JSC Halyk Bank (HSBK)
JSC Halyk Bank: Halyk Bank has confidently passed the Asset Quality Review
initiated by the National Bank of the Republic of Kazakhstan
28-Feb-2020 / 10:48 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
RESULTS OF INDEPENDENT ASSET QUALITY REVIEW (AQR)
OF COMMERCIAL BANKS
HAVE PROVED HIGH RELIABILITY AND STABILITY OF HALYK BANK
28 February 2020
Halyk Bank (the "Bank") has confidently passed the Asset Quality Review
initiated by the National Bank of the Republic of Kazakhstan (the "National
Bank").
The Bank's asset quality is confirmed by the results of AQR provided by the
National Bank. Despite the fact that approaches applied for the review were
highly conservative, the findings will not affect the capital adequacy and
financial performance of the Bank.
The AQR results once again reaffirm the appropriateness of Bank's
development and growth strategy, and objectively reflect the position of the
Bank in the banking sector of Kazakhstan as a reliable and strong partner
for its customers.
International rating agencies also highly appreciate the Bank's position in
terms of balance sheet quality. On 4 December 2019 the international rating
agency Fitch Ratings upgraded the Long-Term Issuer Default Ratings (IDRs) of
Bank to "BB +" from "BB" with Positive outlook. The Bank's intrinsic
financial strength rating (Viability Rating) was also upgraded to "bb +",
which is the highest in the banking sector of Kazakhstan. The financial
strength rating reflects the Bank's rating excluding external support (on a
solo basis).
The upgrade of the rating of the Bank was driven by a reduction of net
problem assets relative to capital. The Positive Outlook on Bank's ratings
reflects Fitch's expectations that the ratio of problem assets relative to
capital should reduce further in the midterm, due to moderate additional
provisioning, further capital built-up, potential collateral sales and some
loan recoveries. Rating also reflects the Bank's dominant market shares, its
conservative risk appetite and management, and favorable asset structure.
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
- ENDS-
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: MSCL
TIDM: HSBK
Sequence No.: 49695
EQS News ID: 986009
End of Announcement EQS News Service
(END) Dow Jones Newswires
February 28, 2020 04:48 ET (09:48 GMT)
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