Bank CenterCredit reveals details of its deal with Alfa Bank

Bank CenteCredit (BCC) acquired Alfa Bank for $111 million, according to the bank’s financial statement for 2022 published by KASE.

As a result of the deal, the bank gained $187 million in revenue. The deal was closed on May 5, 2022, although no details of the deal were disclosed at the time. The bank was renamed Eco Center Bank and is currently an integral part of BCC.

«Over the period from the date of purchasing to December 31, 2022, the bank’s interest yield and profit grew by $23.9 million and $1.4 million, respectively thanks to Eco Center Bank.»

The BCC’s earnings have grown twofold to $628 million while net profit reached $322 million. The bank’s executives even suggested that if they bought Alfa Bank on January 1, 2022, the consolidated revenue would have reached $344.6 million.

«In order to make this calculation, BCC’s executives admitted that the fair value of the bank they acquired was the same at the moment of the deal and on January 1, 2022,» the report said.

According to Madina Abylkassymova, head of the Agency for Regulation and Development of the Financial Market, BCC is one of several banks that received public funds as financial support. As a result, the bank may face some restrictions when it comes to dividend payouts.