BTA Bank reinforced its footing in Kazakhstan, CIS and non-CIS countries in 200717.04.2008
In 2007 Bank TuranAlem JSC (BTA) boasted a successful development of all lines of its activities and continued efforts to reinforce its footing on the financial markets of Kazakhstan, CIS and globally.
Pursuing its strategy of turning into a major privately-owned bank in the CIS, BTA is gradually expanding its product range and introducing advanced banking services.
Although competition grew tougher and turmoil on the financial markets rumbled on, BTA demonstrated impressive financial performance in 2007.
Financial Performance of BTA Banking Conglomerate in 2007
Consolidated assets of BTA group rose by 56% in 2007 making USD 25.5 billion as of January 1, 2008. The asset growth has benefited from a 30% growth of customer deposits, a 62% increase in securities issue, a 41% surge in funds of lending agencies and widening of the equity capital. The equity capital made USD 3.8 billion at the end of the reporting year.
Customer deposits as of the key date stood at USD 5.4 billion, including:
- USD 3.1 billion of corporate deposits, a 28% annual growth;
- USD 2.3 billion retail deposits, 34% up.
BTA Group accounted for 25.5% of all banking assets in Kazakhstan as of the reporting date (22.8% as of January 1, 2007), and accounted for 23.7% of all deposits (24.9% falling on deposits from entities and 19.5% of retail deposits).
Last year, BTA was stepping up its lending activities and made its contribution to propelling the economic growth in Kazakhstan. The loan portfolio of the Bank skyrocketed by 87% to USD 19.8 billion.
The net interest margin rose to 6.0% from 4.2% during the period under review.
In 2007 BTA group cleared USD 538 million profit, almost a double increase from 2006.
Note: financial data are converted in USD at the KZT/USD exchange rate of 120.3 KZT/USD at the end of 2007.
Forecast of 2008 Financial Highlights
In 2008 and 2009 the Bank will focus its efforts to support small and medium-sized enterprises and provide a broad range of services to individuals.
With a view to improve its risk management policy this year BTA gradually curtails lending to borrowers in the CIS countries and builds up local lending. The Bank is also to continue use of local deposits to edge out the foreign borrowings. Consequently, the share of foreign borrowings in its liabilities will drop and that of local deposits will increase.In 2008, the Bank projects a 20% growth of assets. Moreover, it plans to increase the equity capital by 17% and loan portfolio by 21%. BTA expects quality of the loan portfolio remains at the level of 2006 and 2007, which is not more than a 5.5% share of provisions in the loan portfolio.