BTA Bank’s Loss Widened by $423 Million in June, Regulator Says

BTA Bank (BTAS), Kazakhstan’s biggest lender before defaulting on $12 billion of debt in 2009, extended its year-to-date loss last month amid plans to restructure debt for the second time in as many years.

The net loss widened by 63.5 billion tenge ($423 million) from May to 1.371 trillion tenge in the year through June, the central bank’s financial oversight committee said in a monthly report on its website. Liabilities of 2.66 trillion tenge exceeded assets by 1.21 trillion tenge, according to the Almaty- based regulator.

BTA said talks began last month on its proposed debt overhaul with the creditors’ steering committee after the state- owned lender failed to make an interest payment on its July 2018 dollar bonds in January. Kazakhstan’s third-largest lender by assets on July 16 filed for creditor protection under Chapter 15 of the U.S. bankruptcy code for the second time in about two and a half years.

BTA Bank didn’t immediately reply to an e-mailed request for comments.

The following table shows the six-month performance of Kazakhstan’s five largest lenders by assets, along with seventh- ranked Alliance Bank and 13th-ranked Temirbank, and their position as of July 1. The data from the oversight committee are in billions of tenge:

================================================================
Bank                 Assets     Loans    Provisions  Profit/
                             Outstanding              Loss
================================================================


Halyk Bank           2,513.2   1,391.4      328.4       26.48
Kazkommertsbank      2,457.1   2,368.8      873.1        0.69
BTA Bank             1,443.8   2,069.9    1,775.0   -1,371.3
Bank Centercredit    1,057.7     832.4      134.6        1.04
ATF Bank               929.6     815.2      175.7       -2.88
Alliance Bank          546.5     554.5      248.5       -0.23
Temirbank              257.0     232.3      118.0        0.14
All 38 Banks        13,474.5  10,957.6    3,945.6   -1,310.58


================================================================

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

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.