Kazkommertsbank 2009 profit falls on tax charge
April 20. Reuters. ALMATY
* Corporate tax 12.8 bln tenge vs yr-ago 8.7 bln
* Provisioning rate increased to 19 pct of gross loans
Kazakhstan’s largest lender Kazkommertsbank KKGB.KZ said on Tuesday net profit fell 5.7 percent last year to 19 billion tenge ($129 million) on a higher tax charge.
“The decrease in net profit during 2009 resulted from increased corporate tax expense as a result of the revaluation of deferred tax liabilities,” it said in a statement.
“In 2009, corporate income tax expense was 12.8 billion tenge, compared to the recovery on income tax of 8.7 billion tenge in 2008.”
Pretax profit nearly tripled to 31.8 billion tenge on lower costs and a 30.7 billion tenge ($209 million) gain from purchasing its own securities.
“Non-performing loans (NPLs) reached 22.8 percent by the end of 2009,” Kazkommertsbank said. “The provisions for credit impairment losses represented 19.0 percent of gross loans and advances in 2009 compared with 11.9 percent in 2008.”
Kazkommertsbank’s total assets declined by 1 percent during 2009, it said.
The bank’s net interest margin before provisions for impairment losses as a percentage of average interest-earning assets fell to 7.8 percent compared with 8 percent in 2008.