“AUB not only significantly improved its market share position, but it also proudly maintained its leadership in profitability among Kyrgyz banks,” says CEO Nurdin Abdrazakov.
In June 2008, AUB also took a significant step forward, when the central bank authorised its takeover of retail lender Kygyzpromstroybank (KPSB), to be completed by the end of 2008 – the largest banking sector deal in the country’s 17-year post-independence history.
The merger poses organisational challenges, says Mr Abdrazakov, but also an immense opportunity. “After the integration of the two banks is completed, AsiaUniversalBank will become the largest retail bank in the country, and the Kyrgyz Republic should greatly benefit from the integration of AUB’s advanced technologies and world class banking approach with the wide branch network of KPSB.” The bank will have up to 100 branches nationwide, and assets will increase to about KyS8bn, after rising almost 14% in 2007 to KyS6.3bn.
In response to its new profile as a universal bank, AUB has diversified its retail product offering, to include auto and white goods loans, facilitated by a scoring system that reduced the time for customer credit evaluation from several days to less than an hour. It is also introducing a network of self-service bill payment terminals, while increasing the tenor and reducing the interest rates on its mortgage offerings to drive a doubling in its retail loan portfolio.
