Kazakh BTA Bank considerably decreases debt load in 2012

Business Materials 9 April 2013 12:19 (UTC +04:00)

Azerbaijan, Baku, April 9 / Trend E. Kosolapova/

At the end of 2012 the Kazakh BTA Bank successfully completed restructuring process that had a remarkable positive influence on its financial status, the bank reported.

"The Restructuring resulted in considerable decrease of the Bank's debt load as well as its recapitalization to the level fully compliant with the current regulatory norms and requirements of the Basel Accord," the Bank said.

Bank's assets grew by 8 percent and amounted to 1.611 trillion tenge ($10.7 billion) as of December 31, 2012. The asset growth is mostly related to liquid assets.

Net loan portfolio decreased by 1 percent to 645 billion ($4.3 billion). Other assets increased by 28 percent to 87 billion tenge ($0.6 billion). Increase is determined by acceptance onto the Bank's balance of collateral under ongoing asset recovery procedures.

Liabilities decreased by 34 percent to 1.342 trillion tenge ($8.9 billion).

Issued debt securities decreased by 89 percent and amounted to 74 billion tenge ($0.5 billion) which was achieved based on the restructuring results under which the Bank's financial indebtedness decreased.

Funds of credit institutions decreased by 31 percent to 65 billion tenge ($0.4 billion). Under restructuring the Bank reconsidered terms of its trade finance facility (RCTFF). In December, 2012 the Bank repaid two tranches under RCTFF for the total amount of $80 million.

Consolidated International Financial Reporting Standards equity was recorded positive for the first time during five years and amounted to 268.6 billion tenge ($1.8 billion), capital adequacy restoration was enabled by the Bank's restructuring.

"The secondary restructuring of a part of the Bank's financial liabilities held at the end of 2012 is one of the main key results of the Bank during the reporting period. Herewith, it shall be noted that restructuring envisaged more favorable terms for the Bank than those of the first restructuring," the bank said.

In 2013 the Bank intends to continue intensive work on Non-performing loan recovery which provides for considerable increase of asset recovery indicators.

According to non-audited non-consolidated financial statement as of April 1, 2013 the BTA Bank's assets amounted to 1.511 trillion tenge ($10 billion), equity - 223 billion ($1.5 billion tenge), net income - 11.9 billion tenge ($79 million), net interest margin - 3.3 percent.