REG - JSC Halyk Bank JSC Halyk Bank-37QB - Moodys upgrades ratings at the sovereign - Baa1

Halyk Bank AOAnnouncement

16/09/2024 07:30

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RNS Number : 2997E  JSC Halyk Bank  16 September 2024

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

 

- ENDS-

 

For further information, please contact:

 Halyk Bank

 Mira Tiyanak     +7 727 259 04 30

                  MiraK@halykbank.kz

 Nurgul Mukhadi   +7 727 330 16 77

                  NyrgylMy@halykbank.kz

 Rustam Telish    +7 727 330 15 66 RustamT3@halykbank.kz

 

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