S&P returned "stable" outlook on ForteBank

S&P Global Ratings international rating agency has improved its outlook on ForteBank's rating to "stable" and affirmed its ratings at "BB-/B".

The revision of outlook on the Bank’s follows the same action on Kazakhstan outlook. On March 3, 2023, S&P revised the outlook on the country's rating from "negative" to "stable", stating that it expected growth of Kazakhstan's GDP within 4% over the next three years.

The agency notes that the affirmation of ForteBank's ratings at "BB-/B" reflects S&P's assessment of ForteBank's moderate systemic importance in the economy of Kazakhstan.

"ForteBank is the fifth-largest domestic bank by retail deposits, with about 6.5% market share by assets. ForteBank continued to strengthen its capitalization in 2022, underpinned by the bank's decision not to distribute dividends. We anticipate that our risk-adjusted capital ratio for the bank will remain above 7% in 2023-2024, supported by moderate business growth and good earnings metrics. We expect ForteBank's asset quality to remain stable" the agency said in a statement.

"We are glad that S&P brought back ForteBank an appropriated rating outlook. Currently, the Bank is in its best condition in the entire history of its activities. Many of its performance indicators have reached record values, which will be made public after the release of the audited statements," commented Bekzhan Pirmatov, Chairman of the Management Board of ForteBank, JSC.

ForteBank is one of the five largest Kazakhstani banks in terms of assets and has a wide branch network in all regions of Kazakhstan. In July 2022, S&P upgraded ForteBank's long-term credit rating from "B+" to "BB-" and the Bank's rating on the Kazakhstan national scale from "kzBBB+" to "kzA-". Also in September 2022, Fitch, upgraded ForteBank's long-term rating to "BB-" with a stable outlook, taking into account the combination of positive factors and the Bank's stable financial position. Both agencies noted the strengthening of capitalization, the improvement of asset quality, as well as ForteBank's strong market position.