ForteBank remains the most capitalized among the largest banks in the country based on the results of 2016
Astana 26.04.2017 PRESS RELEASE On April 26, ForteBank announced its results for 2016 based on audited consolidated financial statements. Assets The Bank's assets grew by 13.7% and totaled KZT 1,215.2 billion. The most dynamic growth was shown in the retail and small and medium-sized business segments. Thus, the loan portfolio in the first segment increased by KZT 35.4 billion, or 14.6%, while in the second by KZT 31.3 billion, or 36.8%. The liquidity level remains one of the highest in the market, with the current liquidity ratio K4 (the ratio of current operating assets to short-term liabilities) at the end of the year at 238%, with a regulatory requirement of at least 30%. The quality of the loan portfolio improved, with the share of non-performing loans according to the methodology of the National Bank of the Republic of Kazakhstan as of January 1, 2017, amounting to 7.5% compared to 9.0% a year earlier. Deposits The total deposit portfolio grew by 21.6%, with retail deposits rising by 34% to KZT 406 billion by the end of the year, and small and medium-sized enterprise deposits increased by 83% to KZT 93 billion. Thus, in 2016, the Bank successfully continued diversifying funding sources through the growth of its client base. Capital and profit The Bank's equity increased by KZT 10.9 billion or 6.5%. The capital adequacy ratio K1, measuring the ratio of the bank's equity to risk-weighted assets, reached 20.1%, with a minimum requirement of 5%. This is the highest indicator among the top 10 banks in the country. Net profit amounted to KZT 11.7 billion, which is 57% higher than the figure for 2015. Commission income increased by 43%, while net interest income rose by 28%, reflecting the growth of the client base and significant expansion of services provided. Key events In 2016, ForteBank became one of the few banks in Kazakhstan to receive a credit rating upgrade from the international rating agency Moody’s. The long-term rating for deposits in local and foreign currencies was raised to "B3", with a stable outlook. The bank completed its central office relocation to Astana and launched a rebranding program for branches in accordance with the concept of modern banking customer service developed by the design bureau Dinn (Italy). The first branches of the new format were opened in Almaty and Astana and noted among the top 12 bank branch designs according to The Financial Brand (USA), specializing in issues of marketing and strategy of retail banks and credit organizations. In the summer of 2016, the bank launched a modern technological mobile and internet banking application that allows clients to remotely perform a wide range of operations. The developer is the world leader in providing remote banking solutions – Monitise PLC (UK). The application received high praise for its user-friendly interface and functionality, with the number of users growing by 50% per quarter. Among other significant events of the year was the conclusion of a long-term agreement with the European Bank for Reconstruction and Development (EBRD) on joint programs for financing small and medium-sized businesses, and active participation in state programs to support entrepreneurs through the “Damu” Entrepreneurship Development Fund. ForteBank was the first bank in Kazakhstan to successfully complete the acquisition of funds under a program to support mortgage borrowers through JSC “Problem Loans Fund”, refinancing 3,644 loans for a total of KZT 21.4 billion. These financial indicators are subject to approval at the general meeting of shareholders scheduled for May 15 of the current year. General information about the bank JSC “ForteBank” is one of the largest banks in Kazakhstan, formed in 2015 as a result of the merger of JSC “Alliance Bank”, JSC “Temirbank”, and JSC “ForteBank”. The bank is represented in all regions and cities of the country by 19 branches and 102 outlets, as well as an extensive terminal and acquiring network comprising over 800 ATMs and around 7,000 POS terminals in trade and service enterprises. The bank employs more than 3,500 specialists. For media inquiries: ForteBank Press Service Tel: +7 (7172) 59 99 99 (ext. 10427) Mob: +7 777 156 11 51 E-mail: aaaytbayeva@fortebank.com Astana
April 26, 2017
PRESS RELEASE
On April 26, ForteBank announced its operating results for 2016 based on audited consolidated financial statements.
Assets
The Bank's assets increased by 13.7% and amounted to 1,215.2 billion tenge. The greatest growth dynamics was shown in the areas of working with individuals and small and medium-sized businesses. Thus, the loan portfolio in the first segment increased by 35.4 billion tenge, or 14.6%, while in the second segment it grew by 31.3 billion tenge, or 36.8%.
The liquidity level remains one of the highest in the market, with the current liquidity ratio K4 (the ratio of current operating assets to short-term liabilities) at the end of the year standing at 238%, while the norm is no less than 30%.
The quality of the loan portfolio improved, with the share of non-performing loans according to the methodology of the National Bank of the Republic of Kazakhstan as of January 1, 2017, was 7.5% compared to 9.0% a year earlier.
Deposits
The total deposit portfolio grew by 21.6%, while deposits from individuals increased by 34% and at the end of the year amounted to 406 billion tenge, and the deposits of small and medium-sized enterprises rose by 83% and reached 93 billion tenge. Thus, in 2016, the Bank successfully continued to diversify its funding sources due to the growth of its client base.
Capital and Profit
The Bank's equity increased by 10.9 billion tenge or 6.5%. The capital adequacy ratio K1, which measures the ratio of the Bank's own capital to risk-weighted assets, reached 20.1%, while the norm is no less than 5%. This is the highest figure among the 10 largest banks in the country.
Net profit amounted to 11.7 billion tenge, which is 57% higher than the figure for 2015. Commission income increased by 43%, while net interest income rose by 28%, reflecting the growth of the client base and significant expansion of the range of services provided.
Key Events
In 2016, ForteBank became one of the few banks in Kazakhstan to receive a rating upgrade from the international rating agency Moody's. The long-term rating on deposits in local and foreign currency was upgraded to 'B3', with a forecast of 'stable'.
The Bank completed the relocation of its head office to Astana and launched a branch rebranding program in accordance with the concept of modern banking customer service developed by the design bureau Dinn (Italy). The first branches of the new format were opened in Almaty and Astana and were recognized among the 12 best bank branch designs by The Financial Brand (USA), which specializes in retail banking and credit organizations marketing and strategy.
In the summer of 2016, the Bank launched a modern technological mobile and internet banking application, enabling clients to remotely carry out a wide range of operations. The developer was a global leader in remote banking solutions – Monitise PLC (UK). The application received high praise for its user-friendly interface and functionality, with user growth reaching 50% per quarter.
Among other significant events of the year was the signing of a long-term agreement with the European Bank for Reconstruction and Development (EBRD) for joint programs to finance small and medium-sized businesses, as well as active participation in state support programs for entrepreneurs through the Entrepreneurship Development Fund 'Damu'. ForteBank was the first bank in Kazakhstan to successfully complete the allocation of funds under the mortgage borrower support program through JSC 'Fund of Problem Loans', refinancing 3,644 loans totaling 21.4 billion tenge.
These financial results are subject to approval at the annual general meeting of shareholders scheduled for May 15 of the current year.
General Information about the Bank
JSC 'ForteBank' is one of the largest banks in Kazakhstan, established in 2015 as a result of the merger of JSC 'Alliance Bank', JSC 'Temirbank', and JSC 'ForteBank'. The Bank is represented in all regions and cities of the country by 19 branches and 102 offices, as well as an extensive terminal and acquiring network comprising over 800 ATMs and around 7,000 POS terminals in trade and service enterprises. The Bank employs over 3,500 specialists.
For contacts:
Press service of ForteBank
Tel.: +7 (7172) 59 99 99 (ext. 10427)
Mob.: +7 777 156 11 51
E-mail: aaaytbayeva@fortebank.com
