Eurasian Bank: First Post-Devaluation Results
Eurasian Bank has analyzed its main performance indicators following the recent tenge rate adjustment and the announcement of the floating tenge. The below data are as of August 31, 2015.
Non-consolidated Net Income of the Bank(after tax) according NB RK reporting requirements was KZT3bln.
Despite the period of liquidity shortage and expected currency devaluation since the end of 2014, Assets of the Bank grew by 1,3% to KZT847bln. As of August 31, 2015 39,3% of the Bank’sDeposit Portfolio was denominated in tenge, while 60,7% – in foreign currencies.
Since the beginning of the year Eurasian Bank’s Loan Portfolio went up by 6,5% to KZT621,4bln. NPL ratio (90+) held 10.4% of the total loan portfolio, having decreased by 12.6% from the level of the previous month due to the bank’s advanced approach to credit risk-assessment and effective problem loan collection.
«Even on back of the complicated economic situation in the region we didn’t let the loan portfolio quality deteriorate. This confirms correctness of our credit policies: we provide FX lending only to clients with FX revenues. Moreover, after the recent currency rate adjustment, we see that the volume of overdue loans is decreasing», – said Michael Eggleton, Eurasian Bank’s CEO and Chairman of the Board.
According to the budget, NPL will further drop to below 10% by the end of 2015, which is traditionally one of lowest on the market and fully complies with the regulatory requirements.
Eurasian Bank’s estimated Capital Adequacy Ratios к1-1 and k1-2 were 0,084 as of end August, which is 14,9% above the level of the beginning of 2015 and sensibly higher than the regulator’s requirement of 0,06.
As of the end of August Regulatory Capital of Eurasian Bank exceeded KZT87bln. The Bank intends to increase the indicator to over KZT100bln by the end of the year, meetingthe regulator’s requirement to the second-tier banks’ minimum capital ahead of the deadline set up by the National Bank.
Speaking about the results of the period ended August 31, 2015 Michael Eggleton, Eurasian Bank’s CEO and Chairman of the Board said: «Despite the period of volatility and business slowdown, which resulted from oil price drop and devaluation expectations, we continued to implement projects that we believe are important for the Bank. First and foremost, in the area of internet and mobile banking and service quality. We are ready to launch a number of innovative offerings to our clients as the market environment begins to welcome new initiatives».
About Eurasian Bank:
Eurasian Bank is a universal commercial Kazakhstan bank catering products and services to clients in all segments. The Bank was founded in 1994. It covers all regions of Kazakhstan and has a subsidiary in Russia (Moscow) with branches in Omsk and Novosibirsk. It is rated “B+” by S&P. Eurasian Bank is a member of KASE and a party to KazPrime.
The Bank’s accomplishments were acknowledged by the following awards: Best Bank – Kazakhstan in 2014 (IAIR), Best Bank – Kazakhstan in 2013 and 2014 (EMEA Finance), Domestic Retail Bank of the Year, Kazakhstan in 2012, 2013 and 2015 (Asian Banking & Finance), Best Bank in Kazakhstan, 2012 (Euromoney), and Bank of the Year 2012 and 2014 in Kazakhstan (The Banker).
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