The issue of merging Nurbank with another bank was not raised. This was stated by the Chairman of the Board of Nurbank, Eldar Sarsenov, in an interview with Kapital.kz.
- Eldar Rashitovich, currently there is a trend of mergers in the banking sector. Do you plan to merge with any STB?
- The issue of merging was not raised. Shareholders are not considering selling Nurbank or buying any other STB. We have not received such proposals from other financial institutions.
- Currently, many banks are moving online, a trend that has become especially evident during the pandemic. Do you plan to further reduce your branches, considering that many financial services are now available remotely?
- Back in the 1990s, when credit and debit cards were introduced, there were concerns that cash would disappear. But despite the gradual increase in non-cash payments in Kazakhstan, this has not happened. And in the near future, I think internet banking will not replace branches.
We do not plan to reduce our branches as they are operating efficiently. In our bank, this efficiency is measured by the KPI coefficient. It shows how much the commission income of branches covers their administrative expenses. On average, the KPI coefficient across all our branches is 150-170%. This means that for every 1 tenge of administrative expense, each branch brings in 1.5-1.7 tenge in commission income. These figures indicate that our branches are working efficiently. But as soon as the pandemic subsides, we will gradually begin to open our branches in Kazakhstan.
- How much does it cost you to open one branch, for example, in Almaty?
- On average, 7-10 million tenge.
- How quickly do these investments pay off?
- Quite quickly. Investments in launching such a point pay off on average within a year.
- Since December 16, 2020, foreign banks can open branches on the territory of Kazakhstan. This can be done through the "one application" principle. In your opinion, from which countries might foreign players come to us?
- If foreign banks enter our country, it is most likely that they will be financial institutions from neighboring countries, from CIS countries. Perhaps, our market will attract investors from China, Turkey. For investors from distant countries, our banking market is not so interesting. Especially in such turbulent times, it is unreasonable to launch branches or representative offices. If branches of foreign banks are opened in our country, it will have a positive impact on the banking market of Kazakhstan.
- In your opinion, which area of banking business in Kazakhstan might interest your foreign colleagues?
- Most likely, retail lending or SME lending. Both banks and their clients will benefit from this. Financial institutions will strive to improve their technologies, services, and business processes. Customers will get more financial products at a more acceptable price due to competition among banks.
