update on recent developments

•Update on recent developments

• May 2008

Nurbank Highlights

Progress in transparency of shareholders’ structure – official disclosure of ultimate beneficiaries

Capital injection of USD $95 million with capital adequacy ratio at 21.7% - one of the highest ratios within the sector

Qualified professionals with proven track record joined the Bank

9th largest bank in Kazakhstan by assets with US$ 1,965 bln as of the end of 1Q 2008

The foreign debt exposure of total liabilities is 19.5% - one of the lowest ratios within Kazakh banking sector

Proven stability of the bank - successful pay out of $135 mm Syndicated Loan in October 2007 and $150 mm of Eurobonds in April 2008 with no refinancing

Bank’s ratings were confirmed by Moody’s at the level of B1/Stable (confidence in changes in the Bank’s shareholders structure and top-management and their activity)

Progress in Corporate Governance, improvement in Efficiency

and Increase in Investors’ Confidence

Shareholders’ Structure

26%

74%

Nazarbayeva D.N Aliev N.R.

Minorities

Constant Improvement in Bank’s Transparency, including Shareholders’ Structure

Nurbank’s shareholders are long-term investors: Ms.Dariga N. Nazarbayeva and Mr. Nurali R. Aliyev

► Directly control almost 50% 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

309

0

60

120

180

240

300

360

2002 2003 2004 2005 2006 2007

Management Board

Chairman of the ManagementBoard (CEO)

Nurmukhamed Bektemissov

SME

Mr. Baikhanov

Managing Director

Corporate Business

Mr. Nadyrov

Managing Director

Retail Business

Mrs. Belozertseva

Managing Director

Investment Banking

Mr. Nurskenov

Managing Director

CFO

Mrs. Ekler

CIO

Mr. Chuchelov

COO

Mrs. Bogatkina

Organizational Structure Revised According to the Best International Practice with Focus on Client Orientation

Financial Group

Pension Asset Management- Best company in PAMC sector of- Kazakhstan in 2006- Assets Under Management 260 mn USD

Leasing Company Total Assets – 9 mn USD

Pension Fund- Total clients 271 582

Insurance Company

- Non-life insurance

Brokerage and Dealing Operations- Brokerage services- Underwriting

► 100%

► 82%

► 100%

► 53%

► 100%

ASSET MANAGEMENT & BROKERAGE COMPANY EXPERTSMONEY EXPERTSMONEY

Capacity to provide full scope of financial services to clients

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 36- sub-branches

Zharkent

28

2

15

184 - ATMs

16

16

14

37

16

5

6

4

3

8

n

Northern Regional Direction

Southern-Eastern Regional Direction

Western Regional Direction

Branch Network

Wide Branch Network – Present in Major Areas of Kazakhstan

Nurbank’s position vs. Kazakh peers

Stable Position Among Second-Tier Banks with Strong Capitalization

Bank (US$ million) Equity

1 BTA 3 393

2 KKB 2 326

3 Alliance 1 355

4 Halyk 1 239

5 ATF 612 6 BCC 599

7 Temir 460

8 NURBANK 325

9 Sberbank 270

10 Caspian 244

11 Eurasian 169

Bank (US$ billion) Assets

1 BTA 22 639

2 KKB 21 557

3 Halyk 13 494

4 Alliance 9 549

5 ATF 8 596

6 BCC 7 018

7 Temir 2 775

8 Caspian 2 093

9 NURBANK 1 965

10 Eurasian 1 524

11 ABN AMRO 1 328

As of 01.04.08

Source: for Nurbank - consolidated 1Q 2008 results (IFRS); for other banks – AFN data as of 01.04.08, unaudited, unconsolidated data; Exchange rate KZT/USD = 120.69

Key Financials

US$ mm or % 2005 2006 2007 06/07 1Q 2008*

Total Assets 909 1 596 1 652 3.5% 1 965

Loan Portfolio, net 550 1 133 1 279 13% 1 269

Shareholder’s Equity 104 178 309 74% 325

Deposit base 347 589 498 (15%) 858

Net Interest Income 31 43 85 98% 21

Net Income 15 11 25 127% 5

Net Interest Margin (before provisions)**

4.3% 4.3% 6.2% 5.8%

NPL 0.85% 1.56% 3.5% 1.9%

Cost/Income Ratio 68.4% 54.2% 45% 43.6%

ROAE** 16.3% 7.3% 10.2% 6.2%

ROAA** 1.9% 0.9% 1.5% 1%

Capital Adequacy*** 15% 16% 20.9% 21.7%Source: Nurbank Audited report 2007

*Nurbank consolidated 1Q 2008 results (IFRS), **Bank only, ***K2 ratio for the Bank,

Loan Portfolio

565

1 153 1 311 1 314

0,00

1000,00

2000,00

US

D, m

m

01.01.200601.01.200701.01.200801.04.2008

Loan Portfolio

22%

69%

9%

Retail

Corporate

SME

Breakdown by Borrower Category as of 01.04.2008

Source: unconsolidated 1Q 2008 results (IFRS)

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

14%

3%

12%

5%

26%

6%

7%

25%

2%

Construction

Real Estate

Retail

Food Industry

Agriculture

Trade

Transport

Oil and gas

Other

Industry Breakdown as of 01.04.2008

Corporate Business

25,08

298,69

33,28

493,15

-

200,00

400,00

600,00

US

D, m

m

01.01.2008 01.04.2008

DepositsCurrent Accounts

Time Deposits

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

642,99858,04 903,78

0,00

500,00

1000,00

US

D, m

mLoan Portfolio 01.01.2007

01.01.2008

01.04.2008


SME Business

80,26

6,72

111,81

44,41

-

50,00

100,00

150,00

US

D,

mm

01.01.2008 01.04.2008

Deposits

Current Accounts

Time Deposits

299,58

170,27122,43

0,00

200,00

400,00

US

D, m

m

Loan Portfolio 01.01.2007

01.01.2008

01.04.2008


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

Retail Business

211

283 288

0

100

200

300

US

D,

mm

Loan Portfolio 01.01.2007

01.01.2008

01.04.2008

22

65

16

159

-

50

100

150

200

US

D, m

m

01.01.2008 01.04.2008

DepositsCurrent Accounts

Time Deposits


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

Syndicated loans 12%

Deposits 46%

KZT notes 16%

Other interbank

placements and loans 3%

Equity 16%

Eurobonds 7%

Reliable Funding Base (IFRS)Significant Capitalization and Growth in Local Deposit Base

375 347589 498

95

271

72

100178

57

150

300141

157

298

95

858

233

234

11670

0

300

309

142

120

64

52

39

112 214

17

66

53

43

0

500

1000

1500

2000

2500

2004 2005 2006 2007 1Q2008

US

$mm

Retained earningsEquity (Share Capital + Reserves)KZT notesEurobondsOther interbank placements and loans Syndicated loansDeposits

• Source: Nurbank consolidated 1Q 2008 results (IFRS)

Funding Compositionas of 01.04.2008

• Source: Nurbank Audited Report 2007; consolidated 1Q 2008 results (IFRS)

Funding trends

• Source: AFN deposit base, excluding NurfinanceBV

Deposit base growth (USD mn)

Deposit base

• Source: AFN deposit base, excluding NurfinanceBV

Deposit base growth (monthly)USD mn

8

Deposit base growth - growing investors’ confidence due to new shareholders’ structure and top-management strengthening

58% growth during the second half of 2007 and 72% growth during first quarter of 2008

289

498

858

0

100

200

300

400

500

600

700

800

900

1 000

1H 2007 2007 1Q 2008

(US

$m

n)

289 310365 350

433486

431498

557

706

858

0% 7%26% 21%

50%68%

49%72%

93%

144%

197%

0

100

200

300

400

500

600

700

800

900

1 000

june july aug sept oct nov dec jan feb mar apr

(US

$m

)

-100%

-50%

0%

50%

100%

150%

200%

250%

%

deposit base growrth from beg. 2H 2007

Strategy

►Enhance cross sales and create investment banking products for corporate clients

►Strengthen risk

management 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 marketsExpanding SME and Retail

Business with Focus

on Local Funding

Contacts

• 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]

update on recent developments

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