PRESS RELEASE
Almaty, December 10, 2012
Nurbank has completed the sale of doubtful and bad assets from its corporate portfolio. Thus, Nurbank is one of the first in the CIS to decide to sell corporate debts to collectors and take problematic assets off the bank's consolidated balance sheet. The so-called assignment of claims on loans classified as doubtful and bad assets will be made to several companies specializing in managing bad assets.
“We took a different approach from some banks in Kazakhstan, which create specialized subsidiaries to handle toxic assets. Our approach is unique in that:
Firstly, the collector companies are not our subsidiaries.
Secondly, according to the contract terms, the above-mentioned companies do not have the option to return bad assets to the bank. This is clearly stipulated in the contract.
Finally, we sell bad loans at a discount, but for real cash, the so-called 'true sale'. As far as I know, no one in our country has done this on such a scale for the corporate portfolio,” said Deputy Chairman of the Board of Nurbank JSC Rauan Daukenov.
To date, doubtful and bad assets amounting to 47.3 billion tenge have been sold. These are loans overdue for more than 90 days, with less than 50% collateral, and without coverage on the principal debt. The sale was executed through the signing of Assignment of Claims Agreements between the Bank and management companies.
“We will continue to work on improving the quality of the bank's assets,” concluded Rauan Daukenov.
For your information:
According to the unaudited unconsolidated financial statements under IFRS, in January-September 2012, Nurbank JSC earned a net profit of 1.271 billion tenge, which is 18.7% higher than the same period in 2011.
The bank's assets amounted to 293.324 billion tenge, liabilities – 221.189 billion tenge, equity – 72.135 billion tenge, authorized capital – 127.611 billion tenge.
Press Office of Nurbank JSC
Contact phone: 2 599 710 *5465
www.nurbank.kz