Eurasian Bank will become universal bank

/INTERFAX-KAZAKHSTAN, Almaty, May 27, 08/ - Kazakhstan commercial Eurasian Bank will be reformed in universal bank, Boris Umanov, the member of bank's Board of directors informed. "The sole shareholder of the bank, Eurasian financial and industry company aimed at reforming this financial institute into universal, dynamically developing and open bank, providing all types of services to wide circle of clients" - he said on press conference in Agency Interfax-Kazakhstan press centre in Almaty. Till now, Eurasian Bank was oriented at the work with corporate clients. "The Bank has a huge growth potential. For it the Bank needs serious changes which will affect all aspects of its activity. To solve this problem we need nonordinary manager qualities, creative approach and experience of major projects implementation. Zhomart Ertaev possesses all this qualities" - B. Umanov remarked, informing that Zh. Ertaev has already entered upon his duties as the president of the bank. As informed, in accordance with the decision of Board of directors Zh. Ertaev was selected as an acting president on May 22, instead of Valeriy Dordzhiev, who was appointed as a chairman of audit committee of Eurasian Bank. "The stake of external borrowing from Eurasian Bank is not significant and consequently the bank now feels comfortable; this competitive advantage will certainly be used by the new bank's administration for stabilization on financial market" - B. Umanov added. In the whole, he considers possibilities of Kazakhstan market on funding being underestimated. Zh. Ertaev in his turn informs that he is intended to fulfill the experience, accumulated in Kazakhstan Alliance Bank and Ukraine BTA Bank, in Eurasian Bank. Before Eurasian Bank, Zh. Ertaev was the head of Ukraine BTA Bank from the middle of 2007 and earlier since 2002 - Alliance Bank. "New strategy of Eurasian Bank will be more aggressive. We'll go in regions more aggressive" - Zh. Ertaev said, marking that with this aim "they expand branches net of the bank". "Branch net of the bank totally covers all regions of Kazakhstan, but still there is a lack of additional branches. And we certainly will expand it. We are lucky that housing prices have stopped in growth and even fell. Rent prices have also decreased. That`s why Eurasian Bank will probably need less efforts and money to develop this net" - he noticed. "The bank's strategy should be changed in the nearest future; the bank must be universal, due to it we will be oriented on retail market and on small and medium business" - Zh. Ertaev continued. Thus, according to his information, about 80% of credit portfolio of the bank now came to corporate clients, about 20% to small and medium business and retail. In prospect, this correlation will be changed significantly. "The structure of portfolio will be as follows: 30% - retail, 50% - small and medium business and 20% - the stake of corporate clients" - he informed. Zh. Ertaev also noticed that the bank is not intended to use damping while attracting new clients. "There will be no damping. The problem with price is not primary. We will rather focus on quality of selling, than on food prices" - he said. According to Zh. Ertaev, renewed strategy of the bank will be prepared by August. "The strategy will be presented and entrenched before shareholders during two months. It will be developed for 1, 3, 5 years, i.e. short, medium, long term" - he said. Besides, Zh. Ertaev informed that bank's shareholder is ready to support new administration intention to enter this credit organization in leader. "It will certainly be "big five" of "big three" - he said. Thereupon, B. Umanov cited as an example insurance company Eurasia, being the daughter organization of Eurasian Bank. "Telling about dynamic of growth, which shareholder plans, it will be nearly the same dynamic as happened with insurance company Eurasia. In its time Eurasia began with 22nd position but during last three year is the leader of Kazakhstan insurance market. Practically the same objective is now before Zhomart Ertaev" - B. Umanov said. "Today the bank market searches for good clients, and promise me, if there is some decent projects there will be no problem to get credits in any bank of "big ten". There is another question, the situation that historically shaped is that people come and ask money for flats speculation or for construction. Enough. Leadership of this or that bank will be determined by successful or unsuccessful finding the right client`s base, good loaners" - he added. Besides, telling about the plans of bank capitalization, Zh. Ertaev informed that "$200 m. level of capital, which is now in the bank, is enough for aggressive growth in the nearest future". "There is total understanding from the shareholders direction that in case of more dynamic development, bringing in capital will be necessary and it consequently can provide bank growth" - Zh. Ertaev said. During press conference, Zh. Ertaev shared his opinion about situation on financial market of the country in the whole. "As far as the situation on financial market is concerned, the market of Kazakhstan has already passed the zone of higher turbulence. There are certainly some pessimistic expectations of actual sector of economic and bankers on September of this year, but we hope to overcome this period" - he said. "We see that there is understanding from the government direction in necessity of money injection in Kazakhstan economic. Another question is how fast and effective these decisions will be realized. In case the process will be faster, I think we spent September without losses" - Zh. Ertaev resumed. Today the bank has 18 affiliated branches in all region centers of Kazakhstan, except Taldykorgan and Kyzylorda. "Eurasian Bank by results of first half year 2007 took 83rd place among CIS`s banks and 10th place among Kazakhstan banks on volume of assets in Interfax- 1000 ranking, made by Interfax-CEA. [2008-05-28]