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It will take some time for Kazakh Tsesnabank to restore the stability of its funding base, reards a message by S&P Global Ratings.

"We expect the bank’s profitability to be pressured in the next 12-18 months, given increased risks and competition in the sector," the rating agency noted.

S&P Global Ratings lowered its long-term issuer credit rating on Tsesnabank to 'B-' from 'B' and its Kazakhstan national scale rating to 'kzBB-' from 'kzBB+'.

The message says that the bank’s deposit reduction in November was lower than in September and October 2018. Retail deposits decreased by 1.6 percent in November, versus 24.7 percent in September and 22.2 percent in October. At the same time, corporate deposit outflows reduced by 14 percent in November compared with 18 percent in September and 16 percent in October.

"The bank has received substantial support of 400 billion tenge from the government from its portfolio disposal, and we expect the bank to receive another 50 billion tenge in the near future. However, we consider that proceeds from the sale were mostly used to repay the deposits of corporate customers and individuals," S&P Global Ratings said.