The agency notes the bank's adequate liquidity level
International rating agency Standard & Poor's reaffirmed the long-term and short-term credit ratings of Nurbank at 'B-/B', the bank's press service reported on Friday.
"According to S&P analysts, this ratings affirmation reflects the bank's moderate business position despite increased sectoral risks in Kazakhstan's banking sector due to intensifying competition. The report also noted the reduction in funding pressure, planned stabilization of the resource base, and gradual improvement in asset quality. The bank's liquidity was noted to be at an adequate level," the bank statement notes.
"The affirmation of Nurbank's ratings takes into account the bank's long-standing acceptable performance and a more mature business model. Additionally, the ratings reflect the bank's strong market position, moderate credit losses, good profitability, as well as sufficient capitalization and liquidity. The results achieved prove the effectiveness of our business model and instill confidence that 2019 will also be successful for our bank," said Eldar Sarsenov, Chairman of the Management Board of Nurbank JSC.
The bank notes that the level of liquidity is sufficient, which allows "not only to fulfill its obligations but also to continue lending to the real sector of the economy." The bank's deposit and loan portfolios are described as balanced: large businesses account for 62.3% of Nurbank's loans, 20.8% for SMEs. Retail borrowers comprise 16.9%. In the clients' deposit structure, individuals account for 50.1%, legal entities for 46.3%, and national companies' funds for 3.6%.
As of the end of ten months in 2018, Nurbank ranks 13th among 28 Kazakhstani banks in terms of asset size, totaling 417.7 billion tenge. The bank's own capital amounts to 65.6 billion tenge.