Foreign banks in Kazakhstan increase volume of loans
Baku, Azerbaijan, May 1
By Elena Kosolapova - Trend:
Kazakh banks with a dominant share of foreign capital have increased the volume of loans by 8.5 times during six years, according to the analytical service Ranking.kz.
At the end of February 2015, the total loan portfolio of the group of foreign banks exceeded 1.5 trillion tenge (185.8 tenge = $1).
The group of foreign banks (with the dominant participation of more than 90 in the capital) includes 13 financial institutions. During the period from February 2010 to February 2015, their combined share on the credit market increased from 2 percent to 11 percent.
The proportion of bad debts in foreign banks remains low. In February 2015 it was only 10 percent of their portfolio. For comparison, the overdue level on the market is 29 percent.
The amount of operating loans (excluding overdue loans) of banks amounted to 1.4 trillion tenge, which is 14 percent of the total volume of "net" loans of tier two banks. The share of performing loans across the market is 71 percent (February 2015).
The basis of the group of foreign players is formed by four Russian banks. Their total loan portfolio increased by 10 times, to 1.37 trillion tenge in the period from February 2010 to February 2015. The share of Russian subsidiaries on the credit market increased from 1.4 percent to 9.7 percent during 6 years.
The largest foreign bank is Sberbank (100 percent of the shares belong to Sberbank of Russia JSC). In February 2014-2015, the loan portfolio of the bank increased by 145.4 billion tenge to 989.3 billion tenge.
The second place belongs to Alfa-Bank (controlled by Alfa-Bank OJSC, Russia), the bank's loan portfolio amounted to 158.8 billion tenge against 137.9 billion tenge in February 2014.
They are followed by Bank VTB (VTB Bank JSC, Russia is the sole shareholder), with a loan portfolio of 113.8 billion tenge. The reduction for the year (February 2014 - February 2015) amounted to 2.2 billion tenge.
The fourth place belongs to Home Credit Bank (Home Credit and Finance Bank is the sole shareholder, Russia), where also there was a reduction of the loan portfolio to 106.4 billion tenge against 107.4 billion in February 2014.
Another bank included in the top 5 lenders among foreign financial insttitutions, along with Russian ones is Citibank (controlled by Citibank NA, USA). From February 2014 to February 2015, the loan portfolio of the bank dipped significantly to 82.8 billion tenge against 128.6 billion tenge.
Edited by CN
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