Eurasian Bank

From Kazakhstan Encyclopedia

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Eurasian Bank is the ninth largest lender[1] in Kazakhstan, headquartered in Almaty,[2] It was founded in 1994 as a closed joint-stock company, and reregistered in 2003 as a joint stock company due to joint stock company law changes.[3] The Bank is owned 100% by Eurasian Financial Company JSCwhich is 100% owned by three equal shareholders: Alexander Mashkevich, Alijan Ibragimov, Patokh Shodiyev (aka Patokh Chodiev)[4]


Eurasian Bank was founded by the shareholders to serve the needs of their industrial companies. As the bank grew, its scope grew and it began to serve a wider client base. The arrival of the new management team led by Michael Eggleton, starting at the end of 2009, brought a transformation of the bank. New processes and procedures were put in place to clean up the loan book and initiate new lending based on strict credit criteria. This has had a dramatic impact on loan book quality, with NPLs approximately one fifth of the level of the Kazakhstan banking sector as a whole. By acquiring a strong consumer finance franchise it gained a strong engine of growth, but one that was based on strong systems and experience in the local market. Today, the Bank is a market oriented mid-tier bank in Kazakhstan, serving about 6% of the adult population in Kazakhstan, bringing to the market innovative products and offers, all the while having sector leading loan book quality.[5]

It is the only bank in Kazakhstan that did not suffer a rating downgrade during the recent financial crisis that created severe difficulties for the Kazakhstan banking sector.Template:Citation needed

New product offers in the market are mostly targeted in the retail banking segment, in all income categories. In a market with significant administrative challenges, the bank launched a uniqueTemplate:Citation needed product of car in a day financing. This drastic reduction of time to purchase a car with financing led to strong triple digit growth in auto financing in 2012. With their Branch of the Future program, the bank is increasing the types of self-service transactions for customers. The bank also launched a wealth management and private banking offer, relying on best-in-class international partnersTemplate:Who to ensure that the offer was up to global standards. All these changes rely on significant behind-the-scenes changes in systems procedures and operations.


On December 5, 2016, Pavel Loginov was elected as the Chief Executive Officer of Eurasian Bank JSC (Kazakhstan).[6] Michael Eggleton stepped down as a Chief Executive Officer of Eurasian Bank JSC (Kazakhstan). He took up this position at the end of 2009 and, together with his experienced management team, has transformed the bank from a small troubled bank into a strong mid-tier bank with a leading consumer lending position. Prior to joining Eurasian Bank, Michael Eggleton was a board member of Eurasian Natural Resources Corporation from the date of its flotation on the London Stock Exchange, and he was also CEO of National Bank Trust in Russia. Prior to this he was a Managing Director at Merrill Lynch and Credit Suisse, working with companies in the CIS, Eastern Europe, Turkey and North Africa. He started his career as a CPA, and has an MBA from San Diego State University in California.[7] In 2013 he received the 2013 Executive of the Year Award from the American Chamber of Commerce in Kazakhstan.[8]


Eurasian Bank has a B+ Long-term Counterparty Credit Rating with Positive outlook and a kzBBB+ local scale rating from Standard & Poor's,[9] it has had these ratings since the December 2011 upgrade. The bank also has a B1 Long-term foreign currency deposit rating with Negative outlook from Moody's Investors Service,[10] it has had this rating since 2003, and the negative outlook has been in place since 2009.


In 2013, the Bank was awarded Best Bank in Kazakhstan 2013 by EMEA Finance,[11] and Michael Eggleton, the CEO, received the 2013 Executive of the Year Award from the American Chamber of Commerce in Kazakhstan.[8] In 2012 and 2013 the Bank was awarded the Domestic Retail Bank of the Year by Asian Banking & Finance.[12][13] In 2012 the Bank was awarded the Best Bank in Kazakhstan by Euromoney,[14] and the Bank of the Year in Kazakhstan by The Banker.[15]


History section based on press releases and chronology found on company website.[16]


  • December 1994 - Eurasian Bank was registered as Joint Stock Bank by National Bank of Kazakhstan
  • February 1995 - Bank received General License to fulfill bank operations
  • March 1996 - Receipt of License for broker and dealer activity
  • April 1996 - Becomes prime dealer on Government securities
  • May 1996 - Bank became the member of Kazakhstan Stock Exchange
  • September 1997 - Receipt of the License for broker activity with Government securities
  • September 1997 - Bank became member of SWIFT
  • April 1998 – Receipt of License for custodian activity


  • February 2000 – Bank became member of the Deposit Guarantee System
  • November 2000 – Became a member of VISA International
  • January 2002 – Receipt of the license to fulfill bank operations in tenge and foreign currencies
  • July 2003 – Moody’s rating agency assigned Bank a B1 rating for long term and NP rating for short term deposits in foreign currency, E for Financial Strength Rating. Outlook Stable
  • October 2004 – Became a member of Kazakhstan Fund for mortgage loans guarantee
  • July 2006 - Fitch rating agency assigned the Bank with B- Issuer’s Default Rating, and B short-term rating. Outlook Stable
  • November 2006 - Standard & Poor’s assigned Bank В/В long and short term ratings, kzBB national scale rating, Outlook Stable
  • July 2007 - Standard & Poor's changed its Outlook to Positive from Stable. Credit ratings B/B were confirmed. Bank’s local national scale rating was upgraded to kzBВB- from kzBВ
  • September 2008 - Visa International raises the status of the Bank to Principal Member
  • December 2008 - Eurasian Bank and Visa presented world's first exclusive card with diamond and gold ornaments - VISA Infinite Eurasian Diamond Card.
  • October 2009 - appointment of the new Chairman of the Management Board (CEO) – Mr. Michael Eggleton


  • April 2010 – Completion of the acquisition of 99.99% of the shares of Bank Troika Dialog in Moscow
  • June 2010 - Moody's Investors Service assigned a rating of B1 for debt in local currency
  • February 2011 - Acquisition of Micro Credit Organization ProstoCredit from Société Générale
  • December 2011 - Standard & Poor's raises the credit rating of the Bank to B/B, the local rating from kzBB to kzBB+, and changes the outlook from negative to stable
  • December 2011 - The Bank ends the year with more than 450 points of sale throughout Kazakhstan. Client numbers increased by 250,000 to 419,000
  • July 2012 - Euromoney magazine named Eurasian Bank as Best Bank in Kazakhstan
  • July 2012 – Kazakhstani Rating Agency KzRating upgraded the credit rating of the Bank on a national scale from BBB to A- and the international scale from BB- to BB with a Stable outlook
  • August 2012 - Eurasian Bank was named The Best Retail bank in Kazakhstan in 2012 by Asian Banking & Finance
  • November 2012 – The Banker named Eurasian Bank as Bank of the Year in Kazakhstan
  • December 2012 - Deutsche Bank presents Eurasian Bank the 2012 Straight - Through Processing Excellence Award
  • December 2012 - The Bank ends the year with 1,900 points of sale and 648,000 clients
  • January 2013 – Eurasian Bank opens its Private Banking branch for VIP clients, offering wealth management services from international partners
  • January 2013 - Eurasian Bank becomes principal member of MasterCard
  • February 2013 – Eurasian Bank launches its Branch of the Future plan with automated electronic cashiers in to branches in Almaty and Atyrau
  • May 2013 - Michael Eggleton, the CEO, received the CEO of the Year - 2013 award from the American Chamber of Commerce in Kazakhstan
  • July 2013 - Standard & Poor's Maintains the credit rating of the Bank at B+/B+, raises the local rating from kzBBB to kzBBB+, and changes the outlook from stable to positive
  • July 2013 - Eurasian Bank was named The Best Retail bank in Kazakhstan in 2013 by Asian Banking & Finance
  • December 2013 - Eurasian Bank completes first retail loan assignment & servicing transaction in Kazakhstan market. Essentially a synthetic securitization.
  • February 2014 - Moody's rating agency reaffirms Eurasian Bank's B1 rating
  • June 2014 - Eurasian Bank launches mobile banking for retail customers



External links

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  • Template:Official website
  • [1] Kazakhstan Stock Exchange Member page
  • [2] FNMC - Financial regulator website list of second tier banks
  • [3] - National Bank website Statistics on Financial sector

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