OREANDA-NEWS.  October 01, 2012. Following the press release placed by Moody’s rating agency on KKB’s ratings downgrade, Kazkommertsbank considered appropriate to share its view on certain statements and assumptions used in the press release which in the Bank’s opinion do not reflect the current standing of KKB, reported the press-centre of Kazkommertsbank.

Eroding profitability and worsening asset quality as stated in the press release have not been taking place over the last year.

In particular:

Net profit grew 8.2% in the six months of 2012 compared to the 1st half of 2011. The main drivers were the adjusted NIM growth from 3.3% to 3.7% and increase in transactional fee and commission by 17%.

The share of NPLs went down from 28.1% as at 1 July 2011 to 27.6% as at 1 July 2012.

Capital adequacy ratios of KKB are higher than those reported by the major Kazakh banks. The respective ratios have substantially improved compared to the 2011 year end.

KKB became more active in lending. Gross loan book was up in the first six months of 2012 by 2.9%. There are new SME lending programs launched. There was a renewed activity in retail lending predominantly in consumer loans which have increased in the 1H2012 13.5%.

KKB continues being an active participant  of governmental programs including ones devoted to completion of residential construction, support of corporate, SME and retail/mortgage clients and has redeemed, including prepayments, KZT160billion out of the funds extended earlier.