Having been on the Kazakhstan market for over 28 years, Nurbank has summarized its financial results for the year. The figures showed that the financial institution implemented its strategic plan in 2020, meeting depositors' expectations and maintaining stability. The enhancement of online products, growth in deposit and loan portfolios, and recapitalization were the main developments at the bank in 2020.
Particularly significant achievements were demonstrated by Nurbank in indicators related to working with SMEs in Kazakhstan. Thus, the loan portfolio increased by 15 percent, the net interest income grew by 45 percent, and the deposit portfolio expanded by 15.8 percent. According to Eldar Sarsenov, Chairman of the Management Board of JSC "Nurbank", the number of borrowers increased by 12.8 percent, while the number of depositors grew by 19.2 percent. Moreover, the share of the SME loan portfolio in the bank’s total portfolio rose from 23 percent in 2019 to 27 percent in 2020.
Eldar Sarsenov also noted that Nurbank is always ready to support SMEs, including through participation in state programs, offering loans at favorable interest rates. In this regard, the financier emphasized, the bank is entirely on the side of business, as the presence of a developed entrepreneurship sector is a sign of a healthy economy.
"Around 48 percent of our clients - representatives of SMEs - received restructuring. In terms of business support, we also work closely with state agents, particularly with the "Damu" fund. Typically, through "Damu", we subsidize the interest rate size - lowering it for our client to 6-8 percent. The fund also guarantees SME loans up to 85 percent of their amount - this applies to startups. We would like to work all-around using a non-collateral system, but today’s economic realities do not permit it. Therefore, "Damu" as an agent provides a guarantee, which serves as a substitute for collateral assets, and our bank gladly accepts it," said the Chairman of Nurbank.
At the beginning of 2020, Nurbank underwent an AQR assessment of asset quality and subsequently placed subordinated bonds amounting to 46.8 billion tenge in 2020. The received funds were directed towards lending and supporting the real economy sector. In May, additional capitalization of Nurbank amounting to 20 billion tenge was completed to enhance the bank's reliability, development, and growth in accordance with the chosen strategy, as well as to create additional provisions formed from profits.
In 2021, Nurbank plans to gradually increase competitiveness and maintain the most comfortable conditions for clients, with a focus on developing the retail business segment as an integral attribute of a universal bank.
https://tengrinews.kz/money/itogam-2020-goda-nurbank-prodoljaet-podderjku-msb-kazahstane-428036/