As previously reported, in April 2020, Nurbank participated in the financial stability enhancement program and began forming additional provisions.
The bank issued subordinated bonds totaling 46.8 billion tenge with a maturity of 15 years. These funds are directed towards lending and supporting the real sector of the economy. Also, in May 2020, a major shareholder completed an additional capitalization of the bank in the amount of 20.038 billion tenge. The result is increased reliability and financial stability of the bank, development, and growth in line with the chosen strategy.
These measures allowed us to meet the commitments following the AQR and form additional provisions, which are derived from profits as a safety cushion to cover potential losses from distressed loans. This has affected the financial result (a loss in the amount of provisions created). It is important to understand that these consequences in the form of a loss are clearly planned by us and are a natural outcome of creating such a substantial volume of provisions.
Despite a challenging economic year, the bank's indicators are stable, and some sectors are showing growth. By the end of the current year, the bank plans to maintain its loan portfolio (with a growth of 1%) and increase its volume by at least 8% in 2021 compared to the end of 2020.
The plans include consistently enhancing the bank's competitiveness, maintaining the most comfortable conditions for clients, with a focus on the development of the retail business as an integral attribute of a universal bank.
In the current difficult conditions of the economic crisis and the negative impact of the global pandemic on the country's economy, our bank remains stable.
From the beginning of the current year to November 1, 2020, the assets of Nurbank increased by 1.1%. The number of borrowers - legal entities increased by 12.7% in the loan portfolio.
Nurbank's deposit portfolio increased by 3.3%, with deposits from SMEs growing significantly by 15%. The number of depositors - legal entities increased by 13.5%.
Net interest income for the first 10 months of the current year exceeds that of the same period last year by 34%.
The bank's priority tasks remain: retaining the existing client base, attracting new clients in different sectors of the economy, improving the quality of the loan portfolio, and increasing the recovery of problematic loans. In 2020, the bank continues to actively participate in the implementation of state programs to support and develop entrepreneurship, attracting resources for microcrediting.