ACTUAL: SWF "Samruk-Kazyna" will continue searching for investors for BTA-Bank JCS, but the analysts doubt the success of it

/IRBIS, December 15, 2011/ - Sovereign Wealth Fund "Samruk- Kazyna" will continue to work to find investors for the development of BTA Bank JCS, but analysts doubt the success of exploration in the near future. Recall, November 30, 2011 the head of Sberbank of Russia, German Gref said that the bank did not see any opportunity to purchase BTA Bank JCS. "We have considered the possibility on BTA. But today we do not see any opportunities to acquire this bank", - Gref said at a press conference in Astana. "There are complex reasons. First of all, it is connected with our vision and our strategy for working in the Kazakh market". The above news actualized thinking about the future of "BTA Bank", as expected, that the entry of new investors in the capital of the bank will give new impetus to its development. "Currently, the Fund "SK" is considering different scenarios for BTA Bank. The bank's management has task to submit a business plan for future business development in the interests of potential investors. Job on searching for investors will continue", - that was told to IRBIS Agency by Yuri Cherkasov, Head of Press Service of JSC "Sovereign Wealth Fund "Samruk- Kazyna". However, analysts polled by IRBIS believe that SWF "SK" in the short term is unlikely be able to attract a strategic investor. In particular, Karlygash Sarmasaeva, CFA of Centras Securities JCS, noted that it is difficult to construct forecasts regarding to the likely strategic partner in the environment of "the shortage of adequate transparent information." "The financial condition of the bank is bad. Probably, the state in the face of the Fund "SK" will continue to support the bank, as long as the strategic partner will not be found", - noted Karlygash Sarmasaeva. Similar point of view is shared by Ekaterina Kartseva, Deputy Chairman of the Board of "Unicorn IFC" JCS. "Unless financial position of BTA begins to show positive momentum, which would indicate the cost-saving strategy in the long run after the restructuring, assessing the attractiveness of the bank for strategic partner is extremely premature", - she notes. "In our opinion, there is no basis for the claims that long-term profitability of the bank is positive. In the absence of a strategic partner, most likely, the current structure of the bank's shareholders will not undergo significant changes", - says Ekaterina Kartseva. Recall, December 7, 2011 Moody's Investors Service downgraded the long-term deposit ratings of "BTA Bank" JCS (BTA) in local and foreign currencies to Caa2 from B3, as well as long-term rating of senior unsecured foreign currency debt to Ca from Caa2 and long-term rating of subordinated debt in foreign currency to C from Caa3. As mentioned in the message of agency, downgrade was due to Moody's view that the BTA has weakened, reflecting the absence of return to profitability, capital shortages and possible further debt restructuring. December 13, 2011 rating agency "Expert RA Kazakhstan" downgraded credit rating of "BTA Bank" to the level of C+ (very low level of solvency (pre-default). As indicated, the downgrade was due to high probability of occurrence of the conditions under which the bank can not independently meet its obligations. "Analysts have no confidence in sufficient support by the bank's main owner of the bank SWF "SK", - was stated in the message. According to data provided in the interim consolidated statements of "BTA Bank", the bank's assets as of September 30, 2011 amounted to KZT 1,701.6 billion, which is 10.2% less than at the end of 2010. In this case the bank's liabilities at the end of the third quarter of 2011 from beginning of the year decreased by 1.0% and amounted to KZT 2,020.2 billion. Capital deficit at the end of the reporting period amounted to 318.6 billion tenge, an increase from the beginning of 2011 by 3.0 times. For 9 months ended September 30, 2011, net interest expense of the bank increased by 11.6% compared with January- September 2010 and amounted to 81.8 billion tenge. Non- interest loss for the period amounted to KZT 7.3 bln compared to non-interest income of 42.3 billion tenge in the same period in 2010. Loss before tax at the end of the reporting period amounted to 141.3 billion tenge, compared with a profit of 828.4 million tenge for the same period in 2010. During the reporting period the bank had net loss of 203.8 billion tenge, compared with net income of 826.9 billion, resulting in January-September 2010. [2011-12-15]