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

BTA Bank, 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

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