November 14, analysts of the international rating Agency Moody’s Investors Service announced an increase in long-term Deposit ratings of ATF in local and foreign currency from B3 to B2. Has also been revised in the direction of improvement, and five other ratings of the Bank.
The Outlook on the long-term ratings of the Bank in national and foreign currency, as well as
the overall Outlook of the Issuer is stable
“The rating upgrade ATF due to the recent improvement in asset quality, capital adequacy and profitability”, — experts say.
The Bank has commented on the rating increase.
— Increase ratings and change of Outlook by the international rating Agency Moody’s positive assessment of the work of our entire team. As well as an objective confirmation of the correctness of the chosen strategy and its consistent implementation. The Bank adheres to focus on the growth of a quality loan portfolio and diversification of risks. The interests of our clients in both the corporate and retail segments always determine our priorities, reliable financial partnership – that is what we give to our clients, — said Sergei Kovalenko, the Chairman of the Board of ATF.
The reasons for the rating upgrade
Moody’s also emphasizes that in the third quarter of 2019 was repaid several large loans, which as at the end of 2018 in the aggregate accounted for approximately 20% of the total bad loans of the Bank.
Simultaneously, net interest margin of the Bank, income before formation of provisions and profit increased in the first half of 2019. Consequently, the capitalization of earnings has raised the ratio of tangible common equity risk-weighted assets to 9.6% as at 30 June 2019 from 8.0% as at the end of 2018.
AMB consistently is one of the largest banks of Kazakhstan. According to the latest data of the national Bank, ATF Bank in the Republic takes the seventh place in terms of assets and fifth place on volume of the loan portfolio. The volume of the Deposit portfolio – the sixth line of the rating. Market share in these areas amount to 5.2%, 7% and 5%, respectively.