capital and total assets of the Bank. Due to weighted risk management policy the quality of loan portfolio improved, deposit base and balances on current customer accounts increased. Restructuring of the head-office and branch network was undertaken, activities of the Bank were brought in compliance with international standards. 2000 In 2000 international rating agency Fitch IBCA assigned Temirbank a short-term credit rating of "B" and long-term "B" credit rating. On 16 February 2000 Temirbank became the participant of "Kazakhstani Individual Deposits Insurance Fund" (Certificate No. 0000006), which evidenced the safety of funds placement with term deposits of Temirbank. In June 2000 Temirbank entered into a long-term Euro 3.6 mln. loan agreement with Belgian KBC Bank. The aim of this undertaking is financing of production economy sector projects. 1999 In 1999 Temirbank acquired the status of open public company. Such status is assigned to enterprises having more than 500 shareholders. Temirbank shareholders' number comprises 26,962 corporate and individual shareholders. Information on activities and financial reports of open public companies are published in mass media on a regular basis. The National Commission of Kazakhstan on Securities and the National Bank of Kazakhstan apply more strict requirements to open public companies with regard to disclosure of their financial information both to regulatory bodies and to public in general. In the same year Temirbank along with other three Kazakh banks became the operator of state program for import substitution, and within its framework successfully financed a number of long-term investment projects. Besides, last year the Bank started working under program of the European Bank for Reconstruction and Development on financing of small and medium sized businesses. In 1999 Temirbank issued 10th share issue for KZT 400 mln. Thereby the share capital of the Bank reached KZT 1.4 bln. Temirbank in terms of its share capital entered the first top ten banks of Kazakhstan. 1998 In 1998 Temirbank shares were included into official listing of Kazakhstan Stock Exchange under "A" category. In December 1998 Thomson BankWatch Rating Agency assigned Temirbank the following credit ratings: short-term local currency rating "LC-3", long-term - "В", i.e. at the level of sovereign rating of the Republic of Kazakhstan. Temirbank became the fourth Kazakhstani bank to receive international credit ratings. In 1999 these ratings were confirmed by the agency. 1997 In May 1997 the National Bank of the Republic of Kazakhstan included Temirbank into the first group of banks applying international standards in its work, which represented the high appraisal of Bank's activities and its financial standing. In 1997 the General Meeting of Shareholders adopted decisions on increase of the share capital, which resulted in its four-fold growth to reach KZT 1 bln. 1995 The stable work of the Bank in a fast changing market situation was highly evaluated by clients, whose confidence in the Bank and its management strengthened impressively. At the beginning of 1995 the government stake in the share capital of the Bank comprised 18%. In March 1995 the Government adopted a resolution on sale of state shareholding and thereby the Bank became fully private entity. 1992 Temirbank" is active on the financial market of the Republic of Kazakhstan since 26 March 1992. Temirbank was established and during first years of its activities developed as a specialized railway bank. The new strategy of the Bank worked-out and realized later transformed Temirbank into a universal financial institution rendering its clients a wide range of services in different sectors of economy. Individual approach to clients and high level of service quality allowed Temirbank to impressively expand its customer base.

Address: 68/74 Abai Ave., Almaty, 050008, the Republic of Kazakhstan

Phone: +7 727 258 78 88
FAX: +7 727 250 62 41