Based on consolidated audited financial statements prepared according to IFRS
PRESS RELEASE
Almaty
May 12, 2010
In 2009, Nurbank continued the implementation of its medium-term strategy, aiming to become a leader in Kazakhstan's banking system. The bank maintained a moderately conservative policy, preferring to invest in developing high-quality products and services for its clients. As of January 1, 2010, Nurbank's assets amounted to KZT 295 billion, with equity of KZT 45 billion and net profit of KZT 762 million. Compared to the same period last year, net profit increased by KZT 633 million.
Nurbank's management regards the continuation of lending to the population and business entities in the republic as a significant achievement, despite the general trend of declining lending volumes in the banking services market. For example, at the end of the summer of 2009, the bank launched its own mortgage program "Nur Zhausin", and actively provided loans to SMEs through the "Damu" Entrepreneurship Development Fund. As of January 1, 2010, the bank's loan portfolio amounted to KZT 261 billion. Notably, "Damu's" share increased from KZT 5 billion to KZT 13.5 billion over the year.
The balance in the bank's deposit portfolio structure is significant: in 2009, the number of demand deposits increased by 50%, and the share of term and demand deposits in the bank now stands at 56% and 44%, respectively.
By early repayment of a $100 million syndicated loan in April 2009, Nurbank nearly fulfilled all its external obligations, and currently has one of the most attractive funding structures: 61% deposits, 15% equity, 8% in Eurobonds, tenge bonds, and interbank loans. During the reporting period, loan repayments amounted to KZT 7.5 billion for loans from banks and organizations engaged in separate banking operations, KZT 110.2 million from international financial organizations, and KZT 8.7 billion for documentary settlements.
Throughout 2009, Nurbank actively developed relations with the Islamic Development Bank and its subsidiaries. The total amount attracted through Islamic financing was USD 15 million, including USD 5 million from the International Islamic Trade Finance Corporation and USD 10 million from the Islamic Development Bank.
Nurbank continues to actively invest in the development of its card business. During the year, the number of ATMs increased by 35% to 290, and the number of issued payment cards increased by 20% to 275 thousand. The number of companies receiving payroll services rose by 200 during the year.
Last year, Nurbank launched several new services: Open24 internet banking for individuals, SMS notifications, and the capability for clients to pay telecom operator services via ATMs for K-cell, Active, and Beeline. Additionally, in July 2009, Nurbank joined the state program for refinancing mortgage loans by signing an agreement with the "Samruk-Kazyna" National Welfare Fund.
Last year, Nurbank announced the creation of the Nurgroup financial group, a universal player in Kazakhstan's financial market providing banking, insurance, brokerage, and leasing services, as well as pension fund and asset management services. The main goal in creating Nurgroup was to create comfortable conditions for its clients – individuals, corporate sector representatives, and SMEs. The net profit of Nurgroup as of January 1, 2010, was recorded at KZT 275 million. Compared to the same period last year, net profit increased by KZT 1.7 billion.
Commenting on the financial year results, Nurbank's CEO Marat Zairov emphasized: "Our bank is focused on qualitative development. We will actively invest in high-tech services to provide our clients with maximum comfort and reliability. It is no coincidence that Nurbank was the first among Kazakhstani banks to be certified for compliance with payment card security standards PCI DSS v. 1.2. This is a serious claim to leadership in the card business segment, demonstrating our results-oriented approach – achieving a leading position in the republic's banking services market."