BTA Bank ( kk, БТА; БТА Банкі; BTA Banki) (''BTA Bank Joint-Stock Company'' in full) is a Kazakhstan
bank
A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets.
Because ...
with headquarters in
Almaty
Almaty (; kk, Алматы; ), formerly known as Alma-Ata ( kk, Алма-Ата), is the List of most populous cities in Kazakhstan, largest city in Kazakhstan, with a population of about 2 million. It was the capital of Kazakhstan from 1929 to ...
. it was the third largest lender by assets.
In 2009, BTA Bank was subject of one of the world's biggest financial frauds totaling US$5 billion.
History
First stage
On 15 October 1925 Presidium of Central Council of the Kazakhstan national economy ruled to open the department of Promyshlennyi (Industrial) Bank (''Prombank'').
During the Soviet period the bank underwent several reorganizations. In 1991 it was re-established as Turanbank, the Kazakh Republican Bank of the State commercial industrial and construction bank. In 1991 Turanbank was established on this basis. In 1992 the bank was renamed to Alem Bank Kazakhstan, the Bank of foreign economic activities of the Republic of Kazakhstan.
![Bank TuranAlem Logo](https://upload.wikimedia.org/wikipedia/commons/b/b4/Bank_TuranAlem_Logo.svg)
On 15 January 1997, Bank TuranAlem was privatised and set up a
Closed Joint-Stock Company
A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareholders a ...
in accordance with the Decree of the Government of the Republic of Kazakhstan "On reorganization of the Kazakh joint-stock bank Turanbank and joint-stock bank AlemBank Kazakhstan". On 1 October 1998 Bank TuranAlem CJSC was renamed to Bank TuranAlem OJSC and then to Bank TuranAlem JSC.
In spring 2008 the bank underwent
rebranding
Rebranding is a marketing strategy in which a new name, term, symbol, design, concept or combination thereof is created for an established brand with the intention of developing a new, differentiated identity in the minds of consumers, investors ...
, which resulted in the change of the name, logo and corporate identity of the bank. After this the BTA Bank JSC name was no longer perceived as an
acronym
An acronym is a word or name formed from the initial components of a longer name or phrase. Acronyms are usually formed from the initial letters of words, as in ''NATO'' (''North Atlantic Treaty Organization''), but sometimes use syllables, as ...
.
Events between 2009–2012
Fraud & Embezzlement
It was revealed in 2009 that the bank was defrauded of up to $6 billion of cash in one of the world's biggest cases of financial fraud.
The banks former chairman
Mukhtar Ablyazov
Mukhtar Qabyluly Ablyazov ( kk, Мұхтар Қабылұлы Әблязов, ''Muhtar Qabyluly Ábliazov''; born 16 May 1963) is a Kazakh businessman and political activist who served as chairman of Bank Turan Alem (BTA Bank), and is a co-fou ...
is alleged to have perpetrated the fraud. Ablyazov has said that under his leadership BTA did conceal assets to protect them from being seized by the government. Private investigators have been used in an attempt to recover some of the funds, who in October 2010 found documents and disc drives relating to the bank in a self-storage facility in north London. A found documents and disc drives relating to the bank in a self-storage facility in north Londonthrough which BTA had transacted.
Bankruptcy
BTA Bank sought bankruptcy protection in 2010 from U.S. creditors while it restructured $11.6 billion of debt.
The debts were incurred by alleged mismanagement and embezzlement by former BTA Bank Chairman Muktar Ablyazov.
Restructuring
In February 2009 Samruk-Kazyna Fund purchased 75.1% of BTA Bank's shares as part of contingency measures of the
government of the Republic of Kazakhstan. As the result the bank gained additional capital of KZT 251.3 bln.
During 2009–2010 BTA Bank has completed restructuring of its certain financial indebtedness. As the result the bank's indebtedness decreased from $16.65 bln. to $4.2 bln, Samruk-Kazyna Fund's share in the capital increased up to 81.48%, both domestic and foreign creditors became the Bank's shareholders holding 18.5% in the capital.
Due to aggravation of the Bank's financial status during 2011, relative shortage of liquid assets and negative financial performance, in 2012 BTA Bank started the second restructuring which resulted in cancellation of the Bank's certain financial indebtedness. In consideration, the creditors received $1,618 cash and $750 mln. New Notes.
BTA Bank also entered into a revised Revocable Committed Trade Finance Facility (RCTFF) with liabilities amounting to around $348 mln. as of the restructuring date. Samruk-Kazyna Fund extended $1.592 bln. loan to BTA Bank JSC subordinated to the New Notes and RCTFF.
During the restructuring BTA Bank was recapitalized for around $10 bln. Share of
Samruk-Kazyna
Samruk-Kazyna ( kk, Самұрық-Қазына, translit=Samūryq-Qazyna), officially known as the National Welfare Fund "Samruk-Kazyna" ( kk, «Самұрық-Қазына» ұлттық әл-ауқат қоры» Акционерлік Қо ...
in the Bank's equity increased up to 97.3%. Creditors' share amounted to 2.5%, share of minority shareholders, who held shares prior to 2009–2010 restructuring, amounted to 0.2% of the Bank's shares in aggregate.
Events after 2013
After successful completion of rather difficult and scaled restructuring process BTA Bank focused on restoration of its former market positions and currently is a stable and sustainable financial institution. During the first six months of 2013 BTA Bank received KZT 15.579 bln. of net income (unaudited interim condensed consolidated IFRS statements).
In June 2013 The board of directors terminated powers of Mr. Yerik Balapanov who chaired the Bank's Management Board since April 2012 upon his own initiative. On 5 August 2013 Mr. Kadyrzhan Damitov was appointed as the Chairman of the Management Board of the Bank
In February 2014 it was announced that the BTA Bank and
Kazkommertsbank will merge by the end of the largest bank in Central Asia. The Kazkommertsbank will take over 46.5 percent of BTA shares of the Kazakh state holding company Samruk-Kazyna, another 46.5 percent will buy the current chairman Kenes Rakischew, one of the largest private investors in Kazakhstan. The Kazkommerzbank and Rakischew will acquire its shares for each 72 billion Tenge (about 465 million US dollars).
Activities
BTA Bank provides a wide range of banking services to individuals, small and medium-sized enterprises, and major corporate customers. The bank's branch network includes 19 branches and over 170 outlets around Kazakhstan. International representative offices of the bank are located in Russia, Great Britain and China. BTA's banking networks are spread around
Kazakhstan
Kazakhstan, officially the Republic of Kazakhstan, is a transcontinental country located mainly in Central Asia and partly in Eastern Europe. It borders Russia to the north and west, China to the east, Kyrgyzstan to the southeast, Uzbeki ...
, Russia,
Belarus
Belarus,, , ; alternatively and formerly known as Byelorussia (from Russian ). officially the Republic of Belarus,; rus, Республика Беларусь, Respublika Belarus. is a landlocked country in Eastern Europe. It is bordered by R ...
,
Ukraine
Ukraine ( uk, Україна, Ukraïna, ) is a country in Eastern Europe. It is the second-largest European country after Russia, which it borders to the east and northeast. Ukraine covers approximately . Prior to the ongoing Russian inv ...
,
Kyrgyzstan
Kyrgyzstan,, pronounced or the Kyrgyz Republic, is a landlocked country in Central Asia. Kyrgyzstan is bordered by Kazakhstan to the north, Uzbekistan to the west, Tajikistan to the south, and the People's Republic of China to the east. ...
,
Armenia
Armenia (), , group=pron officially the Republic of Armenia,, is a landlocked country in the Armenian Highlands of Western Asia.The UNbr>classification of world regions places Armenia in Western Asia; the CIA World Factbook , , and ''Ox ...
, Georgia and
Turkey
Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a list of transcontinental countries, transcontinental country located mainly on the Anatolia, Anatolian Peninsula in Western Asia, with ...
.
In December 2021 BTA Bank has sold 100% of "Nord Star", operator of Vitino seaport in
Murmansk Oblast
Murmansk Oblast (russian: Му́рманская о́бласть, p=ˈmurmənskəjə ˈobləsʲtʲ, r=Murmanskaya oblast, ''Murmanskaya oblast''; Kildin Sami: Мурман е̄ммьне, ''Murman jemm'ne'') is a federal subject (an oblast) of ...
, to Vladimir Golubev, co-owner of "Adamant" holding.
Shareholders and management
The largest shareholder of BTA Bank is Rakishev Kenes Khamituly. He owns 598,422,760,446 shares (93.28% of the placed, or 97.79% of the voting common shares). Previously 58% of the Bank's shares were held by a group of Kazakh businessmen led by
Mukhtar Ablyazov
Mukhtar Qabyluly Ablyazov ( kk, Мұхтар Қабылұлы Әблязов, ''Muhtar Qabyluly Ábliazov''; born 16 May 1963) is a Kazakh businessman and political activist who served as chairman of Bank Turan Alem (BTA Bank), and is a co-fou ...
, another 11% were held by the family of late
Yerzhan Tatishev, minority stakes were held by
European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) is an international financial institution founded in 1991. As a multilateral developmental investment bank, the EBRD uses investment as a tool to build market economies. Initially focus ...
, IFC and FMO. Yerzhan Tatishev was murdered in 2004.
Chairman of the Board of Directors of the Bank is Yelena Bakhmutova,
Deputy Chairman of the Management Board of Samruk-Kazyna JSC (since 15 February 2013). Since 5 August 2013, the Chairman of the Management Board was Kadyrzhan Damitov.
On 14 February 2014, Kenes Rakishev was elected as a Chairman of the Board of Directors.
[
]
Structure
BTA has subsidiaries and representative offices in Kazakhstan
Kazakhstan, officially the Republic of Kazakhstan, is a transcontinental country located mainly in Central Asia and partly in Eastern Europe. It borders Russia to the north and west, China to the east, Kyrgyzstan to the southeast, Uzbeki ...
, Ukraine
Ukraine ( uk, Україна, Ukraïna, ) is a country in Eastern Europe. It is the second-largest European country after Russia, which it borders to the east and northeast. Ukraine covers approximately . Prior to the ongoing Russian inv ...
, Russia
Russia (, , ), or the Russian Federation, is a List of transcontinental countries, transcontinental country spanning Eastern Europe and North Asia, Northern Asia. It is the List of countries and dependencies by area, largest country in the ...
, China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
, Turkey
Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a list of transcontinental countries, transcontinental country located mainly on the Anatolia, Anatolian Peninsula in Western Asia, with ...
, Georgia
Georgia most commonly refers to:
* Georgia (country), a country in the Caucasus region of Eurasia
* Georgia (U.S. state), a state in the Southeast United States
Georgia may also refer to:
Places
Historical states and entities
* Related to the ...
, Belarus
Belarus,, , ; alternatively and formerly known as Byelorussia (from Russian ). officially the Republic of Belarus,; rus, Республика Беларусь, Respublika Belarus. is a landlocked country in Eastern Europe. It is bordered by R ...
, Armenia
Armenia (), , group=pron officially the Republic of Armenia,, is a landlocked country in the Armenian Highlands of Western Asia.The UNbr>classification of world regions places Armenia in Western Asia; the CIA World Factbook , , and ''Ox ...
.
See also
*List of banks of Kazakhstan
The Republic of Kazakhstan has a two-tier banking system.
Tier One Bank
The National Bank of the Republic of Kazakhstan is the central bank of Kazakhstan and presents the upper (first) tier of the banking system of Kazakhstan. The National Bank r ...
*Mukhtar Ablyazov
Mukhtar Qabyluly Ablyazov ( kk, Мұхтар Қабылұлы Әблязов, ''Muhtar Qabyluly Ábliazov''; born 16 May 1963) is a Kazakh businessman and political activist who served as chairman of Bank Turan Alem (BTA Bank), and is a co-fou ...
References
Strategic partner banks
Joint-Stock Bank BTA Kazan OJSC (Tatarstan)
BTA Bank PJSC (Ukraine)
BTA Bank CJSC (Belarus)
BTA Bank JSC (Georgia)
BTA Bank CJSC (Armenia)
"Şekerbank T.A.Ş." (Turkey)
Other companies in BTA Group
Subsidiary of BTA Bank JSC BTA Ipoteka JSC (Kazakhstan)
SPF Ular Umit JSC (Kazakhstan)
Subsidiary of "BTA Bank" JSC BTA Securities" JSC (Kazakhstan)
SK Leasing JSC (Kazakhstan)
Temirleasing JSC (Kazakhstan)
Life Insurance Subsidiary of BTA Bank JSC BTA Zhizn JSC (Kazakhstan)
Subsidiary of BTA Bank JSC BTA Insurance JSC (Kazakhstan)
Subsidiary of BTA Bank JSC Insurance Company London-Almaty (Kazakhstan)
National Joint-Stock Insurance Company "Oranta" OJSC (Ukraine)
Titan-Inkasatsia LLP (Kazakhstan)
Subsidiary of BTA Bank JSC AlemCard LLP (Kazakhstan)
{{DEFAULTSORT:Bta Bank
Banks of Kazakhstan
Banks established in 1991
Kazakhstani brands