BTA Bank Provisions Reached $8 Billion in July

BTA Bank, Kazakhstan’s biggest lender before it defaulted in 2009, had provisions of 1.169 billion tenge ($8 billion) in July, the nation’s financial regulator said.

BTA calculated provisions, or cash the lender sets aside against bad loans, in accordance with international reporting standards in July, the Almaty-based central bank’s financial oversight committee said in a monthly report on its website. The lender allocated 943 billion tenge in June, based on Kazakh accounting standards.

BTA was taken over by the state in 2009 when credit markets froze and Kazakhstan’s property bubble burst. Last year, the bank restructured $16.7 billion of debt, when its creditors, including Goldman Sachs Group Inc., HSBC Holdings Plc and Barclays Plc, agreed to reduce the bank’s debt to $4.2 billion in exchange for cash and a stake in the company.

BTA’s loan portfolio was 1.908 trillion tenge in July, and assets were 1.795 trillion tenge in the period, the regulator said.

Its liabilities exceeded assets by 40 billion tenge as of Aug. 1, the regulator said.

BTA Bank press office didn’t immediately respond to an e-mailed request for comments.

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

Bank                 Assets     Loans    Provisions  Profit/
                             Outstanding              Loss

Kazkommertsbank      2,660.1   2,240.8      761.4       0.77
Halyk Bank           2,326.1   1,258.1      308.8      21.60
BTA Bank             1,794.7   1,908.0    1,168.9     -13.78
Bank Centercredit    1,104.1     780.6      121.2       1.02
ATF Bank             1,073.2     842.9      152.0     -18.55
Alliance Bank          496.8     588.0      310.0       0.12
Temirbank              252.9     214.0      117.6       4.02
All 39 Banks        13,090.0   9,675.5    3,179.4      13.08