At the core of the bank’s development strategy is a focus on profitability and not just growth in market share at any cost. The group has consistently been one of the most profitable banks and had a RoE 34.4% in the third quarter of 2006. KKB accounts amounted to 29.2% of corporate lending in Kazakhstan and it was one of the first banks to start servicing SMEs by being the most active participant in the European Bank of Reconstruction and Development (EBRD) SME lending programme, of which it has a 29% market share. KKB is a leading bank in the retail segment and holds a top three position in most retail products.
Last year, the bank restructured its internal processes to aid the future development of effective and profitable business lines. Risk-management systems were changed significantly, in close co-operation with ABN AMRO. As a result of steady growth of its operations, client database expansion and the launch of new products, the bank’s net income grew 49.3% last year. Forty new branches were added, bringing the total to 100.
The bank’s new IT system has enabled it to automate more than 200 banking processes. In 2006, the group also began to integrate its market risk management and operational risk management systems.
“We appreciate the Best Bank in Kazakhstan award from The Banker and we will do our best to retain our leadership position in the sector,” says Natalya Kim, director in the financial institutions department. “KKB has been the leader in Kazakhstan’s banking sector for many years. Today, we still strongly believe in further growth prospects for Kazakhstan as well as its banking industry because experience has made us even stronger and prudent.”
