16
September 2024
Moody's Ratings upgraded long
term deposit ratings of Halyk Bank to the
historically
high level - 'Baa1' at par with
sovereign; Outlook
Stable
On 12 September 2024, Moody's
Ratings (Moody's) has upgraded long-term deposit ratings to
the historically
high level - 'Baa1'
at par with sovereign. The outlook is stable.
The rating action follows the
upgrade of Kazakhstan government rating to Baa1 from Baa2 and
change the outlook to stable from positive on 9 September 2024,
which was driven by Moody's assessment that ongoing enhancements to
the institutional and policy framework, combined with sustained
momentum in economic diversification away from hydrocarbons have
and will continue to enhance Kazakhstan's resilience to
shocks.
Moody's expects that the Bank will
be able to preserve its credit metrics which have already improved
during the last two-three years, and that its growing and maturing
franchise will support profitability. Also, rating agency
anticipates that the greater economic resilience will cap cost of
risk while greater stability of monetary fundamentals will support
liquidity through greater stability of deposit base.
As a result, Moody's upgraded
Halyk's long-term deposit ratings to Baa1 from Baa2 and changed its
outlook on the long-term deposit ratings to stable from
positive.
The upgrade reflects Moody's
expectation that the improved operating environment will allow the
Bank to preserve its capital, liquidity and profitability, improve
asset quality and reduce their volatility.
The rating agency notes Halyk's
strong capitalisation and improvement in its asset quality with
problem loans to gross loans reduced to 7.2% at end-H1 2024 (7.5%
in 2023) from 8.6% at end- 2021 and 12.3% a year earlier.
Also, Moody's points out, that the
Bank enjoys a very strong franchise, which translates into sound
net earnings with return on average assets above 4%.
About Halyk
Bank
Halyk Bank is Kazakhstan's leading
financial services group, operating across a variety of segments,
including retail, SME & corporate banking, insurance, leasing,
brokerage, asset
management and lifestyle services. Halyk Bank has been listed on
the Kazakhstan Stock Exchange since 1998, on the London Stock
Exchange since 2006 and Astana International Exchange since October
2019.
With total assets of KZT 16,749.9bn
as at 30 June 2024, Halyk
Bank is Kazakhstan's leading lender. The Bank has the largest
customer base and broadest branch network in Kazakhstan, with 568
branches and outlets across the country. The Bank also operates in
Georgia and Uzbekistan.
For more information on Halyk Bank, please visit https://www.halykbank.com
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ENDS-
For
further information, please contact:
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Halyk Bank
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Mira
Tiyanak
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+7 727 259 04
30
MiraK@halykbank.kz
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Nurgul Mukhadi
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+7 727 330 16 77
NyrgylMy@halykbank.kz
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Rustam Telish
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+7 727 330 15 66
RustamT3@halykbank.kz
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