Press Release

Changes in the membership of ForteBank JSC Management Board

ForteBank Joint Stock Company, located at the address: 8/1, Dostyk str., Astana city, Z05P1P0/010017,
Republic of Kazakhstan (hereinafter – the “Bank”), hereby reports the changes in the membership of the
Management Board of the Bank.
In accordance with the resolution of the Board of Directors of the Bank dated December 22nd, 2022 (minutes
of the meeting No. 44), starting from January 4th, 2023, Mr. Amyrkhan Chikanayev is elected as a member
of the Management Board of the Bank – Deputy Chairman of the Management Board.


Changes in the membership of ForteBank JSC Management Board

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On 14 September 2022 the international rating agency Fitch Ratings upgraded the Long-Term Issuer Default Rating of ForteBank to BB-, with Stable outlook. The rating upgrade reflects the extended record of robust profitability of Forte, capitalization growth, material reduction in legacy asset-quality risks, as well as the strong funding and liquidity. The agency notes that Forte has achieved noticeable growth of lending in all business segments. The loan book has expanded 26% during the first half of 2022.

Fitch analysts believe that Forte and the banking sector of Kazakhstan as a whole are resilient to external shocks caused by the Russian-Ukrainian conflict, due to the high return on equity and liquidity.  

«Forte business model has demonstrated resistance to the external shocks caused by recent events in Kazakhstan and worldwide. Our clients have truly appreciated implementation the wide range of products, high-quality service, handy app and value the reliability of Forte. As the result, the Bank has strengthened its market position in all segments of clients, has increased return on equity and improved the loan portfolio quality, which were considered while upgrading our rating by Fitch», - noted Mr. Bekzhan Pirmatov, the Chairman of the Management Board of ForteBank. 
According to IFRS consolidated reports, ForteBank’s assets have grown by 8% in the first half of 2022. The Bank’s loan portfolio has exceeded KZT 1 trillion, with a 26% growth as opposed to a 5,5% average growth throughout the sector. The consolidated net profit of the Bank has exceeded KZT 44 billion (profit in the 1st half-year of 2021 amounted to KZT 31,6 billion).

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Mass media contact: Yerkin Uderbay, +7 777 731 99 33

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Fitch Upgrades ForteBank Rating to “BB-“, Stable Outlook

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14 July 2022, Nur-Sultan – The Board of Directors of ForteBank announced its decision to appoint Bekzhan Pirmatov as the CEO of ForteBank. 
Bekzhan Pirmatov is a professional banker with 18-year experience in banking industry, including Kazakh and international financial institutions such as HSBC and EBRD. He headed management boards of TsesnaBank and First Heartland Jysan Invest prior to joining Forte team in 2020 as deputy CEO. He is a graduate of Kazakh Economic University (Narxoz University) and George Washington University (USA).   
“Bekzhan Pirmatov has successfully supervised all key business lines, including corporate, SME and retail blocks and treasury since he joined Forte. Taking into consideration his professionalism, knowledge of insights of local and international financial markets, leadership skills, the Board of Directors took decision to appoint Bekzhan as the CEO. We believe that Forte team will continue sustainable growth of business with his leadership”, - Chairman of the Board of Directors of ForteBank Eldar Abdrazakov commented. 
“Forte is an excellent bank and I am grateful to shareholders and Board of Directors for trust and opportunity to upgrade it to a new level. It is important for us to keep consistency and to continue our efficient strategy of universal bank aimed at growth in all business segments, with focus on digital solutions”, - Bekzhan Pirmatov said. 
During the first half of 2022 ForteBank performed progressively in all key business aspects. The assets grew by 15.8 per cent, loan portfolio – by 27.5 per cent, deposits – by 4.5 per cent. The net profit, according to management reporting, amounted to 43.2 billion Tenge. 
On 8 July 2022 international rating agency S&P Global Ratings raised long-term issuer credit rating of ForteBank from “B+” to “BВ-”, outlook “Stable”. Additionally, Agency raised ForteBank’s rating on Kazakhstan national scale to 'kzA-' from 'kzBBB+'.

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Contact for media enquiries: Yerkin Uderbay, +7 777 731 99 33

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Bekzhan Pirmatov Appointed as CEO of ForteBank

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08 July 2022 – International rating agency S&P Global Ratings raised long-term issuer credit rating of ForteBank from “B+” to “BВ-”, outlook “Stable”. Additionally, Agency raised ForteBank’s rating on Kazakhstan national scale to 'kzA-' from 'kzBBB+'.

S&P Global Ratings says, that ForteBank capitalization strengthened, and they expect the bank will operate with a higher capital buffer and continue to be in top five banks in Kazakhstan in terms of assets.

«The Bank is leaning on its diversification between retail and corporate customers on both sides of the balance sheet and sustainable new business generation with an expected loan growth of 10%-15% to retain its market share. For 2021, ForteBank posted Kazakhstani tenge (KZT) 64 billion net consolidated profit (about $160 million), corresponding to a return on average common equity (ROAE) of about 23.7%. For the first five months of 2022, ForteBank reported about KZT30 billion net profit under national GAAP. We expect the bank to continue generating solid earnings over 2022, with ROAE hovering around 20%», - as noted in S&P Global Rating release.

The agency believes that recent changes in management are unlikely to affect the bank's strategy implementation: «The new CEO, Mr. Bekzhan Pirmatov, has been with the bank's management team for several years. The transition was smooth, suggesting that the leadership changes won't upset the business dynamics or operational approach. In our view, the bank's major shareholder, Mr. Bulat Utemuratov, supports the bank's current strategy implementation. »

According to S&P Global Ratings, ForteBank has significantly advanced the recovery of legacy problem loans over the past five years. The bank has experienced an increase in problem loans due to the economic fallout of the COVID-19 pandemic. Nevertheless, we expect the bank's asset quality will continue to improve gradually over 2022-2032. The stock of problem assets improved last year, with the share of Stage 3 loans at about 11% of the loan portfolio declining from 26% at year-end 2020. We anticipate the
credit costs in 2022 will remain elevated but not higher than the system-wide average of about 2%, reflecting the challenging operating conditions and potential negative spillover effect on borrowers' creditworthiness. An inflationary spike, alongside the disruption of trade and logistic chains stemming from the Russia-Ukraine conflict, could weigh on borrowers' payment discipline and create additional provisioning needs for banks in the system. However, since economic fundamentals in the context of Kazakhstan's external buffers remaining supportive, we consider that any deterioration in asset quality would likely be moderate and temporary».
  While commenting on the news, the acting Chairperson of the Management Board of ForteBank Bekzhan Pirmatov has noted: 
«The rating upgrade by S&P Global Ratings confirms the effectiveness of strategy chosen by ForteBank, which is underpinned by balanced, conservative credit policy, digitalization of products and services and based on them developing of ecosystem for retail and business clients. Our business model has proved its sustainability, over the past 3-4 years all our performance indicators have been steadily growing. We adhere to continuity, remain a classic and reliable universal bank operating in all segments, including  retail, SMEs and large businesses.»

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Contacts for media: Yerkin Uderbay, +7 777 731 99 33
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International rating agency S&P Global Ratings upgraded the ratings of ForteBank from “B+” to “BВ-”, outlook “Stable”

21 June 2022, Nur-Sultan – the Board of Directors of ForteBank announced a preterm resignation of Reinis Rubenis from the position of CEO on personal reasons effective from 15 July 2022. Reinis took over as CEO of ForteBank on 10 January 2022, before this appointment he had been the CEO of Swedbank Latvia for five years.   
 
“Geopolitical landscape has changed dramatically this year and made it difficult for my family to relocate to Kazakhstan. It became determinant in making this hard decision to resign preterm as the CEO. I am going back to Latvia. I take this opportunity to thank all Forte colleagues for a unique chance to be a part of very intense period in the development of ForteBank. We have used every opportunity to grow and increase our business in these turbulent times, but at the same time compliance and low risk tactics have been a priority for us. It has been a great opportunity to get to know incredible Kazakh culture, learn about domestic financial industry and I hope my contribution to Forte has laid further ground for successful growth,” - Reinis Rubenis noted.
 
“The Board of Directors understands Reinis’ preterm resignation request. Every manager tries to find a right work-life balance. An efficient manager is first of all a happy manager. On behalf of the Board of Directors I thank Reinis for his contribution and wish him every success in his further career,” - said Eldar Abdrazakov, the Сhairman of the Board of Directors. Bekzhan Pirmatov, a deputy CEO of ForteBank, will be acting CEO effective from 15 July 2022.

Over the past five months of 2022 ForteBank ensured progressive growth in all aspects of its business. The assets grew by 8%, loan portfolio – by 14,8%, net profit made 35 billion tenge. Moody’s Investors Service confirmed the Bank’s rating at “Ba2” level with “Stable” forecast. 


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Yerkin Uderbay, +7 777 731 99 33



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