Kazkommertsbank Plans to Lend at Least $1.5 Billion in 2012

Kazkommertsbank, Kazakhstan’s second-largest lender by assets, plans to issue at least $1.5 billion of new loans this year, Chief Executive Officer Nina Zhussupova told reporters in Almaty today.

The bank forecasts from $100 million to $150 million in monthly repayments by corporate clients and expects to lend the redeemed funds, Zhussupova said. Kazkommertsbank will probably extend $360 million to $380 million of new retail loans, Andrei Timchenko, a managing director at the lender, said today.

Kazkommertsbank increased profit 7 percent last year to 23.5 billion tenge ($159 million), and plans to increase profit by as much as 10 percent this year, according to a presentation yesterday. The Kazakh lender, in which the sovereign wealth fund Samruk-Kazyna holds a 21 percent voting stake, said gross loans will probably remain little changed this year, after shrinking 0.3 percent last year.

Borrowing abroad will be “unreasonably expensive” abroad now, while interest rates for deposits as well as loans are quite low in Kazakhstan, Zhussupova said.

To contact the reporter on this story: Nariman Gizitdinov in Almaty at ngizitdinov@bloomberg.net

To contact the editor responsible for this story: Torrey Clark at tclark8@bloomberg.net

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