ALMATY, KAZAKHSTAN - S&P Global Ratings has elevated the long-term issuer credit rating of Halyk Bank to 'BBB-/A-3' from 'BB+/B', bringing it in line with Kazakhstan's sovereign ratings. Announced on December 12, 2024, the upgrade also includes a national scale rating increase to 'kzAAA' from 'kzAA+', setting a historic high for the bank.
Umut Shayakhmetova, CEO of Halyk Bank, sees the upgrade as a testament to the bank's strong financial health, effective risk management, and commitment to sustainable growth. Shayakhmetova expressed that the new rating is a nod to the market's trust in Halyk Bank, making it the first bank in Kazakhstan to achieve an investment-grade rating from all three major credit rating agencies.
The bank's position reflects its leading market share in Kazakhstan, strategic business diversification, and management's track record of robust financial performance. S&P underscored Halyk Bank's sound capitalization, bolstered by steady earnings and a balanced dividend policy. The bank's risk profile is considered adequate, with a noteworthy decrease in Stage 3 loans to 6.9% as of September 30, 2024, from 12.3% at the end of 2020.
Halyk Bank's liquidity is solid, supported by a stable deposit base that accounts for approximately one-third of the market share in Kazakhstan—the highest in the country. The stable outlook from S&P suggests an anticipation of Halyk Bank maintaining a stable financial performance over the next 18-24 months.
Halyk Bank stands as the leading financial services group in Kazakhstan, with a broad portfolio that includes retail, SME, and corporate banking, along with insurance, leasing, brokerage, and asset management services. The bank, which has been listed on multiple stock exchanges, is the largest lender in Kazakhstan with total assets of KZT 17,650.1 billion. It also has the most extensive branch network in the country and operations in Georgia and Uzbekistan.
This financial news is based on a press release statement issued by Halyk Bank.
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