Baku, Azerbaijan, March 18
By Fakhri Vakilov - Trend:
Tsesnabank of Kazakhstan showed an increase in equity in January 2019 by 23.6 percent at once, to 265.5 billion KZT, an increase for the year amounted to 42.7 percent, Trend reports with reference to the data from the National Bank of Kazakhstan.
The share of the bank for the month increased from 7.1 percent to 8.5 percent.
Thus, Tsesnabank JSC took the second place in terms of balance capitalization among second-tier banks in Kazakhstan, being behind only to Halyk Bank of Kazakhstan JSC (over 1 trillion tenge), and pushing down Zhilstroysberbank of Kazakhstan JSC (201 billion tenge) and ForteBank JSC (198 billion tenge).
The rapid growth of Tsesnabank's capital is due to the fact that on February 6 of this year, First Heartland Securities JSC announced the acquisition of 99.5 percent of common shares of Tsesnabank, and also made a capital increase of the bank in the amount of 70 billion tenge.
"First Heartland Securities" JSC is the investment division of the financial holding company of the group of autonomous educational organizations "Nazarbayev University", "Nazarbayev Intellectual Schools" and "Nazarbayev Fund".
National Bank of Kazakhstan noted that the future development strategy of Tsesnabank will be determined by FHS shareholders. The complex of measures implemented by the National Bank and the government and the attraction of a new investor to Tsesnabank allowed the bank to improve its health in order to resume the process of lending to the real sector of the economy while fulfilling all the necessary prudential standards and requirements of the National Bank.
In its turn, FHS with the purchase of a financial institution will be able to diversify banking business and to cover the segment of small and medium business, retail and insurance, in addition to investment, corporate and private banking.
National Bank of Kazakhstan stressed that, in January 2019, 24 financial institutions out of 28 immediately increased its equity capital. During the month, the cumulative figure for the sector grew by 3 percent, for the year by 8 percent and currently stands at over 3.1 trillion tenge.
---
Follow author on Twitter:@vakilovfaxri