Kazkommertsbank profit up 15 pct y/y, bad loan provisions dip
May 16. Reuters
Kazakhstan’s biggest bank reported a near 15 percent rise in first-quarter net profit on Thursday compared to the same period of 2012, helped by higher net interest income and smaller bad debt provisions.
Kazkommertsbank, the country’s largest lender by assets and credit issued, said in a statement (www.kkb.kz) net profit rose to 7.3 billion tenge ($48.4 million) in January-March from 6.4 billion tenge ($42.8 million) a year earlier.
Net interest income increased to 12.7 billion tenge from 4.8 billion tenge while provisions for losses on interest bearing assets shrank to 17.7 billion tenge from 25.7 billion.
The oil-rich economy’s recovery from the global financial crisis has been hampered by non-performing loans (NPLs), a legacy of the banking sector’s over-exposure to bloated real estate markets and external borrowing.
But the IMF’s deputy director for the region said last December she believed the problem had now peaked in Central Asia’s biggest economy, where growth is also expected to rise to 6 percent this year compared with 5 percent in 2012 at a time when most of Europe is struggling with recession.
Kazkommertsbank last month reported a full-year net loss of 130.9 billion tenge ($866 million) for 2012 after making large provisions for non-performing loans.
The bank had previously expected to make a net profit in 2012 which would be 5 to 10 percent higher than a year earlier, when it made a profit of 23.5 billion tenge.
It has not yet published a forecast for full-year results in 2013.
$1 = 151.10 tenge