JSC Halyk Bank (HSBK)
JSC Halyk Bank: Fitch Ratings has upgraded the Long-Term Issuer Default
Ratings of JSC Halyk Bank to 'BB+' from 'BB'. The Outlook is Positive.
04-Dec-2019 / 11:41 CET/CEST
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The issuer is solely responsible for the content of this announcement.
PRESS RELEASE
4 December 2019
Fitch Ratings has upgraded the Long-Term Issuer Default Ratings of JSC Halyk
Bank to "BB+" from "BB". The Outlook is Positive.
On 4 December 2019 the international rating agency Fitch Ratings("Fitch" or
"the Rating agency") has upgraded the Long-Term Issuer Default Ratings(IDRs)
of JSC Halyk Bank ("Halyk" or "the Bank") to "BB+" from "BB" with Positive
outlook. This is the first Bank's rating upgrade by Fitch since January
2014, restoring it to pre 2008 global crises level.
As noted by Rating agency, the IDRs of the Bank are driven by their
intrinsic financial strength, as reflected in the viability rating (VR).
Halyk's "bb+" VR is the highest in Kazakhstan. According to Fitch, it
continues to reflect the Bank's dominant market shares and resulting
superior pricing power, its conservative risk appetite and management, and
favorable asset structure, resulting in stronger asset quality relative to
local peers. In Fitch's view, Halyk's solid capital and liquidity buffers
and its impressive through-the-cycle performance should help the Bank to
successfully mitigate even quite extreme swings in the operating
environment.
The upgrade of the VR of Halyk was driven by a reduction of net problem
assets relative to capital. The Positive Outlook on Halyk's ratings reflects
Fitch's expectations that the ratio of problem assets relative to capital
should reduce further in the next 12-18 months, due to moderate additional
provisioning, further capital built-up, potential collateral sales and some
loan recoveries.
The Rating agency notes that Halyk's profitability benefits from a wide net
interest margin and good cost control. In Fitch's view, this provides the
Bank with a strong capacity to withstand operating environment shocks.
Halyk's annualized RO AE was a high 29% in 9M19. The Bank's profitability
has been very stable, and Fitch expects this to be sustainable with an ROAE
of about 25% in the next few years.
The Rating agency notes that it may upgrade the VR of Halyk if the amount of
net impaired loans, Stage 2 loans and other problem assets relative to Fitch
Core Capital materially reduces, either due to recoveries, or due to deeper
provisioning.
***
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 and asset management. 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.
In July 2017, the Bank purchased majority stake in Kazkommertsbank JSC - the
second largest Bank in Kazakhstan by total assets - and merged it fully in
July 2018.
With total assets of KZT 8,992.4 billion as at 30 September 2019, Halyk Bank
is Kazakhstan's leading lender. The Bank has the largest customer base and
broadest branch network in Kazakhstan, with 631 branches and outlets across
the country. The Bank operates in Georgia, Kyrgyzstan, Russia, Tajikistan
and Uzbekistan.
For more information on Halyk Bank, please visit https://www.halykbank.kz
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For further information, please contact:
Halyk Bank
Viktor Skryl +7 727 259 04 27
ViktorSk@halykbank.kz
Mira Kassenova +7 727 259 04 30
MiraK@halykbank.kz
Margulan Tanirtayev +7 727 259 04 53
Margulant@halykbank.kz
ISIN: US46627J3023
Category Code: MSCM
TIDM: HSBK
Sequence No.: 33212
EQS News ID: 927947
End of Announcement EQS News Service
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(END) Dow Jones Newswires
December 04, 2019 05:41 ET (10:41 GMT)
