Good day and welcome to the JFC Hallock Bank twelve Month and Fourth Quarter twenty nineteen Results Conference Call. At this time, I would like to turn the conference over to Mira Kasanova. Ma'am, please go ahead.
Thank you. Good evening, ladies and gentlemen. Welcome to conference call and presentation of financial results for twelve months and the 2019. Participants presented today's call on Halibank's site are Mr. Muczaknetova, Chief Executive Officer of Halibank miss Eliak Karpikova, deputy CEO, chief financial officer, mister Murat Kasenov, deputy CEO, corporate banking, mister Omaz Mohanov, chief risk officer, mister Viktor Skrill, head of strategic office, international activities, and myself, Mira Kasenova, head of financial institutions and international relations.
Firstly, let me highlight key milestones of the past year, which demonstrated outstanding performance of HALI Group. In March 2018, HALI Group made early partial prepayment of the bank's Eurobonds. In May, S and P Global waiting upgraded the bank's standalone credit profile from BB minus to BB. Moreover, in May, the Central Bank of Uzbekistan issued a license to new subsidiary, GST Kenya Bank, which started to operate in July. Further, in June, the bank's dividend policy was revised in terms of dividend payout ratio range.
In October, holding group, ARNOC successfully completed secondary public offering. As a result of which, the free float level increased from 16.2% to 26.2%, and the liquidity of GDS has been improved significantly. In December, Fitch Ratings upgraded the rating of the bank from BB to BB plus with positive outlook. Even more, as recently announced, the bank has successfully passed the asset quality review conducted by the National Bank. Secondly, let me present HALI Group's consolidated financial results.
Net income increased by 31.6 to 134,500,000,000.0 for twelve months 2019 compared to 254,200,000,000.0 in year for twelve months 02/2018, mainly due to net interest income growth in twelve months 02/2019. For twelve months 02/2018, the bank had higher loss from impairment of nonfinancial assets of 27,300,000,000.0 tenge compared to 7,400,000,000.0 tenge for twelve months 02/2019. And in q two two thousand eighteen, there was the recognition of tax loss carry forward of 43,300,000,000.0 ten year by KTB due to the merger into Holic Bank. In the year end 02/2019, the total assets increased by 3.1% versus year end 2018 and reached 9,200,000,000,000.0 yen. The structure was improved thanks to the increased share of high yielding loans to customers.
Interest income increased by 4.1% to 710,300,000,000.0 twelve months 2019 compared to 682,000,000,000 for twelve months 02/2018. That was mainly driven by increasing average balances of interest earning assets by 9.8%. Interest expense for twelve months 2018 decreased by 6.4% compared to twelve months 02/2018, mainly due to continuous repricing of retail term deposits following the decrease of deposit interest rate cap by cutoff on deposit insurance funds. As a result of increase in net interest income and due to increase in the share of investment of interest bearing liabilities into interest earning assets and improved asset structure, Net interest margin increased to 5.3% per annum for twelve months 2019 compared to 5.1% per annum in twelve months 2018. The fee and commission income dynamics continued its positive trend in Q4 twenty nineteen, increasing by 4.2% versus end of Q3 versus Q3 twenty nineteen.
Fee and commission income for twelve months twenty eighteen increased by 8.8% versus twelve months 2018 as a result of growing volumes of transactional banking, mainly in payment card operations, as well as letters of credit and guarantees issued. Fin commission expense increased by 40.1% compared to twelve months two thousand eighteen, mainly due to increased number of transactions of other bank cards in the acquiring network of the bank. Operating expenses for twelve months 02/2019, excluding loss from impairment of nonfinancial assets, increased by 3.6% per annum versus twelve months 2,018, mainly due to increase in salaries and other employee benefits as a result of increase in the number of employees and indexation of salaries and other employee benefits from the 03/01/2019. Starting from the introduction of the new loyalty program in q four two thousand eighteen, the expenses related to the bonuses payable to the customers are included in operating expenses related to the advertisement. On the back of lower operating expenses and higher operating income for twelve months 2018 versus twelve months 02/2018, the bank's cost to income ratio decreased to 26% compared to 31.7% for twelve months 02/2018.
On the balance sheet, with the year end, loans to customers increased by 6.9% on a gross basis and 7.8% on a net basis. The increased gross loan portfolio in 2019 was attributable to increase in corporate loans, 5.9% on a gross basis increase, and senior loans, 9.4% on a gross basis, and in in retail, not alone, 7.9% on a gross basis. In stage one, gross loans grew by 11.8% from the beginning of the year, while the stage two and three stage two and stage three growth loans decreased by 9.2%. Bank's ninety day NPL ratio has significantly decreased to 6.9% from 8.2% at the end of q three two thousand nineteen. The provision rate decreased to 9.8%, and the ninety day NPL coverage ratio increased to 145.2%.
Cost of risk of loans to customers for twelve months 2,018 was at 0.7%, a more normalized level compared to 0.5% for twelve months 02/2018, which was mainly due to repayment of a large ticket impaired corporate loan and transfer of few problem corporate loans to subsidiaries in q four two thousand eighteen. The active and successful problem loans look out measures taken by the bank during the past year resulted in significant proof of asset quality, decreasing the stage three ratio to 16% from 19.6% at the end of 02/2018. On this slide, we are additionally showing how well the work out of problem loans collateral was done by the bank SPDs during twelve months 02/2019. On the next slide, we are showing the results of the recently completed AQR by the National Bank. As expected, the current results of the bank did not affect its financial condition and stability.
According to the National Bank, the adjustment on the value of the bank's assets and capital as of the 04/01/2019 could be equal to $18,900,000,000 in Kenya. While this assessment does not take into account changes in the market environment and changes to the bank's portfolio that occurred since the QR check date. Currently, a plan of correcting measurements regarding the recommendations received following the QR is being agreed with the National Bank. The bank's order does not expect any impact of the ATR results on its financial condition and stability. Compared to year end 02/2018, the deposits of legal entities increased by 0.8%.
The deposits of individuals decreased by 4.3% mainly due to partial withdrawal of funds by the bank's customers to finance their ongoing needs and transfer of a part of FX retail deposit into USD denominated bonds placed at Astonia International Exchange. At the end of 02/2019, the share of corporate TEDT deposits in total corporate deposits was 49.4% compared to 49.6% at the end of q three two thousand nineteen, whereas the share of retail TEDT deposits in total retail deposits was 43.7% compared to 42.2%. Compared with the year end 2018, total equity increased by 22.7 as a result of net profit earned by the bank during twelve months 2019. The bank continues to maintain very high capital adequacy ratios. Based on our 2019 financial results, we have provided the forecast for financial year 2020.
Net loan portfolio is expected to grow by more than 10%. Consolidated net income is to be in the area of 50,000,000,000 yen Cost of risk will be around 0.7%. Cost to income ratio is to be below 30%. Net interest margin is expected to be in the area of five percent. Return on average equity is to be more than 25%.
On Slide 18, we are highlighting the main banking regulation developments from January 2020. The next slide is showing our developed unique customer centric ecosystem for retail and corporate clients. On the following slides, we are highlighting our selected strategic initiatives for 2020 in digital space, such as ecosystem, online lending payments, internal digitalization, and switch to digital. We continue to improve the functionality of online banking and enhance our digital product proposition. This completes our presentation.
Now we would like to open the floor for questions, please. Thank you.
Thank you, ma'am. If you would like to ask a question, please signal by pressing star, one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Our first question will come from Elena Sariva with BCS Global Partners.
Good afternoon. Thank you for presentation. I would like to ask several questions. First question is about working results of bondholders on the proposal you did in March. So as I remember, today should be autumn or even yesterday, the results should be announced.
So if you could give any color how this proposal was ordered. This is my first question.
Yes. Hello, Yelena. Yes. Indeed. Yesterday, we made the announcement that, on both, Eurobond issues, we have a quorum and enough votes to declare that the vote was in favor of amendments.
Yeah. Thank you. Thank you very much. So my my second question is mostly, like, your current expectations given, like, all the macro volatility and oil price shock and your if it's really damaged now, your expectations on new payouts of range of 50 to 100, I mean, dividend range dividend payout range for 2019. So if if new inputs really affect negatively your previous expectations or understanding?
Yeah. Thank you for your question. Probably, first, will talk about the current situation of how we we assess them. Actually, this is not the the first time in in in our in recent years when the country and the bank was facing with sharp decrease in oil prices. At least we can remind the year 02/2009, then we can remind 02/2015.
So this is actually not the first time we we are in more or less same situation terms as if if the oil price is is concerned. What we have to say that in current in current situation, actually, the bank is coming with much more stronger position than it was in previous years given our capitalization and given the fact that we already made a lot of cleanup in terms of our in terms of bad loans, which we have both from Khalid Bank itself and those which were came from from from KKB. The country itself, I think, didn't get due due to the problems which the country experienced in 02/2015, 02/2016, we shot at the relation. Actually, we didn't have cases now where we can say that there are bubbles. For example, the prices on real estate are at right level.
The currency has been continuously adjusted due to new policy introduced by the National Bank a few years ago. So from that perspective, I think the country and the bank is facing in much prepared way, if you like, than it was in in previous cases. With regards to your second question, how, it is, or it can affect the dividend payout ratio, we suggest that, to wait until, we make proper announcement because, first, we have to, get the board of directors' recommendation, to to the shareholders' meeting, and then the shareholders' meeting, need to make a decision. So I I I would recommend to wait until the bank will make necessary announcements in this regard.
Thank you very much for detailed explanations and answers. My another question is about three to four months last year was a bit on mild side. So if you just give some color what you expect for this year off commission.
Yes. Actually, the the softer results on fees and commissions, which you're referring to was kind of the function of a few things. One thing, we have, let's say, development of the card business fee. And and there is a second story with regards to situation which which is caused by the the fact that Halik Bank acquires KTB. And so that, to a certain extent, affected, our fees because as we, mentioned few times before, the external payments of customers between Halic and KKD became they became transaction within the bank.
Basically, we have to set zero at least for this kind of this this kind of payment. And secondly, we had some overlap in terms of the customers. And when we have customers who were both customers, Khalik and KB, we need to unify fee structure. In most cases, we were taking the fees which was the lowest for the capital of two of two banks. Now for for that type of fees, actually, we reached probably the base.
So it is better to see how the 2,020 would be compared to 2,019, which as that would be considered as a base. On the card business, yes, we because of situation when we were in the process of merger with KTB, we actually set for technological reasons, freeze our IT developments on on that side. And that was actually in the situation when there was a big dynamic in terms of increase of noncash payments in the country. And after we completed the merger and we unfreezed our development, we start quickly to catch up with our product developments. To name the few, we actually launched launched Apple Pay being the first bank.
This year, we were the first bank which launched Samsung Pay. After that, we are using our own platform for for mobile banking called HomeBank. We launched the HomeBank. Actually opening the contactless payments by using the smartphone on the Android platform. We introduced new loyalty program in the end of last year.
So we expect these initiatives and further work which we continue to do on the product development would eventually benefit our fees and commissions business. But, yeah, normally, it it might take a few time some time before we start seeing, let's say, more better dynamic in on on this line.
Thank you very much. And just maybe another question, if I may. So just in the current share price, like severe declines, we see some companies announcing buyback to support share price levels. And as I understand, one of the paragraphs of the proposal to noteholders was also about conducting buybacks. So if you just can share your views even especially given that capital ratios are quite comfortable on how it so if you could share your views on buyback to be supportive and if you may consider such initiative.
Yelena, we, at this point of time, do not have plans as the bank to make any buybacks of shares.
Understood. Thank you. That's it for me.
Thank you. Our next question comes from Andre Nikolov with Sobo Capital.
Hello. Thank you very much for the call. I have a wide range of questions. I'll start I'll I'll be asking them one by one. I'll start with the one on the the local bondholder meeting, which you disclosed in the very last paragraph of your FY nineteen IFRS report.
It's scheduled for March 18, as I understand. And my question is, do you need the consent of the TANKIBON holders to finally approve the changes the recent changes in your dividend policy?
Yes. We have local bonds in which there is a similar covenant introduced. And we yes. There is a separate process for that. And yeah.
Base basically, the let's say, procedure is more or less the same as we went went through with with dollar euro bonds. And we will make announcements on the report once we have them.
Thank you very much. That's clear. Thank you for this. My second question is on the current market and oil shocks. Basically, I think there are two lines, two trends that could impact you.
First of all, your loan book may become riskier, and you may have to charge more in provisions. But at the same time, as the economy slows down, maybe your plans for loan growth will also moderate. So what do you think will be the total impact on your capital? Would you need more or less capital because of the current event?
Yes, Andre. Thank you for for the question. Yes. We, actually, have different stress with stress tests, which we, on a regular basis, run as as the bank. Yeah.
Under the stress scenario, we think that cost of risk should definitely increase. We might expect that the growth of our CRE portfolio might also slow down, which might affect the profitability which we would expect in the, let's say, base case scenario. But we do not expect that it will affect the capitalization ratios because on the even stress scenario, we we expect the positive results for the bank.
Thank you very much for this. And on sensitivity, you also disclosed a lot in your report, the sensitivity to the changes in exchange rates and the sensitivity to changes in interest rates. But what I would like to ask you is in what you disclosed, there is a sensitivity exercise where interest rates on both Tengue and, say, dollars go up and or simultaneously go down. But what is the bank's sensitivity to the current scenario where the Tengue rates have gone up by three percentage points? As I understand, and the dollar rates have fallen, may keep falling.
So what would be the impact on your capital in the current scenario for the ten year rates, but if the dollar rates follow further, say, by 25 or 50 basis points from the current level? Thank you.
Yes. Thank you, Andre, for this question. Yes. We are not disclosing other sensitivity except the one which we showed in our report. But probably to give you some guide probably the guidance, you must see the situation during 02/1516 when there was a real shock in terms of the increase in in the rates because when when National Bank made Tengir free float, the rates on the money market in Kazakhstan increased from a level of 7% up to up up to above 20%, and and that was for the period of two to three months until the National Bank introduced the base rate, which was initially set at 17%, and then slightly going down within the year till the level of 14%.
So we, at this point of time, while we see this while we can see that this increase as a shock, it's not as as shock as we had as the banking banking sector experienced a few years ago. And even in that shock scenario, which I am referring to, the impact on NIM was, between 50 to 100 basis points for a couple of quarters and, then starts to to normalize to the level which, which we are seeing in more recent period of time. So to summarize, we might expect some some impact on NIM, but we do not consider as as as as, I would say, a sharp sharp effect on on NIM. So probably we're talking about 0.2, 0.3 percentage points, but not at at higher scale.
Thank you very much for this analogy. May I just follow-up on this? And there is also an effect on your bond portfolio. You have both tanker bonds in your book and dollar bonds in your book. What do you think the effect on the loan port oh, I'm sorry, on the bond portfolio re revaluation could be?
Yeah. The because on Tingue bonds, it will be, let's say, the negative impact on dollar, it will be the positive impact. On that basis, it will it will be slightly more than 10,000,000,000 Tingue. The negative.
Billion negative. Yes. As far as I understand. Uh-huh. That would be a negative.
Thank you very much. That's very detailed and a very good analogy. And, actually, my final question is a bit technical. This other noninterest income line increased again in q four twenty nineteen. Could you please explain what drove it?
Maybe just go through the constituents of this line. Thank you.
Just a moment, please. Your question is about the other other income line?
Yeah. Yes. Exactly.
Actually, the main impact was the profits from assets which was sold by our SPVs, which actually, to remind, they are holding the problem assets, which was foreclosed by the bank, and they were sitting at the balance sheet of these SPVs. The main task of them is to work out these assets. So a few, assets have been successfully, being worked out, and, the sale to external parties has been completed with a profit to the bank.
Thank you very much. Thank you. That's all from me.
Thank you. Our next question will come from Andrew Sealy with Group Bank.
Good afternoon. I have a few questions. Some have been answered, but some follow ups. In terms of your expectations of the impact of the asset quality review, you mentioned in your presentation that the roughly 40 basis points impact doesn't take into account any changes in the kind of affected portfolio since April 2019. Given that we're nearly a year down the road from there, can you make any, additional comments as to whether you expect that, you know, this impact will be around this 40 basis points, or, do you think given the changes maybe in collateral, etcetera, it would be lower?
And I'll ask another question afterwards. Thank you.
Yes. Actually, result of the CR, which was published by the National Bank February, is actually a reflection of the bank's portfolio as of April. Actually, since then, the and, actually, the bank will continue to work with its, problem in paying assets, And if your results are not taking into account these facts. And secondly, the bank was on regular basis assess were assessing the right level of provisions against these assets. Actually, if you take into account the fact that bank was working on the repayments, the bank made some adjustment to the provisions.
So all these measures have been taken by the bank during the year 2019. So the results which we are publishing for the full year 2019 already taken into account all the all these actions. So that's why we are saying that we do not expect that we do not believe that the EQL results would have further effects on the on on the financial results of of the bank.
Okay. All right. Okay. That's very helpful. Thank you.
Second question is just generally on the operating environment within this kind of current oil price level. I mean, in the past in Kazakhstan, you know, there's been problems when you've had sharp plunges in the oil price and the currency has moved in terms of unhedged kind of FX lending exposure. And I'm just wondering whether you can just give any comments now as to, you know, whether you see that, as a risk anymore. You know, you have 30% of your loan book or so in FX or that, you know, that really, isn't something we should consider a risk in this environment. Thank you.
The level of dollar portfolio in Kazakhstan is in in our book is probably the lowest which we've had in history because you you can recall to the the realization of our portfolio in previous periods. It was, like, for example, before 02/2015, oil price decrease, it was at the level of roughly 35%. And, actually, now it's at at the level of 28 despite the fact that ENGIE actually developed twice since that time. So, actually, if you would be taking a constant FX rate, the portion would be even lower. That's why I was saying that from loan portfolio, while we reasonably should expect deterioration of the asset quality, our portfolio is much more robust than we had in in, let's say, previous similar situations when the oil price, had experienced such a sharp, sharp sharp reduction.
Okay. Thanks very much for that. And just you mentioned on kind of bond impacts of the rate changes on the kind of bond portfolio, and you mentioned, I think, a kind of negative €10,000,000,000 or so revaluation impact. I mean, is that number kind of included in your your $350,000,000,000 earnings forecast?
Yes. There are, let's say, two things here, Andrew. Thing number one, these, impacts on the bond portfolio is not going through p and l. It's actually the comprehensive income. It it should be affecting the capital directly.
Number two, the guidance which are showing to you today is actually based on our primarily on our budgeted results. It it is it's not, let's say, a reflection of the current situation. We are actually evaluating and following the developments. And at this point of time, it's a bit difficult to assess whether the current shock scenario would have a very, let's say, or relatively short term impact or it it will be more kind of, a longer term situation and longer term environment.
Okay. Yeah. Sorry. That's yeah. Of course, that makes sense on the bond evaluation.
Apologies for that. And I guess the final question is just, clarifying the the kind of margin impact of the, NDK's rate hike. So am I right in thinking you're saying that it it basically has a kind of kind of over the maybe near term next quarter or two, you'd say it has a kind of 20 to 30 basis points negative impact on your margins. Is is that right?
Yes. It's it's kind of not the, hard assessment. It's kind of the, if we're judging from the previous previous experiences when we had to logic scale. So, take it not as, let's say, the the hard guidance, but the more kind of the directional or the the scale type of type of assessment. Because as as we previously mentioned, that's typically our balance sheet is tends to adapt to any changes, upward or downward in in the interest rates.
Like, in current environment, we see, the increased rates actually, might impact the short term corporate deposits when the customers would be asking for high rates on on deposits. At the same time, we have a substantial part of our portfolio in uncommitted working capital facilities where we already also setting rates higher. So there might be some timing difference, which might reflect in some fluctuation of NIM in in the public scale, which I mentioned. But we but our NIM tends to normalize once the both sides of balance sheet is is adapting to new interest rate environment.
Okay. Thank you. And have you have you made changes to your retail deposit rates?
Very, very marginal.
Okay. Alright. Thanks very much for that.
Thank you. Again, as a final reminder, please press star one now if you would like to ask a question. We'll pause for just a moment to allow everyone the opportunity to signal. Again, that is star one if you would like to ask a question. Do have a final question from Tunde Ojo with Harding.
Hi. Thank you for presentation. Just to follow-up on the bond proposal amendment. I just wanna get clarity on that because I was of the view before that it was just the Eurobond approval that you need, but it sounds from it answers previous caller's question that there's also a local bond that you need to get approval for. Just if you don't mind walking me through when you think that person's gonna end, And if you have any other bond at all that you also still need to get approval for before you can actually pay above 50% dividend payout.
Thanks.
Yes. Tunda, hello. Thank you for your question. Actually, the the results would be available on the March 18, and this is the the only decision which we are waiting for. So it's I mean, in terms of the there is no more instruments on which there are similar kind of covenants.
Got it. Thanks. And then thank you. And then a follow-up for me is on the, you know, the banking regulation regarding unsecured consumer loan where there's a restriction on that. I know you've, you know, you've talked in the past that you don't think it's gonna be a big issue for you.
Is that still the case? And if so, you know, just looking at your guidance where you've given over 10% loan growth, are you looking at more corporate or retail or SME to drive that growth? If you can please just maybe talk a little bit about the segments you're thinking about driving that growth. I know you said this guidance was before this whole macro disturbances, but just what's how you're thinking about that even before any sort of macro imbalance? That'd be helpful.
Thank you.
Yes. We still according to our assessment, we still believe the impact on us would be more neutral in terms of the new regulation on the retail loans. With regards to different segments where we are seeing the growth, we expect or we budgeted the growth in all segments in large corporate SMEs and retail. The larger growth was set in SME business followed by retail, and the lowest level of growth we expect in large corporate segment.
Okay.
Great. And then just just finally for me is on your, you know, cost of risk guidance, which is at about 70 basis point, which is sort of the same as last year. I mean, given past episodes of the crisis, would you, you know, now expect that to be much higher than that, say, towards the 1% range, or would you still be confident given the quality of your portfolio today that you could achieve that even in this oil price scenario? Just trying to get your thoughts on that. Thanks.
Yes. The figure which we are showing today is based on the budget, which was drafted in the end of the year end of the last year. With regards to whether that guidance would need further corrections or not, in our opinion, it pretty much depends on how long and how deep the current shock scenario would remain. If we would be in a situation that the oil price would quickly reverse back, and then, potentially, there will be no need for revision. But if we stay in a longer stress scenario and scenario when the oil prices will stay at current level for longer for for few months, the I think, year and Russian ruble would need to further the value If you then adhere the current coronavirus situation, which might potentially impact certain industries, impact travel, and the delivery of goods, then, obviously, we would need to sit down and see how it might impact the credit portfolio.
But probably, it's a bit premature to say what our further guidance would be. So we we need to have more assessment of current situation.
Okay. Great. Thank you very much.
Thank you. We have our next question from Simon Nellis with Citibank.
Hi. Thanks for the call. Actually, most of my questions have been answered. But just on the macro prudential regulation for consumer loans, And you said it's neutral. I guess that's neutral to earnings.
But how much of your portfolio, if the rules applied to it today, would have a risk rate above 150%? And what would be the rough impact on the capital ratio? That would be my first question. And then just maybe a follow-up question on asset quality. I'm actually looking at Page 59 of your financials, and you have a breakdown of the portfolio.
I guess, which sectors do you think are most at risk from both the oil price production and the general coronavirus slowdown issues? That that would be helpful. I I I realize it's early days, but if if you can elaborate, that would be useful. Thanks.
Yes. Probably, I will start from your second question. When if we talk about the purely impact of lower oil prices, then obviously, you would look at the oil and gas segments. There are certain services sectors which are servicing particular oil and gas segment. It's not all under services, but some some fraction of of that.
If you talk about the, let's say, situation when the coronavirus pandemic might might further restrict transportation and move of people, then probably you have to look at the hotel industry, the transportation segments. But I think this is, would be all the same for, for other countries, in similar size. No. Not say, which would, having the similar type of situations.
And just on the services sector, because it's 14% of your portfolio. I mean, what roughly, fraction is serving the oil and gas, sector would would you say roughly?
I cannot tell you by half, but this is something one fifth probably or potential one one quarter.
Okay.
And on your could you please repeat your question on the on the financial regulation? If
if the macro prudential regulation would apply to existing consumer loans, what what what would the impact have been on your capital ratio? I mean, how how how much of your existing consumer loans would have a a risk weight well above or above a 150% now if if it applied retrospectively?
Cannot probably give you the exact figures on on risk weighted assets, but as far our risk management team was calculating, we we didn't saw any material change to the to the risk weighting of our consumer portfolio.
So, basically, you won't have to change much your your underwriting approach?
Yes. Yes. We yes. So we we haven't seen that the change is having material impact on our risk weighted assets and capitalization ratios as a result.
And just last, maybe you can just briefly comment on how business is going I mean, have you seen any initial impacts from the global events, or is business kind of carrying on as usual?
What we have seen, probably, we we start seeing some impact on, coronavirus. Not too much on the, let's say, oil price decrease or, I think, gave correction because I think it's just a decision of of recent days or weeks. But with regards to coronavirus, we we see some some, let's say, at this point of time, sporadic impact when there was some SMEs customers back in February saying that they were facing with delay of equipments, which we're purchasing from from China. Most recently, we saw that transportation has been restricted. Airline transportation has been restricted.
We saw that certain restrictions was imposed on people gathering, like in, for example, cinemas. And, yeah, we we keep looking at the situation. At this point of time, we do not see as a, let's say, a systemic thing or having, let's say, a material impact, but we have some individual cases, of the customers which are asking the bank, at this point of time to, let's say, change the schedule of payments, I would say, for one month because of current situation.
Okay. Thanks very much.
Thank you. Our next question comes from Andrei Mikulov with Sova Capital.
Thank you very much. I have a follow-up question on the meeting of the local of the bondholders. Is there any consent fee offered to the Tengue bondholders? Thank you.
We are not disclosing that to outside the, I would say, bondholders which are concerned.
Thank you. I appreciate that. Thank you.
Thank you. At this time, I am showing no further questions in the queue. I will now turn it back over to management for closing remarks.
Thank you very much for participating in our call today. As usual, our IR team is open for any further questions. Thank you very much. Bye.
Thank you, ladies and gentlemen. This concludes today's teleconference. You may
now disconnect.