International rating agency Standard & Poor's (S&P) prolonged inclusion of long-term and short-term ratings of the bank’s contractor “B/B”, and also rating at national scale “kzBB” in list of CreditWatch (“ratings for revision”), therefore Bank of Astana is going to comment this situation.
Credit rating from rating agencies is one of indicators, confirming their credit solvency and financial stability. Bank of Astana performs all necessary actions on provision of correspondence of financial indicators to established criteria of rating agencies. In order to preserve current credit rating from S&P, the Bank continues to perform obligations on improvement of indicators of capitalization, according to action plan, which was earlier provided to S&P. In spite of difficult situation in economy of the country, shareholders of the Bank performed next stage of recapitalization on June 28, 2016, having increased authorized capital of the Bank on 4 bln. KZT. Second stage of recapitalization, on 4 bln. KZT, will be performed during next 6 weeks. So, the Bank is going to achieve RAC indicator not lower than 8,5 % (capital adequacy ratio, corrected subject to assets, weighted by risk level– risk-adjusted capital) to September 30, 2016. Shareholders of the Bank are ready to increase authorized capital in 4th quarter 2016 for achievement of RAC coefficient at least 10.5%.
"In case of current condition of financial markets, the Bank tries to improve indicators of capitalization due to growth of authorized capital and net income and also due to correct assets management. As we promised earlier, shareholders of the Bank increased amount of authorized capital on 4 bln. KZT and going to recharge it on the same amount. One more inflow to capital will be at the end of the year. Intentions of the Bank on reduction of assets size shall be implemented due to reduction of low-profit assets and the Bank’s marginality. The Bank performs its activity in accordance with approved strategy during three years without deviations by main indicators, and this is confirmed by successful development during mentioned period", – noted Iskender Mailibayev, chairman of the border of JSC “Bank of Astana”.
The Bank assigned some tasks, among which: reduction of low-profit part of assets and increase of equity capital. In case of failure to perform or improper fulfillment of mentioned tasks, shareholders of the Bank confirmed readiness to additional capitalizations, which is necessary for achievement of RAC level not lower 10.5%.
During the first 6 months 2016:
1) Bank’s assets increased on 76 772 bln. KZT and was 300 824 bln. KZT
2) Number of new customers increased on 81 177 (80 179 natural persons, 998 legal entities)
3) Amount of obligations increased on 72 065 bln. KZT and was 272 664 bln. KZT, including allocation of funds of IAPF, DAMU, KAZAGRO
4) Net income was 567 mln. KZT as of 01.07.2016 (the Bank is going to get net income in the amount at least 2 bln. KZT in 2016).
5) the Bank follows all regulatory requirements of the National Bank of the RK (NBRK)
We recall about availability of credit rating of the Bank from international rating agency Fitch Ratings, which confirmed long-term credit rating at level “B” with stable prediction at the beginning of April of current year. The agency indicated on capitalization sufficiency, income and liquidity of the bank, corresponding to prudential norms of the NBRK.