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Kazkommertsbank Says Nine-Month Net Rose 9.4% on Dividend

Dec. 7 (Bloomberg) -- Kazkommertsbank, Kazakhstan’s largest lender by assets, said net income rose 9.4 percent in the first nine months from a year earlier, helped by a one-time dividend payout by national telephone monopoly Kazakhtelecom.

Profit grew to 19.6 billion tenge ($130.5 million) from 17.9 billion in the same period last year, the Almaty-based bank said in a Regulatory News Service statement today.

The lender said it benefited from a “significant increase” in dividends received from its Kazakhtelecom shares, collecting 8.5 billion tenge in the period, up from 181 million tenge a year earlier, according to the statement.

Concerns about Kazkommertsbank’s falling profitability prompted a downgrade in September of its debt and deposit rankings by Moody’s Investors Service, which reduced the lender’s foreign-currency senior unsecured debt rating two steps to Caa1, seven levels below investment grade. Kazkommertsbank questioned the assessment at the time, denying any worsening of profitability during the past year.

Kazkommertsbank estimates lending will grow 2 percent to 3 percent this year, according to a presentation published on its website today. The bank predicts profit will increase 10 percent this year, reiterating its previous earnings guidance, according to the presentation.

The lender also said Kazakhstan will start implementing Basel III capital adequacy rules in the middle of next year, with a full transition to take place in 2019, according to the presentation. Existing regulatory requirements will be abolished from 2013, it said.

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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