Alliance Bank Returns to First-Half Profit of $35.5 Million

AO Alliance Bank, the first Kazakh lender to default in the 2009 financial slump, said it returned to profit in the first half as it bought back debt and increased its loan portfolio.

Net income for the period reached 5.31 billion tenge ($35.5 million) compared with a loss of 4.36 billion tenge in the first six months of last year, the Almaty-based lender said today in an e-mailed statement.

Kazakhstan’s sovereign wealth fund Samruk-Kazyna is discussing a merger of Alliance Bank and Temirbank, both of which issued new bonds and offered shares and cash to creditors in 2010 after writing off and extending payments on some of their debt. The fund holds the government’s 67 percent of Alliance and 79.9 percent of Temirbank after the banks were brought under state control in 2009.

Alliance Bank had a net gain on the repurchase of bonds of 3.06 billion tenge after buying back 16.4 billion tenge of bonds with a carrying value of 19.5 billion tenge of bonds in the first half, the bank said in the report on its website.

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