OREANDA-NEWS. May 26, 2009. Tsesnabank (Astana), a company listed on Kazakhstan Stock Exchange (KASE), provided KASE with a press release, reported the press-centre of KASE:

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.