Non-performing loans rise again in October - FSA

business and economy

Non-performing loans rise again in October - FSA

By SRI ⋅ November 25, 2009 ⋅

(SRI) - The share of non-performing loans in the Kazakh banking sector increased from 34.7 to 35.9 percent in October, according to data released by the Financial Supervision Agency (FSA).

Overall, non-performing loans totaled KZT3.595 trillion ($24 billion) as of October 31.

BTA Bank and Alliance Bank, two large banks which had defaulted on their debt in April, are facing non-performing loans that make up 77.8 percent and 74,3 percent, respectively, of their loan portfolios. Temir Bank, another recently defaulted lender, saw the rate of non-performing loans increase sharply from 30.1 to 39.2 percent in October.

Among other leading banks, the share of non-performing loans rose 19.6 to 20.6 percent at Kazkommertsbank and 16.5 to 17.2 percent at Halyk Bank. Foreign-owned ATF Bank and Bank CenterCredit (BCC) recorded a decrease in the share of non-performing loans.

Total provisions for bad loans have increased by 0.8 percent in October to KZT3.733 trillion ($24 billion). BTA put aside provisions amounting to 77.4 percent of its loan portfolio (up from 74.5 percent), Alliance Bank 75.3 percent (up from 74.5), and Kazkommertsbank 24.6 percent (up from 23.6 percent).