In 1Q 2008 JSC ''BTA Bank'' Became the Largest Bank in Kazakhstan By Assets Due to Growth in Deposits and Maintained It's Leading Positions By Capital

According to IFRS in 1Q 2008 JSC "BTA Bank" achieved the following financial results:

• Total Assets increased by 3% to KZT 3,164 billion (US$26.2 billion).
• BTA Kazakhstani banking assets' share equaled to 26% in Total Assets of banking sector of Kazakhstan.
• Loan portfolio equaled to KZT 2,401 billion ($19.9 billion).
• Total liabilities increased by 3.1% to KZT 2,701 billion (US$22.4 billion).
• In March 2008, the Bank repaid US$530.9 billion in principal and accrued interest of US$15 million to its international investors.
• Amounts due to customers increased by KZT 18.2 billion to KZT 670.7 billion (US$5.6 billion).
• Net income amounted to KZT15.6 billion (US$129 million).
• Capital adequacy ratio according to BIS methodology (Tier I) totaled 16.66%.

"In 1Q 2008, the Bank repaid US$530.9 million of international debt, which was the largest part of the total US$1.2 billion to be repaid in 2008. At the same time the Bank continues growing by attracting resources in the local market and became the largest bank by Assets" - said the Chairman of the Board Roman Solodchenko, commenting the Bank's results.

Net income of the Bank in 1Q 2008 was recorded as KZT15.6 billion (US$129 million), exceeding 1Q 2007 indicator by 25%. The most important profitability driver was the increase of net interest income that grew at a rate adequate to the growth of the Bank's business.

Net interest income (before impairment charge) in 1Q 2008 increased by 85% in comparison with 1Q 2007 and amounted to KZT 43.6 billion ($361 million). Net interest income grew mainly due to the increase of interest income (63%), increase of loan portfolio share in Assets and increase of interest rates. In addition, interest expenses on international borrowings such as bonds and syndicated loans grew more slowly due to their decrease in liabilities structure.

Non interest expenses in 1Q 2008 amounted to KZT 13.2 billion (US$109.2 million) which is 31% higher than for the same period of 2007. Thus, due to the significant growth of operating expenses (54%), the cost to income ratio decreased to 23.5% (27.6% in 1Q 2007).

Profitability ratios. Net income growth effect was reflected in profitability ratios - RoAA and RoAE was at 2.0% and 13.6% against 2.3% and 25.7%, respectively, in 1Q 2007. The decrease of RoAE is explained by the capital injections from shareholders in 3Q 2007.

Assets in 1Q 2008 increased by 3% to KZT 3,164 billion (US$26.2 billion). The Bank increased the share of credit operations in asset structure and decreased operations in financial markets. Such transformation was possible without damaging the Bank's liquidity due to a reduction of international borrowings share in liabilities.

Loan portfolio of the Bank in 1Q 2008 amounted to KZT 2,401 billion (US$19.9 billion). The Bank is actively engaged in progressive and highly profitable SME development. Allowances for impairment in 1Q 2008 increased from 5.4% to 6.3%.

Total Liabilities in 1Q 2008 increased by 3.1% to KZT 2,701 billion (US$22.4 billion). The main growth driver was the increase of amounts due to customers by KZT 18.2 billion to KZT 670.7 billion (US$5.6 billion), including KZT 13.6 billion retail deposits, reflecting customers' trust recovery. The Bank continued to meet all of its liabilities to foreign investors successfully, having repaid $ 530.9 million in principal and $15 million in accrued interest in March 2008. This repayment was the largest due in 2008.

Total Equity in 1Q 2008 increased by 2.4% to KZT 463 billion due to profit capitalization. Tier 1 Capital adequacy ratio and Total Capital Adequacy ratio according to BIS methodology remained high at 16.66% and 17.37% respectively.

The Bank's IFRS Financial statements are available at http://bta.kz/en/about/investor/reports

Bank at a glance

JSC "BTA Bank" is one of the largest banks in Kazakhstan and a leader in CIS expansion. BTA Bank provides banking services to more than 1.2 million retail and 95.6 thousand corporate customers. Its strategic partner banks cover Russia, Ukraine, Belarus, Georgia, Armenia, Kyrgyzstan and Turkey.

JSC "BTA Bank" will be hosting a teleconference call for analysts and investors on May 28th at 2 pm London time (9 am New York/ 5 pm Moscow/ 7 pm Almaty) with its senior management to announce BTA's unaudited consolidated results for the first quarter 2008 and to reply to questions of investors and analysts.

The conference call can be accessed by dialing: [phone]

Participants should register for the call at least ten minutes before the start of the presentation.

The call and presentation will be also broadcast live over Internet:

http://www.thomson-webcast.net/de/dispatching/?event_id=68957c1194 83c219a9e1adc86ac1444c&portal_id=70718af7715c8da678375d4e1efa04f7 (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

Table. Key financial indicators of Bank's performance in 1Q of 2008:
ÂÂ	ÂÂ	ÂÂ	ÂÂ	ÂÂ
 mln. USD	ÂÂ	1Q2008	ÂÂ	 2007
	ÂÂ		ÂÂ
Assets	ÂÂ	26 219.2	ÂÂ	25 474.8
Loans to customers, net	ÂÂ	19 896.5	ÂÂ	19 782.3
Liabilities	ÂÂ	22 382.5	ÂÂ	21 717.3
Customer accounts	ÂÂ	5 557.5	ÂÂ	5 424.0
Due to banks	ÂÂ	7 156.3	ÂÂ	6 943.5
Debt securities	ÂÂ	9 174.6	ÂÂ	9 014.5
Liabilities with maturity over 1 year	ÂÂ	14 229.8	ÂÂ	14 915.9
Equity	ÂÂ	3 836.7	ÂÂ	3 757.5
Ratios	ÂÂ	ÂÂ	ÂÂ	ÂÂ
BIS Tier 1 CAR	ÂÂ	16.66	ÂÂ	16.93
BIS Total CAR	ÂÂ	17.37	ÂÂ	17.57
ÂÂ	ÂÂ	ÂÂ	ÂÂ	ÂÂ
 mln. USD	ÂÂ	1Q 2008	ÂÂ	1Q 2007
ÂÂ	ÂÂ	ÂÂ	ÂÂ	ÂÂ
Operating income	ÂÂ	460.7	ÂÂ	297.9
Net interest income	ÂÂ	361.0	ÂÂ	195.2
Net commission income	ÂÂ	68.9	ÂÂ	43.9
Non-interest income	ÂÂ	30.8	ÂÂ	58.8
Operating expenses	ÂÂ	109.2	ÂÂ	83.4
Cost to Income ratio,%	ÂÂ	23.54	ÂÂ	27.99
Net operating income	ÂÂ	351.5	ÂÂ	214.5
Net income	ÂÂ	129.07	ÂÂ	103.37
RoAA, %	ÂÂ	2.0	ÂÂ	2.3
RoAE, %	ÂÂ	13.6	ÂÂ	25.7

Notes: all indicators are translated into USD at the official NBK exchange rates: 31 March, 2007 - 123.75 KZT/USD, January 01, 2008 - 120.3 KZT/USD, March 31, 2008 - 120.69 KZT/USD