Before we get to
the history and services of the bank, I would like
to ask you to elaborate on the banking sector and
its future in Kazakhstan?
Generally speaking, in 1995-1997, seven years
ago, Kazakhstan had tremendous number of banks;
there were around 70-100 banks. At first, we have
decided to come to a new level of banking business.
It means that the policy should meet the international
standards. It was the main point to a new chairman
of the National Bank. Now we are on the second
level of banking system. The first tier is the
government bank. Halyk Bank, Central Bank, Exim
Bank, New Government Bank are on the second tier.
In total today, there are about 45-47 commercial
banks in the country. The second-tier banks are
divided into groups. The first group consists
of 10-16 banks, where Halyk Bank, Kazkommertsbank,
and Bank TuranAlem are the biggest among them.
The most important thing about Kazakhstan is that
we have one of the most conservative banking systems
among the CIS countries. You can find evidence
from the analysis of European banks, such as ABN
Amro, City Bank, which have already been working
here for more than three years. They will agree
on the idea that Kazakhstan has a conservative
banking system. Now we are coming to a new level
of economy. With that kind of economy we need
a capitalized conservative policy, which is being
done in Kazakhstan. The big portion of capital
should be used for investing programs. The second
important thing is that Halyk Bank is not looking
for money from foreign financial institutions
such as European bank. Kazakhstan has a great
potential. We are trying to find resources we
need from domestic investors, within the country.
Today, a lot of people are coming, new generation
is growing, and a lot of money is invested. It
means that a bank comes to a new level, we are
not searching for money outside of the country.
We would like to put our money outside of Kazakhstan
that is invest our capital in the Eastern Europe,
Russia, and other CIS countries. I am not only
talking about Halyk Bank, but about other commercial
banks investing their money outside of Kazakhstan.
We know that Halyk Bank is one of the biggest
banks in Kazakhstan. Could you give an overview
of the history of Halyk Bank?
The population of Kazakhstan as the Bank ? 1
in 2002 chose Halyk Bank. Regarding history, Halyk
Bank is the savings bank, which indicates the
main purpose of its activity. It is a retail bank,
recently celebrated its 80th anniversary. The
last 10 years was the most important period for
bank's development. From January 2002, Halyk Bank
became 100% private, that is out of government
control, without any governmental shares. We are
working with foreign investors. We are working
now as a private bank, which is very important.
May be we are the second bank, but in some areas
like deposits, Internet banking, credit cards
- we are number one. We might be on the second
place in terms of capital, assets, and equity,
may be even the third one in some aspects. Anyway,
we have the areas where we are the number one.
After the privatization a new management is working
here. We work with Almaty Merchant Bank. We have
more than 600 branches in Kazakhstan. It is very
important for us as the retail bank. We do training
to our branches in order them to participate and
to represent our bank in a proper way.
We have already three representatives of our bank
abroad: Moscow, London and Tashkent. We know that
London is an important area for Kazakhstan in
terms of investments. We have our representatives
there to invite investors to come to Kazakhstan,
Russia (Moscow), China, and Tashkent. These three
countries have a lot of economic relations with
Kazakhstan. Therefore, we have a lot of plans
concerning the private companies' groupings in
areas like China, Moscow and Tashkent. Uzbekistan
is more closed country, but it is going to become
more transparent to foreign investors. It is going
to happen in the nearest 5 years. It is strategically
important to have partners among the neighboring
countries. We are trying to be active not only
here, but also in China or Russia.
You already spoke about retail services, corporate
business, and credit cards. Could you elaborate
more on all these services?
When we talk about Halyk Bank we mean not only
a bank, but also a number of financial institutions.
For instance, we have a company, which is 100%
owned by Halyk Bank. It represents the leasing
- representing financial services in Kazakhstan.
We have one of the largest pension funds here,
in Kazakhstan, which is called Halyk Pension Fund.
The private pension funds own $500 million accumulated
as pension assets. They are working on Kazakhstan
market, looking for buying securities and bonds
of other countries like Russia. Apart from the
pension fund and the leasing company we have an
insurance company, which is not 100% bank owned.
The share of Halyk Bank is about 25-30%, but it
is also Halyk Bank's business. We try to represent
the full package of services to individuals, corporate
clients, and governmental companies. It means
that we are developing the pension fund, the leasing
company and the insurance company. All the services
are represented by the bank through different
types of programs, such as "client-relationship
management" program, represented by the bank
to its clients. Internet banking may be important
but not to all our clients just to the part of
them. Not all our clients use the Internet banking,
but a huge number of clients are using it as the
main operation of the bank. In this field, we
are number one. Halyk Bank introduced Internet
banking more than 2 years ago. These are the main
areas we would like to work: banking, leasing,
pension fund, and insurance.
Could you elaborate more on your strategy?
I know that the Government provides a support
to small and medium enterprises, to their development
in Kazakhstan. What is your relationship to this?
Yes, we do have a strategy. If we support Small
and Medium Enterprises, then, in the nearest future,
not only we will succeed regarding Small Medium
Enterprises development, but also the Government.
The portfolio of the bank is $700 million out of
which $300 million go to Small and Medium Enterprises.
This year we have increased the portfolio in that
sphere by 20%. We have divided it into several areas:
oil sector, agricultural sector, telecommunications,
and Small and Medium Enterprises. Companies, which
are working in Kazakhstan take subsidies from the
Government in amounts of $1million, $2million, $5
million. These are Small and Medium Enterprises,
which are 99% private. We provide support to them. |
Could you give some
more financial figures?
When I came, the assets of the bank were about
$800 million. On October 1, 2002, it increased
to $1,2 billion, which is an evidence 20% growth
in nine months. This is a great indicator for
the bank. We started to look at our clients which
have a capital. Our own capital has increased
by 20% this year and became $125 million. We are
working with local investors that would like to
become our shareholders. We also work with pension
funds for private individuals. At the same time
we are still working with foreign financial institutions,
such as European banks. We are good partners with
them. The next year we are going to invite 2 American
banks. The profits of the bank are also growing.
The last 9 months were very important. The growth
we had is much higher than in the last 9 years.
The banking sector has a great potential, we need
to use this potential, use it in full and to be
the number one.
When you talk about the number one, number
two, number three… I know there are 3 top
banks in Kazakhstan, which control about 70% of
the banking sector here. I know there are two
big ratings: Moody's and Standard and Poor's.
How do you situate yourself not only within Kazakhstan,
but also outside of the country?
You know that Standard and Poor's recently has
increased the rating of Kazakhstan. At the same
time they increased the rating of Halyk Bank,
Bank TuranAlem, Kazkommertsbank, and Almaty Merchant
Bank. Having the ratings of such agencies is good
for the bank. Since we are working with foreign
financial institutions, it is good in terms of
credit lines. Kazakhstan has a good rating. Kazakhstan
has couple of banks working with foreign participation:
City Bank and ABN Amro, which are competitive.
TuranAlem Bank, Kazkommertsbank are trying to
compete with them. The only difference is that
their money comes from outside of Kazakhstan,
which is cheaper than money coming from our domestic
banks. In the final analysis, to be more competitive
we need to provide services of high quality to
our clients. Most of them come not only for loans;
they need the qualified services. That is one
of the main strategies of the bank. We should
increase the quality of our services.
You told about the expansion of Halyk bank
to England, China, and Russia. Could you give
us more information on your future plans not only
here, in Kazakhstan, but also in other countries?
I have mentioned already China, Russia, and England.
At the beginning of the next year we are going
to open a new branch. But before opening it, according
to specific requirements of other countries, we
should have a representative office there and
to keep it for minimum of one year. Only then
we can open the branch in that country. We would
like to go to Tashkent. We do it because our clients
work in these countries. We would like just to
keep them together with us. We want to work in
all the areas our clients would like to work.
Most of these areas are the network countries.
That is important not only economically, but also
politically. Kazakhstan should have representative
in the neighboring countries: China, Russia, and
Uzbekistan. If we do not have new representatives,
new branches the next year, we will have them
in the nearest future. It is a great idea to open
new branches in other countries.
I wanted to ask you about the partnerships
you have here, about the partners you have abroad?
Could you, please, give more information on that?
We do have great partnerships with the huge number
of financial institutions working in Kazakhstan
and abroad. We have partnerships with New York
banks, London Banks, Boston Banks. All of them
are working with us not only because we have good
partnerships with them. They are involved with
us because they can invest their money in a way,
which is the most secure. Of course, they are
aware of the risks. They are doing their business
with Halyk Bank because they want to minimize
their risks. These financial institutions are
very active: they are buying government securities,
bonds, and securities of Kazakhstan companies.
We have, of course, other banks here, in Kazakhstan,
they issue their bonds, keeping relations with
us.
What would be the most important opportunity
for foreign investors coming to Kazakhstan to
invest with Halyk Bank?
They put their money in order to earn, to get
profits. There are mutual benefits for both the
foreign investors as well as for the government
and companies. We are not just a bank, we are
trying to be a partner for them. Everything is
clear for us in Kazakhstan. That is why we are
trying to represent a clear transparent picture
of Kazakhstan for them, both the positive and
the negative sides. We tell them where they should
invest their money and when they should to invest
their money. Trust is very important for both
sides.
Could you tell us about your professional
background?
I've graduated from the Academy of Economy in
Kazakhstan. Before I graduated from the University
of Foreign Languages. I haven't finished the School
of Management, MBA program. I worked not only
in Kazakhstan, but also in other neighboring countries,
such as the USA and Russia. I have been working
for more than 12 years in the banking sector.
I was a financial director.
Could you give a final message to the readers
of Far Eastern Economic Review?
I always tell, just come and see. It is very important
that the world companies come to Kazakhstan. |
