EURASIAN BANK REPORTS RESULTS OF ASSET QUALITY REVIEW (AQR)
Press Release, Almaty, 28 February 2020
Eurasian Bank informs its customers and partners that it is satisfied with the results of the Asset Quality Review (AQR), which was completed by the National Bank with the participation of independent international consultants and auditors. The results of AQR are fully consistent with the forecasts and expectations of the shareholders and management of Eurasian Bank. The Bank will continue its systematic work to implement the business strategy and further improve the quality of the loan portfolio, taking into account the AQR recommendations.
Based on the AQR results, the National Bank announced support measures for Eurasian Bank, as a result of which the capital adequacy ratio will be 10%, which meets all regulatory requirements.
“Eurasian Bank fully supports the efforts of the National Bank and the Agency for financial market regulation and development, aimed at strengthening the banking system of Kazakhstan. Conducting AQR according to international, more stringent standards, provides the banking system, including our Bank, with maximum transparency for citizens of the country, partners and investors.
Strong financial results from operating activities and the focus of the Bank shareholders and management on effective management of overdue debts allowed the Bank to form reserves 50% more than required in 2019. Support measures provided to the Bank based on the AQR results unambiguously resolve all issues related to the quality of the Bank assets.
We are confidently continuing the implementation of a strategy focused on the balanced development of a profitable model of a universal bank, while continuing to be a reliable partner for our customers”, said Valentin Morozov, CEO of the Bank.
In 2019, the Bank due to the development of its product line increased margins by 28% – from 6.13% to 7.58%. Operating profit increased by 51% and amounted to 59 billion tenge. The share of highly liquid assets on the Bank’s balance sheet at the end of 2019 amounted to 32%. The capital adequacy ratio complies with all the National Bank standards and amounts to 26.2%*. Rating from Moody’s – B2, outlook stable.
Eurasian Bank is a socially important commercial bank of Kazakhstan with a 25-year history of development. The Bank is in the top ten major banks of the country, occupies a leading position in the retail banking business, provides a wide range of services to corporate customers and SME objects. The sole shareholder of the Bank is Eurasian Financial Company JSC, owned by the ERG, a large international diversified company that includes a third of the mining and metallurgical complex of Kazakhstan.
* According to the official statistical reports of the National Bank as of 1 January 2020.
Eurasian Bank PR Service
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