25 May 2017 07:00
As of the end of 2016, ForteBank remains the most capitalized bank among the largest banks of the country
ForteBank is pleased to announce its results for 2016, based on audited consolidated financial statements.
Assets
The Bank assets grew by 13.7% to KZT 1,215.2 billion. The greatest growth demonstrated retail and SME business. Thus, the retail loan portfolio increased by KZT 35.4 billion, or by 14.6%, and SME loan portfolio increased by KZT 31.3 billion, or by 36.8%. The level of liquidity remains one of the highest in the market; at the year-end, the current liquidity ratio K4 (current assets to short-term liabilities ratio) was 238%, with a norm of at least 30%. Quality of the loan portfolio has improved; the share of non-performing loans by the methodology of the National Bank of the Republic of Kazakhstan amounted to 7.5% as of 01.01.2017, as compared to 9.0% a year earlier.
Deposits
The total deposit portfolio grew by 21.6%, whilst the deposits of individuals increased by 34%, and by the end of the year amounted to KZT 406 billion; the SME deposits grew by 83% and reached KZT 93 billion. Thus, in 2016, the Bank successfully continued diversification of funding sources through to the growth of the client base.
Equity and Income
The Bank's equity increased by KZT 10.9 billion, or by 6.5%. The capital adequacy ratio K1, which measures the ratio of the Bank's equity to risk weighted assets, reached 20.1%, with a norm of at least 5%. This is the highest indicator among the top 10 banks in the country. Net income amounted to KZT 11.7 billion, which is 57% higher than in 2015. Commission income grew by 43%, and net interest income grew by 28%, which reflects the growth of the client base and significant expansion of the range of services provided.
Key Events
In 2016, ForteBank became one of the few banks in Kazakhstan to receive an upgrade from Moody's International Rating Agency. The long-term local and foreign currency deposit rating was increased to "B3", the outlook is "stable".
The Bank completed the transfer of the head office to Astana city, and launched a rebranding program for the branches in accordance with the modern customer banking service concept developed by Dinn Design Bureau (Italy). The first new-format branches were opened in the cities of Almaty and Astana, and were ranked among the 12 best banking office designs by The Financial Brand (USA), specializing in the issues of marketing and strategy of retail banks and credit institutions.
In the summer 2016, the Bank launched a modern advanced mobile and Internet banking application that allows customers conduct a wide range of transactions remotely. The application was developed by Monitise PLC (Great Britain), the worldwide leader in providing solutions for remote banking services. The application was highly appraised for the user-friendly interface and functionality, the growth in the number of users reached 50% per quarter.
Among other important events of the year, there is a conclusion of the long-term agreement with the European Bank for Reconstruction and Development (EBRD) on joint programs for SME, active participation in government programs to support entrepreneurs through DAMU Entrepreneurship Development Fund. ForteBank was the first bank in Kazakhstan to complete successfully the disbursement under the mortgage borrowers' support program launched by Fund for Problem Loans JSC, having refinanced 3,644 loans for a total amount of KZT 21.4 billion.
Please note that Financial Statements are subject to approval at the General Shareholders Meeting scheduled to be held on 15 May 2017 (announcement on which is available at the web-site of the Bank at the following link: https://forte.bank/news/79660/)
YE2016 audited consolidated financial statements are available at the web-site of the Bank at the following link: https://forte.bank/upload/Consolidated%20Financial%20Statements_31%20December%202016.pdf
Kind regards,
IR Team
Investor relations
Tel: +7-(7172)-58-75-75 (ex: 10248/ 10249)
e-mail: ir@fortebank.com
website: http://forte.bank