FAQ

Deposits - latest picture and why they have performed so much worse than other banks for several months in a row. Please split deposit base by category (individual accounts, corporates, interbank, etc) and by tenor (sight deposits, 1-3 months, 3-6 months, etc).

Loan growth in q4 and what do you expect for 2008. How do you plan to fund your growth and how will you replace funding from BTA?

Asset quality - which of your primary business lines has been most affected by the slowdown in credit in Kazakhstan? Please break out your npls by the primary business lines. Also, please reiterate your calculation methodology for npls.

Please provide detail about your exposure to the construction and real estate market (exposure by loan type; by sector; etc). How much support will Temirbank get and by when from recent government support programs?

Is the bank in breach of any of its prevailing covenants on any of its loans outstanding? If so, please explain.

Any progress or plans for capital injections or syndicated loans to support the bank? how about securitizations? any other type of issuance to fund operations or business plan?

What is behind recent management departures and what is the bank's plan to replace these individuals to maintain communication with the markets? appropriate disclosure to the market-place / investor community remains poor... how is this being addressed?

What is the latest on the strategic sale and multiple expectations of temir mgmt/ shareholders? Given the high proportion of consumer loans on your books and the difficulty in funding the bank with deposits as seen by the large withdrawals, wouldn't alliance bank be the closest comparable? How reasonable will the principals be in selling the bank? timing of sale?

Has temir experienced any problems at the construction companies that it funded? Given there was a large increase in construction related lending in 1h07, is there a concern that this lending took place at the top of the local real estate market and that these loans are now undercollateralized? How often does the bank review the value of the collateral and how would this be reflected in the financial results? what is the methology for valuing real estate loan collateral?

What was the Tier 1 CAR and Total CAR at 9M07?

What were NPLs and the NPL ratio at 9M07? Please explain how NPLs are defined - ie, over 90 days, just the overdue portion, or principal and overdue amount. 

What are considered as "consumer loans"? Are these secured or unsecured? If secured, please break out what the underlying collateral is. 

Can you please list what all the debt obligations (syndicated loans, bilateral loans, trade finance loans, bonds, etc.) for 2008 and 2009? 

Is there any update on the sale of Temir Bank? 

Collateral – please estimate your YE2007 LTV ratios 

Your exposure (in % of loan portfolio) to real estate and construction sector lending. 

Exposure to mortgage lending 

% of external funding in your liabilities as of end-2007. 

Current number of branches (points of sale) and 2008 projections

Can you please send me the business plan for 2008? i.e., target funding breakout, NPL targets, CAR, etc.?

What are the average effective interest rates for the different segments of the loan portfolio?, i.e., consumer, express loans, mortgages, corporate, etc.

Average deposit rates?

Is Temir starting to see loan growth start to pick up in 2008?

What is the average LTV for mortgages?

Can you please define what is "real estate activities" as listed in the loan portfolio?

Confirm that overdue loans increased from .9% in 1H07 to 2.6% at YE07? What area caused such a large increase in NPLs in 2H07?

What was the bank's cash balance at the end of 2007?

What I would also like to confirm that the bank paid down the $5.9 million subordinated bond coming due in 9/08 and the KZT3 billion sr unsub bond
coming due in 12/08?

• Deposits - latest picture and why they have performed so much worse than other banks for several months in a row. Please split deposit base by category (individual accounts, corporates, interbank, etc) and by tenor (sight deposits, 1-3 months, 3-6 months, etc).

As of 01.01.08 (KZT, ths)*

*Consolidated data

As of 01.01.08 (KZT, ths)*

*Unconsolidated data

• Loan growth in q4 and what do you expect for 2008. How do you plan to fund your growth and how will you replace funding from BTA?

During the 4th quarter of 2007 Temir's loan portfolio has been evolving as follows:

For 2008 Temir's plans for its loan portfolio are:

Note: currently the exchange rates is about 120 KZT for USD

It is planned that attracting to Bank additional deposits will finance the growth of the loan portfolio. As for funding from BTA, as at 01.01.08 they standed at about $106.5million and will be gradually paid back by the middle of 2008. These outflows will also be replaced by the planned growth of deposits held with Temir.

Note: currently the exchange rates is about 120 KZT for USD.

* - planned.

It should also be noted, that under the Kazakh Government's plans to provide liquidity to the Kazakh banking sector, the Fund of Stable Development “Kazyna”, a 100%-state owned business entity, has already deposited with Temir 3.4 billion KZT for the period of 36 months. During 2008 it will deposit additional 7.6 billion KZT, with the same maturity. Under the agreement, these funds can be lent out to finance certain types of real estate projects.

• Asset quality - which of your primary business lines has been most affected by the slowdown in credit in Kazakhstan? Please break out your npls by the primary business lines. Also, please reiterate your calculation methodology for npls.

Dynamics of Loan Portfolio (LP) and Provisions from the beginning of the year

*Including long-term interbank loans 254000 ths tenge as of 01.01.07 and 240600 ths tenge as of 01.01.08

Where do you expect npls to stand at year-end?

There are no forecasted npls for the YE2008, however, forecasted provisions stand at 15 bln tenge.

• Please provide detail about your exposure to the construction and real estate market (exposure by loan type; by sector; etc). How much support will Temirbank get and by when from recent government support programs?

Classification of Loan Portfolio as of 01.01.2008 (KZT, ths)

Sectoral Classification as of 01/01/2008 (KZT, ths)

Sectors	Amount of primary debt	Standard	1- 5% (doubtful)15-30days	2 category- 10% (doubtful)-31-60 days	3- 20% (doubtful)	4-25% (doubtful)61-75 days	5 cat- 50% (doubt) 76-105 days	Non performing - 100% more than 105days	Provisions
Construction	25277740	20953834	177920		452226	3304221	167807	221732	1231031
Real estate activities	6095839	5386421		164853				544565	561051
Other sectors	51530628	45531317	2336782	586058	109300	630912	495318	1840941	2443630
Total	82904207	71871572	2514702	750911	561526	3935133	663125	2607238	4235712
Households	191930497	179905927	4761662	1029677	434635	469357	830343	4498896	5459389
Total	274834704	251777499	7276364	1780588	996161	4404490	1493468	7106134	9695101

Please be advised that exposure to the construction is about 25 bln tenge (9,4% of the total loan portfolio) and based on the preliminary results for the YE 2007. Most of the loans are standard (83%). Please also note that about 95% of the construction loans is collateralized. The underlying collateral comprises of the real estate (residential and commercial), land, land-use right, objects for industrial and nonindustrial purposes.

Based on the preliminary information, the government financial support will be in the amount of 11 bln. KZT (91 438 071 US$ - exchange rate 120,3). The bank has already received 3.4 bln. KZT.

• Is the bank in breach of any of its prevailing covenants on any of its loans outstanding? If so, please explain.

Bilateral loan agreement dated from 29 June 2007, borrowed from Standard Bank

Financial covenants

I Capital Adequacy Calculations

The Borrower shall ensure that its Capital Adequacy Ratio is at all times not less than the greater of:

(a) the minimum Bank for International Settlements Capital Adequacy Ratio as specified from time to time, currently specified as 12%; or

(b) that specified from time to time by the National Bank of the Republic of Kazakhstan and/or the Agency of the Republic of Kazakhstan on Regulation and Supervision of the Financial Market and Financial Organizations.

Actual value as of 01.01.08 - 0.14

II Shareholder's Equity

The Borrower shall ensure that its Shareholder Equity shall always equal not less than US$100,000,000.

Actual value as of 01.01.08 - 403,960,698 $USD (exchange rate as of 01.01.08 - 120.3)

Dollar loan agreement between Temirbank and FMO, dated from 23.12.2004

The bank is not in breach of any covenants of this loan agreement.

Eurobonds

The bank is not in breach of the covenants of the Eurobonds issued.

• Any progress or plans for capital injections or syndicated loans to support the bank? how about securitizations? any other type of issuance to fund operations or business plan?

No capital injections are planned during 2008. Neither are syndicated loans. Work has been done on securitization however, due to liquidity problems in the world markets, the process has been halted. We have registered 40 billion tenge in local debentures, however, their sale is dependent upon the situation on the local credit market.

• What is behind recent management departures and what is the bank's plan to replace these individuals to maintain communication with the markets? appropriate disclosure to the market-place / investor community remains poor... how is this being addressed ?

There have been no departures in the management in the past 8 months. The only person who left the team was Bahit Jolaman, the advisor to the chairman who oversaw DFI (the department of foreign institutions), however, his primary duties lied more with the BTA group rather than with Temirbank. As for disclosure to the investor community, together we reorganize DFI and work on putting as much information on our website as possible. We hope that these measure would help us archive greater transparency and provide information to investors faster.

• What is the latest on the strategic sale and multiple expectations of temir mgmt/ shareholders? Given the high proportion of consumer loans on your books and the difficulty in funding the bank with deposits as seen by the large withdrawals, wouldn't alliance bank be the closest comparable? How reasonable will the principals be in selling the bank? timing of sale?

Please refer all the questions to the shareholders.

As for high proportion of consumer loans, over 90% of our portfolio have collateral with the average loan-to-value below 50%. Therefore, from the exposure to risk standpoint the comparison between Alliance bank and Temirbank is not appropriate. Further, as a result of the change in the product line and reinvigorated efforts to increase deposits, in the past month or so we saw the tide turning and deposits coming back to Temirbank. We have restarted our credit activities but since it takes some time to do in the past few weeks we saw some small excess liquidity (basically, we prepared for the worst but it did not happen). So that current liquidity ratio is 1,45 as of 01.12.07 and 1,54 as of 01.01.08, the liquidity ratio is 0.0607 as of 01.12.07 and 0.0685 as of 01.01.08.

• Has temir experienced any problems at the construction companies that it funded? Given there was a large increase in construction related lending in 1h07, is there a concern that this lending took place at the top of the local real estate market and that these loans are now undercollateralized? How often does the bank review the value of the collateral and how would this be reflected in the financial results? what is the methology for valuing real estate loan collateral ?

Please be advised that the amount of loans to construction overdue equals to 2,8 bln tenge, which is about 11% of the loans to construction. Average construction LTV ratio is 40.71% as of 01.01.08.

The bank initiates review of the collateral value in case of credit line increase, issuance of a scheduled trench or deterioration of the property condition. Review of real estate value, which is worth more than approximately 300-310 thousands USD, is usually scheduled once a year. Scheduled review of the value of collateral is normally not reflected in the financial results but affects the capital adequacy ratio (k2). The CAR (k2) is 0.14 as of 01.01.08, while required minimum is 0.12.
The bank uses three methods when valuing real estate loan collateral: hang-the-expense approach, comparative analysis of sales method and income approach depending on the type of real estate. However, the most widespread and reliable method is comparative analysis of sales method. For the commercial real estate, comparative and income approaches are used.
If the collateral value decreased and the loan becomes undercollateralized, the borrowers of the loans overdue are urged to change or add to collateral.

• What was the Tier 1 CAR and Total CAR at 9M07?

Temirbank does not issue the interim unaudited review for the 9 month 2007 period (only semiannual and annual accounts), therefore the capital adequacy ratio for the end of 2007 year is provided based on Temirbank's preliminary financial results. Tier 1 CAR equals to 18.27% and total CAR - 17.97%.

• >What were NPLs and the NPL ratio at 9M07? Please explain how NPLs are defined - ie, over 90 days, just the overdue portion, or principal and overdue amount.

Please be advised that according to FMSA data the NPLs ratio (with overdue 90 days) equals to 2.6% as of the 01.01.08

• What are considered as "consumer loans"? Are these secured or unsecured? If secured, please break out what the underlying collateral is.

Under consumer loan we mean the loan to individuals for acquisition of goods and services not related to enterpreneurial activities. In other, words they are short-term loans to individuals to satisfy their own needs:
- Household appliances
- Transport maintenance
- Tourism, travelling
- Medical service
- Tuition
- Festive event conduction
- Cattle buying

Some of banking products in consumer loans line are not collateralized. Those are loans under "revolving" (by charge cards), salaries and tuition programs. Under others there is supposed to be a collateral availability:
- Car
- Deposit-guarantee
- Real property (apartments and houses)
- Durables
- Land-use right

• Can you please list what all the debt obligations (syndicated loans, bilateral loans, trade finance loans, bonds, etc.) for 2008 and 2009?

JSC "TEMIRBANK" BORROWINGS REPAYMENT SCHEDULE

Lender name	2008												2009	2010	2011	2012
	Jan. 08	Feb.08	March 08	April 08	May 08	June 08	July 08	Aug 08	Sep 08	Oct 08	Nov 08	Dec 08
Temir Capital B.V.													150000000
Temir Capital B.V.															300000000
Temir Capital B.V.															950000
Standard Bank Pls						130000000
FMO N.V.				625000						625000			1250000
Total:	0		0	625000	0	130000000			0	625000	0		151250000	0	300950000	0

• Is there any update on the sale of Temir Bank?

BTA has plans to sell the stake in the Temirbank to the third party, but the decision has not been made yet by the shareholders.

• Collateral – please estimate your YE2007 LTV ratios

Please be advised that average LTV ratio for the end of 2007 equals to 49.88%.

• Your exposure (in % of loan portfolio) to real estate and construction sector lending.

Please be advised that exposure to the real estate and construction is based on the preliminary results for the end of 2007 year:

real estate activities - 2.3% of loan portfolio
construction - 9,4% of loan portfolio

• Exposure to mortgage lending

The morgage lending exposure is 25.3% of loan portfolio, the data based on the preliminary results for the end of 2007 year.

• % of external funding in your liabilities as of end-2007.

Please be advised that external borrowings in Temirbank's liabilities is equals to 59.4%.

• Current number of branches (points of sale) and 2008 projections

As of 1.01.2008 no. of branches - 21 and sales outlets - 119. Plans for 2008: as of the end of 2008 - 21 and sales outlets - 129.

• Can you please send me the business plan for 2008? i.e., target funding breakout, NPL targets, CAR, etc.?

For the next several years Temir will continue to position itself as a retail bank, which means that about three fourth of its business will be
oriented towards serving retail customers, and the rest - to serve the needs of business clients.

According to the latest business plan, during 2008 the bank's lending will increase to 338.3 billion tenges, 24% up from 2007. As expected, about 75%
of the whole loan portfolio will consist of lending to retail customers, the rest - to business entities. The main types of retail lending will
continue to be real-estate mortgages, car loans, and consumer lending. As for business lending, they will be provided for investment type projects,
for purchasing fixed assets, and to finance liquid assets.

To compensate for reduced availability of funds in international markets, the bank plans to raise the needed money by attracting more deposits
locally. Specifically, by the end of 2008 the bank aims to raise its deposits to 154.9 billion, or 2.47 times more compared to the end of 2007.
To achieve this goal the bank?s deposits already pay competitive interest rates, have flexible terms (such as partial withdrawals) and target various
groups of customers (students, retirees, VIP-clients, parents saving for children, etc.). In light of the overall decline in lending activities, which was caused by
low liquidity of international funds markets, the bank plans to expand its business by widening the scale and scope of non-interest earning products.
These will include money transfers, electronic payments cards, currency exchange and withdrawals, Internet- and SMS-banking, etc.

To expand the network of its ATMs, the bank recently purchased about 300 additional units, which will be located throughout the country at major
trading centers and office buildings. By the end of 2008 Temir plans to increase the number of issued cards to about 330,000, which will exceed the
current level by almost 10 times. Throughout 2008 transactions made with Temir's electronic cards are planned to total 8.8 billion tenge, which is
about 5% of the predicted national level. ATM cash withdrawals are set to reach 223.3 billion tenge, while money transfers through Temir - to about
8 trillion tenges.

To raise its customer base, the bank is continuously engaged in searching for new customers groups and developing new financial products. One of the
innovative products of Temir is so-called revolving loan, which allows the borrower to continuously borrow from the bank as long as his liability does
not exceed the value of the provided collateral. Another important product of Temir is Temircard. Being a debit card, it pays competitive interest on
the remaining balance, giving it the feature of a savings deposit.

As for the financial results, during 2008 Temri net assets are planned to grow to over 400 billion tenge. Throughout the year interest revenues are
predicted to reach 57.3 billion tenges, those generated by non-interest items - about 2.3 billion. Net income generated during 2008 is predicted to
grow to 12.5 billion tenges, or 40% more than during 2007. This will result in ROA of 3.56% and ROE of 20.53%.

• What are the average effective interest rates for the different segments of the loan portfolio?, i.e., consumer, express loans, mortgages, corporate, etc.

Actual Interest Rates by products 2007

Products Actual Average
Rates

Bank Mortgage Program 14.64%

KMC Mortgage Program 12.66%

BTA Ipoteka Mortgage Program 14.98%

Auto 16.41%

Express 25.03%

ÒåìiðÎÊ 37.17%

Non-Stop 16.87%

Other secured 16.08%

Other unsecured 23.43%

Non-Stop 15.11%

Auto 16.51%

Other secured 15.72%

Other secured 21.95%

• Average deposit rates?

Bank's average deposit rate (without Eurobonds) is 7.32% as of the end 2007 year.

• Is Temir starting to see loan growth start to pick up in 2008?

From the beginning of the 2007-year we can observe the minor growth in banks loans. Thus, as of 01.01.08 the banks loans to customers equals to KZT
259,857 mln. (based on non consolidated data), while as of 01.02.08 the loans to customers equals to KZT 262,556 mln. (based on non consolidated date).

• What is the average LTV for mortgages?

LTV = 57% (for Bank's Mortgages, without BTA Ipoteka and KMC).

• Can you please define what is "real estate activities" as listed in the loan portfolio?

The "real estate activities" include:
- Loans for property acquisition and its further disposal;
- Loans granted for commercial property acquisition for own purposes.

• Confirm that overdue loans increased from .9% in 1H07 to 2.6% at YE07? What area caused such a large increase in NPLs in 2H07?

As at 01.01.08 the NPL ratio was 2,6%. Whereas overdue loans were 0,76% of the total loan portfolio as at 01.07.07
and 1,9% of the total loan portfolio as at 01.01.08.

• What was the bank's cash balance at the end of 2007?

Based on the unaudited financials for the end of 2007 year the Cash equals to KZT 6,398 mln.

• I would also like to confirm that the bank paid down the $5.9 million subordinated bond coming due in 9/08 and the KZT3 billion sr unsub bond
  coming due in 12/08?

Subordinated bonds totalling to USD5.9 mln will be repaid on 14.09.08, and KZT3 bln is due on 30.12.08 under secured non-subordinated bond.