Net interest income increased by 21.1% yoy in the 2Q2016. At the same time net profit declined by 54.8% yoy to KZT 1.3bn (ROAA – 0.5% p.a.) as a result of increased loan-loss provision expense and the lack of savings in the corporate income tax, in contrast to the 2Q2015. Moody’s upgraded ForteBank’s long-term local- and foreign-currency deposit ratings from Caa1 to B3 on the 27th of September. We maintain our recommendation to Buy ForteBank’s bonds due to high capital adequacy ratios, sufficient liquidity, and in view of the highest current yield of dollar bonds in the debt market of Kazakhstan.

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