On 3 January 2013 the central bank’s financial supervision
committee, AFN (АФН РК), published summary information on a number of actions
taken on 24 December 2012 , including the
following:
– The
authority approved requests by Kazkommertsbank («Казкоммерцбанк» АҚ) to establish
two subsidiaries to manage problem loans.
The board of directors of Kazkommertsbank had decided on 8 November 2012 to establish two new
subsidiaries – distressed asset management companies – to manage distressed
loans. The two companies, to be named “KUSA
KKB-1” (for industrial assets) and “KUSA KKB-2” (for commercial and residential
real estate), were to be entrusted with assets once regulatory authorization
had been obtained. Kazkommertsbank was ranked
#1 in assets among banks in Kazakhstan 1 Dec. 2012 , with total assets of 2.553 trillion
KZT (13.06 bln EUR). (1 EUR = 195.4912
KZT as of 1 Dec. 2012 .)
– The authority
granted consent for a firm identified as “JP Finance Group” to acquire the
status of bank holding company for the troubled commercial bank Nurbank ("Нұрбанк"
АҚ). No additional information was
published on “JP Finance Group”.
Nurbank, a bank long plagued by management problems – including the kidnapping
and murder of two former officers in 2007 – as of 1 Dec. 2012 was ranked 14th
among banks in Kazakhstan in assets, with total assets of 252.7 bln KZT (1.293
bln EUR).
In a separate
action, on 24 December 2012 the financial
supervision committee also issued a written warning to Alliance Bank ("Альянс
Банкі" АҚ) for infringement of art. 20, par. 5 of the Law on Banks and
Banking Activity in the Republic of Kazakhstan 1 Dec. 2012 , with total assets
of 589.9 bln KZT
Sources:
AFN decisions on
Kazkommertsbank and Nurbank: Жаңалықтар
(2013-01-03)
AFN nforcement
actions: Шектеулі ықпал
ету шаралары (Dec. 2012)
Kazkommertsbank
board decision: Казкоммерцбанктің
директорлар кеңесі күмәнді және үмітсіз активтерді басқару жөнінде екі еншілес
компания құру туралы шешім қабылдады (2012-11-12)
Assets of banks in Kazakhstan 1 Dec. 2012 : ҚР-ның
ЖЗҚ-ның меншікті капиталы, міндеттемелері және активтер туралы мәліметтер
In earlier news, on
27 December 2012 the commercial
bank BTA Bank (“БТА Банк” АҚ) announced that on 24 December it had successfully
completed its second restructuring plan, which related to USD 11.1 bln of the
bank’s indebtedness. The bank’s press
release summarized the results of the plan as follows:
Key results of the Bank’s Restructuring:
— the Bank has
been recapitalised by approximately U.S.$10 bln. as a result of:
- the conversion
of USD 1,208 mln. of the Bank’s financial indebtedness into common shares and
the distribution of shares and GDRs to subordinated debt holders;
- the
cancellation of USD 9,044 mln. of other Claimants’ claims in exchange for a
total of USD 1,618 mln. in cash and USD 750 mln. New Notes;
- the additional
capital created through the IFRS treatment of the USD 1,592 mln. loan from
Samruk-Kazyna and the increase from 4 per cent. to 6 per cent. of the coupon on
the existing Bonds of Samruk-Kazyna JSC.
— The Bank’s
estimated equity and regulatory capital, calculated by the requirements of
Basel II, as at 31 December 2012 comprise KZT 219.2
bln. and KZT 195.7 bln., respectively. Owing to this, the Bank as at 31 December 2012 will have a new, sustainable
capital structure with Tier 1 ratio of 21.8 per cent. Further, this ratio will
be maintained above 10 per cent. Under Basel II based on the Bank’s business
plan.
— The financial indebtedness of the Bank subject
to the Restructuring has been reduced from approximately USD 11.1 bln. to
approximately USD 3.3 bln. (including approximately USD 600 mln. of deposits
remaining in the Bank from Samruk-Kazyna JSC)
— Samruk-Kazyna has increased its majority
shareholding in the Bank to 97.3 per cent., with the Claimants holding in
aggregate 2.5 per cent. and minority shareholders who held shares prior to the
2010 Restructuring now holding 0.2 per cent. in aggregate of the Bank’s shares.
Samruk-Kazyna,
officially known as Sovereign Wealth Fund “Samruk-Kazyna” JSC («Самұрық-Қазына» Ұлттық әл-ауқат қоры» АҚ), is
Kazakhstan 30 September 2012 had total assets
of 4.904 trillion KZT (25.5 bln EUR). As
of 1 December 2012 , BTA Bank was
ranked #3 in assets among banks in Kazakhstan
Sources:
BTA Bank successfully
completed restructuring of financial debt for the amount of USD 11.1 bln.
(2012-12-27)
АО
"БТА Банк" (Казахстан) сообщило о завершении реструктуризации своей
финансовой задолженности на сумму $11,1 млрд (2013-01-04 09:46 )
Samruk-Kazyna press release: По итогам двух реструктуризаций
задолженность БТА банка снижена на 70 процентов (2012-12-27)
Samruk-Kazyna assets: Отдельная финансовая отчетность
АО «Самрук-Казына» за 9 месяцев 2012 года (2012-11-13)
In other news, as
of 1 January 2013 almost all businesses in Kazakhstan are required to accept debit
cards, temporary exceptions being made (through the end of 2013) for farmers
and fishermen selling their own produce and for merchants operating from kiosks
and stalls without access to communication networks. The change comes about through a law passed
in June 2012, Law of the Republic of Kazakhstan Republic of Kazakhstan
Sources:
Finally, on 29
December the rating agency Fitch Ratings updated its ratings for Kaspi Bank ("Kaspi
Bank" АҚ), raising the bank’s Long-term Issuer Default Rating from ‘B-‘ to
‘B’ and increasing the bank’s Validity Rating from ‘b-‘ to ‘b’, with an outlook
of “stable”. The improved ratings were
due in particular to the high growth rate of the bank’s mass-market retail
lending in 2011 and 2012 and to the bank’s strong profit position. But the agency added that it would no longer
be continuing to publish ratings for Kaspi:
Simultaneously, the agency has withdrawn the bank's ratings as Kaspi has
chosen to stop participating in the rating process. Therefore, Fitch will no
longer have sufficient information to maintain the ratings, and accordingly
will no longer provide ratings or analytical coverage.
The bank did not
publish any explanation for its decision to stop dealing with Fitch, nor did it
bother to publish on its website the higher ratings published by Fitch. But on 5 December it had published on its
website – and distributed widely – a press release announcing the assignment of
ratings by Standard & Poor’s ('BB-' long-term, 'B' short-term, and 'kzA-'
national scale ratings). The “Ratings”
page on the bank’s website features ratings by Moody’s and S&P, but not by
Fitch. It appears that prior to the 5
December ratings assignment by S&P the bank had not been rated by S&P,
which could lead one to suspect that after the publishing of the S&P
ratings on 5 December the bank decided to switch its business from Fitch to
S&P.
As of 1 December 2012 , Kaspi Bank was rated #9
among banks in Kazakhstan
Sources:
News: Kaspi
Bank отказался от услуг Fitch Ratings (2012-12-29)
Fitch press release: TEXT-Fitch
ups Kazakhstan's Kaspi Bank to 'B'; drops ratings (2012-12-28 09:28 )
Kaspi Bank website: Ratings: Рейтинги
Kaspi Bank website: Press releases: Агентство
Standard & Poor’s присвоило Kaspi Bank рейтинги «ВВ-/В» и рейтинг по
национальной шкале «kzA-», прогноз – «Стабильный» (2012-12-05)
Mark Pleas
[contact]
