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BTA Swings to 47 Billion Tenge Loss in First Nine Months

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Nov. 1 (Bloomberg) -- BTA Bank, Kazakhstan’s biggest lender before it defaulted in 2009, swung to a loss of 47.1 billion tenge ($318 million) in the first nine months of the year from a 1.1 trillion tenge profit a year earlier.

BTA had a capital shortfall of 138 billion tenge as of Oct. 1, compared with a surplus of 181 billion tenge at the end of last year, according to unconsolidated data published on the Almaty-based bank’s website.

The lender lost 64.7 billion tenge in September after increasing provisions by 49 billion tenge, BTA said in a written reply to e-mailed questions. An operating loss of 15.5 billion tenge, including losses on the revaluation of securities, weighed on September results, the bank said.

Kazakhstan’s state-owned fund Samruk-Kazyna injected 883 billion tenge to raise BTA’s equity capital in 2009 and 2010, the equivalent of about 4 percent of gross domestic product. BTA hasn’t asked Samruk-Kazyna for additional capital, seeking to cut the cost of state funding made available to the lender, Chairman Anvar Saidenov said Sept. 1. The state holds an 81.5 percent stake in BTA.

BTA had a net loss of 25.4 billion tenge in the first nine months of the year, the central bank’s financial oversight committee said in a monthly report on its website today.

Higher provisions required to comply with international financial reporting standards led to the difference between the loss reported by the lender and that announced by the central bank, BTA said.

“The bank is meeting all prudential norms set by the regulator,” BTA said. The lender had a capital surplus of 302 billion tenge in accordance with Kazakh regulations as of Oct. 1, the lender said.

BTA may lose $500 million a year, before provisioning charges, with the bank only collecting about 60 percent of accrued interest in the first half of 2011, Mikhail Nikitin, an analyst at Moscow-based Renaissance Capital, said in an Aug. 30 note.

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

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