Post on 03-Jun-2020
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Highlights
Presentation agenda
Kookmin acquisition
Lending and asset quality update
Liquidity, funding and capitalisation
Financial performance
Business update
Peer comparison
Highlights ($mm) 2009 2010 2011 1Q 2012 1Q 2012/ 2011 ($)Total Assets 7,817 8,302 7,291 7,416 1.7%Gross Loans 4,896 5,431 5,930 5,989 1%Customer Accounts 4,458 5,271 4,795 4,886 2%Equity 658 575 585 595 1.7%Net Income 23 -208 18 4Capital Adequacy 22.7% 18.9% 16.93% 15.19%ROAE*
ROAA*
*annualized
3.6%
0.3%
-33%
-2.6%
3.2%
0.2%
2.6%
0.2%
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Investment Highlights• One of the oldest commercial banks in CIS (established in 1988)• Kazakhstan’s 4th largest bank in terms of assets (8.1% of total system assets as of 1Q 2012)• Strong new strategic shareholders (Kookmin Bank & IFC) with ability to support further growth and share
extensive expertise in corporate banking, risk management and advanced IT solutions• Strong retail track-record (3rd largest in RK in terms of retail deposits as of 1Q 2012) with middle-market focus• Market share of retail loans of 11.9% and retail deposits of 13.2% as of 1Q 2012• Nationwide footprint and powerful distribution network, including 20 full-service and 123 retail branches• Strongest asset quality amongst peers• Strong ratings compared to CIS peers: B1 (Moody’s), B+ (Fitch), B+ (S&P) as of 1Q 2012 • Stable management structure• Strong liquidity with no dependence on government support and a prudent approach to external funding
Source: IFRS data
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Presentation agenda
Lending and asset quality update
Liquidity, funding and capitalisation
Financial performance
Business update
Peer comparison
Kookmin acquisition
Highlights
Kookmin Bank to become controlling shareholder in BCC
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Shareholder structure as of 1Q 2012 Shareholder structure as of YE2009
Kookmin Bank (KB) has acquired 41.9% of BCC’s total shares, with IFC taking 10.0%
• Initial stage: KB acquired 30.55% of total shares in 2H2008 through both secondary market purchase and a capital injection
• Second stage: KB increased its stake to 41.9% of total shares while IFC purchased 10.0% in transactions involving a combination of existing, new common and preferred shares (completed in February 2010)
Transaction summary Key steps of BCC acquisition
August 27, 2008
December 2008
February 2010
Closing, 23.0% stake acquisition
KB’s increase in stake up to 30.55%
KB’s increase in stake up to 41.9% IFC 10% stake acquisition
May 16, 2008Regulatory approval—Korean Financial Supervision Agency
July 18, 2008Regulatory approval—Kazakh Financial Supervision Agency
March 17, 2008Announcement of 30% stake acquisition for $634mm
“According to Moody's, the emergence of Kookmin Bank as the strategic shareholder in BCC is expected to lead to an improvement in BCC's liquidity profile, while the involvement of Kookmin Bank in BCC's key corporate decisions, and assistance in risk management and asset-liability management is likely to have a positive impact on BCC's risk profile and franchise.”
According to Moody's, “ the emergence of Kookmin Bank as the strategic shareholder in BCC is expected to lead to an improvement in BCC's liquidity profile, while the involvement of Kookmin Bank in BCC's key corporate decisions, and assistance in risk management and asset-liability management is likely to have a positive impact on BCC's risk profile and franchise.”
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Kookmin’s acquisition significantly strengthens BCC’s competitive position
Additional capital injection in 2008 – 2010 amounted to approx. US$ 226 mm.Introduction of IFC as a new strong shareholder of the BankStrong capitalization base for future stable growth
Capital
Top management
Credit risk management
Retail business
Internal controls
Other
Kookmin nominated two BoD members, three members of the Management Board and number ofmiddle-level managers to strengthen BCC’s position and help accelerate further development. IFCnominated one BoD member.
Establishment of the computerized Credit Rating and Credit Scoring SystemsTransition to the new structure with the view of concentrating the branches on sales and asset quality: - Division into Sales Offices, Credit Analysis Center and Operational Support Center- Separation of loan marketing (Front Office) and loan review structure ensuring independence of
decision making
Establishment of automatic process for retail loan review and approval
Creation of integrated monitoring systemDevelopment of Anti-Money Laundering systemCreation of the normative/regulatory base for the Internal Audit and Compliance Control functionsSplit-off of the Compliance Control as a separate unit under the Board of Directors
Data Warehouse SystemCreation of IT Help DeskDeveloping Data Mart for businesses based on DWDeveloping HR management system (implementation of performance–based wage system,improvement of loyalty to the bank)
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Presentation agenda
Lending and asset quality update
Liquidity, funding and capitalisation
Financial performance
Peer comparison
Highlights
Business update
Kookmin acquisition
Branch network and subsidiaries development
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LLC Bank BCC-Moscow
Geographical coverage Subsidiaries
BCC branch network development
Bank CenterCredit
LLC Bank BCC-Moscow
LLP CenterLeasing JSC
BCC Invest
CenterCredit International
B.V.
100% 75%100% 91% 100%
APF Capital
Additionally BCC has two representative offices in Kiev, Ukraine and Bishkek, Kyrgyzstan
KazakhstanPension Fund management
NetherlandsAttraction of capital for the parent company
KazakhstanFinance lease of property
KazakhstanBrokerage and dealer activity
RussiaBanking services
• Established in 2008• Main mission is to support the development of SME companies in
Russia and CIS countries• Ranked as No. 275 in terms of assets• Ratings: B+/stable (Fitch), A (Expert RA)
KazakhstanUkraine
Kyrgyzstan
Russian Federation
($mm) 2008 1Q2012
Total Assets
Total Loans
Net Income
41.7
-0.8
3.2
0.5
152.9
259.7
Strong positions in retail segments in Kazakhstan
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Loan portfolio breakdown (%)
Breakdown of retail portfolio (1Q 2012)
Retail loans ($mm)
Retail deposits dynamics ($mm)
Retail loans ($mm)
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Presentation agenda
Liquidity, funding and capitalisation
Financial performance
Peer comparison
Highlights
Kookmin acquisition
Business update
Lending and asset quality update
Strong loan quality with conservative provisioning
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Provisioning level, NPLs (%)Assets and loans
9,3
13,2 14,2 14,5
3,5
10,2 8,2 9,1
2009 2010 2011 1Q 2012
Provisions/Loans NPL/Loans
Currency profile of loan portfolio
Note: non-performing loans are defined as 90 days overdue and over
99,1 99,0 98,8 98,7
0,9 1,0 1,2 1,3
2009 2010 2011 1Q 2012
Collateralised Uncollateralised
Collateralisation of loans (%)
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BCC maintained conservative asset growth and focused on loan quality
LTV trendNPLs by business segment
69,0% 74,0% 76,0% 73,0%76,0%
82,0% 84,0% 84.0%
60,0%64,0% 66,0% 62,0%
2009 2010 2011 1Q 2012
Retail Mortgages Consumer4,0%
8,3%
4,1%7,0%
1,5%
15,9%
12,0%8,9%
4,8%8,0% 9,5% 10,7%
2009 2010 2011 1Q 2012
SME Corporate Retail
2009 2010 2011 1Q 2012
Gross Loans 4,896 5,431 5,930 5,989
Mortgage, % of Loans 18% 18% 18% 17%
Construction: 566 698 689 729
Residential, % of Loans 6% 5% 6% 5%
Industrial, % of Loans 6% 8% 6% 7%
Dynamics of challenging industries ($mm)Industry exposure (1Q 2012)
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Presentation agenda
Financial performance
Peer comparison
Highlights
Kookmin acquisition
Business update
Liquidity, funding and capitalisation
Lending and asset quality update
High liquidity
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Dynamics of liquid assets ($mm) Breakdown of liquid assets
Net Loans / Deposits (%) Composition of securities portfolio (%)
3 134 3 310
1 875 1 988
0500
1 0001 5002 0002 5003 0003 5004 000
2009 2010 2011 1Q 2012
100 89106 105
2009 2010 2011 1Q 2012
90% 92%80% 75%
10% 8% 20% 25%
2009 2010 2011 1Q 2012
Government Corporate
Strong and diversified funding base and currency exposure
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Funding composition (1Q 2012)
Customer accounts breakdown by currency Average rates and costs of funding
Funding diversification dynamics ($mm)
Strong equity base
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Equity ($mm)
Capital Structure (BIS, $mm) Capital Adequacy (BIS)
658
575585 595
8%7%
8% 8%
-20%
10%
520540560580600620640660680
2009 2010 2011 1Q 2012
Equity Equity/Assets
Capital dynamics ($mm)
13,7%11,2% 10,2% 9,2%
23%19%
17%15%
2009 2010 2011 1Q 2012
Tier 1 Total capital
2009 2010 2011 1Q 2012
Share capital 355 473 470 473RE & minority 297 96 107 107Tier I capital 657 570 585 587Tier II capital 433 393 385 383Total capital 1,089 963 970 970RWA 4,808 5,107 5,728 6,382
Total capital adequacy min. requirement = 8% Tier 1 capital adequacy min. requirement = 4%
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Presentation agenda
Highlights
Kookmin acquisition
Business update
Lending and asset quality update
Financial performance
Liquidity, funding and capitalisation
Peer comparison
Operating income is continuing to strengthen
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Operating income structure ($mm)
Net profit ($mm), Net interest margin (%) Cost / Income ratio
33,1%
75,9%55,1% 59,8%
2009 2010 2011 1Q 2012
23,2
-161,4
48,0 16,1163,4
113,0
143,7 33,6
2009 2010 2011 1Q 2012
Net interest income Net non-interest income
Non interest income contribution (1Q 2012)
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Presentation agenda
Highlights
Kookmin acquisition
Business update
Lending and asset quality update
Liquidity, funding and capitalisation
Peer comparison
Financial performance
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Key balance sheet figures comparison
Assets ($bn, 1Q 2012) Loan Portfolio ($bn, 1Q 2012)
Corporate deposits ($bn, 1Q 2012) Retail deposits ($bn, 1Q 2012)
Source: NBRK
16,8 16,6
9,77,3 6,8
4,4
18,7% 18,4%
10,8%8,1% 7,5%
4,8%
0%0
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Halyk KKB BTA BCC ATF Sberbank
Assets Share
4,0 3,92,6
1,7 1,6 1,1
20,7% 19,8%13,2%
8,6% 8,3% 5,8%
0%
30%
0Halyk KKB BCC Kaspi BTA ATF
Retail deposits Share
15,7 14,09,1
5,6 5,5 3,6
21,9%19,5%
12,7%
7,8% 7,6% 5,1%
0%0
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KKB BTA Halyk ATF BCC ALB
Loan Portfolio Share
8,25,5
2,8 2,7 2,6 2,2
22,1%
14,7%7,4% 7,2% 7,0% 5,9%
0%
30%
0
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Halyk KKB Sberbank BTA ATF BCC
Corporate deposits Share