Bloomberg News

BTA Bank Capital Gap Widened by $160 Million Last Month

November 25, 2011

(Updates with BTA data starting in second paragraph.)

Nov. 25 (Bloomberg) -- BTA Bank’s capital shortfall widened by 24 billion tenge ($160 million) last month, the Kazakh central bank said.

The liabilities of the lender, Kazakhstan’s biggest before it defaulted in 2009, exceeded assets by 162.4 billion tenge under international accounting standards as of Nov. 1, compared with a gap of 138 billion tenge a month earlier, the Almaty- based central bank’s financial oversight committee said in a monthly report on its website today.

Alliance Bank, Temirbank and BTA were brought under state control in 2009, when credit markets froze and a property bubble burst. Last year, the banks restructured their debt by issuing new bonds and offering shares and cash to creditors.

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

The Almaty-based bank had its credit rating downgraded one step to CCC from B-, seven levels below investment grade, at Fitch Ratings. The move reflected the rating company’s “view of the increased probability of BTA’s default in the near to medium term,” according to a Nov. 14 statement.

Assets Shrink

The lender’s assets dropped to 1.693 trillion tenge as of Nov. 1, compared with 1.706 trillion tenge a month earlier, the central bank said. Liabilities rose to 1.856 trillion tenge from 1.845 trillion tenge on Oct. 1.

BTA is the only of the five biggest domestically owned lenders that doesn’t list its chief executive officer as a member of the board of directors, according to the bank’s website. Marat Zairov was appointed CEO in August.

The bank’s board consists of eight members, including two representatives of the lender’s creditors, according to the website. Anvar Saidenov, BTA’s current chairman, was a board member before being replaced by Zairov.

BTA Bank hasn’t replied to e-mailed requests for comment.

The following table shows the 10-month performance of Kazakhstan’s six largest lenders by assets, along with 13th ranked Temirbank, and their position as of Nov. 1. The data from the oversight committee are in billions of tenge:

--Editors: Paul Abelsky, Alan Crosby

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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