ABOUT US

Temirbank today

Joint Stock Company Temirbank was established on 26 March 1992. Today it is a universal financial institution rendering a wide range of services both to corporate and individual clients. As of 31.12.2006 total assets of the Bank equaled KZT 198.4 billion and equity capital KZT 22.4 billion, while net profit reached KZT 3.07 billion. Bank’s personnel comprises about 2,200 people.

The Bank is performing its activities in the interests of depositors, clients and shareholders adhering to the principle of neutrality in relation to financial and industrial groups, political parties and unions. The Bank is not financing ecologically harmful and socially unsafe productions, projects and programs.

 Presently the branch network of the bank includes 120 sales outlets located in all regional centers of Kazakhstan and cities having a population over 100 thousand people. In line with the established development strategy the Bank plans to expand its network to cover cities with a 50 thousand population.

Bank products sales in the current year are based on the concept of mass development of retail credit instruments: mortgage, car lending and personal loans for consumer and business purposes.

Since 1998 Temirbank shares had been included into an official A category listing of Kazakhstan Stock Exchange.

Since 2003 on terms of strategic partnership with the European Bank of Reconstruction and Development (EBRD), the Bank was managing a 46% shareholding stake in "Ineximbank" CJSC, the Kyrgyz Republic. Temirbank was one of the first Kazakhstani bank to open a Representative Office in Moscow in February 2002.

Temirbank is represented on leasing operations’ market through its subsidiary Temirleasing JSC (a 43.874% shareholding stake).

In December 2006 Moody’s Investors Service had upgraded to Ba1 the long-term foreign currency deposit rating of Temirbank and the long-term debt rating for senior notes issued by Temir Capital B.V., which are guaranteed by Temirbank, to Baa3. Moody’s affirmed the Ba1/NP foreign currency ceiling for bank deposits in Kazakhstan and Baa3 rating for senior debt. Temirbank’s E+ financial strength rating (FSR) has been affirmed and all the bank’s ratings carry a stable outlook.

Fitch Ratings has also upgraded the ratings of Temirbank to Issuer Default ‘BB-’ (BB minus) from ‘B-‘ (B minus) and to Support ‘3’ from ‘5’, thus resolving the Rating Watch Positive. A Stable Outlook is assigned to the Issuer Default rating (“IDR”). At the same time, the agency has affirmed the bank's other ratings at Individual 'D/E' and Short-term 'B'.

On 13 November 2006 Standard & Poor’s Rating Services assigned its “B+/B” counterparty credit and "kzBBB+" national scale ratings to Temirbank. The outlook is stable.

The Bank was recognised by the International Business Publication, Euromoney as the “Best Bank of Kazakhstan for Innovations in Corporate Governance 2006” (November 2006).

Temirbank was also named the Best Informative and Open Bank of 2006 and received the national public prize Zolotoi Altyn as a part of the international Kazakhstan Elite program. Zolotoi Altyn national prize evidences the public recognition of the Bank as the financial institution with high business image, professional competence and social responsibility.

Financial results of the Bank proved that retail business development strategy was the right choice. In 2006 the Bank’s total assets grew 2.6 times, retail loan portfolio showed a 4.7 times growth, while customer accounts increased by 1.3 times.

According to requirements of Kazakhstan Agency of Financial Supervision pursuing greater reliability and stability of commercial banks, the Bank increased its share capital from KZT 6.06 billion to KZT 15.43 billion (2.5X), while Bank’s equity capital increased from KZT 10,565 million to KZT 22,376 million in 2006.

In 2006 the Bank increased the volume of its obligations, having registered the second KZT 50 billion bond program.

These indicators are results of effective management aimed at financial stability improvement and transparency of the Bank.

Mission

The Mission of the Bank — to meet requirements of each client in Kazakhstan in high quality and reliable bank services, improve activities of banking system, promoting stable development of the economy of the Republic of Kazakhstan.

Our bank is the instrument providing its clients a possibility to improve their quality of life, make it maximally full and valuable.

Four levels of Temirbank:

• Temirbank is the bank for the private investor and borrower.
• Temirbank is support for the corporate client.
• Temirbank is support and assistance to the state.
• Temirbank is a reliable partner for investors.

Outlook

In the middle of 2005 Bank’s shareholders adopted a strategic decision on development of retail direction. Therefore, the new team of professionals joined the top-management of the Bank, which has a successful working experience.

 Temirbank intends to expand its presence and considerably strengthen positions in retail segment, ensuring maximal availability of bank products offered. Management is targeting to establish a financial institution with full range of competitive products for individual clients in all segments of banking retail and in some definite niches of Small and Medium Sized Enterprises (SME) segment.

Bank’s priority objective is to develop mass retail lending and raise the customer service level.

The Bank is planning to launch active marketing programs with wide product range for SMEs.

Pursuant to established development strategy 2008, Temirbank already in the year of 2006 plans a double increase of its indicators, and in some positions even a three-fold growth.

Principal instruments for achieving the set objectives are:

• Permanent renovation and expansion of bank products line for individuals and SMEs;
• Building optimal technologies for sale of mass demand retail bank products;
• Fundamental modernization of Bank’s information technologies and software;
• Raising the professional level of Bank’s personnel based on modern educational technologies;
• Further optimization of organizational structure targeting sorted out and clear cut distribution of powers and responsibilities of Bank’s subdivisions.