Russian banks losing ground in Kazakh market
The loan portfolio of Kazakhstan's second-tier banks has been cut by 3.1% and made 15.14trln tenge in late February 2017 against 15.62trln tenge in February 2016.
Meanwhile, the volume of loans of Kazakhstani subsidiaries of the Russian banks reduced more - by 11.3%, from 1.43 to 1.27trln tenge. Their share in the total volume of Kazakhstani second-tier banks' loan portfolios fell from 9.1% to 8.4%.
Sberbank is the largest Russian bank in Kazakhstan which stands the fourth in the volume of its loan portfolio. By the end of February 2017, Sberbank's loan volume made 940.3bln tenge having reduced by 135.7bln (12.6%) in a year. Loan delinquency rate (exceeding 90 days) fell from 11.3% to 10.1% that is higher than the National Bank's recommendations.
Alfa Bank is the second largest Russian bank working in Kazakhstan. Within a year, by February 2017, its loan portfolio fell by 33.2bln tenge (20.9%) to 125.7bln tenge. Its loan delinquency rate reduced from 8.9% to 7.4% that is close to all the second-tier banks' loan delinquency rates - 7.3%.
Home Credit Bank is the only Russian bank that has shown growth in February 2016-2017 in Kazakhstan. Its loan portfolio increased by 21.3bln tenge (21.1%) and makes 122.1bln tenge. The quality of loans also demonstrated progress; the loan delinquency rate reduced almost twofold - from 8.7% to 4.4%.
VTB Bank's loan portfolio by the end of February lost 13.4bln tenge (14.6%) and made 78.4bln. The quality of VTB Bank's loan portfolio is one of the worst in the market. Its loan delinquency rate makes 15.5%. In the past year, this indicator reached 20.2%.