Tsesnabank (Kazakhstan) informs on operation in Q1 2009, announces new development strategy
21.05.09 12:22
/KASE, May 21, 09/ - Tsesnabank (Astana), a company listed on Kazakhstan
Stock Exchange (KASE), provided KASE with a press release:
Quotation beginning
On May 19 at a press center of Interfax-Kazakhstan in Almaty Tsesnabank held a
conference to summarize on operation in 2008 and Q1 2009, and inform public
on a new Quality growth strategy. Speakers (D. Zhaksybek, M. Aldashov and
O. Boiko) shared views on banking development and Kazakhstan economy.
Tsesnabank in Q1 2009 demonstrated stability in development, improving its
positions in Kazakhstan. Amid banking crisis Tsesnabank appeared reliable
thanks to little external debt, joining large financial manufacturing company,
and diversified loan portfolio, proving sustainability to stress. Experts say,
at the moment, middle sized banks are more sustainable as they do not suffer
from much foreign debt. In addition, middle sized banks appeared to be more
flexible when reacting to change in market situation.
Q1 2009 results according to un-audited consolidated financial statements
Tsesnabank's consolidated assets as on March 31, 2009 reached
KZT137,968 m., increasing from January 1, 2009 by 1.71 %. Own capital in the
same period added KZT574 m. reaching KZT15,640 m.
Loan portfolio from January 1, 2009 increased 6.2 %, reached KZT91,790 m. In
Q1 2009 standard credit's stake increased from 69.8 % to 70.2 %, problem
credit's stake reduced from 25.8 % to 25.7 %, non-performing credits decreased
from 4.3 % to 4.1 %.
Deposits and current accounts remain a stable funding source (64 % of all
obligations). In Q1 2009 deposit base reached KZT62 bn. Volume of fixed-term
deposits attracted from population reached KZT26.6 bn., which is KZT1.6 bn. or
6 % more than in the beginning of last year.
Net profit in Q1 2009 resulted in KZT859 m.
Net interest income as on March 31, 2009 reached KZT2,509 m. or KZT918 m.
more as compared against the same period last year. Non-interest income in Q1
2009 increased up to KZT1,001 m., which is KZT295 m. more than the same
indicator in 2008.
The bank has little foreign debt, only 20.5 % of bank liabilities as on
January 1, 2009, as opposed to average 44.9 % for Kazakh banks.
In 2008 the bank redeemed a significant part of its foreign debt for USD70 m.,
including two syndicated loans and bilateral loans. In 2009 the bank must redeem
USD15.6 m. of foreign debt (1.6 % bank liabilities).
The bank is engaged in all state stabilization programs, and disburses funds
ahead of schedule. The bank was the first commercial bank to have completely
disbursed funds within the program for financing of small and middle businesses
implemented by Damu fund. The third tranche covered financing of 57 projects, of
which 35 projects for a total of KZT1.8 bn. was issued to small and middle
businesses in Astana.
On May 14, 2009 ahead of plan, Tsesnabank completely disbursed the funds
allotted through National Wellbeing Fund Samruk-Kazyna within the mortgage
loan refinance program.
Understanding social and economical importance of such programs, Tsesnabank
is always ready to quality interaction and fulfillment of obligations before the
state and clients.
Quality growth strategy
In 2006-2007 the bank successfully implemented its aggressive growth strategy,
when Tsesnabank's brand became known in the country, a wide branch network
was built and a product line was significantly enlarged. At that, quality growth
was controlled, resulting in current stability of the bank.
In 2009 the bank intends to improve quality growth for purposes of
sustainability: optimization of internal business-processes, technology
development, cut of expenses and growth of profit. The priority is perfection of
risk management.
"In 2009 the bank will continue its policy of stable asset structure, asses its
loan portfolio and form reserves. We aim at quality growth, and expect assets to
grow less significantly, - bank chairman Dauren Zhaksybek commented. - We plan
to develop liabilities thanks to deposits and current accounts - the most stable
resource base, and thanks to additional profit and capital growth. As for active
balance items, we made our credit policy tougher, and loan portfolio will grow
with more quality. We expect the bank to be profitable in 2009".
In 2009 the bank will expand its presence in small and middle businesses and
retail. Currently, the bank is revising principals for segmenting clients,
investment project analysis, credibility analysis and valuation.
"New methodologies will allow assessing credit risks, reducing expenses,
improving service and cutting cost of products for clients. The bank is hopeful
about its plans as the project will enable the bank to compete with leading
large banks", - Mr. Zhaksybek.
Mobility and ability to prompt transformation is a significant advantage amidst
current conditions.
Tsesnabank was founded in 1992 and is a commercial bank, headquartered
in Astana. The bank enjoys 18 units and 59 service points in Kazakhstan.
Tsesnabank
Address: 29, Pobeda ave., Astana, 010000
Call Center: 8 800 080 2525 (call toll free in Kazakhstan)
tel.: +7 (7172) 770 770; fax: +7 (7172) 770 195
www.tsb.kz, e-mail: info@tsb.kz
Quotation end
[2009-05-21]