Press release

15 December 2022, Almaty

Today the Moody’s Investors Service (Moody’s) Rating Agency has revised the outlook of the B2 long-term deposit rating of the Eurasian Bank in local and foreign currency from “stable” to “positive”. The positive outlook reflects Moody’s expectations that the Bank will maintain the improved Baseline Credit Assessment, demonstrating rapid loan growth and immunity to possible environmental influences.

“The Eurasian Bank ‘s positive outlook in a rather difficult macroeconomic environment confirms the soundness of our strategy and practice of prudent risk and capital management while maintaining high returns for shareholders. We appreciate the trust of our clients and partners and express our gratitude for the mutually beneficial cooperation”, – said Lyazzat Satiyeva, Chaiperson of the Bank’s Management Board.

Analysts note that Eurasian Bank significantly improved its NPL reserve coverage to 94% at the end of the first half of 2022 from 65% at the end of 2020 in amounts set by the National Bank of Kazakhstan (NBK) following its Asset Quality Review (AQR) with the involvement of independent auditing firms.

The Rating Agency believes that the Bank will maintain good profitability in the next 12-18 months, despite the higher cost of loans and the level of loan interest rates.

The profitability of the Bank will grow due to a decrease in accruals to reserves and at the same time due to the growth of a healthy loan portfolio, as well as higher non-interest income generated by a growing customer base.

The Agency’s analysts also considered the large buffer of the Bank’s liquid assets, which exceeded 47% of total assets at the end of the 3rd quarter of 2022. Moody’s expects the Bank to partially use its liquidity cushion to finance the loan portfolio, but the buffer will remain stable at more than 40% of total assets in the next 12-18 months.

This is due to a reduction in pressure from old non-performing loans and a lower risk of financing related parties compared to its equity.

The Rating Agency also confirmed the B2 long-term rating of the Eurasian Bank in local and foreign currencies, ratings of foreign currency deposits. The decision is based on the macroeconomic situation in the country and, in general, global economic and geopolitical factors.