Eurasian Bank

Eurasian Bank JSC
Native name

  • Kazakh: «Еуразиялық банк» АҚ
  • Russian: АО «Евразийский банк»

JSC – Joint Stock Company
Industry Financial services
Founded 1994[1]
Headquarters Almaty, Kazakhstan
Area served
 Kazakhstan, Russia
Key people
 Michael Eggleton (CEO)
Products Asset management, consumer banking, corporate banking, credit cards, mortgage loans, private banking, wealth management
Revenue
  • Increase KZT 52.5 billion (2013)
  •  KZT 38.4 billion (2012)[2]
  • Increase KZT 17.3 billion (2013)
  •  KZT 13.1 billion (2012)[2]
Profit
  • Increase KZT 13.1 billion (2013)
  •  KZT 9.8 billion (2012)[2]
Total assets
  • Increase KZT 588.6 billion (2013)
  •  KZT 470.5 billion (2012)[2]
Total equity
  • Increase KZT 58.8 billion (2013)
  •  KZT 47.8 billion (2012)[2]
Number of employees
 > 5,500 (2013)[3]
Website http://investor.eubank.kz/en/]

Eurasian Bank is the ninth largest lender[4] in Kazakhstan, headquartered in Almaty,[5] It was founded in 1994 as a closed joint-stock company, and reregistered in 2003 as a joint stock company due to joint stock company law changes.[6] The Bank is owned 100% by Eurasian Financial Company JSCwhich is 100% owned by three equal shareholders: Alexander Mashkevich, Alijan Ibragimov, Patokh Shodiyev (aka Patokh Chodiev)[7]

Profile

Eurasian Bank was originally founded by the shareholders to serve the needs of their industrial companies. As the bank grew, its scope grew and it began to serve a wider client base. The arrival of the new management team led by Michael Eggleton, starting at the end of 2009, brought a transformation of the bank. New processes and procedures were put in place to clean up the loan book and initiate new lending based on strict credit criteria. This has had a dramatic impact on loan book quality, with NPLs approximately one fifth of the level of the Kazakhstan banking sector as a whole. By acquiring a strong consumer finance franchise it gained a strong engine of growth, but one that was based on strong systems and experience in the local market. Today, the Bank is a market oriented mid-tier bank in Kazakhstan, serving about 6% of the adult population in Kazakhstan, bringing to the market innovative products and offers, all the while having sector leading loan book quality.[8]

It is the only bank in Kazakhstan that did not suffer a rating downgrade during the recent financial crisis that created severe difficulties for the Kazakhstan banking sector.

New product offers in the market are mostly targeted in the retail banking segment, in all income categories. In a market with significant administrative challenges, the bank launched a unique product of car in a day financing. This drastic reduction of time to purchase a car with financing led to strong triple digit growth in auto financing in 2012. With their Branch of the Future program, the bank is increasing the types of self-service transactions for customers. The bank also launched a wealth management and private banking offer, relying on best-in-class international partners to ensure that the offer was up to global standards. All these changes rely on significant behind-the-scenes changes in systems procedures and operations.

Management

Michael Eggleton is the CEO of Eurasian Bank. He took up this position at the end of 2009 and, together with his experienced management team, has transformed the bank from a small troubled bank into a strong mid-tier bank with a leading consumer lending position. Prior to joining Eurasian Bank, Michael Eggleton was a board member of Eurasian Natural Resources Corporation from the date of its flotation on the London Stock Exchange, and he was also CEO of National Bank Trust in Russia. Prior to this he was a Managing Director at Merrill Lynch and Credit Suisse, working with companies in the CIS, Eastern Europe, Turkey and North Africa. He started his career as a CPA, and has an MBA from San Diego State University in California.[9] In 2013 he received the 2013 Executive of the Year Award from the American Chamber of Commerce in Kazakhstan.[10]

Ratings

Eurasian Bank has a B+ Long-term Counterparty Credit Rating with Positive outlook and a kzBBB+ local scale rating from Standard & Poor's,[11] it has had these ratings since the December 2011 upgrade. The bank also has a B1 Long-term foreign currency deposit rating with Negative outlook from Moody's Investors Service,[12] it has had this rating since 2003, and the negative outlook has been in place since 2009.

Awards

In 2013, the Bank was awarded Best Bank in Kazakhstan 2013 by EMEA Finance,[13] and Michael Eggleton, the CEO, received the 2013 Executive of the Year Award from the American Chamber of Commerce in Kazakhstan.[10] In 2012 and 2013 the Bank was awarded the Domestic Retail Bank of the Year by Asian Banking & Finance.[14][15] In 2012 the Bank was awarded the Best Bank in Kazakhstan by Euromoney,[16] and the Bank of the Year in Kazakhstan by The Banker.[17]

History

History section based on press releases and chronology found on company website.[18]

1990s

2000s

2010s

References

  1. ↑ 2012 Consolidated Financial statements. Note 1 a) Background – Organisation and Operations.
  2. 1 2 3 4 5 "Consolidated Financial Statements 2013" (PDF).
  3. ↑ 2013 year end investor presentation, page 7.
  4. ↑ National Bank bank sector statistics Retrieved on 4 June 2014. Second tier banks monthly summary balance sheet statistics
  5. ↑ Eurasian Bank Head Office location. Retrieved on 3 June 2012. Registered Office : 56 Kunayev Street, 050002 Almaty (Kazakhstan)
  6. ↑ 2012 Consolidated Financial statements. Retrieved on 3 June 2012. Note 1 a) Background – Organisation and Operations.
  7. ↑ 2012 Consolidated Financial statements. Retrieved on 3 June 2012. Note 36 a) Related Party transactions – Control Relationships.
  8. ↑ http://investor.eubank.kz/en/ Eurasian Bank annual reports 2011-2013
  9. ↑ Forbes Kazakhstan June 2013 profile of Michael Eggleton
  10. 1 2 Eurasian Bank website, press release on award.
  11. ↑ S&P rating page for Eurasian Bank, retrieved 4 June 2014 (requires site registration). Eurasian Bank has had a B+ rating with Stable outlook since December 2011
  12. ↑ [/credit-ratings/Eurasian-Bank-credit-rating-600066033 Moody's Rating page for Eurasian Bank, retrieved (requires site registration) 4 June 2014. Eurasian Bank has had B1 rating since 2003, with a negative outlook since 2009.]
  13. ↑ Press release mentioning EMEA Finance award
  14. ↑ 2012 Asian Banker & Finance Retail Bank of the Year Award
  15. ↑ 2013 Asian Banker & Finance Retail Bank of the Year Award
  16. ↑ Press release on Euromoney award
  17. ↑ 2012 The Banker Bank of the Year in Kazakhstan Award
  18. ↑ Eurasian Bank English language website, news releases

External links

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