Page 2
June 2007
September 2007
June 2008
August 2008
April 2008
January 2008
October 2007
Official disclosure of ultimate
beneficiaries
Capital injection of $95 mn. by
shareholders
New Management Team joined the
Bank
Repayment of syndicated loan -
$135 mn.
Moody’s confirmed recent Bank’s ratings
Eurobonds repayment - $150
mn.
Repayment of syndicated loan -
$133 mn.
Another capital injection of $53.8 mn.
by shareholders
Provisions increased by $50 mn.
Attraction of new funding from Kazyna
and SME Fund
Nurbank Nurbank HighlightsHighlights
Page 3
Nurbank Recent DevelopmentsNurbank Recent Developments
Qualified professionals with proven track record joined the Bank
Progress in transparency of shareholders’ structure – official disclosure of ultimate beneficiaries
Supportive shareholders – significant capital injections => capital adequacy ratio at 22.7% – one of the highest ratios within the sector
Bank’s ratings were confirmed by Moody’s (B1/Stable) and S&P (B/Negative) – confidence in changes in the Bank’s shareholders structure and top-management and their activity
9 th largest bank in Kazakhstan by assets with US$ 1,921 bln. as of the end of 1H 2008
The foreign debt exposure of total liabilities is 16% - one of the lowest ratios within Kazakh banking sector
Proven stability of the bank - successful pay out of two Syndicated Loans and one Eurobond debt with no refinancing; the first among Kazakh banks to meet all of its external obligations due in 2008.
Improvement in Efficiency Progress in Corporate Governance and Increase in Investors’ Confidence
Page 4
Shareholders’ StructureShareholders’ Structure
74%
26%
Nazarbayeva D.Aliev N.
Minorities
Constant Improvement in Bank’s Transparency, including Shareholders’ Structure
Nurbank’s shareholders are long-term investors:Ms.Dariga Nazarbayeva and Mr. Nurali Aliyev
Directly control almost 60% of the shareholder’s equity (important official disclosure of ownership)
Supportive Shareholders with proved capacity to further increase share capital by additional capital injections.
Shareholder’s equity, USDmm
38 4882
104
178
309329
0
60
120
180
240
300
360
2002 2003 2004 2005 2006 2007 1H 2008
Source: Nurbank consolidated 1H 2008 results (IFRS),
Page 5
Management Board Management Board
Organizational structure revised according to the best international practice with Focus on Client Orientation
Chairman of the Management Board (CEO)
Nurmukhamed Bektemissov
SME Business
Assain K. Baikhanov
Managing Director
Retail Business
Tatyana I. Belozerceva
Managing Director
Corporate Business
Zhanbolat U. Nadyrov
Managing Director Investment Banking
Daniyar Zh. Nurskenov
Managing Director
CIO
Andrey A. Chuchelov
CFO
Orsolya Ekler
COO
Irina I. Bogatkina
Page 6
Nurbank Financial GroupNurbank Financial GroupProviding full scope of financial services to the clients
Financial Group
Pension Asset Management
• Best company in PAMC sector of Kazakhstan in 2006
• Assets Under Management 272 mn USD100%
Leasing Company• Total Assets – 8 mn USD
100%
Pension Fund
• Total clients – 267 194
53%
Brokerage and Dealing Operations
• Brokerage services
• Underwriting100%
Insurance Company
• Non-life insurance
82%
ASSET MANAGEMENT & BROKERAGE COMPANY EXPERTSMONEY EXPERTSMONEY
Page 7
RUSSIA
MO
NG
OL
IA
CHINA
KYRGYZSTAN
UZBEKISTAN
TURKMENISTAN
AZERBAIJAN
Kyzyl-Orda
Shymkent
Taraz
Almaty
Taldy-Korgan
Ust-Kamenogorsk
Pavlodar
ASTANA
Aktobe
Uralsk
Atyrau
Aktau
Kokshetau
Petropavlovsk
Kostanay
16- branches 40- sub-branches
Zharkent
28
2
15
200 - ATMs
16
16
14
37
16
5
6
4
3
8
n Northern Regional Direction
Southern-Eastern Regional Direction
Western Regional Direction
Branch NetworkBranch Network
Page 8
Nurbank’s Position vs. Kazakh PeersNurbank’s Position vs. Kazakh Peers
Stable Position Among Second-Tier Banks with Strong CapitalizationAs of 01.08.08
Source: AFN data as of 01.08.08, unaudited, unconsolidated data; Exchange rate KZT/USD = 120.18
Rank Bank (US$ million) Equity
1 BTA 3 505
2 KKB 2 278
3 Halyk 1 436
4 Alliance 1 399
5 ATF 861
6 BCC 632
7 Temir 475
8 NURBANK 315
9 Sberbank 283
10 Caspian 261
11 Eurasian 206
Rank Bank (US$ million) Assets
1 BTA 24 720
2 KKB 21 347
3 Halyk 14 613
4 Alliance 8 846
5 ATF 8 737
6 BCC 7 503
7 Temir 2 656
8 Caspian 2 084
9 NURBANK 1 840
10 Eurasian 1 791
11 ABN AMRO 1 343
Page 9
Key FinancialsKey Financials
Source: Nurbank Audited report 2007; Nurbank consolidated 1H 2008 results (IFRS), *Bank only **k2 ratio for the Bank ***overdue more than 90 days
US$ mm or % 2006 2007 07/06
YoY % growth
1H 2008
Total Assets 1 596 1 652 3.5% 1 921
Total Loans, net 1 133 1 279 13.0% 1266
Total deposits 589 498 -15.0% 1 072
Shareholder’s Equity 178 309 74.0% 329
Net Interest Income (before provisions)* 43 85 98.0% 38
Net Income 11 25 127.0% (22)
ROAE 7.3% 10.2% - (13.4)%
ROAA 0.9% 1.5% - (2.3)%
Capital Adequacy (k2)** 16.0% 20.9% - 22.7%
Net Interest Margin (before provisions)* 4.3% 6.2% - 5.4%
Cost/Income Ratio** 54.2% 45.0% - 57.2%
NPL*** 1.56% 3.5% - 4.1%
Page 10
Conservative Lending Policy and Moderate Growth of Assets
Improving Risk Profile of the Loan Portfolio through Diversification
Plans to Increase Loan Portfolio by 10% by the end of 2008
Well Diversified Loan Portfolio with Moderate Exposure to the Construction Sector
Increase of the SME and Retail Portfolio up to 50% in 2010
SME11% Retail
21%
Corporate68%
Agriculture5%
Transport5%
Trade22%
Real Estate8%
Retail23%
Construction14%Oil& Gas
3%
Food Industry11%
Other 8%
Loan Portfolio Loan Portfolio
565
1 1531 311 1 373
1 9211 6521 596
909
0
500
1000
1500
2000
2500
2005 2006 2007 1H 2008
Loan Portfolio Assets
Assets Growth (USD, mn)
Source: Nurbank consolidated 1H 2008 results (IFRS),
Page 11
Corporate BusinessCorporate Business
Priority to Key Corporate Clients with Retail Exposure to Cross-Sell Retail Banking
Focus on Trade Finance to Decrease Funding Costs to the Clients
Investment Banking Solutions for the Large Customers
Corporate Loan Portfolio (USD, mn)
643,0
858,0933,4
0,0
200,0
400,0
600,0
800,0
1000,0
1200,0
2006 2007 1H 2008
Source: Nurbank unconsolidated 1H 2008 results (IFRS)
Corporate deposits (USD, mn)
33,9
292,8
73,2
606,8
-
200,0
400,0
600,0
800,0
Current Accounts Time Deposits
2007 1H 2008
Page 12
SME BusinessSME Business
SME Loan Portfolio (USD, mn)
299,6
170,3 151,0
0,0
100,0
200,0
300,0
400,0
2006 2007 1H 2008
Source: unconsolidated 1H 2008 results (IFRS)
SME is the Key Area for the Bank’s Growth
Decrease in the Loan Portfolio is Related to Reclassification of
the Loan Portfolio to Identify “pure” SME clients so that to Serve
Them Faster and Better
Plans to Increase SME Loan Portfolio up to USD265mm by the end 2008
SME Deposits (USD, mn)
12,6
71,5
183,5
77,3
-
50,0
100,0
150,0
200,0
250,0
Current Accounts Time Deposits
2007 1H 2008
Page 13
Retail BusinessRetail Business
Retail Loan Portfolio (USD, mn)
210,5
283,1 288,3
0,0
50,0
100,0
150,0
200,0
250,0
300,0
350,0
2006 2007 1H 2008
Source: unconsolidated 1H 2008 results (IFRS)
Improving Confidence of Individuals in the
Bank translates into Increase of the Retail
Deposit Base
Healthy Risk Profile of Retail Loan
Portfolio - No Unsecured Consumer
Finance
Retail Deposits (USD, mn)
65,6
22,1
108,6
19,9
0,0
20,0
40,0
60,0
80,0
100,0
120,0
Current Accounts Time Deposits
2007 1H 2008
Page 14
Source: Nurbank unconsolidated 1H 2008 results
Deposit base growth (USD mn)
Deposit BaseDeposit Base
Monthly deposit base growth(USD mn)
Deposit base growth - growing investors’ confidence due to new shareholders’ structure
and top-management strengthening
61% growth during the second half of 2007 and 115% growth during first half of 2008
289
498
1 069
0
200
400
600
800
1 000
1 200
1H 2007 2007 1H 2008
(US
$m
n)
289
310 365
350 43
3
486
431 49
8 557 70
6 858
721 80
0
1069
149%177%
270%
7% 26%21%50%
68%49%
72%93%
144%
197%
0
200
400
600
800
1 000
1 200
01
.06
.07
01
.07
.07
01
.08
.07
01
.09
.07
01
.10
.07
01
.11
.07
01
.12
.07
01
.01
.08
01
.02
.08
01
.03
.08
01
.04
.08
01
.05
.08
01
.06
.08
01
.07
.08
(US
$m
)
0%
50%
100%
150%
200%
250%
300%
%
deposit base growrth from beg. 2H 2007
Page 15
Syndicated loans
5%
Deposits 58%
KZT notes 9%
Interbank2%
Equity18%
Eurobonds 8%
Reliable Funding Base (IFRS)Significant Capitalization and Growth in Local Deposit Base
375 347589 498
95
271
72
100178
39
150
300
154157
34495
1 072
100
234
11670
0
300
169
142
120
64
52
39
112 214
-33
66
53
43
-500
0
500
1000
1500
2000
2004 2005 2006 2007 1H2008U
S$m
m
Retained earningsEquity (Share Capital + Reserves)KZT notesEurobondsInterbankSyndicated loansDeposits
Source: Nurbank unconsolidated 1H 2008 results (IFRS)
Funding Compositionas of 1H 2008
Source: Nurbank Audited Report 2007; unconsolidated 1H 2008 results (IFRS)
Funding trends
Page 16
Foreign Debt RepaymentForeign Debt Repayment
Foreign Debt Repayments (USD, mn)
-135,0-150,0
-133,0
100,0
150,0
-200,0
-150,0
-100,0
-50,0
0,0
50,0
100,0
150,0
200,0
october '07 april '08 june '08 april '09 2011
As of the end of first half of 2008 Nurbank has completed all large repayments on international syndicated loans and debut Eurobond issue, thus became the first among Kazakh banks to meet all of its external obligations (in the form of Syndicates and Eurobonds) due in 2008. As a result share of the foreign debt in the Bank’s total liabilities has decreased to the acceptable level of less than 16%.
Page 17
StrategyStrategy
► Enhance cross sales and create investment banking products for corporate clients
► Strengthen risk manage-ment and improve operating efficiency
► Penetrate retail and SME businesses through selective expansion into designated regions and improved servicing of the clients
► Strengthen local funding through increasing retail and corporate deposit base.
► Increase the volumes of trade finance to provide clients with low-cost funding
► Expand current exposure to
the local capital markets
Expanding SME and Retail
Business with Focus
on Local Funding
Page 18
ContactsContacts
• Mrs. Sholpan Sakhvaliyeva
• Executive Director
• International Department
• Tel. 007 (7272) 599 - 710 ext. 5330
• E-mail: [email protected]
• Mr. Daniyar Nurskenov
• Managing Director
• Capital Markets and Investor Relations
• Tel. 007 (7272) 599 - 711
• E-mail: [email protected]