S&P turns Kaspi Bank view to positive

S&P said it revised its outlook on Kaspi Bank to positive from stable and affirmed its BB-long-term issuer credit rating on the bank. The agency also affirmed the bank’s kzA Kazakhstan national scale rating.

“The group's operating performance remained strong in 2020 and first-quarter 2021. Its return on average equity (ROAE) exceeded 70% over this period and we expect returns to stay at least at this level over the next two years. We note that in 2021 the group continues to demonstrate impressive growth of its payment and e-commerce segment, with monthly active customers reaching 10 million people (+61% year on year) and ROAE hitting a record high of 85%,” S&P said in a press release.

The revised outlook reflects expectations that Kaspi Bank's credit profile might strengthen over the next 12-18 months, with sustainable improvement of its asset quality metrics, including lower cost-of-risk than domestic peers.

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