The international rating agency, Moody's, has upgraded Bank CenterCredit's long-term deposit ratings by one notch, from Ba3 to Ba2 and maintained a positive outlook on the long-term deposit ratings.
The bank’s BCA rating upgrade reflects continued improvement in asset quality, with the bank's share of problem loans in its total loan portfolio falling to around 5% at the end of H1 2023 from 7% at the end of 2022 and 13% at the end of 2021. The bank has significantly improved its coverage of problem loans by loan loss provisions to 92% at the end of H1 2023 from 75% at the end of 2022 and 58% at the end of 2021.
According to the rating agency, the bank's profitability (excluding the one-off gain from the acquisition of Alfa Bank) improved in the first half of 2023, with the ratio of net income to average assets rising to 2.8% from 2.4% in 2022. These improvements were a result of higher net interest margins and increased fee income due to the bank's business expansion. In addition, Bank CenterCredit continues improving its efficiency via streamlining processes.
The positive outlook by Moody's signifies an improved operating environment that will allow the bank to expand its business, reduce volatility in its funding base, and maintain or improve its key credit metrics at higher levels.
Bank CenterCredit is one of the top three largest banks in Kazakhstan and serves over three million customers in all regions of the country.
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