News

Bank TuranAlem Consolidates the Assets

13.09.2006 / Press-service

New strategy of Bank TuranAlem was adopted at the recent Board of Directors meeting. Strategic objectives of the Bank for 2006-2015 include taking the leading positions in Kazakhstan and other CIS markets in corporate and retail banking, SME and increasing of BTA shares in Kazakhstan market at least up to 25%, at least 2%in Russia, and at least 5% in other countries of presence.

Consolidation of the assets is planned, with consequent increase up to $25 bn USD till 2010, and up to 50 bn USD till 2015.

In the context of new strategy it is planned to redeem 51% of voting shares from JSC "Temirbank" present shareholders till the end of 2006.

As a result of new strategy realization, Bank TuranAlem have to become the largest universal commercial bank of CIS. The Bank intends to effectively use dynamically growing foreign trade flows of Kazakhstan to expand it presence in countries – largest trade partners of CIS, including Turkey and China.

"The Bank exercises its own methodology of entry to new markets using the instruments of trade financing and corporate banking or creating its network from nothing", - considers Deputy Chairman, Genrig Kholodzinskyi. "Starting with investments in acquisition of small share holdings in local banks and introduction of international standards of accountancy, we, then, start to develop retail and SME banking services. The Bank is the core of the financial institutions group, offering full range of financial services to retail and corporate clients. One of the competitive advantageous of the Bank – standards of innovation, expressed in willingness to develop its presence in new markets and to expand the range of products, offering high-technological services", - adds Mr. Kholodzinskyi.

Principal source of BTA's dynamic growth is the use of huge potential of CIS market, knowledge of its patterns and clients' needs, that allow to compete with foreign financial institutions, as well as application of international experience and creation of strategic partners network.

BTA pronounces itself as an organization socially responsible for its employees and their families, clients and shareholders in countries of its presence.Priority directions of Bank TuranAlem development are services to customers and businessmen. It is planned to increase the share of retail business up to 50% at the expense of singling it out of bank portfolio as a separate business, improvement of customer service and investments to technological modernization.

Realization of BTA competitive advantageous proposes the growth of assets in Kazakhstan up to 34 bn USD till 2015, capital - up to 3.8 bn USD, net profit – up to 615 mln USD, number of offices – up to 286, employees – up to 6963.

Board of Directors approved Bank's business-plan for 2007 and attraction of 800 mn USD global syndicated loan, with consequent oversubscription up to 1.5 bn USD, arranged by The Bank of Tokyo-Mitsubishi UFJ, Ltd., Commerzbank Atkiengesellschaft and Standard Chartered Bank.

JSC "Bank TuranAlem" is the system-making bank of Kazakhstan and the leader in creating a banking network in the CIS countries. As of September 1, 2006, BTA's assets exceeded USD 10.7 bn, while its total capital exceeded USD 1.7 bn. Among Kazakhstan's second tier banks, JSC "Bank TuranAlem" confidently holds the leading position in trade financing, SME lending and mortgage loans. In 2008 BTA plans to become one of the largest private banks of CIS.

JSC "Temirbank" is the leading retail bank and is in the top ten Kazakhstan banks by the size of assets and equity capital. As of July 1, 2006 Temirbank's assets – 108.3 bn KZT, equity capital – 11.6 bn KZT.

The strategy was developed by consultants of Deloitte company.