JSC "Bank TuranAlem" experiences growth of the basic financial indices24.05.2007 / Press-service
As at April 01, 2007 Bank TuranAlem’s assets have increased by 18.5% since the beginning of the year and comprised 19.4 bln USD, as a result of which BTA’s asset share in the market comprised 24.6%. The main increase was determined by the bank’s credit portfolio growth, asset share of which has increased up to 66.5% as at Q1 2007. Small and middle business loans and retail loans comprised 40% of the total loan portfolio at the end of Q1.
Net profit as at April 01, 2007 comprised 103 mln USD that is 1.9 times more than the same index for analogues period of the last year and is comprised mainly of the interest profit – 65%, premium and commission charges – 15% and treasury trade transactions – 20%. ROAA is 2,17%, ROE - 24% and сost to income - 27,6%.
Deposit volumes increased by 23.1% in Q1. Deposits ensured 26.4% of assets funding. Natural persons’ deposits share liabilities comprised 21.1%, legal entities deposits share – 15.5% as at the end of Q12007. At that BTA’s deposit base growth surpasses that of Banks of second tier by 3%. Capital attraction from international capital markets is the main funding source of the bank’s growth. The bank intends to follow its announced plan on attraction in the international markets. According to this plan the bank is going to implement public attractions through Eurobonds and syndicated loans issue with total amount up to 2 bln. USD. At that the bank will follow market’s economic situation and find most favorable outlets to the market, thereby, attraction value will remain a critical factor for the bank when taking decision on the market entry.
One of BTA’s strategic principles is the adequate capital level keeping. Aggregate shareholders’ equity as at April 1, 2007 comprised 1.966 bln. USD, capital adequacy ratio K1 comprised 12.22%, K2 – 13.99%.
In February 2007, the shareholders agreed to place 11 shares emission with a total amount of 1.5 bln.USD among actual shareholders, the main part of which (about 1 bln. USD) will be placed during Q2 2007. The full shares emission will double the major part of the equity till the end of 2007, which will provide capitalization support on the adequate level and allow implementation of the Group’s consolidation strategy.
At the beginning of 2007 the bank acquired 34% stake in Turkish Sekerbank. During 2007, the bank intends to consolidate network of affiliated banks in other CIS countries and establish a subsidiary in China (Western China, Urumchi).
After acquisition of Temirbank’s majority interest, BTA’s consolidated assets as at April 1, 2007 surpassed KKB’s assets by 2.6% and as the result BTA became the largest private bank in CIS.
With the second largest subsidiary network (22 regional subsidiaries and 229 cash settlement units) and customer’s base in Kazakhstan, BTA is a universal bank with a considerable share in the customer’s deposits base which comprises 17.5% of the market and the second largest loan portfolio. The bank intends to increase internal positions by increasing market shares in all business spheres up to 25%.
In April 2007, the international magazine Euromoney awarded JSC "Bank TuranAlem" as a leading bank in corporate management of developing Europe - "Corporate Governance 2006", and recognized BTA as one of the most effectively managed banks in Central and Eastern Europe and Central Asia – "Best Managed Companies 2007".
Bank’s fundamental economic and credit indices remain high which reflects on high credit ratings of the bank, reconfirmed by the rating agencies.
On May17, 2007 Fitch Ratings confirmed Bank TuranAlem’s ratings (BB+, Positive). JSC "Bank TuranAlem" ratings reflect the moderate probability of support being forthcoming, in case of need, from the Kazakhstani authorities. "Positive" outlook on BTA’s foreign currency IDR reflects outlook on sovereign IDR. Bank’s foreign currency IDR is likely to be improved if sovereign rating improves. Individual rating also considers BTA’s considerable customer base in Kazakhstan, good financial performance and reasonable levels of bank’s liquidity.
On May 4, 2007 Moody's announced of possible reconsideration of the bank’s ratings on foreign currency liabilities of some Kazakhstani banks including BTA. Rating reconsideration on senior and subordinated liabilities is related only to that the agency is revising its assessment support methodology. At the same time the agency didn’t change bank’s individual foreign currency credit rating (Ba1, Stable).
BTA’s high financial indices and efficiently operating infrastructure provide the bank with a considerable advantage in terms of current positive economic development trend and ability to grow together with the market. The bank is adapting to unstable character of Kazakhstani banking market by increasing quantity and quality of the business profitability.