Sberbank is withdrawing from the Kazakhstan market due to the current geopolitical situation, and Baiterek said that its decision to acquire Sberbank Kazakhstan was based on the importance to the country’s financial system
Baiterek would acquire the entire stake in Sberbank Kazakhstan. (Credit: Baiterek)
Kazakhstan’s national holding company Baiterek has entered into an agreement with Russia’s state-owned bank Sberbank, to acquire the latter’s subsidiary in Kazakhstan.
Sberbank is withdrawing from the Kazakhstan market due to the current geopolitical situation, and to suit the interests of the Sberbank Kazakhstan clients.
The sanctions imposed by the US have affected the business of Sberbank, including its subsidiary Sberbank Kazakhstan.
Baiterek would acquire the entire stake in Sberbank Kazakhstan, and the transaction is expected to be completed in the near future, reported Russian news agency Interfax.
Upon closing, the bank is expected to resume full operations, attract deposits, render payments, and continue developing products and services for individuals and businesses.
Sberbank senior vice president and Sberbank International head Timur Kozintsev told Interfax: “Over the past two years we have done a tremendous job, more than doubling our assets.
“Due to the introduction of sanctions, our assets declined nearly twofold, that is, in two months we have actually drawn a line under the results of the last two years.”
In June, the European Bank for Reconstruction and Development (EBRD) offered to help Kazakhstan in re-capitalising Sberbank’s local subsidiary, if it acquires the company.
Baiterek said that its decision was based on the importance of the country’s financial system.
Sberbank’s Kazakhstan unit has adequate liquidity reserves, and a high-quality loan portfolio, and has been one of the main banks in Kazakhstan for many years.
Its infrastructure and technologies will allow it to rapidly return to work and continue financing the real sector of the Kazakhstan economy, said Baiterek.
Baiterek, in its statement, said: “When deciding to acquire Sberbank Kazakhstan, Baiterek Holding assessed its importance for the country’s financial system.
“The bank’s up-to-date infrastructure and technologies will allow it to return to work in a short time and continue financing the real sector of the economy of Kazakhstan.”
In March this year, Kazakhstan units of the Russian banks VTB, Alfa-Bank and Sberbank were included in the US sanctions list.
Kazakhstan-based CenterCredit has acquired Alfa-Bank’s local subsidiary, which currently operates under the brand name Eco Centre Bank.