UPDATE 1-Kazkommertsbank Q1 net profit falls 43 pct to $22 mln

Wed May 14, 2014 7:09am EDT

Related Topics

* KKB says net profit falls 43 pct in Q1 after devaluation

* Says assets, deposits rise since end-2013

* Bad loans comprise 36.1 pct of its loan book (Adds financial data, details)

ALMATY, May 14 (Reuters) - Kazkommertsbank (KKB) , Kazakhstan's biggest bank by assets, said first quarter net profit fell 43 percent to 4.0 billion tenge ($22 million) year-on-year, due to a devaluation of the national tenge currency.

Kazakhstan devalued the tenge by 19 percent on Feb. 11 in a bid to support exporters, sustain robust economic growth and prevent large-scale speculation on the foreign exchange market.

"The decrease in net profit was due to negative translation differences as a result of the devaluation," a KKB spokeswoman told Reuters on Wednesday.

The bank's total assets grew 7.4 percent to 2.8 trillion tenge in the three months to end-March, while total deposits increased 6.8 percent to 1.8 trillion tenge over the same period.

Non-performing loans (NPLs) comprised 36.1 percent of the bank's gross loan book as of March 31, 2014. The bank gave no comparison figures.

Last year KKB made a net profit of 52.2 billion tenge after a net loss of 132.2 billion in 2012, when it made large provisions for NPLs.

KKB said last month it aimed to complete the deal to buy BTA Bank from the Kazakh sovereign wealth fund Samruk-Kazyna in the second quarter of this year.

In February KKB said it had reached a final agreement with Kazakh businessman Kenes Rakishev under which each party would buy a 46.5 percent stake in BTA Bank from the fund. Samruk-Kazyna had bailed out BTA, the country's third largest lender, in the global financial crisis.

Kazkommertsbank said at the time that it would pay $465 million for its 46.5 percent stake.

($1 = 182.05 tenge) (Reporting by Dmitry Solovyov; editing by Jason Neely and Keiron Henderson)

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