Kazakh Kazkommertsbank decreases net profit in H1
Baku, Azerbaijan, Oct. 1
By Elena Kosolapova - Trend:
Kazakh Kazkommertsbank decreased net profit from 14.8 billion tenge in the first half of 2013 to 13.9 billion tenge (181.88 tenge =$1) in the same period of 2014, the bank said on Sept. 30.
Kazkommertsbank completed the purchase of 46.5 percent of BTA Bank common shares.
Meanwhile, Kazakh National Welfare Fund Samruk-Kazyna transferred its remaining 4.26 percent in BTA Bank to Kazkommertsbank under a trust agreement providing the bank with operational control of BTA Bank. As the transaction was completed on the last day of the reporting period, it affected only the balance sheet of consolidated financial statements for the period ended 30 June 2014.
Kazkommertsbank's total assets increased by 67.9 percent to 4.341 billion tenge as of the end of June from 2.586 billion tenge at the end of 2013. Total deposits increased by 46.2 percent to 2.459 billion tenge during this period.
Net interest income before provisions for impairment losses increased by 3 percent to 61.5 billion tenge in the first half of 2014 compared to 59.7 billion tenge in the first half of 2013.
Meanwhile net non-interest income amounted to negative 67 million in the reporting period compared to 19.3 billion tenge in the first half of 2013, due to negative translation differences resulting from tenge devaluation in February.
Operating expenses increased by 7.7 percent to 17.3 billion tenge in the fist half of 2014 compared to 16.1 billion tenge in the same period of 2013. The increase in operating expenses resulted mainly from increase in expenses related to work with problem loans.
The provisions for credit impairment losses hit 59.6 percent of gross loans as of 30 June 2014 compared to 34 percent as of 31 December 2013. The provisioning charge amounted to 27.4 billion tenge in the first half of 2014 compared to 37.6 billion tenge in the same period of 2013.
Kazkommertsbank is one of the largest banks in Kazakhstan and Central Asia with total assets of 4.342 billion tenge ($23.7 billion) for 30 June 2014. In addition to its core banking business (retail and corporate) the bank has subsidiaries working in pension fund management, asset management, insurance and brokerage. Kazkommertsbank also has foreign subsidiaries in Russia, Kyrgyzstan and Tajikistan.
The major shareholders of Kazkommertsbank are Central Asian Investment Company and Chairman of the Board Nurzhan Subkhanberdin, Alnair Capital Holding, the Kazakh Government through the Samruk-Kazyna National Welfare Fund and the European Bank for Reconstruction and Development.
Edited by T.T.