Net profit of Kazkommertsbank JCS for nine months of 2011 increased by 14.0% to KZT17.9 billion

/IRBIS, November 29, 2011/ - JSC "Kazkommertsbank" has announced financial results for the nine months ended September 30, 2011, based on the consolidated financial statements prepared in accordance with IFRS. Key performance indicators of the bank during the reporting period: - Net profit increased by 14.0% to 17.9 billion tenge in the first nine months of 2011 compared to 15.7 billion tenge in the first nine months of 2010. - Adjusted net interest margin was 3.3%. - The indicator "operating expenses to operating income before provisions" was 26.4% compared with 22.4% in 2010. - Retail deposits increased by 19% since the beginning of the year. - Gross loans grew by 1.1% in the third quarter (down 1.8% YTD). - Capital adequacy ratio of the 1st level rose to 17.5% (from 16.2% at end-2010). - Adequacy ratio of own capital of the bank increased to 22% (from 20.1% at end-2010). - Interest rate on loans to customers booking increased to 22.7% - Non-performing loans accounted for 27.3% of total loans. As reported, net interest income before provision for impairment of interest earning assets decreased by 17.5% to 86.4 billion tenge from 104.8 billion tenge in the first nine months of 2010. As of September 30, 2011 the bank identified some loans of corporate clients, on which it does not expect the cash flow until 2013. Accrued interest income on these loans for the nine months ended September 30, 2011, amounted to 32.3 billion tenge. The Bank has a provision for credit losses to 32.3 billion tenge against the given percent. Accordingly, adjusted net interest income, net of provisions for accrued interest income amounted to 54.1 billion tenge. Adjusted net interest margin for the nine months of 2011 was 3.3%. More detailed information can be found in note 6 to the financial statements of the bank. Net interest income for the nine months ended September 30, 2011, amounted to 5.9 billion tenge as compared to 7.0 billion tenge for the nine months ended September 30, 2010. Decrease in net non-interest income was due to a decrease in earnings from operations with foreign currency and precious metals. Operating expenses for the nine months ended September 30, 2011, increased by 1.9% to 24.3 billion tenge over 23.9 billion tenge for the nine months ended September 30, 2010. This was mainly due to increased spending on the current lease (by 4.9% or 89 million tenge) and the advertising and telecommunications (43.6% or 500 million tenge). Operating expenses decreased by 25.2% to 6.8 billion tenge for the three months ended September 30, 2011, to 9.1 billion tenge for the three months ended June 30, 2011, primarily due to lower personnel costs. The share of provisions for loans to customers, the total volume of loans amounted to 22.7% as of September 30, 2011 compared to 22.5% at the end of the 1st half of 2011, 21.5% at end-Q1 2011 and 20.8% at the end of 2010. Appropriations for provisions decreased by 31.7% to 69.0 billion tenge for the nine months ended September 30, 2010, to 47.2 billion tenge for the nine months ended September 30, 2011 (a decrease of 25% to 13.7 billion tenge for the three months ended September 30, 2011, from 18.3 billion tenge for the three months ended June 30, 2011). The share of nonperforming loans was 27.3% of total loans. For comparison, the share of nonperforming loans amounted to 28.1% at June 30, 2011, 27.7% at March 31, 2011, and 25.4% at December 31, 2010. The Bank defines nonperforming loans as complete customer receivables overdue by 30 days or more on corporate clients, and 60 days and above - on retail customers. Income tax expense for the nine months ended September 30, 2011, amounted to 2.9 bln compared to 4.2 billion tenge for the nine months ended September 30, 2010. Effective tax rate for the nine months ended September 30, 2011, was formed at a rate of 13.8%. For the three months ended September 30, 2011, the bank received a savings tax benefit of KZT 0.2 bn, compared with a flow rate of 1.5 bln for the three months ended June 30, 2011. Bank's profit before income tax-related, rose by 10.3% to 20.8 billion tenge for the nine months ended September 30, 2011, compared to 18.9 billion tenge for the nine months ended September 30, 2010 year. Net profit after tax increased by 14% to 17.9 billion tenge for the nine months ended September 30, 2011, compared to 15.7 billion tenge for the nine months ended September 30, 2010. Assets, contingent liabilities and contingent liabilities, weighted by risk, decreased by 7.3% compared to the end of 2010 and amounted to 2,390 bln as of September 30, 2011 (2,372 bln on June 30, 2011, 2,403 bln on March 31, 2011, 2,579 on December 31, 2010). Adequacy ratio of equity capital, calculated on a consolidated basis as of September 30, 2011 amounted to 22.0% compared to 22.1% at June 30, 2011, 21.7% at March 31, 2011, and 20.1 % at the end of 2010. Capital adequacy ratio of the first level was 17.5% compared to 17.6% at June 30, 2011, 17.4% at March 31, 2011, and 16.2% at December 31, 2010. The volume of loans to corporate sector amounted to KZT 1,875.4 bln compared to 1,942.1 billion tenge on December 31, 2010 (1,855 on June 30, 2011, 1,912.2 on March 31, 2011). The share of loans to corporate sector in the total loans to customers for the period rose to 89.9% from 89.3% in 2010 (89.7% at June 30, 2011, 89.8% at March 31, 2011). The volume of clients of the corporate sector (excluding funds allocated to state programs) as of September 30, 2011 amounted to 885.9 billion tenge, compared with 1,017.6 billion tenge on June 30, 2011, 880.3 billion KZT on March 31, 2011, and 914.8 billion tenge at the beginning of the year. Their share in total customer funds amounted to 57.7% compared to 60.7% at the end of 2010. As of September 30, 2011 the bank has 23 branches and 133 offices in Kazakhstan. In addition, the bank has developed alternative distribution network. The number of ATMs and POS- terminals increased to 1,319 and 13,374, respectively. The volume of loans to retail amounted to 209.8 bln as of September 30, 2011 compared to 232.7 billion tenge at the end of 2010 (213 bln on June 30, 2011, 217.9 billion tenge at 31 March 2011). The share of loans to retail sector in the total loans to customers fell from 10.7% at December 31, 2010 to 10.1% at September 30, 2011. The share of mortgage loans in the amount of retail business amounted to 61.5%. The volume of funds of retail customers increased by 19% or by 85.9 billion tenge to 537.4 billion tenge as compared to 451.4 billion tenge at the end of 2010 (516.2 billion tenge on June 30, 2011, 481.2 bln at March 31, 2011). Since the beginning of the year, their share in total customer accounts grew to 35.1%. [2011-11-29]