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Nurbank |
Almaty |
B |
Nurbank is a mid-sized universal commercial bank that focuses on working with large and medium-sized businesses. It is also currently seeing organic growth in retail and SME services. Compared to those of market leaders its branch network is modest. Subsidiary companies provide insurance, leasing, pension and asset management services but are not leaders in these market segments. The Bank’s ownership structure is transparent.
Rationale
The rating is based on a transparent ownership structure, strong support from the Bank’s principal shareholder, limited reliance on international resources and the absence of cross-border risks.
Constraining factors include heavily concentrated client funding, a substantial short-term liquidity gap and growing credit risks in the medium term.
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TSESNABANK |
Astana |
B |
Tsesnabank is a medium sized commercial bank; the only bank whose headquarters is situated in Astana, Kazakhstan’s capital. The Bank focuses on retail clients and small and medium enterprises. It is a strategic asset of a multi-profile industrial-financial group, which has stocks in over 20 industries from various economic sectors.
Rationale
Rating is based on independence from foreign borrowing and a transparent ownership structure. Constraining factors include growing credit and exchange rate risks, negatively affecting the quality of the loan portfolio, and the declining level of support from the main shareholder.
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BTA Bank |
Almaty |
B+ |
BTA Bank is a system-critical Kazakh bank and the nucleus of a major financial group active in all segments of the financial market. The Bank has one of the most extensive branch networks in Kazakhstan; it has also expanded into neighbouring countries. The Bank is a leader in both corporate and retail services despite significant deterioration of its market positions due to liquidity problems and inability to meet its obligations. In February 2009, the government of the Republic of Kazakhstan forced the Bank to raise additional capital due to its low liquidity reserves. As a result, the Bank shareholders’ holdings became diluted, and the Samruk-Kazyna National Prosperity Fund acquired 78.14% of the Bank’s stock. Currently the Bank is restructuring its domestic and external debts. After the government became the Bank’s shareholder, it actively participated in state anti-crisis programmes to support the economy and restore its positions on the finance and deposit markets.
Rationale
Rating based on the support from the government. Constraining factors include the restructuring of external liabilities, suspended interest payments on the Bank’s liabilities, negative equity, losses, and unsatisfactory asset quality that continues to decline.
The uncertain outlook is due to uncertainty about the outcome of negotiations with foreign investors and uncertain development plans.
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KASPI BANK |
Almaty |
BB |
Kaspi Bank is a medium universal commercial bank with a focus on retail clients and small and medium enterprises. The Bank has an expanded branch network covering all the regions in Kazakhstan. It has a transparent ownership structure and highly professional management.
Rationale
Rating is due to the bank’s expanding market share, independence from foreign borrowing and support from the main shareholder. Constraining factors include concentration of reserves and increasing credit risk in the medium term.
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CENTER CREDIT BANK |
Almaty |
BB |
CenterCredit Bank is a large universal bank with an extensive network of regional branches. The Bank is focused on retail banking and providing services to small and medium businesses. The Bank is the main asset of the group which includes insurance and leasing companies and pension funds. The group’s companies have strong positions on the financial market. Currently, Kookmin Bank, a large South Korean Bank, holds 33.55% of the Bank’s stock and it plans to increase its share.
Rationale
Rating based on good asset quality, established market positions, sound management and an adequate development strategy. Constraining factors include limited ability of the main shareholder to support the Bank.
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ALLIANCE BANK |
Almaty |
B |
Alliance Bank is a large universal bank, formerly a leader in retail financing in Kazakhstan. Its market positions deteriorated significantly during the crisis due to liquidity issues and defaulting on its liabilities. In January 2010 the National Prosperity Fund Samruk-Kazyna acquired 100% of the Bank’s shares (the main owner was Margulan Seysenbayev). After debt restructuring, Samruk-Kazyna now owns 67% of the Bank, and foreign investors, in exchange for debt liabilities, own the other 33%. Currently the Bank is restoring its deposit and financing activities.
Rationale
The Bank’s own capital is adequate and its quality is good. The funding base is expanding due to restructuring agreements with international creditors and the participation in state anti-crisis programmes. The Bank has a large share of problem assets (the share of provisions in the loan portfolio is 72.5%). Its profitability is satisfactory. Sensitivity to market risk is high, especially due to credit risks. Liquidity is above the required minimums.
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EUROASIAN BANK |
Almaty |
BB- |
Eurasian Bank is a medium universal commercial bank, controlled by Eurasian financial-industrial company. The Bank’s focus is on medium and large enterprises. The Bank has developed a strategy for growth in the retail segment and with small and medium businesses. Its branch network is not very large, compared to market leaders. The Bank’s financial group includes insurance companies, pension funds, and asset management companies. The Insurance company Eurasia holds a leading market position in its market segment.
Rationale
Rating is based on the potentially strong support of the main shareholder, low dependence on foreign funds and a stable client base.
Constraining factors include the high concentration of the loan portfolio, increasing credit risks and declining profitability.
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ATF-BANK |
Almaty |
BBB- |
ATF Bank is a universal financial institution and one of the top five banks in Kazakhstan. The bank belongs to a major banking group - UniCredit Group. Operations are focused on serving major corporate clients along with small and medium-sized business; retail growth is also a priority. The Bank has subsidiary banks in Kyrgyzstan, Tajikistan and Russia. Management is highly professional and effectively structured.
Rationale
Rating based on shareholder support, existing liquidity reserves and steps taken to strengthen asset quality and improve corporate governance. The negative outlook is mainly due to assessed credit risks, loss-making operations and a lack of informational transparency.
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KAZKOMMERTSBANK |
Almaty |
BB+ |
Kazkommertsbank is a one of the largest private universal banks by total assets, focused on corporate services. The Bank has recently become active in retail banking and has an extensive network of regional branches in Kazakhstan. The Bank is the main asset of the group, owned by Mr. Subkhanberdin, which includes insurance, pension, asset management companies and subsidiaries in Kyrgyzstan, Tadzhikistan and Russia. It has an effective corporate governance system and highly skilled management.
Rationale
Rating based on developed market positions, professional management, established international connections and high level of support from the shareholders and the state. Constraining factors include high dependence on foreign funds, lack of growth opportunities, asset risk concentration in real estate and susceptibility to credit risk in the medium term.
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Ratings