Eurasian Bank Continues to Strengthen Market Position, Having Achieved Impressive Growth in 2022
26 April 2023, Almaty
Eurasian Bank published consolidated financial statements prepared according to IFRS standards with financial results for 2022, confirmed by an international audit opinion.
Geopolitical tensions, turbulence, sanctions restrictions became not only another challenge for the Kazakhstan bank system, but at the same time provided new opportunities for growth. Eurasian Bank used this time to increase its market share to 5.3% from 3.8%.
“The dynamics are more than impressive in all indicators: the Bank profit increased sixfold, assets and loan portfolio more than one and a half times. In terms of growth rates, Eurasian Bank became one of the fastest growing in 2022,” said Ms. Lyazzat Satiyeva, CEO of the Bank, “Liquid assets grew significantly — by 75%, which made it possible to quickly adapt to market volatility and actively lend, responding to customer needs. We continued active digitalization, as a result of which we were one step ahead of the market in consumer lending, providing the best customer experience — 4 seconds to issue a loan decision. In the second half of last year, our assets exceeded 2.3 trillion tenge and this steady growth continues.”
The Bank increased its return on equity by 41% thanks to a balanced risk and profitability management policy. As a result, the Moody’s Investors Service international credit rating agency changed the Eurasian Bank’s outlook of the B2 long-term deposit rating from “stable” to “positive”.
Digital transformation and updating of the IT architecture allowed the Bank to transfer most of its services and products to an online format: almost 80% of all loan applications were accepted and more than 50% of deposit products were opened online.
Key indicators of the consolidated financial statements:
The assets of the Eurasian Bank Group in 2022 increased by 67% to 2.36 trillion tenge from 1.4 trillion tenge in 2021 due to the growth of the Bank loan portfolio.
Loans to customers for 12 months of 2022 increased by 67% to 1.06 trillion tenge from 635.3 billion tenge. The increase in lending was observed in both the corporate and retail segments.
Funds on deposits and customer accounts increased by 70% to KZT 1,931 trillion from KZT 1,136 trillion, which confirmed the high degree of customer confidence in the Bank as a stable and reliable financial institution.
The Bank equity increased by 65% to 197.3 billion tenge. Capital adequacy is at a comfortable level to ensure active growth in the future.
Consolidated net profit increased more than 6 times and amounted to 83.3 billion tenge. The main sources of income, in addition to lending, were income received from conversion operations and card business.
ADDITIONAL INFORMATION*
Market shares
48% of the market — No. 1 in auto loans (new cars)
17% of the market — No. 3 in POS-lending
In 2022, there is an increase in the Bank share in all major financial indicators:
assets — from 3.8% as of 01.01.2022 to 5.3% as of 01.01.2023. (7th place)
loan portfolio — from 3.6% as of 01.01.2022 to 4.8% as of 01.01.2023. (7th place)
capital — from 2.6% as of 01.01.2022 to 3.7% as of 01.01.2023. (7th place)
customer funds — from 4.3% as of 01.01.2022 to 6.0% as of 01.01.2023. (6th place)
deposits of the population — from 3.6% as of 01.01.2022 to 5.1% as of 01.01.2023. (5th place)
deposits of legal entities — from 5.0% as of 01.01.2022 to 7.0% as of 01.01.2023. (5th place)
the NIM indicator — from 5.8% as of 01.01.2022 to 7.5% as of 01.01.2023. (5th place)
loans to corporate business position did not change — with a share of 3.5% (6th place)
SME loans — from 2.4% as of 01.01.2022 to 3.3% as of 01.01.2023. (8th place)
RETAIL BUSINESS
Thanks to active digitalization, product line expansion, as well as readiness for the new market opportunities in 2022, the financial result of the retail business according to consolidated statements increased by 92% compared to 2021. The number of loan applications increased by 153%, and the loan portfolio — by 64%, customer funds — by 89% over the year.
The Bank continues to maintain leadership in the car lending market, taking 1st place in the segment of new cars with a market share of 48% and 2nd place in the segment of used cars with a share of 24%. As part of the annual rating of the International Business Magazine Awards, international experts awarded the victory in The Best Bank in Auto Loan nomination.
In the Kazakhstan consumer lending market, the Bank ranks 3rd with a 17% share, having launched the fastest (only 4 seconds) credit issue solution on the market. The achievement was noted in the annual rating of the International Business Magazine Awards with a victory in the Fastest Consumer Loan nomination.
The card business also showed an increase in all major indicators — the number of active cards reached almost 1 million pieces, account balances increased by 67%, and card turnover by 77%.
The number of online card transactions is growing — last year the total amount of purchases and transfers increased 2.5 times compared to 2021. The average receipt for remote purchases increased by 22%, and for remote transfers — by 36% compared to 2021. The number of online purchases and transfers increased by 35% and 87%, respectively.
CORPORATE BUSINESS
The Bank corporate customer base grew by almost 2 times compared to 2021.
According to the consolidated financial statements, loans issued to corporate clients increased by 57% or by KZT 131 billion in 2022. The main increase occurred in the segment of major corporate clients.
The Bank conducted several releases of new products and services, including a Business Card, updated the Smart Business app that meets modern customer needs and legal requirements.
The Bank launched the Auto Balancing service.
For the first time in Kazakhstan among the STBs it issued an electronic bank guarantee on the mitwork.kz quasi-public sector procurement portal.
The transition to electronic document management with KazakhExport was performed.
“The priority for Eurasian Bank until the end of 2023 will be to continue sustainable business growth, increase lending and other financial services in compliance with the necessary regulatory requirements, strengthen its leading position in the retail market, continue the digital transformation strategy to create a better user experience for our customers and open a subsidiary bank in Uzbekistan,” said Ms. Lyazzat Satiyeva, CEO of Eurasian Bank.
In addition to the Bank, the Eurasian Bank JSC group includes subsidiaries – Eurasian Project 1 LLP and Eurasian Project 2 LLP. As of 31 March 2022, Eurasian Financial Company JSC is the parent company of the Bank and owns 100% of the Bank shares.
Eurasian Bank PR Service
+7 (727) 259-95-99, Ext.: 4401.
press@eubank.kz
*The information is based on the data of the NBRK and the Bank internal analytics