Update on 3Q financial performance of BTA (preliminary figures)07.11.2007
For the period from December 31, 2006 to October 1, 2007, according to preliminary data, consolidated assets of JSC Bank TuranAlem grew by 47.4% to US$24.1 bln., total equity grew by 2.3 times to US$3.6 bln. Net income of the BTA Group was US$492 mln. which is twice more comparing to the same period of the previous year and exceeded net income for the whole year 2006 by 60%.
Loans to customers grew to US$18.7 bln. as at October 1, 2007 from US$10.6 bln. as at the end of 2006 thus reflecting a 76% increase for the 9 months of 2007. Net interest margin for the same period grew to 5.5% from 4.2%.
In October 2007 JSC Bank TuranAlem completed a US$750 mln DPR securitization transaction. The transaction was done through specialized BTA Finance Company and is BTA’s first one in the international debt capital markets under it’s diversified payment rights ("DPR") programme. This transaction is notable for being the largest ever single DPR transaction in Kazakhstan.
On November 1, 2007 Moody’s rating agency downgraded debt rating of a few Kazakh banks, including JSC "Bank TuranAlem" (global local currency deposit Ba1/NP, foreign currency senior unsecured debt Ba1, foreign currency subordinated debt Ba2, foreign currency junior subordinated debt Ba3). The outlook on all of the Bank’s deposit and debt ratings is stable.
The management of the Bank believes that this downgrade, as well as the previous rating downgrades made by other rating agencies, was not provoked by Kazakh banks and is reflecting the common negative tone in the global financial market.
Notwithstanding the downgrade of the ratings, BTA is in compliance with all financial covenants stipulated in loan agreements, including syndicated loans and bond issues.
The Bank is planning to arrange an investor conference-call early next week to discuss with its investors recent developments and results of 3Q2007. Details of the call will be provided later.
In September 2007 the Bank won "Best Enterprise of Europe" international award in Eurasian banking sector.
BTA is one of the largest banks in Kazakhstan and the Leader in CIS expansion. The BTA Group is not only the Bank, it also represents institutions providing insurance services, mortgage lending, pension coverage, leasing and assets management services.
For the 9 months of 2007, the insurance group of BTA is the leader of the insurance services market with 15% market stake.
JSC "BTA Ipoteka", the subsidiary of JSC "Bank TuranAlem", is the largest mortgage company in Kazakhstan, taking 50% deals among all Kazakhstani mortgage companies.
JSC "NPF BTA Kazakhstan" takes the 4th place by assets among the pension funds of Kazakhstan, 1st place by nominal income ratio being 68.78% for the period of September 2004 – September 2007.