The Loan Portfolio of DBK Has Grown by 4.5 Times in Six Years

The loan portfolio of Development Bank of Kazakhstan JSC (a subsidiary of Baiterek Holding) increased by 8.7% in 2018, reaching 1.7 trillion tenge. In the structure of the DBK’s loan portfolio, about 77% are projects in the manufacturing industry. In general, over the period from 2014 to 2018, the volume of the DBK’s loan portfolio has grown by more than 4.5 times. It was informed during a special press conference organized by the Bank for journalists from the leading Kazakh media sources.

The share of the loan portfolio in DBK assets increased to 67% at the end of 2018 from 61% at the end of the previous year. In total, during the reporting period, DBK has financed 30 projects worth 443 billion tenge compared to 31 projects worth 422 billion tenge in 2017. In addition, over the past year, the Bank decided to finance 9 projects worth 225 billion tenge in the industries such as energy, metallurgy, transport and logistics, and telecommunications. In particular, this is related to the projects such as the construction of the plant for the production of ferrosilicon in Karaganda, "Zhylga" Solar Power Station with a capacity of 20 MW in Turkestan Oblast, the modernization of the energy assets of Eurasian Energy Corporation JSC in Pavlodar Oblast (17% of electric power generation and 20% coal mining in Kazakhstan), the launch of K-5 environmentally-friendly diesel fuel class unit on the basis of Condensate JSC in West Kazakhstan Oblast (WKO).

In April of the last year, DBK successfully placed the second issue of Eurobonds denominated in tenge in the amount of 100 billion tenge. Compared with the previous issue of tenge Eurobonds, carried out in December 2017, the Bank achieved an increase in borrowing terms from 3 years to 5 years and a decrease in the coupon rate from 9.5% to 8.95% per annum. In general, the share of budget funds was 16% out of 291 billion tenge of funding attracted by DBK from various sources last year. The remaining amount was from extra-budgetary sources, including borrowings based on the market conditions.

In December 2018, for the first time in the history of DBK’s activities, the Bank has supported the export of Kazakhstan services by issuing a security bond to AAEngineering Group LLP in the amount of up to 37.8 million US dollars for the construction of a gold recovery plant at “Jerui” largest gold mine in Kyrgyzstan.

- The year of 2018 was the period of pressure tests for the entire banking system of Kazakhstan. The volatility of the exchange rate, the situation in the DBK’s commercial partner-banks under Nurly Zhol program, introduction of IFRS 9 new international financial reporting standard: all these factors have tested the bank’s risk management system effectiveness. As a result: we’ve managed to complete the past year with a positive financial outcome under difficult conditions, - said the Chairman of the Board of Development Bank of Kazakhstan JSC, Bolat Zhamishev.

The consolidated net profit of the Bank in 2018 amounted to 3.2 billion tenge. The quality of the DBK’s loan portfolio remains at a good level: provisions to the gross loan portfolio did not exceed 4%, the share of non-performing loans at the end of 2018 was 0.5%.

6 projects financed involving the DBK participation were completed and commissioned in 2018, including: a complex for the production of railway wheels in Ekibastuz, a transport and logistics center in Shymkent, the first input of a broiler-growing plant in Akmola Oblast, unit for the production of diesel fuel at the base of Condensate JSC in WKO. As one of the key operators of the State Program for Industrial and Innovation Development for 2015-2019, as of December 31 of the last year, DBK has financed 20 large investment projects in the amount of 338.4 billion tenge. Currently, DBK is considering 8 projects for a total requested loan amount of up to 452.14 billion tenge, including the amount of up to 220.58 billion tenge within the framework of the SPIID.