Shareholders' equity decreased over the period from 413.746 to 307.969 million tenge that is decreased for 105,777 million tenge.

Analyzing the dynamics of changes in Return of Equity of JSC "Kazkommertsbank" we see a decrease in the rate of Return of Equity from 5.53% in 2011 to 5.18% in 2012 which means the decrease in efficiency in the use of equity. Return on equity decreases with the decrease in net profit.

In calculating the capital adequacy ratio as at 31 December 2012, 2011 and 2010. The Bank included in the calculation of capital obtained a subordinated loan in the amount not exceeding 50% of Tier I capital. In the event of bankruptcy or liquidation of the Bank, repayment of this debt is the Bank's liabilities to all other creditors. For the years ended December 31, 2012, 2011 and 2010. The Bank fully complied with all established requirements for the capital.

There is a tendency to the increase in the volume of deposits.

The share of retail deposits exceeds the share of deposits of legal entities in Kazkommertsbank, but the volume of retail deposits goes up rapidly. The volume of retail deposits starts to catch up with the volume of deposits of legal entities.

In comparison with other banks, the growth of retail deposits and deposits of legal entities is not high. This is explained by the fact that Kazkommertsbank reduced interest rates on its deposits.

The share of time deposits exceeds the share of demand deposits. There is a tendency to an increase in volume of time deposits and opposite tendency to decrease in volume of demand deposits.

Customers prefer to keep money in tenge.

Kazkommertsbank took out most of loans under repurchase agreements (65%).

In 2012 the volume of non-deposit resources was 109,974 mln, 2011 - 91,877 mln, 2010-147,138 mln. In comparison with 2011, we can see the tendency to the increase in volume of non-deposit resources, but we want to notice that the volume of non-deposit resources in 2010 was higher than in 2012.

As at 31 December 2012, included in loans and advances from banks and other financial institutions are loans under repurchase agreements of KZT 71,486 million (2011: KZT 27,937 million, 2010: KZT 26 million).

According to the analysis of deposit and non-depository sources, we can see that the volume of deposit sources is equal to 1.5 trillion tenge or 74% from all sources, while the volume of non-depository sources is equal to 548 billion tenge or 26%. On the basis of analyzes, we identified that the deposit is the main source of funding. In comparison with 2010 (69%) and 2011 (72%) KazCom attracts more depository sources of funding. The cost of deposits – 4,2% for 2012, average cost of non-depository sources – 7,041. On the basis of this statistic we can say that deposits are cheaper sources than non-depository sources.

According to analysis in asset-liability management, we can see that over the last 3 years Bank's assets are reduced. In comparison with 2010, assets decreased by 243 billion tenge. Liabilities of the bank also declined. Decreases associated with the attempt to bring the reserves under IFRS in accordance with the requirements of regulatory standards. As a result, the rate of the allowance for losses on loans and total loans increased from 25.1 to 32.5 percent.

This increase in reserves should be treated as a single measure. It was created because of the high uncertainty that has arisen due to several factors, including the adoption of Basel III, the transition of regulatory requirements for provisions from regulatory to IFRS, and the introduction of dynamic provisioning.

In the sense of liquidity it almost meets standards in general. Bank liquidity is broken in the short-term period; it means Bank will not be able to cover its current liabilities unless the depositors would lose their confidence in the bank at one time.

It follows that there is liquidity risk, but not too obvious, such as it is part of the banking policy and management of the bank does not consider that all depositors want to withdraw their deposits at the same time. In general, the bank's liquidity is maintained relatively close to the standard values.

The implementation of Basel III has strengths and weaknesses. Advantage of Basel III is the creation of additional capital. Also Basel directed towards the reduction of operational risk and liquidity risk. Weaknesses are that the banks will have to not only reduce the current minimum lending period exceeding one year, but also encourage customers to repay previously issued the medium and long term loans for balancing their assets and liabilities as soon as possible. The second disadvantage is that it reduces competition and leads to the increase in number of the various micro-credit organizations.

The problem of lack of long-term funds by Kazakhstani banks can be solved by the fact that the American version of the certificate of deposit is issued for a longer period of time (usually 3 months to 5 years), while the secondary market of this tool really works. So, for early return on investment certificate holder can simply sell it instead of withdrawing money from the bank. This, in turn, is a solution to the problem of liquidity. Instead of mass panic withdrawals in volatile periods for the economy people can sell their certificates. The main thing is that the likelihood is high that before the repayment the money will remain in the bank, unless, of course, the possibility of an early withdrawal is not spelled out in the contract. In any case, the customer always has the right to choose, and still have the opportunity to return money quickly and relatively painless in terms of loss of a part of revenue. The presence of such a possibility could have a positive impact on the attitude of the banking system as a whole. An increase in supply of certificates of deposit in the secondary market, of course, will have its decreasing effect on the price, but it's still better than to solve the problem in the courts. However, the interest paid on certificates of deposit is higher than on conventional deposits. As a result, the both banks and depositors are happy.

As a result, banks receive long-term liabilities at a predetermined price, the population has income higher than for time deposits, return on investment and more money does not harm the banks and significantly less likely to lead to the settlement of the issue through the courts.

 

LIST OF USED LITERATURE

[1] Лаврушин О.И. Банк и банковское дело. - М., 2012 г;

[2] Полушкин В.Ю. Анализ достаточности капитала коммерческого банка, 2009 г;

[3] Закон Республики Казахстан от 31 августа 1995 г. " О банках и банковской деятельности в Республике Казахстан";

[4] Батракова Л.Г. Экономический анализ деятельности коммерческого банка: Учебник для вузов. М.: Издательство Корпорация Логос, 2002 год. - 344с;

[5] Смирнов А.В. Управление ресурсами и финансово-аналитическая работа в коммерческом банке. М. 2008 год. - 362с;

[6] Сейткасимов Г.С. Деньги, кредит, банки: Учебник. - Алматы: экономика, 2006 год.-187с;

[7] Сейткасимов Г.С. Деньги, кредит, банки: Учебник. - Алматы: экономика, 2006 год.-209с;

[8] Regulation of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations on December 24, 2012 № 383

[ 9] ^”Isvestiya”, 08.12.95, “Diengy”, “Commersant-Daily”

[10] Stephen G. C. Money, Banking and Financial Markets, 2007 y;

[11] Bertaeva K. Zh. Foreign exchange market and foreign exchange transactions. Almaty, Economics, 2000, 18 p.

[12] Maidyrova D.N. Foreign exchange operations of bank..Almaty: ASU them. Abay, 2002, page 51.

[13] Rules of conducting exchange operations in the Republic ofKazakhstan

[14] BertayevK.Zh. Foreign exchange market and foreign exchange operations: the manual. - Almaty: Economics, 2011, page 62.

[15] Organizations. Financial Structure: An Investigation of Sectoral Balance Sheets in the G-7(Social Studies) By: E. Philip Davis, Joseph P. Byrne, Joseph P., PH.D. Byrne

[16] The consolidated financial statements of JSC "Kazkommertsbank" for the years2011, 2012 and 2013.

[17] Mishkin F. S. The economics of money, banking and financial markets, 2012, (p.201-213)

[18] Ларионова "Управление активами и пассивами в коммерческом банке" (p.39-58, p199-214.)

[19] Lectures from the site http://gendocs.ru

[20] Белоглазова, Г. Н. Банковское дело: организация деятельности коммерческого банка, 2010. - (p. 116)

[21] www.kase.kz

[22] www.afn.kz

[23] www.kapital.kz;

[24] www.nationalbank.kz

[25] www.kazpravda.kz archive - 29.01.2012

[26] www.cesec.kz

[27] www.fingazeta.ru

[28] www.kkb.kz

[29] Статистический бюллетень – ежемесячное издание на русском и английском языках, содержащее статистическую информацию о денежно-кредитных отношениях и деятельности банков РК.

 

 

Appendix 1

	(mln. tenge)	(mln. tenge)	(mln. tenge)	(mln. tenge)
Assets
Money and accounts in national (central) banks	106,497	105,067	61.216	90,533
Precious metals	3,823	3,280	1,345	1,209
The financial assets estimated at fair value through profit or a loss	118,822	188,313	223,231	114,203
Loans and the means provided to banks and other financial institutions	146,703	53,968	146,331	148,375
The loans provided to clients	1,917,692	2,079,661	2,174,760	2,160,767
Investments available for sale	15,682	15,419	16,822	16,696
The investments withheld before repayment	6,937	4,026	1,996
Business reputation	2,405	2,405	2,405	2,405
Fixed assets and intangible assets	32,520	33,028	31,857	33,971
Other assets	89,511	80,522	28,145	18,771
Total assets	2,444,812	2,565,689	2,688,108	2,587,873
Liabilities
Loans and means to banks and other financial institutions	110,477	92,215	147,139	209,122
Means of clients	1,553,576	1,463,077	1,506,800	1,276,464
The financial liabilities estimated at fair value through profit or a loss	8,877	37,771	36,047	35,991
The issued debt securities	297,247	324,087	375,199	463,656
The other raised funds	18,631	26,359	23,943	31,172
Reserves	15,549	10,724	10,190	11,945
Liabilities for a deferred income tax	-	29,131	30,035	24,519
Dividends to payment
Other liabilities	10,296	7,647	7,868	8,990
The subordinated loan	122,150	138,040	137,137	136,411
Total liabilities	2,136,843	2,129,057	2,274,362	2,198,285
Capital
Equity attributable to equity holders of the parent:
authorized capital	9,008	9,023	9,031	9,031
share premium	194,721	194,924	195,024	195,006
Revaluation reserve	5,808	5,488	5,508	4,935
other provisions	97,117	226,085	203,109	180,839
Total equity attributable to shareholders of the Parent Bank	306,654	435,520	412,672	389,811
Non-controlling interests	1,315	1,112	1,074	-223
Total equity	307,969	436,632	413,746	389,588
Total liabilities and equity	2,444,812	2,565,689	2,688,108	2,587,873

Consolidated statements of financial position as of December 31, 2012, 2011, 2010

 

Appendix 2

Interest rates of banks on attracted deposits (by maturity and types of currency) % for the month

 

	12.11	12.12	01.13	02.13
	KZT	СКВ	KZT	СКВ	KZT	СКВ	KZT	СКВ
Deposits of non-banking legal entities	2,6	1,4	3,5	1,9	3,0	2,4	2,4	1,9
including:
Demand deposits	1,3	1,5	2,0	0,1	3,2	0,0	1,5	0,2
conditional	4,8	1,6	4,0	2,0	1,0	0,7	2,6	1,5
Time deposits, total	2,7	1,4	3,6	1,9	3,0	2,4	2,5	1,9
ofwhichwithmaturity:
upto 1 month	1,7	0,3	2,6	0,6	1,5	2,1	1,1	3,5
from 1 to 3 month	1,7	0,9	3,1	2,0	2,4	3,5	2,3	0,9
from 3 monthto 1 year	2,5	2,6	3,9	2,7	3,8	1,6	3,8	0,6
from 1 to 3 years	-	-	-	-	-	-	-	-
from 1 to 5 years	5,3	3,3	6,1	1,4	5,6	3,6	5,6	4,3
over 3 years	-	-	-	-	-	-	-	-
over 5 years	10,0	5,7	7,0	2,9	10,3	2,8	6,4	1,0
Deposits of individuals	6,4	6,1	6,7	4,7	6,7	5,1	6,4	5,2
including:
Demand deposits	0,0	0,1	0,0	0,0	0,0	0,0	0,1	0,0
conditional	7,4	4,0	4,4	5,9	4,9	0,1	1,2	5,8
Time deposits, total	8,4	6,4	8,3	5,1	7,9	5,5	7,9	5,4
Of which with maturity:
Up to 1 month	1,0	0,5	5,7	1,3	0,2	1,1	1,2	1,6
from 1 to 3 month	6,5	1,7	6,5	3,0	4,3	2,6	4,4	2,5
from 3 month to 1 year	8,4	4,9	8,0	4,5	8,0	5,3	8,1	4,3
from 1 to 3 years	-	-	-	-	-	-	-	-
from 1 to 5 years	9,3	7,3	8,8	6,1	8,8	6,0	8,7	6,8
over 3 years	-	-	-	-	-	-	-	-
over 5 years	3,5	7,8	5,4	6,4	3,4	4,6	3,7	5,8

Source www.nationalbank.kz

 

Appendix 3

Loans and advances from banks and other financial institutions

 

Recorded at amortized cost:	December 31, 2012 (mln. tenge)	December 31, 2011 (mln. tenge)	December 31, 2010 (mln. tenge)
Correspondent accounts of other banks	2,348	3,322	1,940
Correspondent accounts of organizations that serve certain types of banking operations
Loans from banks and other financial institutions, including:
Loan with maturity of June 2014	8,378	14,960	23,037
Loan with maturity of December 2013	3,302	-	-
Loan with maturity of December 2012	-	1,045	-
Loan with maturity of August 2011	-	-
Loans from other banks and financial institutions	24,289	44,433	121,760
Loans under repurchase agreements	71,486	27,937
In total	109,974	91,877	147,138
Note – source website www.kkb.kz