As previously reported, in April 2020, Nurbank participated in the financial stability enhancement program and began forming additional provisions.
The bank issued subordinated bonds amounting to 46.8 billion tenge with a maturity of 15 years. These funds are directed towards lending and supporting the real sector of the economy. Additionally, in May 2020, a major shareholder completed an additional capitalization of the bank for 20.038 billion tenge. As a result, the bank's reliability and financial stability have increased, leading to development and growth in line with the chosen strategy.
These measures allowed us to fulfill obligations resulting from the AQR and create additional provisions, which are generated from profits as a safety cushion for covering potential losses from problem loans. This has impacted the financial result (a loss in the amount of the created provisions). However, it should be understood that these consequences in the form of a loss are clearly planned by us and are the natural consequence of creating such a good 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 to increase its volume by at least 8% compared to the balances at the end of 2020 in 2021.
The plans include consistent enhancement of the bank's competitiveness, maintaining the most comfortable conditions for clients, with a focus on developing the retail business direction as an integral attribute of a universal bank.
In the current difficult conditions of an economic crisis and the negative impact of the global pandemic on the country's economy, our bank remains stable.
Since the beginning of the current year, as of 01.11.2020, the assets of "Nurbank" have increased by 1.1%. The number of borrowers — legal entities — increased by 12.7% on the loan portfolio.
The deposit portfolio of "Nurbank" increased by 3.3%, with especially significant growth in SME deposits — by 15%. The number of depositors — legal entities — increased by 13.5%.
The net interest income for the first 10 months of the current year exceeds last year's for the same period 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 enhancing the return on problem loans. In 2020, the bank continues to actively participate in the implementation of government programs for supporting and developing entrepreneurship and attracts resources for micro-lending.