OREANDA-NEWS. April 07, 2010. The key happenings for Bank System of Kazakhstan in 2009, were firstly, support of Second-Tier Banks by the government by means of entering into the capital of strategic banks, achieving agreements with foreign creditors and restructuring of external indebtedness, and, secondly, devaluation of national currency, which affected financial situation and economics in general.

Generally, Bank CenterCredit achieved noticeable results for the last year. Like that according to the results of consolidated reporting for 01.01.2010 the bank assets were 1 161 billion tenge (as of 01.01.2009 the bank assets were 941 billion tenge, the increase is 220 billion tenge or 23,4%), according to this index, BCC takes the 4th place among second-tier banks of Kazakhstan, the income of the Bank for 2009 was 3.4 billion tenge, the Bank took 3rd place in market share of population deposits: clients funds according to the data of consolidated audited reporting as of 01.01.2010 were 670,5 billion tenge, while as of 01.01.2009 this index was 427,4 billion tenge.

Loan portfolio of the bank increased on 12% and by the end of the year it was 726,7 billion tenge. The structure of the portfolio did not change. In crediting the highest share is taken by trade, food production, manufacturing, agriculture, construction – their total share is 48% of loan portfolio, the share of physical entities is 35%.

In 2009 the banking system had to overcome a range of difficulties, including the decrease of the credits quality. As per the official data of FSA, provisions level over the whole banking system increased from 11% to 38% and the share of “overdue loans, more than 90 days” increased from 5% to 21%. At that, against the whole banking system the quality indexes of BCC loan portfolio are much better. The management of Bank CenterCredit explains and colligates this result with moderate-conservative crediting policy and optimum diversity of loan portfolio. Thus the reserves level of BCC in 2009 increased from 7% to 11% and in absolute terms it was 75 billion tenge, and the level of "overdue credits for more than 90 days increased from 2,5% to 3,3%.

- Speaking about the situation on the market in general, we stick to cautious optimism, regarding the perspectives of 2010. Currently second-tier banks play an important role in the process of economic situation recovery, because Kazakhstan enterprises need financial support, which is provided by financial institutions by means of crediting. We are planning to consider these trends and to apply them in Bank CenterCredit activity. This year we are planning to increase loan portfolio for 10-15%. We are ready to credit efficient business with acceptable conditions, as it was highlighted by the CEO, Mr. Vladislav Lee.

Out of main happenings of BCC in 2009, it should be mentioned about active cooperation and credit lines attraction from International Financial Corporation, European Bank of Reconstruction and Development, Canadian Bank of Montreal (Toronto), the accreditation of the representative office of JSC "Bank CenterCredit" in Kiev (Ukraine) is obtained from National Bank of Ukraine. Besides, in 2009, BCC stepped over half a million boundary for the number of payment cards in circulation, a new building in Uralsk came into operation, new office of corporate business was opened in Astana.

- Being the first to present financial indexes for 2009, and completing the deal in February 2010 for the share of Kookmin Bank and International Financial Corporation in the capital of Bank CenterCredit (now their shares are 42% and 10% in total floated and paid equity capital of the Bank), BCC plans to increase the market share.

The availability of a such strategic investor as Kookmin Bank and International Development Institute as a strong partner, will affect positively the results of BCC activity: sufficient liquidity for loan portfolio increase and sufficient level of reserves to cover possible risks, high ability to absorb losses, optimal quality of loan portfolio and clients and partners trusts allow to move on the clearly marked course – as it was mentioned by Mr. Vladislav Lee.