Kazkommertsbank 2011 net income hits growth target

April 18. Reuters. ALMATY

* FY net up 7 percent to 23.5 billion tenge ($160 million)
* Result in line with bank’s target set a year ago
* Provisioning charge falls 30.8 percent to 66.1 bln tenge

Kazkommertsbank 2011 net income hits growth targetKazkommertsbank, Kazakhstan’s second-largest lender by assets, said its net profit rose 7 percent to 23.5 billion tenge ($160 million) in 2011, in line with a target it set a year ago.

Kazkommertsbank, with subsidiaries in Russia, Kyrgyzstan and Tajikistan, said in March 2011 it expected net profit to rise between 5 and 10 percent from 2010, when it made a net profit of 22 billion tenge.

Kazakhstan’s banking sector was among the first and hardest hit by the global financial crisis. It is now recovering along with the rest of central Asia’s largest economy, which depends heavily on world prices for its oil and other commodities.

The government expects gross domestic product to expand by 6.0 percent this year, after last year’s 7.5 percent growth and a 7.3 percent rise in 2010.

The bank also said its profit before tax increased by 10.5 percent to 31.2 billion tenge in 2011.

Provisions for credit impairment losses totaled 24 percent of gross loans and advances as of Dec. 31, 2011 compared with 20.8 percent in 2010. The provisioning charge fell by 30.8 percent to 66.1 billion tenge in 2011 from 95.6 billion in 2010.

Non-performing loans totaled 28.6 percent of the bank’s loan book at the end of 2011 compared with 25.4 percent at the end of 2010.