Almaty, October 12, 2011 — Eurasian Bank presented its results for the first nine months of 2011. The continued positive dynamics of key financial information in the unconsolidated statements shows that the Bank has transformed into a reliable and growing financial institution with leadership ambitions.

• Net Interest Income increased by 172%;
• Net operational income before provisions increased by90.0%;
• Net Interest Margin (NIM) for nine months increased by 147.5%;
• Cost Income Ratio (CIR) decreased by 30.6%;
• Net profit of KZT 4,087 bln vs the loss of KZT 1,060 bln in 9M2010.

Therefore, the across the board financial improvement and business efficiency reiterate the reputation of EB as one of the leaders in the banking sector of Kazakhstan.

Net interest income beforeprovisions increased by record high 172% reaching KZT 12,2 bln vs the result as of October 1, 2010 mainly due to increased lending and implementing the strategy of growth of our retail business.

YtD NIM was5.2%, demonstrating a 147,5% growth over the same period last year.

YoY Net operational income before provisions reached KZT 17,9 bln (90% growth from last year). The strong growth is due to interest income from increased loans to customers, an increase in profitability of FX operations and a decrease of interest expense as the Bank reduced its excess liquidity.

Net Profit reachedKZT 4,087 bln which is a record result in the entire history of the Bank. It should not go without saying that profitability of the Bank has a stable growth dynamics from January 1, 2011, net profit five-folded over 9 months of the year (KZT 771,4 m as of January 1, 2011, according to audited unconsolidated financial statement).

The growth of net profit during the year is boosted by the increased number of high-quality loans and reduced NPL in the loan portfolio of the Bank.

As of Oct 1the Bank had KZT355,9 bln in Assets (Y0D growth of 6,1% ) which is mainly due to significant increase of the loan portfolio.

Gross Loan portfolio of the Bank as of October 1 reached KZT 263,7 bln showing a 34.7% YoY growth and 17.8% growth since the beginning of the year.

Revival of Kazakhstan economy and reliability of Eurasian Bank’s business have become the main reasons of this impressive dynamics which attracted new clients from both corporate and retails segments.

The loan portfolio is structured as follows: corporate loans– KZT 150,1 bln, SME loans – KZT 49,3 bln, retail loans – KZT 64, 2 bln.

The asset quality of the Bank remains strong with coverage ratio of 129.6%.

The equity of the bank gained 37,3% over nine months of 2011 reaching KZT 32,5 bln. The growth is mainly due to capitalization of earnings which demonstrates the shareholders’ commitment to develop the bank to the level of a leading financial institution of the country.

ROAE reached 19,2%, while cost to income ratio (CIR) has been decreased to 58,4% dropping below the 60% benchmark set by the management.

Speaking about the 9months results Michael Eggleton, CEO, noted: «The bank has stepped into a phase of sustainable growth having demonstrated the highest level of profit in its 17-year history. We can say that Eurasian Bank is a reliable, professional and transparent financial institution which I am proud to be leading».

EB maintains a strong liquidity position and has continued access to additional sources of funding as needed.

As of October 1, 2011 the Bank had 409 715 individual customers, including 397 678 retail and 12 037 corporate clients. The network of the Bank includes 18 full-service branches and 48 outlets in all regions of Kazakhstan.
 

Detailed audited unconsolidated financial statements as well as other presentations of Eurasian Bank are available on its website: www.eubank.kz.

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