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Kazkommertsbank creates third subsidiary for bad assets management.

January 28, 2014

Kazkommertsbank decided to create a third subsidiary to manage doubtful or bad assets. The new entity KUSA KKB-3 will operate mainly in residential and commercial real estate seized on problem loans of small and medium-sized businesses and problematic retail loans. The transfer of assets will be held after the bank will get all necessary regulatory approvals and complete the procedures. The new entity is created in order to manage stress assets of the parent bank in the form of claims for doubtful and bad loans, and assets seized at the bank's balance sheet as a result of foreclosure of the mortgaged property. Kazkommertsbank is the largest bank in Kazakhstan in terms of assets. It is focused mainly on banking services to large and medium-sized corporations. The share of non-performing loans in the bank's portfolio stood at 29% as of the end of 2012.

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Source: IntelliNews - Weekly Reports

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