Transcript Document

BTA’s Presentation
November 2006
Strong operating environment
Investments to fixed capital and ratings
of Kazakhstan
CPI
(%)
FDI
(US$bn)
CAB
(% GDP)
Gross Domestic Product
Real Wages Rating of
(Growth, %) Kazakhstan
2002
6.6
4.1
-4.2
10.9
BB/Stable
2003
6.8
4.6
-0.9
7.0
BB+/Stable
2004
6.7
8.3
1.1
14.6
BBB-/Stable
2005
7.5
6.4
0.87
17.3
BBB-/Stable
1Q2006
8.9
3.0*
2.1*
13.7*
BBB/Stable
(US$bn)
70
63
56
49
42
35
28
21
14
7
0
68,2
55,7
45
32
24,3
9,8
9,6
9,2
2002
2003
9,5
2004
2005
volume, USD
*1Q2006 only
Source: NBK, Standard & Poor”s, Statistic’s Bulletin
8,2
2006 (f)
grow th, %
Source: NBK Data
Concentration risks are moderating
Strong growth of banking sector
(US$bn)
36
32
28
24
20
16
12
8
4
0
38
35
35
2002
11,7
2003
20,7
2004
Total Assets
Source: NBK Data
80%
38
75%
36
34
7,4
40
33,7
2005
# of Banks
34
65%
34
60%
32
55%
30
50%
04.01
51,5
9M2006
70%
03.02
02.03
Share of Top 3 in 10 Banks' LP
02.04
01.05
01.06
Share of Top 3 in 10 Banks' TA
Source: NBK, Unaudited Data
2
Kazakh Monetary Reserves and Debt
External Debt
National Fund
14
12
10
8
6
4
2
0
60000
200
155,6
144,22
133,77
130
127,8
150
40000
100
30000
20000
50
1,9
3,7
8,1
5,1
10000
11,8
0
2002
51471
50000
2003
2004
2005
Amount, USD bln
41170
29580
19298
14771
3481
3623
3366
2369
2420
0
2006
Exchange rate, KZT
Source: NBK
Source: NBK
2002
2003
2004
2005
1H2006
Government and Government guaranteed debt, USD mln
Private non-guaranteed external debt, USD mln
Net International Reserves
USD mln
14000
12000
10000
8000
6000
4000
2000
0
12650
9273
7065
4959
3138
2002
2003
2004
2005
9M2006
Source: NBK
3
Recent developments
Business environment
Best Bank in the CIS, 2005
Best Bank in Central Asia, 2005
Best FIG Borrower – Emerging Europe, 2006
•
One notch upgrade for top 3 banks by Fitch and S&P (BTA to BB+/BB)
•
Country Rating upgraded by S&P to BBB and by Moody’s to Baa2
•
WTO entrance and full liberalisation of financial market in 2007
•
New Law on Almaty as regional financial centre
Regulatory environment
•
Implementation of Basle II Accord Principles
•
Tightened control over external borrowing and lending policy
•
Legislative and regulatory innovations
4
Clear strategic targets
•
Focus on SME and Retail Banking while expanding its corporate portfolio
•
Further improve and diversify the bank’s funding base
•
Strengthen corporate governance and invest in management
•
Build a diversified financial services group attracting strategic partners
•
Prepare the bank for a possible initial public offering
•
Capitalize on growth potential in neighbouring countries
5
Leading market position
Market position by assets
11 350
10 828
Market position by loans & term deposits
(US$m)
(US$m)
8 086
7 111
6 271
4 635
3 513
2 210
BTA
KKB
Total Assets
4 044
2 095
1 470
Halyk
1 283
ATF
Liquid assets
BCC
Source: NBK, According to KAS as at the end of 9M 2006
2 883
2 595
1 052
BTA
KKB
Loans
Halyk
ATF
Deposits
1 870
BCC
Source: NBK, According to KAS as at the end of 9M2006
Comparison by capital with other banks
988
1 968
2 191
3 841
2 898
Market position by affiliates
(US$m)
BTA Affiliates
Market
Share
807
637
394
273
BTA
KKB
Halyk
ATF
BCC
BTA Life Insurance
76,4%
TuranAlem Securities (Stock Exchange)
22,1%
TuranAlem Securities (Investment Funds)
18,1%
BTA Ipoteka
20,3%
Pension Fund: Kazakhstan
Source: Bank Data; Note: According to KAS as at the end of 9M2006
9,1%
Source: NBK
6
Strong asset quality
Asset structure
Customer loans by type of borrower
100%
(US$m)
11 000
78%
80%
75%
75%
70%
66%
10 000
50%
9 000
25%
11%
8 000
70%
7 000
13%
2003
2004
Corporates
66%
64%
64%
13%
13%
0%
68%
6 000
21%
17%
12%
11%
2005
SME
9M2006
Retail
Source: Bank Data
5 000
4 000
Provisioning ratios
60%
3 000
8%
6,2%
2 000
6%
1 000
4%
0
50%
2003
2004
2005
2%
6,7%
5,6%
5,0%
0,70%
0,60%
0,60%
0,40%
2003
2004
2005
9M2006
9M2006
0%
Loan Portfolio
Securities
Other
Loans/Total Assets
Source: Bank Data
Cash
Provisions/Gross Loans
NPL/Gross Loans
Source: FMSA
7
Sound loan structure
Loan portfolio breakdown
Financial
transactions
2,0%
Real Estate
Activ ities
4,3%
Other
11,6%
Key credit quality ratios
Classified
Loans/Gross Loans
Provisions/Gross
Loans
Provisions/Classified
Loans
Wholesale
16,9%
2004
9.8%
2005
8.2%
9M2006
7.6%
6.7%
5.6%
5.0%
69.1%
68.0%
65.4%
Chemicals
2,5%
Mining
3,0%
Source: Bank Data
Indiv iduals
21,3%
Housing
Construction
8,3%
Transport
4,5%
Food
3,6%
Share of top 10 borrowers declining
Oil & Gas
7,5%
Source: Bank Data as of 9M2006
Road and
Industrial
Construction
7,4%
Agriculture
7,3%
Source: Bank Data
8
Abundant funding & liquidity sources
Amounts due to customers by sector
Funding structure
(US$m)
Other
2%
Amounts Due to
Credit Institutions
32%
Debt Securities
Issued
35%
1 500
1 000
500
0
Amounts due to
customers
31%
Source: Bank Data as at 9M2006
3 300
3 500
3 000
2 500
2 000
2 289
1 744
973
62%
61%
50%
50%
38%
39%
2003
2004
Retail
Source: Bank Data as at 9M2006
9 M2006
Corporate and Gov. Entities
Individual deposits growth rates
4 162
2 833
39%
Source: Bank Data
Maturity profile
(US$m)
4 500
4 000
3 500
3 000
2 500
1 675
2 000
1 159
1 500
1 061
869
1 000
500
0
to demand
0-1 month
Assets
2005
61%
70%
3 713
60%
50%
2 592 2 790
40%
2 060
37%
30%
30% 29%
2003/2002
2004/2003
33% 35%
42% 40%
30%
20%
10%
0%
1-12 months
1yr - 3yr
Liabilities
3yr +
Industry
2005/2004
9М 2006/2005
BTA
Source: FMSA
9
Deep capital base
Shareholders’ base
IFC
1.61%
FMO
1.55%
BIS capital adequacy
(US$m)
Tier 1
Paid in share capital
Disclosed reserves
Hybrid instruments
The Bank of
New York
(Nominal holder)
2.58%
EBRD
1.61%
International
shareholders
31.22%
East Capital
5%
Individuals
1.27%
2003
180
113
67
2004
323
168
155
Tier 2
115
231
Asset revaluation reserves
17
General provisions
25
46
Hybrid capital instruments
6.5
Subordinated term debt
90
161
Tier 1 + Tier 2
289
540
Source: Bank Data
Note: Total is Tier 1 + Tier 2 minus investments
2005
637
246
368
23
9M2006
1 147
348
627
172
320
2
503
1
0
224
277
1608
318
941
Capital base
Pension funds
4.49%
Kazakhstan
companies
50.66%
(US$m)
23%
1 600
503
1 200
Source:Bank Data as of 1/10/2006
End of August 2006 – Scandinavian East
Capital fund acquired 7.71% of the bank’s
shares from RZB
16,11%
800
400
0
16,97%
14,58%
320
14,34%
115
180
231
323
637
1147
2003
2004
2005
9М 2006
21%
19%
17%
15%
13%
Tier 1 Capital
Tier 2 Capital
Total Capital Adequacy Ratio
Source: Bank Data
10
Strong financial performance
Revenue structure
Net interest margin and cost/income ratio
10%
39,4%
(US$m)
600
8%
37,0%
33,3%
26,9%
6%
550
4%
38%
500
2%
5,2%
5,2%
4,4%
2003
2004
2005
4,2%
450
0%
400
11%
350
300
Net Interest Margin
24%
9М 2006
Cost / Income Ratio
Source: Bank Data
25%
19%
250
ROAE and ROAA
22%
200
50%
150
16%
64%
25%
100
50
38%
59%
20%
0
2004
26,10%
30%
59%
2003
37,23%
40%
2005
9M 2006
22,10%
20,70%
1,40%
1,30%
3,37%
1,90%
10%
0%
Net Interest Income
Net Fee& Commission Income
2003
Other Non Interest Income
Source: Bank Data
2004
ROAE
2005
9М 2006
ROAA
Source: Bank Data
11