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Huawei ranks No 2 in global smartphone sales
China's tech giant Huawei Technologies Co maintained its ranking as the world's No 2 smartphone vendor, continuing to narrow the gap with Samsung, the first on the list, market research company Gartner Inc reported
30 2019 | Viewed: 21 | Analytics | Read full
How the trade war between China and America is changing global business
Alibabas experience shows how relations between America and China have soured
30 2019 | Viewed: 20 | Analytics | Read full
With Huawei on Defensive, Ericsson and Nokia Fight Each Other for Edge
Western telecom-equipment makers stand to gain if Chinese company loses business after U.S. security claims
30 2019 | Viewed: 19 | Foreign experience | Read full
British and EU market watchdogs trade blows over market access after no-deal Brexit
A tussle between Britain and the European Union over where thousands of shares would be traded in the event of a no-deal Brexit escalated on Wednesday after Britains financial watchdog accused its EU counterpart of risking disruption by restricting market access
29 2019 | Viewed: 19 | Foreign experience | Read full
Investors raise bets on Fed making two rate cuts
Yield on 10-year Treasury retreats to lowest since 2017 on economic concerns
29 2019 | Viewed: 20 | Analytics | Read full
China suggests using rare earths in US trade war
NDRC statement follows Xi Jinping visit to magnet plant last week
29 2019 | Viewed: 24 | News / Review of Mass Media | Read full
China attacks US over Huawei ban at WTO meeting
Confrontation underscores how move against telecoms network group has inflamed trade tensions
29 2019 | Viewed: 21 | News / Theme of day | Read full
Fitch Ratings Publishes Kazakh Banks Datawatch 1Q19
Link to Fitch Ratings' Report(s): Kazakh Banks Datawatch 1Q19

Fitch Ratings-London-24 May 2019: Fitch Ratings has published its Kazakh Banks Datawatch for 1Q19, consisting of key data from banks' regulatory financial statements and disclosures sourced primarily from the National Bank of Kazakhstan (NBK) and Kazakhstan Stock Exchange. The 1Q19 report consists of data in pdf and xlsx formats, charts and Fitch commentary and covers 25 banks, comprising 99% of the system's assets.

By end-1Q19, Tsesnabank (Tsesna), the second-largest bank in the country with a 9% market share at end-3Q18, was fully resolved. The state support package included some liquidity support and a two-stage transfer of problem loans (equal to 55% of opening loans) to the state-owned Problem Asset Fund at net book value. The residual loan book had been deeply provisioned and additional loan impairment charges of about KZT600 billion (33% of opening loans) were mainly offset by a bail-in of state-owned senior unsecured creditors by means of significant tenor extensions and rate cuts.

Kazakh authorities seemingly view a bail-in of state-owned creditors as another form of state support, but we would view it as a distressed debt exchange and a restricted default according to our Criteria, as these deposits are reference obligations to our Issuer Default Ratings. We continue to believe that some state support may be available for banks with at least moderate market shares. However, the Tsesna case shows that when a bank is resolved the likelihood of senior creditors sharing the burden of losses with the state has increased, particularly if the amount of potential problem at the affected bank is substantial. For these reasons, we lowered the Support Rating Floors of four privately owned banks by one notch in March.

We continue to view weak asset quality as the primary reason for recent bank failures in Kazakhstan. The financial viability of the most part of the banking sector has improved, following the resolution of Kazkommertsbank in 2017 and significant efforts by the authorities to clean-up the sector since then. However, there remain a few more banks, making about 20% of sector assets, with large net amounts of deep-seated legacy problem assets, materially exceeding equity. These problem assets are not always reflected in regulatory asset-quality ratios and may require significant additional provisioning.

Banks' credit metrics remained largely stable in 1Q19, although there is large divergence between banks. Sector return on average equity remained stable in 1Q19 at 22% if adjusted for one-off losses at Tsesna. However, the most part of the sector net income is contributed by Halyk, Kaspi and foreign-owned banks, while other banks are less profitable. Sector average Tier 1 ratio is high at 17.3%, but should be viewed in the context of weak asset quality and likely provisioning needs at some banks. Problems at Tsesna did not result in significant customer funding outflows, as deposits (outside Tsesna) remained almost flat in 1Q19. Liquidity buffers are generally strong, particularly at larger banks.

The 1Q19 report is available at www.fitchratings.com or by clicking the link above.


Dmitri Vasiliev
+7 495 956 5576
Fitch Ratings CIS Limited
26 Valovaya Street
Moscow 115054

28 2019 | Viewed: 22 | Press Releases | Read full
The Big Read
Renewable energy: Australia bets on a water battery
28 2019 | Viewed: 21 | Foreign experience | Read full
Sports Direct confirms £120 million headquarters sale and leaseback deal
Sports Direct, the sportswear retailer owned by billionaire Mike Ashley, confirmed the sale of the freehold to its Shirebrook logistics centre to Kwasa Logix Sportivo for just over 120 million pounds in cash on Tuesday
28 2019 | Viewed: 20 | Foreign experience | Read full
China's investment thresholds to be lifted
China will further open the banking and insurance sectors to foreign investors, and may even allow foreign institutions to set up wholly owned companies in China, according to the country's top financial regulator on Monday
28 2019 | Viewed: 15 | Foreign experience | Read full
UK tax system more progressive than thought, says IFS
Think-tank accuses statistical agency of misrepresenting effect of tax on inequality
28 2019 | Viewed: 16 | Analytics | Read full
Norway wealth funds former chief hits out at governance
Knut Kjaer breaks decade-long silence to raise concerns about risk-taking at big
28 2019 | Viewed: 20 | News / Review of Mass Media | Read full
Trade Tension Deals Tractor Makers a Fresh Blow
Deere, CNH and others already hurting because of a slumping agricultural economy are paying more for materials due to tariffs
28 2019 | Viewed: 17 | News / Theme of day | Read full
Japan to limit foreign ownership of firms in its IT, telecom sectors
Japans government said on Monday that high-tech industries will be added to a list of businesses for which foreign ownership of Japanese firms is restricted
27 2019 | Viewed: 21 | News / Theme of day | Read full
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Interview with Sholpan Kozhamkulova

Sholpan Kozhamkulova
Sholpan Kozhamkulova, Ph.D., Assistant Professor, Chair, Department of Journalism and Mass Communication, KIMEP, Almaty

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