Deposits of Kazakhstan citizens in May reached up to 34.5 trillion tenge. According to official statistics for the first five months of the current year, the deposit portfolio of both individuals and legal entities increased.
Moreover, savings deposits became the main driver of growth in the tenge segment of the deposit market. Gulnara Musataeva, Chairman of the Board of JSC "Nurbank," discussed the main trends in the deposit market and the advantages of this type of savings for ordinary Kazakhstanis, small and large companies.
- Tell us about the main trends in the deposit market.
- As of May, the total volume of individual deposits in the second-tier banks of Kazakhstan reached almost 20.9 trillion tenge - this amount increased by 2.09% in a month. It should be noted that this amount also includes money from foreign citizens. According to the data from the National Bank of the Republic of Kazakhstan, growth occurred not only due to tenge deposits, as was happening since the beginning of the current year, but also due to deposits in foreign currency - their volume increased for the first time since December 2023, albeit by just 1.48%, almost up to 5.3 trillion tenge. Tenge deposits grew by 2.3% in a month, reaching 15.6 trillion tenge. Thus, by the end of May this year, about 74.9% of the total amount of individual deposits is held in tenge, with the remaining share (25.1%) in foreign currencies.
As of June 1, the weighted average interest rate on deposits of non-bank legal entities in tenge is 13.7%, and on deposits of individuals in tenge - 13.6%. Deposit rates at Nurbank are in line with the market. Overall, we believe that current deposit rates are very attractive. We expect a gradual decrease in the base rate, so now is a good time to open a deposit at a high rate. Already today, many banks are revising their deposit terms and lowering interest rates.
- You mentioned that retail customers often choose savings deposits. What are the advantages? Are there any pitfalls?
- Firstly, it should be noted that all deposit products for individuals have become more in demand. We believe that the growth is largely due to the fact that banking services have become more accessible, including thanks to modern technology. Statistics from the National Bank of the Republic of Kazakhstan show a decrease in cash circulation and an increase in cashless turnover in the daily lives of the population, and the country's payment market continues to develop actively. More and more people are switching to payments with cards and using banking applications, which leads to an increase in the balances of funds on current accounts and deposits of individuals.
As for savings deposits, they are chosen primarily because of the high rates. This type of deposit is the most profitable among others. Of course, we would not recommend putting all free money into a savings deposit. A person should have a reserve for unforeseen situations, and for this, a non-urgent deposit with the right to replenish is suitable. The rate may be lower, but you can withdraw money quickly. When there is a specific goal - to save up for a major purchase or pay for children's education, a savings deposit is the right choice. It will not allow for an unplanned purchase, and the savings goal will be achieved faster. The deposit rate is higher and there is interest capitalization, which involves automatic accrual of interest to the deposit amount.
Daily balances are better placed on a fixed and flexible deposit, which can be replenished and withdrawn while earning additional interest income. Such an option became available for retail clients due to the development of digital services; our bank's clients can easily manage their funds in the Nur24.kz mobile application.
There are no pitfalls, savings deposits are the most convenient and understandable financial instrument for investing free cash. To be honest, today in Kazakhstan there is no alternative to a deposit as a tool for saving and increasing capital. Moreover, the "Nur Altyn Savings" deposit, which can be opened with a rate of up to 17.5% APR, provided the savings are kept for three months, has an increased deposit guarantee from the DGF in the amount of 20 million tenge.
- What deposits does Nurbank offer to retail clients today?
- Besides the savings deposit, we offer retail clients to open a "Nur Altyn Optimal" deposit. It is a universal deposit designed for replenishing and partial withdrawal within the non-reducible balance. The main advantage of the product is flexibility and the ability to manage online.
Nurbank is a client-oriented bank where one can save money for any goals, including children's education. The educational deposit AQYL involves saving funds for education at universities in the Republic of Kazakhstan with an increased rate for a period of 36 and 60 months. The deposit provides a government bonus to the bank's standard rate: standard (+5% per annum) and special (+7% per annum).
In general, the choice of deposit type depends on your financial goals, risk level, and liquidity needs, i.e., the accessibility of funds.
- Is it beneficial for corporate clients and SME representatives to open short-term deposits?
- On the market, the most popular deposits for legal entities are flexible deposits with the ability to replenish and withdraw within the minimum non-reducible balance. In our bank, a short-term deposit – "Nur-Comfort" – is popular among corporate clients and SME representatives, with the possibility of placing money for several days. This product allows for quickly gaining additional income when the client has free cash on their accounts. The client receives a reward the next morning.
- Last year saw a decrease in foreign currency deposits in the market. Is Nurbank following the trend?
- At Nurbank, the share of tenge deposits exceeds the currency deposits, reflecting the market situation. By the end of 2022 the share of tenge deposits in Nurbank was 57.7% and currency deposits 42.3%, at the end of 2023 the share of tenge deposits of individuals in the total portfolio is 58.5%, and currency ones – 41.5%. As of early June, the share of tenge is 66.1%, currency – 33.9%.
The trend is mixed and formed under the influence of external factors affecting the tenge volatility. Clients' choice depends on the purpose of the deposit. If it's about over 10 million tenge, Kazakhstanis prefer to split a large deposit into different currencies. In the case of smaller amounts, clients choose between long-term or short-term investing, with a tendency towards currency for longer terms. Funds needed soon should be kept in the national currency. Corporate clients use deposits as a means of temporarily holding funds; the choice depends on the currency of payments and settlements. If this is a corporate investment tool, splitting the portfolio into several currencies is advisable.
- Why, in your opinion, do individuals and legal entities choose Nurbank to save their funds?
- When choosing a bank for placing savings deposits, clients evaluate several important factors: first, they choose a reliable bank. Nurbank has been operating in the market for over 30 years, the bank's policy throughout this time has been aimed at ensuring stability and sustainability. The bank's strategy is focused on maintaining asset quality, applying a balanced approach to risk assessment, and ensuring sufficient liquidity levels. The reliability of the financial institution is confirmed by international agency ratings at the level of "B-/B" with a stable outlook and a strong business reputation. Besides, comfort and convenience are important to clients, Nurbank has a wide branch network across Kazakhstan.
Corporate clients choose the bank for several reasons: favorable deposit terms, personalized service. Client interests are our top priority. Today, we are ready to offer an optimal combination of deposit term and interest rate.
Source: https://dknews.kz/ru/finansy/334666-vremya-vkladchika-ceo-nurbanka-ozvuchila-osnovnye