BTA Bank and Alliance Bank Losses for May rise
BTA Bank losses increased in May from 256.9 billion tenge to 1.4 trillion tenge, KazTag reports citing the Kazakhstan Agency for the Regulation and Supervision of the Financial Market and Financial Organizations (FSA).
The bank’s assets declined by 41 percent. Monetary ratio assets decreased from 3.76 to 2.66 trillion tenge. The bank’s equity also dropped to minus 784.99 billion tenge.
Individual deposits in BTA Bank declined to 11.2 percent, from 192.6 to 173.2 billion tenge.
Observers believe the bank’s losses show a large-scale revaluation of assets and increase of provisions.
Meanwhile, BTA Bank is a leader in Kazakhstan's banking system in terms of asset volume. On April 20, the bank suspended payments on its principal creditors, and it announced its intention to restructure external debt. The bank management has started negotiations for the sale of its equity stake to Russian Sberbank.
At Alliance Bank, outstanding losses for the same period rose from 44.6 to 595.14 billion tenge, while assets dropped by 44.3 percent to 651 billion tenge. Negative equity reached 437.96 billion tenge. Deposits fell from 69.2 to 66.2 billion tenge.
In terms of the size of assets in Kazakhstan's banking system, Alliance Bank is takes sixth place, and is surpassed by ATFBank and Bank CenterCredit.
In February, the Samruk-Kazyna National Welfare Fund announced it intended buy 76 percent ordinary shares in Seimar Alliance for 100 tenge per share.
In exchange, Samruk-Kazyna offered financial assistance of 24 billion tenge, but the deal has not taken place as of yet. In mid-April the bank began restructuring its external loans.
The bank failed to pay two of its debts in due time, which should have been paid by March 19 and April 10 this year, KazTAG reports.