S&P Global ratings upgrade
S&P Global has upgraded Kaspi Bank's credit rating to BB+, recognizing the bank's robust financial performance and strategic growth. Kaspi Bank, a key part of Kaspi.kz's Fintech platform, received an upgrade in its long-term global scale rating from BB to BB+ with a stable outlook. The Kazakhstan national scale rating was also lifted to kzAA+ from kzAA-. The rating agency highlighted Kaspi.kz's unique strategy, leading brand, superior asset quality, and strong financial track record. Over the past five years, Kaspi.kz has maintained an average return on equity (ROE) of 80%, with expectations of continued strong earnings. The company's diversification into Payment and Marketplace Platforms has been a significant contributor to its growth and customer loyalty. CEO Mikhail Lomtadze acknowledged the efforts of the team and expressed gratitude to their consumers and merchants.
- Kaspi Bank's credit rating upgraded to BB+ by S&P Global.
- Kazakhstan national scale rating increased to kzAA+.
- Kaspi.kz maintained an average ROE of 80% over the past five years.
- Strong earnings generation expected over the next two years.
- Diversification into Payment and Marketplace Platforms enhances customer loyalty.
- None.
Insights
The upgrade of Kaspi Bank's credit rating from 'BB' to 'BB+' by S&P Global is a significant event that reflects improved financial stability and credibility. This upgrade indicates enhanced confidence in the bank's ability to meet its financial commitments. For retail investors, this could potentially mean lower borrowing costs for Kaspi Bank, which may translate to better profitability and higher returns on equity. Additionally, the bank's average ROE of 80% over the past five years is extraordinarily high, showcasing efficient management and strong earnings. Retail investors should note the stabilizing effect this rating can have on the stock, potentially making it a more attractive investment in both the short and long term.
From a market perspective, the increased credit rating to 'BB+' opens up new funding opportunities at more favorable terms, allowing Kaspi.kz to expand its Payment and Marketplace Platforms even further. This strategic growth can stimulate customer loyalty and create synergies, enhancing the company's market position. Importantly, the upgrade to ‘kzAA+’ on the Kazakhstan national scale emphasizes strong local market confidence. For investors, this diversification and expansion strategy could lead to sustained revenue growth, making the stock potentially more attractive. However, it's essential to monitor local market conditions and regulatory environment, as these can significantly impact future performance.
ALMATY, Kazakhstan, June 26, 2024 (GLOBE NEWSWIRE) -- S&P Global upgraded its credit rating to BB+ for Kaspi Bank, a core part of Kaspi.kz’s Fintech Platform. S&P cited Kaspi.kz’s unique strategy, leading brand, superior asset quality, strong financial track-record and ability to keep delivering growth across its Fintech, Payments and Marketplace Platforms.
- Long-term global scale rating upgraded to 'BB+' from 'BB' with a stable outlook.
- Kazakhstan national scale rating on Kaspi Bank raised to ‘kzAA+’ from ‘kzAA-’.
According to S&P Global;
- Led by its experienced management team, Kaspi.kz’s has built a leading franchise and positive track record, strategically developing its business mix through the cycle.
- Kaspi.kz is diversifying by rapidly expanding its Payment and Marketplace Platforms, which stimulates customer loyalty and creates synergies.
- Return on equity (ROE) has averaged
80% over the past five years, with superior earnings generation expected over the next 2 years. - The group has strengthened its capitalization over the past several years and is expected to remain strongly capitalized going forward.
Mikhail Lomtadze, CEO & co-founder of Kaspi.kz, commented:
“We have once again received high praise from a leading ratings agency. S&P has tracked our company for many years and watched our unique and highly successful Super App strategy unfold. Today’s results recognise the hard work and dedication of our team here in Kazakhstan. We’re trusted by 14 million Kazakhstanis and 700 thousand merchants, most of whom are small and medium-sized businesses. Thank you to each and every one of our consumers and merchants for being with us.”
About Kaspi.kz
Kaspi.kz’s mission is to improve people’s lives by developing innovative mobile products and services. To deliver upon this, we operate a unique, two-sided Super App model – Kaspi.kz Super App for consumers and Kaspi Pay Super App for merchants. Through these Super Apps, consumers and merchants can access our leading Payments, Marketplace and Fintech Platforms. All our services are designed to be highly relevant to users’ everyday needs and enable consumers and merchants to connect and transact using our proprietary payments network. The combination of a large, highly engaged consumer and merchant base, best-in-class, highly relevant digital products and a capex lite approach has resulted in strong top-line growth and a profitable business model, and has enabled us to continue innovating, delighting our users and fulfilling our mission.
Harvard Business School has written two case studies on Kaspi.kz which it continues to teach to its Masters students.
Kaspi.kz has been listed on Nasdaq since 2024.
For further information david.ferguson@kaspi.kz +44 7427 751 275
Forward-looking statements
Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of Kaspi.kz. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might", the negative of such terms or other similar expressions. Kaspi.kz wish to caution you that these statements are only predictions and that actual events or results may differ materially. Kaspi.kz does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Kaspi.kz, including, among others, general economic conditions, the competitive environment, risks associated with operating in Kazakhstan, rapid technological and market change in the industries the Company operates in, as well as many other risks specifically related to Kaspi.kz and its respective operations.
FAQ
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