KMF, the largest microfinance organization (MFO) in Kazakhstan, is set to launch banking services this August, the company said in a statement. The decision followed the receipt of permission to convert into a bank from Kazakhstan’s Agency for Regulation and Development of the Financial Market (ARDFM) in March.
On July 30, KMF temporarily suspended its operations, including:
- Microloan repayment via offices, mobile application, KMF and partner teller terminals;
- Issuance of microloans in offices and via the mobile app;
- Restructuring and issuance of certificates and entitling documents.
The company announced that all scheduled payments falling within the suspension period may be settled without extra fees, fines or penalties from Aug. 4 to Aug. 8, until 6 p.m., via KMF terminals and cash desks.
«These changes are intended to better serve our clients so that we can soon offer new banking services. You will be notified when the bank opens,» the statement said.
In March, KMF received permission from the ARDFM to convert into a bank. At the time, the regulator emphasized that this move followed President Kassym-Jomart Tokayev’s directive to increase competition in the banking sector.
On June 25, BNK Finance Kazakhstan, a subsidiary of South Korea’s holding BNK Capital, became the country’s first microfinance organization to receive a banking license. The new bank was named BNK Commercial Bank.
In July, Fitch Ratings affirmed KMF’s Long-Term Issuer Default Rating (IDR) at «B+» and its National Long-Term Rating at «BBB(kaz),» both with Stable Outlooks.
In the same month, Chairman of KMF Management Board Shalkar Zhussupov commented on conversion.
«We are carrying out systematic and extremely scrupulous work aimed at converting into a second-tier bank. At the same time, we will continue to support entrepreneurship while offering businesses a wider range of products,» he said.
KMF has operated in the market since 1997, running 17 branches and 122 offices throughout the country. It provides financial services to individuals and micro, small and medium-sized businesses, alongside support for agricultural development. According to statistics from Kazakhstan’s National Bank, as of April 1, KMF ranks first among 213 organizations in the sector. Its assets total approximately $639 million, with a loan portfolio of around $420 million. Liabilities stand at $518 million, while equity, according to the balance sheet, amounts to $121 million. Net profit is reported at $4.4 million.
According to the Kazakhstan Stock Exchange, as of July 1, 60.44% of KMF shares are held by KMF – DEMEU, while 9.9% are owned by MultiConcept Fund Management S.A. Legal Owner Emerging Markets B.V. and KAZ Finance B.V. each hold 6.72%, and another 6.22% stake belongs to Legal Owner Triodos Funds B.V. In 2024, Kursiv.media reported that the Dutch Triodos Bank, Swiss UBS AG and British M&G Plc are indirect minority shareholders in KMF. Their combined stake decreased from 48.4% to 33.3%, while 6.2% of shares were distributed among approximately 50 key employees.
