OREANDA-NEWS. January 26, 2011. Alliance Bank (hereinafter - the Bank) informs that according to financial statements (neither audited nor consolidated) as of January 1, 2011 presented to government bodies, the Bank's net profit made up KZT318,826 m, equity capital equaled to KZT33,840 m., reported the press-centre of KASE.

Such results have become possible thanks to a debt restructuring successfully completed on March 26, 2010 conducted under support and assistance from National Welfare Fund Samruk-Kazyna.

As a result of all measures under the Debt Restructuring Plan having been completed, Alliance Bank received KZT547.9 bn more capital. In particular Samruk-Kazyna poured KZT129 bn into the Bank's equity by purchasing newly issued commons shares for KZT24 bn, and converting rights of claim on the Bank's bonds into preferred stock priced at KZT105 bn.

The debt's amount went down from KZT4.5 bn (including interest accrued) to KZT1.08 bn after restructuring.

Upon completion of all measures under the Restructuring Plan the shares changed hands: 67% of common and preferred shares remained Samruk-Kazyna's property, and 33% were distributed among creditors.

Throughout 2010, the Bank completely restored its performance, resuming out of own funds loans to SME (from February 10) and individuals (from May 17), savings programs for companies and individuals (from April 1) and bailing out own borrowers (loan restructuring) - SME and physical persons.

As at the end of 2010, the Bank's assets were estimated at KZT489,442 m, liabilities - at KZT455,602 m (in particular, the savings portfolio increased by more than 42% to KZT207,887 m, reflecting the Bank's reputation coming back to pre-crisis state).

The Bank's loan portfolio makes up KZT544,998 m.

The largest rise in loans disbursed was detectable in SME sector: within the past year the Bank provided funds of KZT39.7 bn to over 1,700 enterprises, including KZT11.5 bn as loans to SME under government-induced support programmes.

Among the Bank's corporate clients there were enterprises from trade, agriculture, manufacturing who took advantage of KZT30.6 bn, with KZT2.1 bn provided by the government.

It was the launch of new universal products for individuals like resuming consumer loans that allowed the Bank to boost the number of loans disbursed to over 33 thousand (KZT22 bn), including 1,186 loans disbursed under government programs (preferential loans to students and secondary funds under Mortgage Refinancing Programme) (KZT336.7 m).

According to strategy adjustments adopted by the Bank's Board of Directors, the portion of retail loans in the portfolio will be increasing in 2011, reaching 45% by end 2011 and more than 50% by the end of 2013. Altogether, an increase of KZT40 bn (18%) in the retail loans portfolio is expected in 2011, with SME loans increasing by KZT14.3 bn (15%) and corporate loans going down by KZT9.3 bn (4%).
                                                                             
The bad loans share persisting to be significant (71% of the loan portfolio as at end 2010) is supposed to be reduced to 55%. That would mean the loan portfolio growing by 8%, to KZT590,081 m. Provisions are going to decrease by 5% - from KZT318,911 m as at end 2010 to KZT303,460 m.

The Bank's assets should be as high as KZT581,111 m by the end of 2011 (up 19%), with liabilities rising (up 12%) to KZT512,460 m due to more deposits from companies and individuals.

Eventually, the Bank is expecting to get hold of KZT36,067 m as net profit as well as increase its equity capital by 103% to KZT68,651 m.