Agency of the Republic of Kazakhstan on regulation and supervision of financial market and financial organizations

Transcription

1 Agency of the Republic of Kazakhstan on regulation and supervision of financial market and financial organizations Press release 116 as of November Banking sector Banking sector of the Republic of Kazakhstan p. 2 Banking conglomerates р Insurance market of the Republic of Kazakhstan р Accumulation pension system р. 8 Securities market р Assets Liabilities Own capital* Insurance sector Organizations, engaged in certain types of banking operations р. 12 KZT.bln Protection of interests of financial services consumers р Assets Оwn capital Correlation between pension assets and APS' nominal income ratio * - Own capital is calculated in accordance with the Prudential Rules Pension assets Nominal income ratio (6 mos.) Indicator Key indicators of financial market of the Republic of Kazakhstan as of November 1, 28 () Accumulation Banking sector Insurance sector Non-banking institutions pension funds Total assets 12 73,4 42,6 27,9 211,1 Total liabilities 1 57, 21,8 19,8 159,2 Own capital 1 53,4 2,9 161,1 51,9

2 BANKING SECTOR (based on preliminary data) FSA Press Release As of November 1, 28 the banking sector of the Republic of Kazakhstan comprised 36 tier two banks. As of 1 November 28, total assets of Assets, liabilities and calculated own capital banks equaled KZT12 73,4 bln., having decreased during a month by KZT426,9 bln.(3,4%), 12 2 meanwhile having increased year-to-date by 1 95 KZT388,8 bln. (3,3%) As of 1 November 28 года, total calculated own capital of the banking sector equaled KZT1 971,7 bln., having decreased during a month by KZT11,5 bln. (,6%), meanwhile having increased year-to-date by KZT191,5 bln. (1,8%) As of 1 November 28, the banks loan portfolio (inclusive of interbank loans) equaled Assets Liabilities Calculated own capital KZT9 2, bln., having decreased during October Banks' Loan portfolio (KZT. bln.) by KZT92, bln.(1,%), and having increased yearto-date, by KZT133,7 bln. (1,5%). As of 1 November 28, the banks loan portfolio breakdown looked as follows: standard loans 43,2%, doubtful 53,1%, loss 3,7%. As of January 28, standard loans accounted for 39,7%, 8 85 doubtful 58,8%, loss 1,5%. A total of loans in 8 8 doubtful category 5 and loss category (inclusive of provisions against fungible loans) equaled 8 7 KZT66,7 bln (6,7% of total loan portfolio) As of 1 November 28, loans which are past due over 9 days amounted to KZT447, bln, Loans Provisions 83,9 883,8 that is 5,% of total loan portfolio) ,6 As of , loan provisions totaled 696,5 717,8 KZT883,8 bln., i.e. 9,8% of total loan portfolio, 615, 57, 66,7 6 having increased, for the current month by KZT79,9 519,7 521,7 53,4 bln. (9,9%) and year-to-date by KZT69,4%. 447, 4 342,2 As of , loans by sectors of 312,6 economy (exclusive of natural persons) equaled 283,1 281,8 KZT6 852,2 bln, having decreased for the month by 2 KZT87,7 bln (1,3%). At the same time, reduction in the following sectors was observed over the Loans category 5 doubtful and loss reporting month entrepreneurship, by 19,7%; trade, Past due loans 9 days plus Provisions established in loan portfolio by 6,7 %; non-productive area, by 5,2%; agriculture, by 5,2%; communication, by,9%. Herewith, the increase is observed in the following sectors: transport, by 13,2%; construction, by 6,1%; industry, by 4,4%. Year to date, loans by sectors of economy have increased by KZT333,2 bln (5,1%). As to the date of , total liabilities equaled KZT1 57, bln, of which amount, liabilities to non-residents equaled KZT4 738,4 bln, i.e. 44,8% of total liabilities. Liabilities to non-residents have decreased year-to-date by KZT725,4 bln. i.e.13,3% and equaled KZT4 738,4 bln (reduction in comparison with г.made KZT536,5 bln, i.e. 1,1%). KZT.bln. 383,2 459,3 389, Within fungible loans portfolio, non-performing loans are accounted for as a total of actually established provisions..

3 As of 1 November 28, total corporate and retail deposits attracted by banks from legal entities and natural persons (other than banks and international financial institutions) equaled KZT7 37,2 bln., having decreased over a month by KZT273,4 bln. (3,7%). Corporate deposits totaled KZT5 56,6 bln. (79,% of total amount of deposits), having increased over October by KZT23,6 bln (3,5%), of which amount the special purpose deposits of subsidiaries equaled KZT2 292,1 bln, having decreased over a month by KZT66,1 bln (2,4%). Retail deposits totaled KZT1 476,6 bln (21,% of total amount of deposits), having decreased over October 28 года by KZT69,9 bln (4,5%), and by KZT28,7 bln. (2,%) year-to-date. As of 1 November current year, capital adequacy ratios equaled: k1 =.12; k2 =.15 (vs. k1 =.11; k2 =.14 as of ). As of 1 November 28, the banks' liquid assets to total assets ratio equals 16.2%. Two-tier banks liabilities As of 1 November 28, total income of tier two,19,136,17,134 banks equaled KZT2348,9 bln., which is 61.9% over the same indicator last year. Expenses totaled KZT2255,8 bln. (exclusive of income tax, which as of reporting date equaled KZT27.9 bln.); this is 86.3% к1 (left scale) к2 (right scale) over the last year's indicator. As of 1 November 28, the banks' retained net earnings equaled KZT65.3 bln., which is 67.2% below the last year's indicator. In October 28, there were served 4 written warnings on banks for non-compliance with prudential normative requirements, and 4 letters of commitments and 1 written instruction. As of 1 November 28, there are 6 banks under forcible liquidation as decided by court: Valyut-Transit, JSC; Nauryz Bank Kazakhstan, JSC; Business Bank, OJSC; KazPostBank, OJSC; Komirbank, OJSC; and Chinghiz Bank, OJSC. In October 28 the process of forcible liquidation of Gazprombank, OJSC, was completed (Order 19ор dated г. On withdrawal from the Register of legal entities). In October 28 the Agency approved a range of decrees related to regulation of two-tier banks activities, which are as follows: - On entering alterations and amendments into the Decree 49 «On Approval of Credit entry documentation issued on February 23, 27 by the Board of the Agency of the Republic of Kazakhstan on regulation and supervision of financial market and financial organizations ; - On approval of the List of off-shore zones for banking and insurance, activities of professional participants of equity market and other types of activities subject to licensing in the equity market, as well as activities of pension funds and joint-stock investment funds ; - «On entering alterations and amendments into the Decree 358 «On Approval of Instructions on norms and methods of calculation of prudential standards for two-tier banks issued on September 3, 25 by the Board of the Agency of the Republic of Kazakhstan on regulation and supervision of financial market and financial organizations; - «On entering alterations and amendments into the Decree 44 «On Fixing of standards and methods of calculation of prudential standards for banking conglomerates as well as format, terms and conditions for submitting reports as to compliance to them issued on February 25, 26 by ,125,123,121,119,117,115,113, Liabilities to non-residents Share of total liability to non-residents in % Capital adequacy ratio, ,152,15,148,146,144,142,138 %

4 the Board of the Agency of the Republic of Kazakhstan on regulation and supervision of financial market and financial organizations; - «On entering alterations and amendments into the Decree 3 as of December 25, 26 «On Approval of the Order of submitting reports by tier-two banks of the Republic of Kazakhstan and entering changes in the Decree #31 dated August 27, 25 On entering alterations and amendments in some legal acts of Republic of Kazakhstan on regulation and supervision of financial markets and financial organizations, issued by the Board of the Agency of the Republic of Kazakhstan on regulation and supervision of financial market and financial organizations ; - «On entering alterations and amendments into the Decree 4 «On Approval of the procedure of compulsory liquidation of banks in the Republic of Kazakhstan ; - «On entering alterations and amendments into the Decree 419 «On Approval of the Instructions related to the forms of interim liquidation balance, other reports, liquidation balance of liquidated banks in the Republic of Kazakhstan, terms and conditions and order of their submission by liquidation committees issued by the Board of the Agency of the Republic of Kazakhstan on regulation and supervision of financial market and financial organizations on October 28, 21 ; - «On entering amendments into some legal acts concerning the purchase of declared shares of a bank by the Government of the Republic of Kazakhstan issued by the Board of the Agency of the Republic of Kazakhstan on regulation and supervision of financial market and financial organizations ; - «On entering alterations and amendments into the Decree 134 «On Approval of the form of submitting information concerning transactions concluded between two-tier banks and persons having special relations with it issued by the Board of the Agency of the Republic of Kazakhstan on regulation and supervision of financial market and financial organizations on June 17, 26 ; - «On entering alterations and amendments into the Decree 7 «On Approval of the Rules of awarding/refusing or withdrawal of a status of a large participant of a bank, banking holding, insurance (reinsurance) organization, open accumulation pension fund, issued by the Board of the Agency of the Republic of Kazakhstan on regulation and supervision of financial market and financial organizations on January 25, 28 ; - «On entering alterations and amendments into the Decree 157 «On Approval of the Rules of appointing (election) of the executives of financial institutions, issued by the Board of the Agency of the Republic of Kazakhstan on regulation and supervision of financial market and financial organizations on June 12, 24.

5 FSA Press Release BANKING CONGLOMERATES As to the date of October 1, 28 in the Republic of Kazakhstan there are 15 banking conglomerates, comprising 16 banks of the Republic of Kazakhstan. For nine months of 28 the assets of banking conglomerates have increased by KZT136,6 bln. (11,12%) and equaled KZT13 56,8 bln. as to the report date. As to the date of 1 October, total balance own capital of banking conglomerates equaled KZT1 711,8 bln., having increased year-to-date by KZT23,8 bln. (13,51%). As to the date of 1 October 28, total obligations equaled KZT11 344,5 bln., that is KZT1 12,4 bln., i.e. (1,76%) over the same last year s indicator. Assets, liabilities, bln.tenge Assets, liabilities and own capital of banking conglomerates Assets Liabilities Own capital Net profit obtained by banking conglomerates for 3 quarters of the current year equaled KZT133,3 bln, that is KZT111,7, i.e 45,59% below the same last year's indicator. As to the date of October 1, 28, total calculated own capital of banking conglomerates equaled KZT2 134,4 bln., having increased year-to-date by KZT281,7 bln, i.e. 15,2%. In accordance with prudential standards, the index of capital adequacy of bank conglomerates, equaled to k,14 (as to the date of 1.1.8: k,135, on 1.7.8: k,144). In the third quarter of 28 year 1 written instruction was sent to parent organization of bank conglomerates for breach of the banking law. bln.tenge Calculated own capital Assets and contingent liabilities in according to the degree of risk Own capital bln.tenge. Calculated own capital Assets and contingent liabilities in according to the degree of risk

6 FSA Press Release INSURANCE MARKET (according to provisional data) As of 1 November 28, there were 44 insurance/reinsurance organizations operating in financial market of Kazakhstan as licensed by the Agency; herewith, 8 organizations are licensed to engage in life insurance activity, while 29 are in mandatory insurance of civil responsibility of car owners. Also operating in the insurance services market are 12 insurance brokers and 55 actuaries. Key indicators Total assets of insurance organizations have increased, year-to-date, by 21.2% to reach 4 15 KZT27.9 bln. 1 by November 1, 28. Total equity 3 1 (own capital) has increased by 27,6% and equaled 2 KZT161.1 bln. Insurance reserves totaled KZT bln. The volume of insurance premiums taken under direct insurance contracts equaled, as of November 1, 28, KZT116.4 bln., which is 2.3% below the same indicator in 27. Of this amount, the volume Assets (lt scale) Own capital (lt scale) of insurance premiums on mandatory insurance has Insurance reserves (rt scale) increased by 52.4% and equaled KZT25.3 bln.; on voluntary personal insurance, insurance premiums equaled KZT16.3 bln. (a 19.9% increase), on voluntary property insurance, KZT74.8 bln. (a 15.9% drop). Insurance premiums The volume of insurance premiums in 'life insurance' branch has increased by 2.5% vs. the similar period last year and, as of , equaled KZT4.7 bln.; percentage-wise, life insurance accounted for 4.1% of total insurance premiums (vs. 3.3% on November 1, 27). As of 1 November 28, insurance premiums passed for reinsurance totaled KZT52.9 bln. (45.5% of total insurance premiums); herewith, 39.5% of total insurance premiums were passed to non-residents for reinsurance (as of , the percentage of insurance premiums passed to non-residents for reinsurance was 3.7%). KZT, bln 14, 12, 1, , 6, 4, 2, , Premiums Insurance premiums passed for reinsurance, % 2 11,7 13,6 13,5 13,4 13,2 13,2 8 88,3 86,4 KZT, bln 86,5 86,6 86,8 86, Passed for reinsurance for non-residents Passed for reinsurance residents 1 Total assets are reflected here inclusive of re-insurer's interest (the amendments were made per decree of the NBRK's Board #86 of July 2, 27)

7 Insurance payments The volume of insurance payments made under direct insurance contracts from January to October, 28, equaled KZT51.2 bln., which is above the last year's indicator by 41.8%. Of this amount, the volume of insurance payments on mandatory insurance equaled KZT7.5 bln. (a 59.6% increase), on voluntary personal insurance, KZT6.7 bln. (a 97.1% increase), and on voluntary property insurance, KZT37. bln. (a 31.7% Payments increase). Currently, 32 insurance/reinsurance organizations are participating in insurance payments ensuring system. During September 28, 1 written instruction, 7 letters of commitment, one written agreement were sent to insurance organizations by the Agency in order to correct the violations of legislation governing the activity of insurance market. As of 1 November 28, there are 2 insurance/reinsurance organizations under forcible liquidation: Valyut Transit Policy, joint stock insurance company and Kazagropolicy, open-end joint-stock insurance organization. In October 28 year the Board of the Agency adopted a range of decrees on regulation of activity of insurance/reinsurance organizations, which are as follows: - On approval of methods of calculation of the rate of mandatory, additional and contingent liabilities, procedure and terms and conditions of payment of mandatory, additional and contingency payments, formation and accountancy of mandatory liabilities by insurance organizations participants of the Fund for guaranteeing of insurance payments»; - «On approval of rules of investment of the actives of the Fund for guaranteeing of insurance payments, JSC». KZT, bln 6 5

8 . FSA Press Release ACCUMULATION PENSION SYSTEM As of 1 November 28, there are 14 accumulation pension funds operating in Kazakhstan, with 75 branches and 48 representative offices in regions across the country. 13 legal entities are currently holding licenses for investment management of pension assets, of which number, 9 funds are licensed to independently manage pension assets. No license to independently manage pension assets was issued to any accumulation pension fund in October current year. The number of individual pension accounts (hereinafter - accounts) on mandatory pension contributions reached 9,537,27 by November 1, 28, with pension accumulations on them totaling KZT1,338.8 bln. During October current year, the number of accounts owned by contributors of mandatory pension payments has increased by 5159 (.54%). The number of accounts of contributors/beneficiaries on voluntary pension payments, having increased over October current year by 48 (.12%), equaled 41,59 as of 1 November 28, with pension accumulations on them totaling KZT932.8 mln. As of November 1, 28, the number of accounts owned by contributors on voluntary professional pension contributions equaled 424, with pension accumulations on them totaling KZT52.1 mln. Contributors/beneficiaries' pension accumulations have decreased over October by KZT38.3 bln. (2.77%), to reach KZT1,343.7 bln. by November 1, 28. From January to October current year, pension accumulations increased by KZT135.6 bln., which is KZT85.8 bln. (38.75%) below the increase in pension accumulations in respective period of 27. Total received pension payments have increased during October by KZT24.9 bln. (2.25%), to reach KZT1,133.6 bln. by November 1, 28. Total net investment income from invested pension assets (less commission fees) distributed among contributors/beneficiaries' individual pension accounts have decreased during October current year by KZT61.2 bln. (18.1%), and as of November 1, 28 equaled KZT276.8 bln. As of 1 November 28, net investment income accounted for 2.6% of contributors/beneficiaries' total pension accumulations, which is a 3.86 percentage points decrease during October current year. As of 1 November 28, pension payments and transfers to insurance organizations from accumulation pension funds equaled KZT87.4 bln. In October 28, the funds made a total of KZT2.2 bln. (2.56%) pension payments to beneficiaries. Transfers of contributors/beneficiaries' pension accumulations from one fund to another have increased by KZT9.8 bln. (3.39%) during October, and reached KZT299,2 bln. by November 1, 28. KZT bln Change in pension contributions, net investment income and pension accumulations () As of 1 November 28, the average weighted ratios of nominal income on pension assets of accumulation pension funds equaled: - over a 5 years period (October 23 to October 28): 37.6%. Adjusted average nominal income ratio was 32.23% (cumulative inflation rate for the same period was 64.82%); - over a 3 years period (October 25 to October 28): 24.49% (cumulative inflation rate for the same period was 42,1%); pension contributions pension accumulations investment income

9 - over a 12 months period (October 27 to October, 28): 1.1% (inflation rate for the same period was 13.9%). As of 1 October 28, 3 written instructions were sent to accumulation pension funds by the Agency in order to correct the violations of legislation of the Republic of Kazakhstan. As of 1 November 28, there was one accumulation pension fund under forcible liquidation as ruled by the court: AP Valyut Transit Fund, JSC. In October 28 year the Board of the Agency adopted a range of decrees on regulation of the activity of accumulation pension funds, which are as follows: - «On entering changes into the decree 153 On approval of the rules concerning maintaining of records of pension accumulations on individual pension accounts of contributors (beneficiaries) in accumulation pension funds issued on June 12, 24 by the Board of the Agency of the Republic of Kazakhstan on regulation and supervision of financial markets and financial organizations; - «On entering changes concerning prudential regulation of activities of accumulation pension funds, organizations engaged in investment management of pension assets, and organizations carrying out several types of professional activities in equity market, into some legal acts of the Agency of the Republic of Kazakhstan on regulation and supervision of financial markets and financial organizations ; - «On entering additions into the decree 19 On approval of the rules of evaluation of the financial instruments of the investment portfolios of accumulation pension funds issued on March 26, 25 by the Board of the Agency of the Republic of Kazakhstan on regulation and supervision of financial markets and financial organizations; - «On entering changes into the decree 138 On approval of model agreements concerning provision of pension at the expense of mandatory, voluntarily and voluntarily professional pension contributions issued on April 21, 23 by the Board of the National Bank of the Republic of Kazakhstan;

10 FSA Press Release SECURITIES MARKET As of 1 November 28, there were 2,241 joint-stock companies with current issues operating in corporate securities market. Also operating in the market are 16 brokers/dealers, 15 registrars, 11 custodian banks, 13 IMPAs (investment managers of pension assets, i.e. organizations engaged in investment management of pension assets), 68 investment portfolio managers, and 4 transfer agents. During October 28, 62 share issues were registered: including those share issues whose prospectuses have been modified and state registration certificates renewed. Also in October 28, there were registered 1 bond issue within the framework of bond programs (a total of KZT1. bln.) as well as a total of KZT71. bln. worth 7 bond issues were registered within the framework of bond programs. During October, three bond issues were redeemed at KZT 12.7 bln. As of 1 October 28, there were 338 current corporate bond issues in circulation, with total face value of KZT1,959.5 bln Change in the number and volume of current bond issues Number of issues (left scale) Volume of issues, KZT mln. (right scale) As of 1 November 28, there were 217 mutual funds operating in securities market, of which number 164 were closed-end, 24 open-end and 29 interval ones. Three joint-stock investment funds have been registered over the reporting period, which brought the number of joint-stock investment funds currently operational in the market up to 56. As of 1 November 28, there was the following number of corporate securities issues by RoK issuers included in official KASE list: 247 issues in category of Debt securities, and 95 issues in category of Shares, 1 in category of Securities of investment funds. In October 28, 1 written instruction and 2 commitment letters were sent to professional participants of securities market for non-compliance with certain norms of current RoK legislation on securities market. In October 28 year the Board of the Agency adopted a range of decrees on regulation of the activity of participants of securities market, which are as follows: - On approval of Rules regulating national identification number/numbers assignment for declared shares ; - On approval of Rules regulating national identification numbers assignment for government notes ; - «On entering alterations and amendments into the decree 55 On Fixing of minimal rating for legal persons, who are not residents of the Republic of Kazakhstan, the availability of which is required in accordance with legislation of the Republic of Kazakhstan, regulating activity of financial organizations, as well as of the List of rating organizations for assignment of such rating, issued on February 25, 26 by the Board of the Agency of the Republic of Kazakhstan on regulation and supervision of financial markets and financial organizations, and entering changes into the Decree #34 as of October 25, 24 issued by the Board of the Agency of the Republic of Kazakhstan on regulation and supervision of financial markets and financial organizations. - - «On entering amendments into the decree 486 On Approval of the Rules of submitting reports by organizations licensed to carry out brokerage and dealer activities on securities market of the Republic of Kazakhstan issued on December 18, 22 by the Board of the Agency of the

11 Republic of Kazakhstan on regulation and supervision of financial markets and financial organizations; - «On entering alterations and amendments into the decree 137 On Approval of the Rules of investment portfolio management issued on April 21, 23 by the Board of the National Bank of the Republic of Kazakhstan; - - «On entering amendments into the decree 317 On Approval of the Rules of brokerage and dealer activities on securities market of the Republic of Kazakhstan issued on August 27, 25 by the Board of the Agency of the Republic of Kazakhstan on regulation and supervision of financial markets and financial organizations; - On Approval of the Rules regulating activity of dealers engaged in sale of securities and other financial instruments ; - - «On entering amendments into the decree 259 On Approval of the Rules of record keeping and fixing of value of assets of an investment fund, net assets of an investment fund, estimated cost of a share of a unit investment trust as well as of repurchase price of a share of a joint stock company issued on August 21, 24 by the Board of the Agency of the Republic of Kazakhstan on regulation and supervision of financial markets and financial organizations; - «On entering changes into the decree 142 On Approval of the Rules regulating custodial activity in securities market issued on April 21, 23 by the Board of the National Bank of the Republic of Kazakhstan.

12 FSA Press release SECTOR OF INSTITUTIONS ENGAGED IN CERTAIN TYPES OF BANKING OPERATIONS As of 1 November 28, 12 mortgage companies and 23 institutions engaged in certain types of banking operations were operating in financial market of Kazakhstan based on valid licenses. As of 1 November 28, total assets of mortgage companies equaled KZT211.1 bln., a KZT5. bln. (2.3%) decrease year-to-date. Total liabilities have decreased since January 1, 28 by KZT12.3 bln. (7.2%) and equaled KZT159.2 bln. Own capital of mortgage companies equaled KZT51.9 bln., a 16.6% (KZT7.4 bln.) increase year-to-date. As of reporting date, total loan portfolio of mortgage companies equaled KZT172.1 bln., a 4.6% decrease vs. January 1, 28. As of 1 November 28, the breakdown of mortgage companies' loan portfolio was as follows: standard loans, 9.3%, doubtful, 8.9%, and loss,.8%. As of 1 January 28, standard loans accounted for 95.5%, doubtful, 3.9%, and loss,.6% of total loan portfolio. In October 28, one written warning was sent to mortgage companies by the Agency in order to correct the violations of legislation governing the activity of mortgage companies. KZT bln Key indicators Assets (left scale) Liabilities (left scale) Own capital (right scale) Loan portfolio Loan portfolio

13 FSA Press release PROTECTION OF INTERESTS OF CONSUMERS OF FINANCIAL SERVICES In October 28, the Agency received 161 appeals from natural persons and legal entities as well as from other state agencies. Of total number of incoming appeals, 29.19% of letters concerned the activity of tier two banks, 4.35%, the securities market entities, 14.29% of letters dealt with insurance organizations, 11.8%, with accumulation pension funds,.62% of letters related to activity of organizations carrying out separate types of banking operations, 36.65% of letters contained inquiries from natural persons and legal entities seeking explanations of RoK legislation norms, while 3.1% of letters focused on issues beyond the Agency's control. Breakdown of received appeals 11,8 14,29 3,1 4,35 36,65 29,19,62 The table below provides the breakdown of appeals by tier two banks, insurance organizations, accumulation pension funds and institutions operating in securities market, along with the percentage of each of those of total appeals: Name of financial organization Number of appeals** Weight in respective sector of financial market,% Banking activity 1 Alliance Bank, JSC Halyk Bank, JSC BTA Bank, JSC ATF Bank, JSC House Building Savings Bank of Kazakhstan, JSC Kazkommertsbank, JSC BTA Bank, JSC - Temir Bank, JSC, Subsidiary Nurbank, JSC Bank Center Credit, JSC Tsesnabank, JSC TAT, Credit and Depository Limited Liability Partnership Banks under liquidation/ liquidated: 12 Valyut-Transit Bank, JSC Nauryz Bank of Kazakhstan, JSC Alisa &K, CJSC Kazcomstroybank, JSC TOTAL: * Nonbanking activity Kazakhstan mortgage company 1 1 TOTAL: 1.62* Insurance activity 1 Altyn Policy IC, JSC Valyut-Transit Life, Life Insurance Company, JSC 3 Premier Insurance, JSC CK ACKO, JSC

14 5 Oil Insurance Company, JSC Halyk Bank of Kazakhstan Kazakhinstrakh Insurance Subsidiary, JSC 7 Eurasia Bank, JSC Eurasia Insurance Subsidiary, JSC 8 Kommesk Omir, Insurance Company, JSC SAYA, Insurance Company, JSC 1 4,35 1 BTA Insurance, BTA Bank's subsidiary, JSC 11 Allianz Policy Insurance Company, JSC 4 17,39 Insurance organizations under liquidation/liquidated 12 GOSSTRAKH OF KSSR (liquidated insurance company) TOTAL: * Securities market 1 Vostok Mash Zavod, JSC 1 14,29 2 Myrzakent Corporation, LLP 1 14,29 3 NefteGaz-Dem, APF, JSC 1 14,29 4 Zangar, KRTH, JSC 1 42,84 5 Turanbank, CJSC 1 14,29 TOTAL: * Accumulation pension system 1 Ular Umit APF, JSC Amanat Kazakhstan APF, JSC NefteGaz-Dem, APF, JSC 1 5,26 4 Kazakhmys, APF, JSC 2 1,53 5 Halyk Bank of Kazakhstan APF, JSC 1 5,26 6 Eurasia Bank, JSC Eurasia Accumulation Pension Fund, 2 1,53 Subsidiary, JSC 7 Otan OAPF, JSC 1 5,26 8 BTA Kazakhstan, APF, JSC 2 1,53 TOTAL: * * - the weight of the sector in financial market ** - not all appeals are well-grounded In October, the Agency took the following enforcement measures and sanctions for legal non-compliance identified during the consideration of complaints and appeals from consumers of financial services: - 1 tier-two bank was brought to administrative responsibility per Article 168-2, part 2 of the Administrative Code of the RoK; - against 2 insurance companies: 2 letters of commitment were exacted; 1 letter with request to produce insurance payment to the insured was sent to the insurance organization; 2 insurance companies were brought to administrative responsibility per Article 173, part 2 of the Administrative Code of the RoK; 1 insurance company was brought to administrative responsibility per Article 174, part 2 of the Administrative Code of the RoK. During consideration of appeals and complaints of individuals concerning decrease of pension accumulations in Ular Umit, Accumulation Pension Fund, JSC, the Agency has not applied any restrictive measures as the decrease was caused due consequences of financial crisis, which influenced on the depositors investment income.