Nazarbayev Promised To Prevent Qazkom Collapse
President of Kazakhstan Nursultan Nazarbayev has promised to prevent collapse of Qazkom Bank, formerly known as Kazkommertsbank (KKB). Head of state said about the government’s intention to support the largest bank of Kazakhstan in an interview with Bloomberg.
As the newspaper notes, KKB is experiencing problems due to the high level of arrears and capital deficiency, which were the result of poor management in the past.
According to Nazarbayev, Kazakhstan government sees two ways of the bank supporting: either shareholders will find the funds to increase its assets, or bank to ask for state support.
According to the president, the bank can rely on the state support.
“We have to get it to working condition. We won’t allow a bank collapse. (…) Now we are talking about the bank rehabilitation”, – said the head of state.
Qazkom is one of the largest banks in Kazakhstan and Central Asia. Bank’s shares are listed on Kazakhstan Stock Exchange (KASE). Global depositary receipts, the basic asset of which is the bank’s shares (GDRs) are listed on the London Stock Exchange (LSE).
|Indicator||As of 04/01/16||As of 01/01/16|
|Authorized capital||234,560.00 mln. KZT||234,520.00 mln. KZT|
|Equity capital||397,657.00 mln. KZT||373,268.00 mln. KZT|
|Total assets||5,157,659.00 mln. KZT||5,094,335.00 mln. KZT|
|Net income||18,451.00 mln. KZT||-18,435.00 mln. KZT|
|Book value of common share||487.53 KZT||456.92 KZT|
|Book value of preferred share||180.91 KZT||176.43 KZT|
KKB is controlled by local businessman Kenges Rakishev, a son-in-law of Nazarbayev’s long-time confidant, Deputy Prime Minister Imangali Tasmagambetov. Rakishev gained a foothold in Kazkom in 2014 when it bought BTA Bank, a twice-defaulted nationalized lender. Over the past year he built a 71 percent stake as founder Nurzhan Subkhanberdin reduced his position.
Shareholders as of 10/01/16
|Shareholder||Number of common shares||Percentage holding1||Type of securities||Additional information|
|Central Asian Investment Company (CAIC)||70,074,945||8,79%||Common shares||CAIC controls 113,155,954 common shares of the Bank, including those shares owned by Mr. Subkhanberdin and transferred to CAIC under trust management (43,081,009 common shares) and or 14.19% of the common equity|
|Mr. Nurzhan Subkhanberdin||47,800,962||5.99%||Common shares||Mr. Subkhanberdin directly and indirectly via CAIC controls 13.66% of the common equity|
|Mr. Kenges Rakishev||344,777,652||43.23%||Common shares||Mr. Rakishev directly and indirectly via Qazaq Financial Group controls 71.31% of the common equity|
|JSC Qazaq Financial Group||223,922,790||28.08%||GDRs2 and common shares|
|Samruk-Kazyna National Wealth Fund||85,517,241||10.72%||Common shares|
|Minorities||25,413,637||3.19%||GDRs and common shares|
|Total:||797 507 2273||100%|
Kazkommertsbank have taken control over BTA Bank (Kazakhstan) in 2015 after banks merger.