OREANDA-NEWS. JSC Kazkommertsbank announces its audited consolidated IFRS financial results for the six months ended 30 June 2014.

Highlights of the 1H 2014 results:
* Kazkommertsbank completed the purchase of 46.5% of BTA common shares. Meanwhile,  JSC  NWF  Samruk-Kazyna  transferred  its  remaining  4.26%  in  JSC  BTA  Bank  to  the Bank under a trust agreement providing the Bank with operational control of JSC BTA Bank.
* As the transaction was completed on the last day of the reporting period, it affected only the balance sheet of consolidated financial statements for the period ended 30 June 2014.  
* Total assets increased by 67.9% to KZT 4,341 billion from KZT 2,586 billion as at year end 2013  
* Total deposits increased by 46.2%  year-to-date to KZT 2,459 billion  
* Tier 1 Capital Adequacy ratio at 13.1%
* Total Capital Adequacy ratio at 14.7%
* Adjusted Net Interest Margin at 3.9%  
* Net income amounted to KZT 13.9 billion in 1H 2014 compared to KZT 14.8 billion in 1H 2013
* Provisioning rate on loan portfolio at 59.7%

Net interest income before provisions for impairment losses increased by 3% to KZT 61.5 billion in 1H 2014 compared to KZT 59.7 billion in 1H 2013.

Net non-interest income amounted to negative KZT 67 million in 1H 2014 compared to KZT 19.3 billion in 1H 2013, due to  negative translation differences as a result of Tenge devaluation.

Fee and commission income remained stable at KZT 14.7 billion in 1H 2014 compared to 1H 2013 due to decreased in commissions on investment management of pension assets. Net transactional fees and commissions income increased by 10.2%.

Operating expenses increased by 7.7% to KZT 17.3 billion in 1H 2014 compared to KZT 16.1 billion in 1H 2013. The increase in operating expenses resulted mainly from increase in expenses related to workout of problem loans.

The provisions for credit impairment losses represented 59.6% of gross loans as of 30 June 2014 compared to 34.0% as of 31 December 2013. The provisioning charge amounted to KZT 27.4 billion in 1H 2014 compared to KZT 37.6 billion in 1H 2013.

In the 1H 2014 the Bank recorded a KZT 3.9 billion tax expense compared to KZT 3.2 billion in 1H 2013. The effective tax rate was 22%.

On a consolidated basis, the Bank's Core Tier 1 ratio was 13.1% and the Total capital ratio was 14.7% at 30 June 2014.