the History of these banks is rooted in 2017. It was then in the business press there was information about the upcoming meeting of shareholders of Capitalbank , and Tengri bank. The theme of the meeting — the merger. However, the shareholders never met, and talk about the merger was quiet for two years.
In may 2019, the topic has reached a new level. This time we are talking about the merger of three banks, the first two joined AsiaCredit Bank. Interestingly, at that time only one of the three was in the TOP-20 largest banks in the country. Whereas in recent years the most common practice is the addition of small banks to large.
However, the trio failed. Tengri bank withdrew from the agreement. As reported by Pawan Singh, Chairman of the Board of Tengri,
their consent to the Union did not give the largest shareholder of the Bank Punjab National Bank (41,64%)
Duo to be
The press service of Capital Bank Kazakhstan and JSC “AsiaCredit Bank” immediately declared that the output of Tengri Bank does not change anything. Moreover, the process of Association of JSC “Capital Bank Kazakhstan” and JSC “AsiaCredit Bank” to accelerate. By the way, it should be noted that
the sole shareholder of these two banks is Orifdzhan Shadiev
“Developed and adjusted for recent events the plan of action received support from the regulator, and we intend to begin implementing in the coming days. Will take into account received recommendations and made every effort to by the end of this year, created a financial institution consistent with and comply with all prudential standards of the regulator and meet all the requirements of the customers,” said the shareholder of both banks Orifdzhan Shadiev.
According to him, the reorganization will begin on March 2.
AsiaCreditBank: losses and reduction of assets
In the meantime, the unenviable position of banks. Non assets of AsiaCredit Bank takes the 23rd place among 27 second-tier banks of the Republic. Moreover, for 21 of the last 24 months, his numbers are falling. In two years, the assets of STB decreased by 99.6 billion tenge. From February 2017, the figure is dropped three times — 185,8 billion tenge.
On February 1, 2020 loan portfolio AsiaCredit Bank is just over 43.3 billion tenge. At the same time:
- the volume of loans with overdue payments amounts to 20.8 billion tenge, increasing for 3 consecutive months;
- the share of overdue loans in the loan portfolio – 48,06% while the average for the Republic of 13.47%. The situation is worse only in three banks;
- the volume of loans with payments overdue by 90 days (NPL) – 15.2 billion tenge. Over the past month the volume has doubled;
- the share of NPL – 35,19% while the average for domestic banks 8.42%. Worse is the situation with loans is only two STB.
Reduced and liabilities of the Bank. For example, deposits of legal entities for 3.5 years fell by more than 13.5 times. Now the Bank is unprofitable. Over the last 16 months only one current income after income tax payments have exceeded current expenditures. 2019 the Bank has worked less than 6 billion tenge, and in 2018, the loss amounted to about 2 billion.
Capital Bank: borrowers do not pay the loan
Indicators Capital bank also is not the best. However, the Bank has never claimed to be the top. Its assets since the beginning of 2018 are approximately at the same level (80 billion + 5 billion). Obligations remain unchanged and the loan portfolio (both 60 billion + 5 billion). But as there is no stability, it is only getting worse.
As of February 1, 2019, the share of loans with overdue payments amounted 90,12%. In the spring of 2019 delay sharply jumped (from 13.25 to 72.45%), but in three months fell below the level of 20%. However, since August 2019 figure began to gradually deteriorate. Growing and NPL on November 1, 2019 it was below 10% of the Bank’s loan portfolio. Three months later – 72,21%. Simply put, Capital bank , with repayment of the credit, things are worse than AsiaCredit.
Thus STB (yet) makes money. The excess of current income over expenditure after income tax payments in January amounted to 10.5 million tenge. A little, but still profit.