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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
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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 +7 727 259 04 30
Yelena Perekhoda +7 727 330 17 19
ISIN: US46627J3023
Category Code: MSCM
TIDM: HSBK
Sequence No.: 5025
End of Announcement EQS News Service
639469 15-Dec-2017
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(END) Dow Jones Newswires
December 15, 2017 05:05 ET (10:05 GMT)
