UPDATE 1-Kazakh TuranAlem sees slower profit, asset growth
(Adds details, background)
ALMATY, Feb 13 (Reuters) - TuranAlem (BTA) BTAS.KZ, Kazakhstan's second-largest bank, said on Wednesday its growth would slow down significantly this year in the aftermath of the global liquidity squeeze.
BTA's consolidated net income almost doubled to $580 million in 2007 as the bank was able to shift higher funding costs onto its borrowers, it said on Wednesday.
But this year BTA sees much slower profit growth and credit expansion, the bank's Chief Financial Officer Khalil Kamalov said.
"Maybe (the net income will be) $700 million on a consolidated basis," he said at a briefing.
BTA expects its assets to grow 20 percent this year, down from 56 percent in 2007, Kamalov said.
Kazakh banks have borrowed aggressively abroad and took a hit from a global credit crunch. As sources for external borrowing dried up domestic deposits have become a key source of funding.
BTA also plans to draw some funds from its foreign subsidiaries to support domestic operations.
"Last year we channelled $1.5 billion from our Russian portfolio back into Kazakhstan," BTA Chief Executive Roman Solodchenko said.
More money could come from the sale of BTA's largest subsidiary, retail-focused Kazakh Temirbank TEBN.KZ. But the decision has yet to be made.
"Our shareholders have decided to hire Deutsche Bank as an advisor who would help us to work out a strategy for Temirbank's development," BTA managing director Georgy Iosifyan said.
Deutsche would also help to value Temirbank if BTA decides to sell it, he said. (Reporting by Olzhas Auyezov; Editing by David Cowell)
