Press Release, Almaty, 26 February 2019

Eurasian Bank (hereinafter – “the Bank”) commented on the actions of the S & P Global Ratings international rating agency, which lowered the the Bank’s long-term credit rating from “B” to “B-”. It should be noted that various rating actions were taken with respect to a number of Kazakhstan banks, which is due to the Agency’s opinion on reducing the likelihood of government support.

As Pavel Loginov, CEO of Eurasian Bank, noted “this rating action was taken because of the general situation in the banking market of Kazakhstan in connection with the recent events with Tsesna Bank. To clarify the situation, the National Bank of Kazakhstan issued a statement to S & P Global Ratings, in which it reported that the “systemically important banks”, participants to the RK Bank Sector Financial Sustainability Program, including Eurasian Bank, will continue to receive state support due to their “systemic importance in key market segments (payment systems, credit and deposit markets)”.

At the same time, the Bank’s rating outlook changed from “Negative” to “Stable”. S & P Global Ratings acknowledges that “in the next 12 months, the the Bank’s business risk profile and financial performance will remain stable, as a whole.” The Agency also believes “that Eurasian Bank will continue to maintain liquidity reserves adequate at present”.

According to Pavel Loginov, the Head of the Bank, “within one and a half years of participation in the Bank Sector Financial Sustainability Program, Eurasian Bank has already exceeded the requirements of the regulator to create reserves by 134%. The Eurasian Bank liquidity indicators exceed the regulatory and average values ​​for banks of comparable scale. In terms of urgent and currency liquidity, the Bank is currently the leader among banks in Kazakhstan. As of today, highly liquid assets of the Bank make up one-third of the balance sheet (32%), which allows to ensure the continuity of the fulfillment of its obligations to customers. Eurasian Bank ranks the 8^th among the second-tier banks in terms of assets, which at the end of the year amounted to 1.116 trillion tenge. Due to a stable and profitable business model in 2018, Eurasian Bank made a profit of 11.4 billion tenge. The Bank enjoys broad support from its owners, shareholders of ERG, largest international industrial group”.

Financial performance of Eurasian Bank as of 2018 year end:

• Assets – 1.116 trln tenge, 8^th among the second-tier banks;
• Equity – 94.5 bln tenge, 10^th among the second-tier banks;
• Revenue – 11.4 bln tenge, 8^th among the second-tier banks;
• Individual deposits – 398 bln tenge, 7^th among the second-tier banks;
• Return on equity increased since 4.4% to 12.2% (compared to 2017);
• Cost to Income Ratio (operating expenses in relation to revenue) decreased from 96% to 45.4% (compared to 2016);
• As of the 2018 year end, the Bank ranks the 4^th among banks in terms of the retail loan portfolio size;
• Share in consumer lending market – 20%;
• Share in car lending market – 52%;
• Number of active customers – over 1.2 mln natural and legal persons.

Eurasian Bank is one of the corporate banks of ERG Group, the largest taxpayer and employer in Kazakhstan, with more than 60,000 people working in the Group. ERG contribution to the economy of Kazakhstan is about 4% (GDP share). Today, ERG represents 30% of the metallurgical mining industry in Kazakhstan, and is also the main electricity supplier in the country. It should be noted that 40% of the ERG share belongs to the Government of the Republic of Kazakhstan.

Eurasian Bank participates in a number of state programs, including the 7–20–25 and Baspana Hit mortgage programs, in the mortgage housing loans refinancing program, in the Damu fund programs, in concessional lending programs as part of cooperation with Development Bank of Kazakhstan JSC from the funds of the National Fund and the Republican budget of the Republic of Kazakhstan, allocated to support domestic automakers. The total amount of funds allocated by the state as part of the Bank’s participation in current state programs is more than 30 billion tenge.

We remind you that in January 2019, Eurasian Bank was chosen as the agent bank for payment of guaranteed compensation to 275 thousand depositors of Bank of Astana. The choice of the regulator was due to the reliability of the Bank, implementation of prudential standards, as well as presence of a wide network of branches.

Eurasian Bank PR Service:
+7 (727) 259-95-99, Ext.: 3453
press@eubank.kz
eubank.kz