This year is a jubilee for Nurbank: it turns 30 years old. It is a significant occasion to take stock. Our interview with Gulnara Musataeva, Chairman of the Management Board of JSC "Nurbank", covered building relationships with clients, priority areas of development, social responsibility, and future plans, reports inbusiness.kz.
— Gulnara Abaevna, Nurbank is reputed as one of the most stable and sustainable banks in Kazakhstan. How do you manage to maintain and strengthen your positions?
— The primary asset, in my opinion, is our clients and the strong team we have formed. We have always emphasized long-term relationships with our clients.
We offer flexible, almost family-like service, which is why many of our clients have been with us for over 20 years. What does the bank provide to clients? Firstly, comfortable conditions. We engage in dialogue, offering mutually beneficial cooperation terms and finding optimal ways for loan service convenience and further business development.
Secondly, personal service is Nurbank's hallmark. Even with the rapid development of online services, many clients prefer personal communication with a manager at the office.
If clients face difficulties in loan repayment, we strive to agree on its restructuring, create individual payment schedules, and explore possibilities to support their business. The bank is not quick to realize collateral property and aims to help clients get back on track. The more stable our borrowers, the stronger the country's economy overall.
— In what direction are you developing?
— Within the bank's strategy until 2025, we remain a universal classic bank. Our traditional, somewhat conservative approach with clients positively affects long-term relationships. We are very meticulous in selecting our borrowers. Concurrently, we are dynamically developing digital channels and improving our product line for both retail and corporate clients. Our plans include strengthening our position in the retail sector and SME.
The retail business development strategy includes a comprehensive program:
In 2021, the bank introduced a new version of internet banking for individuals. Through this platform, we plan to issue not only online loans but also engage in goods sales through a marketplace where any bank's card can be used. A card-to-card money transfer service by phone number has been implemented, with plans for international transfers as well.
We are launching online lending in the mobile application, initially unsecured, and later secured loans.
We continue to work on developing card products, self-service systems, and expanding possibilities for cashless payments through innovative devices.
In the near future, we plan to update the Nurbank24 internet banking for legal entities.
The bank pays special attention to the education sector. We offer two products for youth education payments:
An educational loan for higher education payment without collateral, guaranteed by the Financial Center under the Ministry of Education and Science of Kazakhstan. Nurbank participates in the educational loans guarantee system and is the only bank providing them in Kazakhstan.
The "AQYL" educational deposit allows accumulating funds for education, with simultaneous bonuses from the bank (9% APR) and the state (from 5 to 7%).
We strive to offer the best deposit product rates. One of the latest: the "Nur Altyn Savings" deposit with a high 14.6% rate (APR), offered by only a few banks in the market.
I can't forget to mention refinancing, intended to reduce credit burden by providing more favorable conditions and obtaining an additional loan. As is known, Kazakhstan's population is heavily indebted, and this trend is increasing, as per the National Bank of Kazakhstan statistics, every third Kazakhstani has one or more consumer loans. People took and continue to take loans at high rates, especially in microcredit organizations. Therefore, Nurbank's refinancing campaign (the bank's reward rate reduced by 1%) is very relevant in the current realities and popular among clients.
— How is work with SME and corporate clients progressing?
— The SME sector is promising and important for the bank in terms of growth potential and significance for the economy.
We provide loans from our own funds and under state support programs with rates starting from 6%. Alongside preferential lending programs, the bank successfully uses subsidy instruments.
Among the SME credit products, "SME-Business" enjoys significant demand, with a portfolio share of more than 88.2%, "SME Real Estate" — 5.41%, and "SME Micro" — 4.18%.
In corporate business, we plan to expand the client base, develop the sale of banking products in regions, and engage in cross-selling. A key development priority in transaction business is increasing the share of contingent liabilities in the corporate credit portfolio, focusing on foreign trade instruments, particularly export international guarantees, import and export letters of credit requiring establishment and use of interbank limits for trade financing.
— Which real economy sectors does the bank finance?
— We finance sectors where enterprises feel confident due to demand for their services. In terms of sectors, in the first quarter of 2022, the leading ones in credit issuance are: wholesale trade -14.58%, consumer loans — 12.47%, food industry — 9.38%.
In the SME loan portfolio structure, credits in the services sector (42%) and in industry (13%) dominate, alongside real estate operations (13%) and construction (9%).
Nurbank pays special attention to supporting women's entrepreneurship. Its development has become one of the most pertinent global trends. Responsible and financially disciplined women become growth points for stable and reliable SME. In the bank's SME portfolio, women entrepreneurs account for 21.5% of total borrowers, with this figure growing. Of these, 53.59% are from trade and service sectors. Regions leading in the number of women entrepreneurs in SME include East Kazakhstan, Kokshetau, and Uralsk.
In the corporate business, the leading shares in the loan portfolio are in air transportation services (28%), professional, scientific and technical activities (13%), and crop and livestock production (12%).
Nurbank strives to support the development of the "green" economy by implementing various projects in this direction, such as electricity supply, gas supply, steam and air conditioning services, and non-hazardous waste processing and disposal. Recently, a major eco-project for renewable energy was financed — a small hydropower plant in South Kazakhstan, capable of providing electricity to up to 4 villages. And there are more such projects.
A significant portion of business loans goes toward working capital replenishment. Loans are also actively issued for construction and reconstruction of facilities and purchase of fixed assets. By offering the full range of financial services to entrepreneurs and developing their projects, the bank aims to contribute to the sustainable development of the national economy.
— Gulnara Abaevna, how was the year 2021 for you?
— Despite economic challenges, the bank reached its 30th anniversary with good results. Last year, it continued to actively lend to the real sector of the economy, increasing the loan portfolio to 260 billion tenge, 26 billion tenge or 11.2% more compared to 2020. The bank was particularly active in lending to the large corporate, medium, micro, and small business sectors. Corporate lending grew by 16.4% to 124.2 billion tenge. Personal loans increased by 3% compared to 2020.
The net profit of the bank in 2021 was 2.1 billion tenge. By the year's end, Nurbank's assets grew due to a 12% increase in the loan portfolio and a 20% rise in the deposit portfolio. Overall, the past year was successful for the bank with a tendency to improve results. A significant increase in net profit and profitability is expected by the end of 2022, considering lending growth, asset quality improvement, and transformation of the bank's key business processes.
In January 2022, the international rating agency S&P Global Ratings confirmed the credit ratings of JSC Nurbank at ‘B-/B’, with a stable outlook.
— Nurbank is reputed as a socially responsible brand. What social projects do you consider a priority?
— For 30 years, Nurbank has been building socially oriented business. We believe charity should be targeted, so it has a specific goal. The value of this form of charity lies in personal involvement in solving serious problems, rather than formal provision of funds.
The bank provides direct assistance to orphans, veterans, institutions for children with psycho-physical developmental needs, and children's healthcare institutions, and finances regional programs. This form of charity is complex, but the results are worthwhile.
One of our projects adhering to this philosophy is the social program "Path to Life". Over the years, we've collaborated with orphanages and realized that their graduates have almost no chance of obtaining higher education. Thus, we decided to bridge this gap. The project's assistance is directed toward providing higher education to orphans and children without parental care, covering costs for accommodation, scholarships, nutrition, and daily needs. After completing their education, these young people are guaranteed employment, accompanying them throughout their educational journey. The bank creates conditions for their social adaptation and integration into society. The best confirmation of the program's effectiveness is the success of those who graduated, found work, built careers, and found their calling.
— What achievement in 30 years do you consider the most important?
— The greatest achievement is the success of our clients, whose businesses not only generate profits but also help address important social problems in significant areas like production, healthcare services, education, and more. Clients who risked taking loans and trusted the bank's financial solutions embarked on a big journey with us. Many started from scratch and have become leading companies in the country and beyond, achieving incredible results. Such stability in choosing a partner bank is invaluable.
Special thanks to our Nurbank team. The most crucial aspect of any business is a cohesive team of like-minded individuals ready to tackle assigned tasks. Our team today consists of diverse members, including colleagues I've worked with for many years. They are carriers of the bank's history and values, who managed to attract and retain longtime clients. A new wave of progressive individuals, skilled in utilizing advanced banking technologies, has also joined. This generational symbiosis and unified goal understanding instill hope for continued positive bank development dynamics.
Source: inbusiness.kz