29 September 2021

The Moody’s Investors Service (Moody’s) credit rating agency has improved the outlook for Eurasian Bank on long-term ratings of deposits in national and foreign currency to “stable”. The Bank ratings remained at the same level. The official message about this is published on the Moody’s website — Moody’s.

The improvement in the outlook, as is reported the agency’s press release, reflects the stability of the Bank financial stability profile due to high indicators of loan efficiency and quality in the consumer lending segment.

The agency notes that despite the unfavorable economic environment and the difficult business landscape following the coronavirus outbreak, Eurasian Bank is able to stabilize the quarterly profit before accrual of reserves, exceeding 10 billion tenge. This allows the Bank to significantly increase contributions for the formation of reserves for non-performing loans.

The share of non-performing loans under International Accounting Standards of the IFRS) in the Bank’s gross loan portfolio decreased to 25.4% as of 30 June 2021 from 28.8% as of 31 December 2020. At the same time, the coverage of non-performing loans by reserves increased to 81.1% from 64.7%.

«We are pleased and generally expected a positive assessment of the Bank performance during the difficult period of the pandemic. Thanks to the introduction of a new business strategy and competent risk management, the Bank quickly returned to active lending. We started a technological transformation and launched new digital services, which allowed us to maintain strong market positions in many business segments and achieve good financial indicators. This was noted by the experts of the credit rating agency. This year we will continue working to improve the portfolio profitability and quality», — said Valentin Morozov, CEO of Eurasian Bank.

Moody’s expects that Eurasian Bank will be able to continue generating good profits, thereby significantly reducing the risks of the Bank solvency.

In addition, regulatory risks significantly decreased, since the Bank meets the criteria for reserving certain corporate loans, the quality of which was checked by the regulator and international experts during the asset quality review (AQR) in 2019.

The agency believes that Eurasian Bank’s long-term ratings can be increased if the Bank maintains high profitability and continues work on improving the asset quality.

Eurasian Bank is a universal socially significant financial institution, the 8^th in terms of assets among Kazakhstani banks. The Bank service network includes 17 branches and 114 outlets throughout the country.