BOARD OF DIRECTORS OF HALYK BANK APPROVES INTEGRATION WITH KAZKOMMERTSBANK

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JSC Halyk Bank (HSBK) 
BOARD OF DIRECTORS OF HALYK BANK APPROVES INTEGRATION WITH KAZKOMMERTSBANK 
 
15-Dec-2017 / 11:04 CET/CEST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
 BOARD OF DIRECTORS OF HALYK BANK APPROVES INTEGRATION WITH KAZKOMMERTSBANK 
 
                                           15 December 2017, Almaty 
 
   The Board of Directors of Halyk Bank ('Halyk') has approved the merger of 
 Kazkommertsbank (Qazkom) into Halyk Bank. It is expected to be finalised in 
   the second half of 2018, subject to prior completion of all the necessary 
                                 procedures, including regulatory approvals. 
 
The decision to merge Qazkom into Halyk Bank will enable Halyk to strengthen 
  leadership positions in all key business segments, enhance client-oriented 
   approach with a focus on service quality, broaden product proposition and 
           further develop digital solutions based on best market practices. 
 
      The initial steps in business and operational synergies began with the 
      unification of ATM networks in July 2017. Subsequently, Halyk Bank and 
     Qazkom implemented a number of joint projects in card business. Further 
 integration processes suggest unification of product and service standards, 
                               as well as integration of the two IT systems. 
 
     The merger of Qazkom into Halyk Bank is expected to deliver a number of 
   synergies, including more effective internal control and risk management, 
cost optimisation and further improvements in overall financial performance. 
 
      "After five months of meticulous hard work together with international 
      consultants behind, we can state with confidence that potential of the 
    merger is significant, both in scope and influence on Kazakh economy, as 
 well as a number of neighbouring countries. The merger of Qazkom into Halyk 
    Bank is the most optimal solution for further development of the Group," 
said Umut Shayakhmetova, CEO of Halyk Bank. "The core integration goal is to 
maximise synergies by combining the strengths of both Halyk Bank and Qazkom. 
 We will retain the best of both institutions: knowledge, vast experience in 
 servicing millions of customers, the most competitive products and services 
  of both banks, the country's most developed banking infrastructure and the 
    best risk management of Halyk, as well as technologies and high customer 
                                           service standards of Qazkom." 
 
    During the integration stage, Halyk Bank and Qazkom will focus on smooth 
     operation of both banks with minimum possible inconvenience for all the 
   stakeholders. After the merger of Qazkom into Halyk Bank, the latter will 
  become the legal successor of all the Qazkom's obligations towards lenders 
                                           and debt holders. 
 
                                        About Halyk Bank and Kazkommertsbank 
 
      Halyk Bank is Kazakhstan's leading financial services group, operating 
    across a variety of segments, including retail, SME & corporate banking, 
     insurance, leasing, brokerage and asset management. Halyk Bank has been 
  listed on the Kazakhstan Stock Exchange since 1998 and on the London Stock 
                                           Exchange since 2006. 
 
In July 2017, the Bank purchased majority stake in Kazkommertsbank JSC - the 
                          second largest Bank in Kazakhstan by total assets. 
 
    With total consolidated assets of KZT 8,674.6 billion as at 30 September 
   2017, Halyk Bank is Kazakhstan's leading lender. The Bank has the largest 
  customer base and broadest branch network in Kazakhstan, with 719 branches 
  and outlets (including 220 branches and outlets of Kazkommertsbank) across 
      the country. The Bank also operates in Georgia, Kyrgyzstan, Russia and 
                                           Tajikistan. 
 
        For more information on Halyk Bank and Kazkommertsbank, please visit 
                   https://www.halykbank.kz [1] and http://www.qazkom.kz/en/ 
 
                     - ENDS- 
 
For further information, please contact: 
 
Halyk Bank 
 
Mira Kasenova    [phone] 
Yelena Perekhoda [phone] 
 
ISIN:          US46627J3023 
Category Code: MSCM 
TIDM:          HSBK 
Sequence No.:  5025 
 
End of Announcement EQS News Service 
 
639469 15-Dec-2017 
 
 
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December 15, 2017 05:05 ET (10:05 GMT)