Gulnara Musataeva, Chairperson of the Management Board of Nurbank JSC, shared the bank's achievements in the outgoing 2024.
Gulnara Abaevna, as 2024 draws to a close, we can already outline preliminary results. Could you talk about the bank's main financial outcomes?
- According to preliminary data, Nurbank has significantly improved its financial performance. Over the past 11 months, the bank's net profit more than doubled year over year, reaching KZT 12.9 billion. Since the beginning of the year, the bank's assets increased by 10.6% to KZT 514.9 billion, and the deposit portfolio by 10%, with corporate deposits growing by 21%.
The monetary market situation remains volatile due to the high base rate, and this year the bank has prioritized asset quality management. Nurbank consistently meets the prudential and other standards set by the regulatory legal acts of the National Bank of Kazakhstan. For instance, the current liquidity ratio was 2.6 compared to a minimum regulatory requirement of 0.3. The high liquidity ratios demonstrate that the financial institution has sufficient liquidity to meet its obligations to clients fully and timely.
Another significant event of 2024 was the bank's rating upgrade. In mid-December, S&P Global Ratings raised Nurbank's rating to B, which undoubtedly confirms the effectiveness of our business model and stable market position.
The bank's asset portfolio remains rather conservative in terms of its constituents: mainly debt securities, loans to other banks, currency, and funds placed in the accounts of the National Bank of Kazakhstan. How does this investment strategy prove itself?
- Asset and liability management requires finding a balance between the asset portfolio yield and liquidity, along with strict compliance with prudential regulations of the regulator. Therefore, investing in risk-free financial instruments, such as government debt securities and deposits with the National Bank of Kazakhstan, is a thoughtful investment decision since it ensures the security of Nurbank's depositors' funds. The share of risk-free assets in the total assets among STBs is about 40-45%, and Nurbank matches this level.
What are the bank's projections for 2025 in terms of cost management and profitability increase?
- In 2025, we plan to increase our credit portfolio by at least 12%, especially in the SME sector, by at least 20%. Thus, interest income growth will be about 19%. In the SME area, we intend to develop online services tailored to the specific needs of small and medium businesses, as well as to strengthen further integration with state service providers.
Additionally, we plan to enhance the profitability of our transactional direction through the development of digital services for electronic money operators and crypto exchanges, and international transfer services for individuals and legal entities.
As of early December, income from the bank's dealing operations grew by 36% compared to the previous year. The sound strategy in forming and managing foreign exchange positions, which yielded good results this year, will be maintained in the future.
Regarding expenses, the bank is currently implementing numerous projects aimed at technological development and business process automation, which undoubtedly involves increased costs.
Nurbank remains an active participant in the credit market. What projects and clients are prioritized in terms of lending for Nurbank?
- We aim to diversify our credit portfolio by industry and client segments. Nurbank actively lends to SMEs, including through government programs implemented by the "Damu" Fund. Thus, we help the government effectively deliver credit resources to entrepreneurs. Our priority is funding socially significant projects. Nurbank actively lends to dental and medical clinics, private schools, kindergartens, educational and development centers. Our product line for SME clients currently fully meets market demands.
The structure of the corporate loan portfolio includes manufacturing enterprises, industrial projects, transportation, construction, and trading companies. Today, we offer tailored solutions for various industries and a full range of advisory services. In 2025, we intend to significantly expand our trade finance capabilities and strengthen partnerships with international financial institutions. The priority is the development of green financial instruments. Nurbank plans to utilize credit products for companies implementing projects in sustainable development, energy efficiency, and environmental innovation.
What is your view on the development of the transaction business?
- The transaction business is a stable source of profit and a priority development area for us. Nurbank is expanding its participation in international money transfer systems. Recently, we became the first among STBs to connect to the KWIKPAY payment system, which has proven to be a highly reliable and convenient fund transfer tool.
In 2024, Nurbank and ATAIX Eurasia crypto exchange were the first in Kazakhstan to launch a fiat balance withdrawal service for legal entities. This solution automated processes and accelerated settlements between the crypto exchange and legal entities. In 2025, we will continue to work with digital asset participants; currently, several initiatives with AIFC crypto exchanges are underway.
We also plan to participate in the National Bank of Kazakhstan's pilot project on using digital tenge to trace budget spending. This technology reduces the risks of misallocated funds and ensures transparency and efficiency in spending. Additionally, Nurbank will take part in the National Bank and National Payment Corporation's Open API and Open Banking projects, which implement services for sending transfers using STB clients' phone numbers and introducing QR payments. Moreover, we are currently working on launching several money transfer systems, one of which is a new system entering the market in partnership with Nurbank.
Source: https://forbes.kz/articles/nurbank-podvodit-itogi-goda-2c4b22/amp