The deposit portfolio of second-tier banks is gaining momentum. For instance, according to the latest data from the National Bank, from January to August 2024, banks attracted corporate deposits amounting to 68.6 trillion tenge. This is 53% more than the same period in 2023. One of the main factors when choosing such deposits is yield and an individual approach to each client. What other trends are observed in the deposit market and what deposit conditions Nurbank offers - in an interview with the business information center Kapital.kz, the bank's chairman Gulnara Musatayeva shared.
- Tell us about the main trends in the deposit market...
- According to the National Bank, as of September 1, the volume of the deposit portfolio exceeded 32.9 trillion tenge, including current accounts. Over the year, this figure increased by 19.8%, and since the beginning of the year - by 8.9%. Nurbank is also experiencing a positive trend. In our bank, the volume of deposits increased by 9.8% from the beginning of the year, and by 32.4% in corporate client accounts.
- What is driving the growth in deposits and corporate account volumes in your bank?
- This dynamic is driven by several factors. According to official statistics, in the second quarter of 2024, the business activity index increased, and household incomes grew moderately. According to preliminary data from the Bureau of National Statistics, in the first half of the year, real GDP growth in real terms was 3.3%. Improvement is seen both in goods production and services sectors. Thus, the increase in the deposit base may reflect the overall state of the economy. During economic growth, companies generate more profit, consequently increasing the deposit volume in banks.
The growth of deposits and corporate client accounts confirms the trust of our clients. Nurbank has been a reliable financial partner for 32 years, offering personalized service and flexible terms for the placement of free funds. The bank's reliability is confirmed by international agency ratings at the level of "B-/B" with a positive outlook.
- Which deposits are most in demand in the market?
- Currently, there are three types of deposits available for Kazakhstani retail customers: conditional, term, and savings. They differ in terms of partial or full early withdrawal, the possibility of replenishment, and yield levels. Each is designed for a specific purpose: temporary money storage or increased income. Depending on their goals, depositors can choose the most suitable deposit product. For instance, savings deposits have the highest rates.
For banks, savings deposits are a stable funding base. These deposits are the most promising and fastest-growing segment of the retail deposit market. According to statistics, since mid-2023, more and more depositors are showing interest in savings deposits. For example, we offer our retail customers to place free funds in the "Nur Altyn Savings" deposit, with an annual effective reward rate (GWSV) up to 17.5%, provided the funds are stored for three months.
Besides savings, we offer retail clients to open the "Nur Altyn Optimal" deposit. This is a universal deposit designed for replenishment and partial withdrawal within the non-reducible balance. The main advantage of the product is flexibility and the ability to manage online.
- What about corporate deposits...
- Among them, in our bank, the most popular are the "Convenient" and "Optimal" term deposits. Their share exceeds 70% of the corporate client's total deposit portfolio. From these deposits, it is possible to partially withdraw funds or replenish at any time. Such deposits can be opened for a term of up to one year or more.
- The demand for deposits is only growing in the last 2-3 years...
- Indeed, this financial product is quite in demand, including among legal entities. First of all, deposits provide the optimal ratio of risk and return amid financial market volatility. Moreover, deposits provide guaranteed income with a minimum level of risk. This is especially important for companies that aim to maintain and increase working capital.
Deposits also play a role in establishing and developing long-term partnership relationships. The placement of significant amounts of funds in Nurbank deposits is accompanied by individual conditions for other banking products and services, such as lending, cash management, or foreign exchange operations.
- What trends can be observed in the deposit market next year?
- I assume the key driver of changes in the deposit market will be the National Bank's monetary policy, particularly the dynamics of the base rate. Given current economic conditions and inflation expectations, we can predict the retention of a moderately tight monetary policy. This could lead to stabilization or a slight decrease in the base rate by the end of the year. In this context, a gradual reduction in deposit interest rates can be expected. Banks will be forced to adjust their interest policies following the regulator's "signals", which will be reflected in the yield of all deposits.