Bank CenterCredit Announces Changes To The Board
Yang Jinhwan, Han Jong Hwan, Won Sung Je left the Board of Directors of Bank CenterCredit left, and Yerzhan Toleubekov and Galim Khusainov were appointed as its new members.
In April Kookmin Bank, which owned a 41.93 percent stake ion BCC, sold it to Bakhytbek Baisseitov, Tsesna Bank JSC and Financial Holding Tsesna JSC.
Kookmin acquired a 23 percent stake in BCC in 2008. In 2010 Koreans brought their stake to 42 percent.
According to Korean media, Kookmin paid total KRW939.2bln for its shares. Interestingly, in May 2013, CEO of BCC Vladislav Li said that Kookmin Bank would be able to acquire a controlling stake in Bank CenterCredit JSC (BCC) by 2017.
Another stakeholder of BCC – International Finance Corporation – which owned 10 percent of the Kazakh bank’s shares sold them to Mr. Bakhytbek Baisseitov on March 15.
As a result, Bakhytbek Baisseitov owns 44.5 percent of the total volume of voting shares in BCC.
The country’s top bank bought a 41.9 percent stake in BCC for 939.2 billion won in 2008 as part of a globalization strategy, on a positive outlook for the Central Asian country with ample resources and growth potential.
International Finance Corporation (IFC) under the World Bank Group participated in the deal as a joint investor. It holds a 10 percent stake in the BCC, for which KB provided a put option. KB promised to buy back its stake, but the put option expires next month.
However, BCC, which is among the top five players in the country’s banking sector, has incurred huge losses.
The global financial crisis hit the bank, which has been heavily engaged in the mortgage business. The value of KB’s stake in BCC fell even further when Kazakhstan devalued the tenge, the country’s currency, in 2014.
KB had to adjust the value of BCC several times, to 185.8 billion won in 2012 and finally to 1,000 won last year. It means KB virtually lost the 939.2 billion won it invested.
The huge loss led to resignation of KB Kookmin Bank CEO Kang Chung-won in 2010.
Local media reported that KB is likely to suffer further losses because the Kazakh financial regulator was demanding a capital increase under new regulations. The put option for IFC will incur further losses for KB, the media reported.
A KB spokesperson denied the report.
Earlier it was reported that Tsesnabank has received a permission of the National Bank to acquire a major stake in Bank CenterCredit JSC and approval to become a bank holding.
Tsesnabank is discussing possibile merger deal with Bank CenterCredit after purchasing Korean Kookmin Bank’s share.
JSC Bank CenterCredit is one of the top commercial banks in Kazakhstan in terms of assets and total deposits. The Bank’s primary business consists of corporate and retail banking. Its corporate banking activities include a broad range of wholesale banking products to a diversified group of domestic customers, primarily small and medium sized companies.The Bank’s retail banking activities and products include retail lending and deposit taking and credit and debit cards. The Bank is also an active participant in the fixed income securities market and foreign currency markets in Kazakhstan.
The Bank’s objects, as set out in the Bank’s Articles of Association, are to promote the development of the state economy and to ensure the receipt of dividends by the Bank’s shareholders through a variety of banking operations in compliance with the laws of Kazakhstan.