“Eurasian Bank continues to demonstrate stable financial performance against the backdrop of global economic challenges due to the spread of coronavirus and falling oil prices. In the first quarter of 2020, the Bank group earned a net profit of KZT 4 billion, which is 3.5 times more than in the same period last year. Without excluding further complications for the global and Kazakhstani economy from the pandemic and unstable oil prices, we feel confident that we have received additional support from shareholders in the amount of more than KZT 4 billion. The accumulated liquidity creates a significant margin of safety and opportunities for our customers. The Bank will continue to develop in accordance with the selected strategy, providing financial solutions to the population and companies at the same high level as in the pre-crisis period. Moreover, we are strengthening our online service, which will allow customers to get safe and convenient services,” said Valentin Morozov, CEO of Eurasian Bank, commenting on the financial accounts published on the Kazakhstan Stock Exchange.

Assets of the Eurasian Bank group in the first quarter of 2020 increased by 2.4% and amounted to 1.084 trillion tenge.

The loan portfolio in January-March increased by 0.23% to KZT 768.7 billion on a gross basis, while loans to customers increased by 1% to KZT 652.9 billion on a net basis.

Growth was observed primarily in retail lending, the volume of retail loans increased by 1% to KZT 542.3 billion. The auto loan portfolio increased by 2.1% to KZT 177.4 billion, compared to the 2019 year end. Consumer loans increased by 1.16% and amounted to KZT 342.7 billion tenge. The decrease was demonstrated by loans issued to corporate customers (by 0.9% – up to KZT 210 billion) and the SME portfolio (by 9.8% – up to KZT 16.3 billion).

Due to the general deterioration of the economic environment, the Bank’s NPL ratio increased to 9.45% from 8.64% at the 2019 year end.

Depositors’ funds increased by 1.85% compared to 31 December 2019. Retail customer funds increased by 2.5% to KZT 449 billion. Funds of legal entities increased by 1% to KZT 438 billion.

Net profit for the first quarter of 2020 amounted to KZT 3.975 billion, compared to KZT 1.087 billion for the same period in 2019. The increase was due to an increase in net interest income and lower operational expenses. Interest income, including other interest income, increased to KZT 32.7 billion in the first quarter. Interest expenses amounted to KZT 15.5 billion, which is 5.6% lower than in the first quarter of 2019. As a result, net interest income amounted to KZT 17.2 billion in the first quarter of 2020, an increase of 10.1% compared to the same period in 2019.

Commission income increased by 36.8% compared to the first quarter of 2019 – up to 9 billion tenge, the growth is due to an increase in revenue from agency services and payment card services.

Operating income increased by 42% to KZT 28.7 billion. The ratio of operating expenses to operating income improved to 30.8% compared to 37.3% in the first quarter of 2019.

In January – March 2020, the equity capital increased by KZT 2.075 billion to KZT 102.4 billion.

The Eurasian Bank group in addition to the Bank includes the subsidiaries: Eurasian Bank PJSC (Moscow), Eurasian Project 1 LLP and Eurasian Project 2 LLP.  As of 31 March 2020, Eurasian Financial Company JSC is the parent company of the Bank and owns 100% of the Bank shares.

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