Halyk Bank Posts 27% Profit Growth

Halyk Bank reported continued revenue growth, with net profit for the first nine months reaching 809.9 billion tenge — an increase of 26.8% year-on-year, Orda.kz reports, citing the bank’s financial statement published on the KASE website.

The rise in profit was supported by growth in lending, insurance operations, and fee and commission income.

Last year’s figures also reflected a low base effect due to early repayment of a deposit at KFU. Adjusted for this one-time event and excess profit tax, underlying profit growth would have been around 20%.

Income from insurance activities nearly doubled, increasing from 26 to 51 billion tenge.

Halyk Bank’s loan portfolio has reached 13 trillion tenge. Since the beginning of the year, it has grown by 8.2%, with the retail portfolio up nine percent and the corporate portfolio up 7.8%. The share of non-performing loans rose to 6.9% due to the moratorium on selling debts to collectors,
 the report states.

The bank’s total assets exceeded 20.4 trillion tenge, including 14.1 trillion in customer deposits. The share of deposits in tenge increased to 71%.

As previously reported, Halyk Bank paid record dividends this year. Common shareholders received a total of 229.2 billion tenge (21 tenge per share). Through Almex Holding, Timur and Dinara Kulibayev hold nearly 70% of the shares, amounting to dividends of 159.3 billion tenge.

Meanwhile, parliament has raised concerns about the bank’s use of the word “people’s” in its name. MP Marat Bashimov asked the Justice Ministry to review whether the private institution is legally entitled to use the term, arguing it may mislead clients.

Financial regulator head Madina Abylkasymova said the issue will be examined.

Original Author: Ruslan Loginov