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Aidar Arifkhanov: Baiterek holding's net profit in 2019 is 40 billion tenge

Aidar Arifkhanov: Baiterek holding's net profit in 2019 is 40 billion tenge

Aidar Arifkhanov, Chairman of the Board of Baiterek NMH JSC, spoke at an expanded meeting of the Board of the Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan, during which he presented a report on the Holding’s activities in the past year and talked about plans for the current year.


So, according to the results of activities for 2019 (according to current data), net profit is 40 billion tenge, with a plan of 38 billion tenge. Holding assets amount to 5.3 trillion tenge. At the same time, the share of loan and investment portfolios in assets for the reporting period amounted to 76.1%.


Support for large, medium and small businesses


In the absence of long-term financing in tenge from second-tier banks, the Development Bank of Kazakhstan (DBK) is the locomotive of long-term lending to non-resource sectors of the economy - providing every second tenge.


- The holding occupies almost 50% of the market for long-term lending to non-primary sectors of the economy. DBK's portfolio includes 55 investment projects and 15 export operations worth 6.3 trillion tenge, Aidar Arifkhanov informed.


In 2019, DBK financed 15 projects for 315.1 billion tenge, 11 investment projects and 3 export operations for a loan amount of 436.5 billion tenge were approved for financing, pre-export financing was provided to 13 projects for 137.7 billion tenge.


According to the head of the Holding, Damu Entrepreneurship Development Fund supported 24.2 thousand projects of small and medium-sized businesses (SMEs) in the amount of 611.4 billion tenge. As a result, the share of Baiterek holding at the expense of the Damu Fund instruments in the total volume of loans to SMEs amounted to 36%.




Increase export potential


According to Aidar Arifkhanov, in 2019 insurance support was provided to exporters in the amount of 97.1 billion tenge, trade financing in the amount of 10.4 billion tenge and pre-export financing in the amount of 11.8 billion tenge were provided.


- KazakhExport was capitalized in the amount of 34 billion tenge and a guarantee agreement was signed for export support in the amount of 102 billion tenge for 10 years between our insurance company and the Ministry of Finance of the Republic of Kazakhstan. In addition, our subsidiary has opened a network of representatives abroad in the cities of Tashkent, Dushanbe, Novosibirsk, Yekaterinburg and Bishkek. These measures will ensure further growth in the volume of non-oil exports, ”the Chairman of the Management Board emphasized.


Ensuring financial affordability of housing


Note that the Baiterek holding is the main operator of housing construction programs in the country. So, Housing Construction Savings Bank takes the first place in long-term tenge deposits of the population in the amount of over 800 billion tenge. By the end of 2019, about 63% of mortgage loans or 527 billion tenge were issued by Housing Construction Savings Bank.


The total fund of rental housing built and acquired by the Kazakhstan Mortgage Company for 2015-2019 amounted to 1.1 million square meters or 19,234 apartments. During the period of the implementation of the program “Rental housing with the right to purchase” 18.4 thousand families were provided with rental housing.


Baiterek development finances the construction of credit housing through the mechanism of redemption of akimat bonds according to the “revolving” principle. Last year, securities of local executive bodies (MIO) were purchased in the amount of 108.8 billion tenge with a plan of 101.2 billion tenge.


The Housing Guarantee Fund for 2019 issued guarantees to 23 projects of private developers in the amount of 88.8 billion tenge. The total portfolio of guaranteed projects amounted to 154.8 billion tenge.


And the Damu Fund, in order to reduce the cost of commercial loans, subsidized projects of private developers worth 104.1 billion tenge.


Separately, the head of the Baiterek holding company spoke about the implementation of the program “Baityt Otasy” for preferential mortgage lending for large and low-income families.


- In 2019, 50 billion tenge was allocated for the implementation of this program. As a result, the Housing Construction Savings Bank accepted 5,196 applications for 51.7 billion tenge, 4,223 loans worth 42.7 billion tenge were issued. In addition, in accordance with the Address of the Head of State over the next three years, the annual plan for the issuance of at least 10 thousand applications, ”said Aidar Arifkhanov.




Current year plans


This year, the Baiterek holding company faces a number of tasks. So, it is planned to finance large-scale business projects in the amount of 430.9 billion tenge, launch 11 projects worth 573 billion tenge, and also support 15.4 thousand SME projects.


- We plan to provide support to exporters in the amount of 125 billion tenge. In addition, in 2020, it is planned to open representative offices in the cities of Moscow, Urumqi and Minsk. In 2020, it is planned to amend the legislation regarding the introduction of interest rate subsidies, as well as develop amendments to the legislation to get out of the regulation of the National Bank of the Republic of Kazakhstan, the head of the Baiterek holding said.


Meanwhile, in 2020 it is planned to provide housing loans in the amount of 420 billion tenge, to purchase bonds of local executive bodies in the amount of 101.2 billion tenge, to guarantee shared construction in the amount of 65.8 billion tenge, and also to subsidize loans to developers in the amount of 20 billion tenge.


The full text of A. Arifkhanov’s speech can be found at this link:

Loan issue rate: from 5%

Loan amount: up to 45 000 000 KZT

Loan period: up to 8 years

Loan issue rate: 7% (with subsequent reduction to 5%)

Loan amount: up to 45 000 000 KZT

Loan period: up to 8 years

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