EurasiaNet Business & Economics - Kazakhstan: Bank Reports Upbeat News, But No Word on Last Quarter of 2008

BUSINESS & ECONOMICS

KAZAKHSTAN: BANK REPORTS UPBEAT NEWS, BUT NO WORD ON LAST QUARTER OF 2008
1/06/09

One of Kazakhstan’s leading banks, Kazkommertsbank, is claiming that it weathered the crisis which ravaged the country’s financial sector in late 2008.

The bank revealed that it recorded a small but symbolic net profit increase of 16 percent of $413 million during the January-September period 2008. It did not provide information for the last quarter of the year, during which time the full impact of the global financial crisis started to be felt.

Lending to customers fell by 2.3 percent despite a significant increase in the volume of customer accounts, according to the bank’s consolidated financial statement, which was released January 6.

"The Bank’s total gross loan portfolio reduced by 2.3 percent to KZT 2,450 billion [$20.25 billion] as of 30 September 2008 from KZT 2,507 billion [$20.73 billion] as of 31 December 2007. Net loans to individuals, including consumer and mortgage lending, made up 17.1 percent of total loans to customers as at 30 September 2008 or KZT 385.0 billion [$3.18 billion], compared to 19.1 percent as at 31 December 2007," the statement said.

"Customer accounts increased by 22.5 per cent, from KZT 895.1 billion [$7.4 billion] as at the end of 2007 to KZT 1,096 billion [$9.06 billion] as at 30 September 2008, mainly, as a result of an increase in term deposits by 24.3 percent. Term deposits amounted to KZT 893.7 billion [$7.39 billion] as at 30 September 2008, compared to KZT 718.8 billion [$5.94 billion] as at the end of 2007. The demand deposits increased to KZT 202 billion [$1.67 billion] as at 30 September 2008, compared to KZT 176.1 billion [$1.45 billion] as at 31 December 2007. Term deposits and demand deposits comprised 81.5 and 18.4 percent of the customer accounts as at 30 September 2008 respectively, compared to 80.3 and 19.7 percent as at the year end 2007," it added.

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