OREANDA-NEWS. December 13, 2007. Following the 9M2007 results, Alliance Bank published consolidated financial report reviewed by Deloitte. One of the cardinal achievements is more than sevenfold increase of net earnings up to KZT 30 725 mln, compared to KZT 4 034 mln for same period of 2006. Such an appreciable increase of the Bank’s earnings in 2007 was stipulated by growth of interest and fee commissions received against expenditure items of the balance.

Alliance Bank is focused on development of personal consumer lending as one of the most prospective and high-yielding trends of retail business. Personal consumer lending is characterized by the Bank's high margin as well as fast turnover. As a result, the Bank has one of the highest in the market indices of net earnings, NIM as well as ROAE and ROAA. This fact reduces the dependence of Bank on foreign borrowing and helps the Bank to grow its business volumes.

Net interest margin for nine months 2007 increased up to 9.4 % compared to 7.1 % as of the end of 2006 and was a result of growth of personal consumer loans share in the Bank’s loan portfolio. ROAE's and ROAA’s ratios calculated based on annual average values made up 36,1 % and 3,8 % as of October 1, 2007 compared to 25.9 % and 2.2 % as of the end of 2006.

Focus on development of personal consumer lending even in terms of current corrections in the world financial markets, allows the Bank to actively raise its customer base and loan portfolio, and be on the leading positions in the retail lending market with almost 20 % market share.

High demand of Kazakhstan population on the Bank’s products and services has resulted in growth of its customer base which is for 9 months 2007 increased by 730.5 thousand and as of October 1 exceeded 2 million. For the same period Alliance Bank's total assets increased by 33% and amounted to KZT 1 223 908 mln, compared to KZT 920 750 mln. as of the end of 2006. Due to this fact the bank's total market share has increased from 10,4 % to 10,7 %. Loan portfolio of the Bank (excluding reserves) as of September 30, 2007 grew by 43 % compared to the beginning 2007, and totaled to KZT 884 756 mln. Retail segment in the Bank’s loan portfolio increased by 62 % compared to the beginning 2007, and totaled KZT 437 295 mln. Disproportion in growth rate of assets and loan portfolio was primarily caused by decrease of reverse repo in the bank's balance (securities trading at the Kazakhstan Stock Exchange (KASE) down to KZT 1 662 bln. compared to KZT 18 099 bln as of beginning of this year.

The Bank's total liabilities as of the end of September 2007 totaled KZT 1,076,850 mln, increasing by 28.1% against December 31, 2006. The most prominent component in the growth of the Bank's total liabilities was that share of issued securities was extended due to bond issues. In general, during 9 months of 2007, increase in "Issued bonds" balance sheet item was of KZT 206 855 mln. The Bank's liabilities were also seen in "Loans and funds due to banks" balance sheet item, which was increased by 5% during 9 months of 2007 due to a number of loans borrowed from foreign banks and, as of September 30, 2007, stood at KZT 337,292 mln. Funds on the Bank’s customer accounts amounted to KZT 236,325 mln, as of September 30, 2007. Alliance Bank plans to increase this balance sheet item by attracting depositors on competitive deposit for individuals - "Excellent", with the interest rate thereon being the most competitive in the market.

Equity capital, one of the key indicators of the Bank’s financial strength, grew by 1.8 times as in comparison with the beginning of the year and, as of the end of September 2007, totaled KZT 147,058 mln. Such growth of the Bank’s equity capital is a result of increase in share capital, capitalization of the last year’s income and rise of net profit obtained for 9 months of the current year. Tier 1 capital adequacy ratio k1 and total capital adequacy ratio k2 calculated on the basis of prudential standards of the National Bank of Kazakhstan as of the end of September 2007 amounted to 9,9% and 13,6%, while regulatory ratios are set up at 5% and 10% respectively.

The Bank's major shareholder is Seimar Alliance Financial Corporation (SAFC) possessing 74.7% of the Bank's voting shares, and 3.9% of the Bank’s equity is owned by Alliance Leasing. In addition, according to the results of 3Q2007, 17.3% of all voting shares of the bank were freely floating at London Stock Exchange (LSE) and 4.1% - at Kazakhstan Stock Exchange (KASE). In July 2007, 17.4% of all voting shares were placed at London Stock Exchange in the course of initial public offering of Alliance Bank’s shares by the major shareholder.