Baku, Azerbaijan, May 15
By Nargiz Sadikhova - Trend:
The assets of Halyk Bank of Kazakhstan have decreased by 1.1 percent in 1Q2019 compared to the same period of last year, Trend reports via bank’s press office.
The net profit of the bank has increased to 74.5 billion tenge, compared to 62.1 billion tenge in 1Q2018. This is related to the decrease of operating costs and to the increase of interest profit to 176.2 billion tenge.
“The interest expense has decreased by 4.6 percent due to the decrease of the retail deposit rate. Interest margin increased to annual five percent due to the increase of net interest profit,” the report said.
Operating costs have decreased by 15.6 percent and amount to 30.1 billion tenge. The operating profit has increased by 7.5 percent due to the increase of net interest profit.
The volume of issued securities have decreased by 8.1 percent mainly due to early partial repayments of Eurobonds worth $200 million on March 1, 2019 that are to be paid in 2022.
Furthermore, the NPL 90+ indicator of the bank has increased to 9.1 percent compared to 8.2 percent at the end of 2018.
As at March 31, 2019 the percentage of tenge-denominated corporate deposits in the total volume of deposits amounted to 50.3 percent, whereas the percentage of retail deposits amounted to 42.6 percent.
The funds of physical and legal persons have decreased by 0.9 percent and by 3.4 percent respectively compared to the same period of 2018. This is mainly due to partial withdrawal of funds by bank’s customers.
The funds of credit organizations have decreased by 0.3 percent compare to 2018. As at March 31, 2019 some 75.7 percent of Halyk Bank’s liabilities before financial institutions consisted of loans of KazAgro, Damu and Development Bank of Kazakhstan that were attracted in years 2014-2017 within the framework of government programs on certain spheres of economy support.
Follow the author on twitter: @nargiz_sadikh