The Eurasian Bank sole shareholder refused from 2020 year dividends
and directed all the Bank profit to its equity
14 June 2021, Almaty — Eurasian Financial Company JSC, the Eurasian Bank sole shareholder, decided to refuse to pay 2020 year dividends and direct the Bank net profit in the amount of 4,157,408 tenge to its recapitalization. The Eurasian Financial Company Board of Directors made the relevant decision after the approval of the 2020 annual consolidated and unconsolidated financial statements of the Bank.
“By the 2020 year end, the Bank achieved impressive profit growth, however, as in previous years, we decided to abandon the payment of dividends and leave all profits at the disposal of the Bank — for its further development and strengthening”, commented Shukhrat Ibragimov, a Member of the Bank Board of Directors. “After the pandemic shock, Kazakhstan banking market and demand for loans are beginning to recover. Therefore, we are confident that a sufficient capital reserve will allow the Bank to confidently increase lending and accelerate the upgrade of the technological platform with the transfer of most products and services to a mobile digital format.”
As previously reported, in 2021, Eurasian Bank adopted a new strategy, within the framework of which it began the digital transformation of the Bank technology platform, organizational structure and service model. The focus of this large-scale work will be on improving the customer experience – through analysis of current and identification of new customer needs, personalization of banking services and expansion of remote service channels.
According to the audited annual financial statements of Eurasian Bank, the unconsolidated profit for 2020 almost doubled the financial result of 2019, increasing from 2,747 million to 4,157 million tenge. At the same time, earnings per share increased from 220.76 to 326.63 tenge.
It should also be noted that the decision of the shareholder on the distribution of the Eurasian Bank profit for 2020 fully meets the recommendations of the financial regulator listed in the Program for financial stability enhancement of major banks socially significant for the Kazakhstan economy. Eurasian Bank has been participating in this program since 2017, but its shareholders have not distributed dividends for many years, preferring to invest the resulting profits in the Bank development.
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