Why Are Tengri Bank and Capital Bank Kazakhstan Merging?
On March 15, 2017, JSC “Tengri Bank” and JSC “Capital Bank Kazakhstan” announced the signing of a memorandum of intensions of merger. Both banks currently occupy a small market share. In terms of assets, JSC “Capital Bank Kazakhstan” holds the 24th position (0.4% of the total assets volume), JSC “Tengri Bank” – 26th (0.3%), reports KazWorld.info with reference to the official website of Halyk Finance.
As a result of the merger, the aggregate assets of the enlarged financial institution will amount to KZT153 bn, which will not have a significant impact on its market position among all second-tier banks (the united bank will reach only the 22nd place). Based on the assets, the market share of the bank will reach 0.8% and only 0.2% of all deposits in the banking sector will belong to the institution. The branch network will grow marginally. Given the structure and volume of business, the combined banks will not be able to complement each other in the form of separate competencies. The only positive side of the association, most likely, will be a reduction in operating expenses.
In the proposed merger of banks, the role of the Indian investor (Punjab National Bank) remains unclear. The recent loss of a controlling stake and the renaming PNB Kazakhstan to Tengri Bank suggests that this Indian state bank has most likely changed its strategy in the region and wants to quit from this investment.
March 15, 2016, PNB Kazakhstan Bank JSC (Almaty), whose shares are officially listed on Kazakhstan Stock Exchange (KASE), has provided KASE with a copy of a certificate of state re-registration of a legal entity dated March 9, 2016, according to which its new name is Joint-stock company Tengri Bank.
Merger could be originated from a desire of Punjab National Bank to leave the Kazakh market and to sell its stake below the market price.
In December 2016 S&P Global Ratings affirmed the long-term credit rating of Tengri Bank at “B+”, and in March 2016 – the long-term credit rating of Capital Bank Kazakhstan at “B-“. these ratings reflect the stable position of both banks.”
JSC Tengri Bank (hereinafter – Bank) was founded in October 1992 as PB “Danabank”with initial registered capital of 6 400 thousand rubles. For 24 years the Bank has been making progress on the financial activities of banking and other services provided by the banking legislation of the Republic of Kazakhstan, having passed all the tests at the same time functioning in a complex process of transformation of the economy associated with the transition to a market economy and competition in the financial services market.
In August 28, 2006, the Bank completed reregistration due to change of registered office address and bringing the Charter of JSC “Danabank” in accordance with the laws of the Republic of Kazakhstan. The Head Office was relocated from Pavlodar to Almaty.
In December 13, 2010, Punjab National Bank, India (Second largest Bank of India) acquired majority stake in Dana Bank.
Punjab National Bank (the share fraction is 49%), is the largest government-owned bank of India, established in 1895 and providing service to around 87 million clients across over 6000 various offices. It has branches and representative offices in large cities of the world. As of today, Indian Punjab National Bank is the strongest among banks on safety, reliability and banking, retaining the tradition of stable and modern bank.
In June 27, 2011, JSC “Danabank” was renamed as Joint-Stock Company “Subsidiary bank “Punjab National Bank” – Kazakhstan”.
In January 27, 2016, in view of change in the Charter of JSC “SB” PNB”-Kazakhstan” the Bank was renamed as Joint-stock company “PNB Kazakhstan Bank”.
In March 9, 2016, in the framework of the new development strategy JSC “PNB Kazakhstan Bank” changed its name to JSC “Tengri Bank”.
The Bank is a financially sound commercial bank, has branches in cities of Almaty, Karaganda, Temirtau, Pavlodar and Astana. In addition to this, in the near future, the Bank intends to open branches in other regions of Kazakhstan. The Bank is a member of the Association of Banks of the Republic of Kazakhstan Association of Financiers of Kazakhstan, the Kazakhstan Guarantee Fund (insurance), deposits of individuals, the Kazakhstan Mortgage Guarantee Fund, the Kazakhstan Stock Exchange.
The Bank is a universal commercial bank providing a wide range of services, such as opening of accounts, transfer operations, trade finance, lending, financial leasing, issuance of bank guarantees, exchange transactions, deposits of individuals and legal entities, settlement and cash services, collection services and other operations under the license provided by the National Bank of the Republic of Kazakhstan.
The main strategic objective of the Bank – to be versatile, rapidly growing financial institution with a high degree of reliability, contributing to the success of its customers and providing them quality service.
The license for conducting banking and other operations was issued by the National Bank of the Republic of Kazakhstan dated 9 February 2017, №1.1.159.
|Chief Executive Officer:||Chairman of the Management Board Erzhan Shaikenov|
|Membership categories:||currency market member since 10/09/15|
The company also offers lending solutions, such as working capital and investment financing services, investment banking advisory services, trade finance products, various types of guarantees, and loans to individuals/employees. In addition, it offers treasury solutions that include FX transactions to corporate clients; hedging instruments, including FX, cross currency, and interest rate swaps; and services on bonds placement.
Further, the company offers services in the areas of overdrafts, leasing, factoring, retail and consumer finance, credit cards, and collections. Capital Bank Kazakhstan JSC was formerly known as JSC SB TAIB Kazakh Bank and changed its name to Capital Bank Kazakhstan JSC in April 2013.
Capital Bank Kazakhstan JSC is former subsidiary of TAIB Bank B.S.C. (c). The company was founded in 1992 and is based in Almaty, Kazakhstan.
|Chief Executive Officer:||Chairman of the Management Board Gani Uzbekov|
|Membership categories:||currency market member since 12/14/15|
|Indicator||As of 07/01/16||As of 04/01/16|
|Authorized capital||16,223,681.00 th. KZT||15,723,681.00 th. KZT|
|Equity capital||19,817,146.00 th. KZT||19,337,059.00 th. KZT|
|Total assets||91,857,608.00 th. KZT||95,367,140.00 th. KZT|
|Net income||542,370.00 th. KZT||399,088.00 th. KZT|