OREANDA-NEWS. December 22, 2014. JSC Kazkommertsbank (“KKB” or the “Bank”) (LSE: KKB; KASE: KKGB), one of the largest banks in Kazakhstan and Central Asia, announces its consolidated IFRS financial results for the nine months ended 30 September 2014.

Highlights of the 9 months 2014 results:

Total assets increased by 59.8% to KZT 4,134 billion from KZT 2,586 billion as at year end 2013

Total deposits increased by 37.2%  year-to-date to KZT 2,308 billion

Tier 1 Capital Adequacy ratio at 11.9%

Total Capital Adequacy ratio at 13.6%

Adjusted Net Interest Margin at 4.2%

Net income amounted to KZT 20.0 billion for 9 months 2014 compared to KZT 22.4 billion for 9 months 2013

Provisioning rate on loan portfolio at 59.0%

Net interest income

Net interest income before provisions for impairment losses increased by 17.5% to KZT 107.8 billion for 9 months 2014 compared to KZT 91.7 billion for 9 months 2013.

Non-interest income

Net non-interest income amounted to KZT 18.2 billion for 9 months 2014 compared to KZT 27.8 billion for 9 months 2013, due to negative translation differences as a result of Tenge devaluation.

Fee and commission income increased to KZT 27 billion during 9 months 2014 compared to 9 months 2013.

Impairment losses

The provisions for credit impairment losses represented 59.0% of gross loans as of 30 September 2014 compared to 34.0% as of 31 December 2013. The provisioning charge amounted to KZT 61.2 billion for 9 months 2014 compared to KZT 57.9 billion for 9 months 2013.

Taxation

During the 9 months 2014 the Bank recorded a KZT 7.5 billion tax expense compared to KZT 6.7 billion for 9 months 2013. The effective tax rate was 27.1%.

Capital ratios

On a consolidated basis, the Bank’s Core Tier 1 ratio was 11.9% and the Total capital ratio was 13.6% at 30 September 2014.

Business line performance

Corporate and SME banking

Corporate loans were KZT 2,123 billion as of 30 September 2014 compared to KZT 1,630 billion as of 31 December 2013. The share of corporate loans in the Bank’s total net portfolio decreased to 82.9% as of 30 September 2014 from 85.8% at the end of 2013.
As of 30 September 2014, corporate deposits (excluding deposits under the Kazakh Government’s stabilisation programmes) were KZT 1,070 billion compared to KZT 925 billion at 31 December 2013. The share of corporate deposits in the Bank’s total customer accounts was 46.4% compared to 55.0% as at the end of 2013.

Retail banking

Retail loans (net) increased by 61.6% to KZT 437.3 billion, as of 30 September 2014, compared to KZT 270.6 billion, as of 31 December 2013. The share of net retail loans in the total net loan portfolio was 17.1% at the end of 9 months 2014 (14.2% at YE2013).
Retail deposits increased by 50.4% to KZT 1,028.1 billion from KZT 683.7 billion at 31 December 2013.

As of 30 September 2014, the Bank had 42 branches and 302 outlets in Kazakhstan. In addition, it has an extensive alternative distribution network. The number of ATMs and POS terminals was 2,192 and 24,214, accordingly.