ALMATY - S&P Global Ratings has upgraded the long-term issuer credit rating of Joint Stock Company "Halyk Bank of Kazakhstan" to 'BBB-' from 'BB+', bringing the bank's rating in line with Kazakhstan's sovereign credit score. The short-term rating was also raised to 'A-3' from 'B', and the national scale rating improved to 'kzAAA' from 'kzAA+'. This adjustment, announced on Wednesday, reflects a change in the rating agency's anchor for Kazakh banks and positions Halyk Bank at a historic peak, matching the country's sovereign ratings.
The stable outlook provided by S&P is based on the expectation of Halyk Bank's consistent financial performance over the next 18-24 months. The agency has recognized Halyk Bank's strong market position in Kazakhstan, its diversified business operations, and experienced management. S&P also acknowledged the bank's solid liquidity, stable deposit base, and a market share of approximately one-third, the highest in the nation.
Halyk Bank's CEO, Umut Shayakhmetova, sees the upgrade as a significant achievement for the bank, noting it as the first in Kazakhstan to receive an investment-grade rating from all three major credit rating agencies. Shayakhmetova attributes this success to the bank's robust financial health, effective risk management strategies, and commitment to sustainable growth.
The bank's capitalization has been deemed adequate by S&P, supported by strong earnings and a balanced dividend policy. The agency also highlighted a decrease in the proportion of loans classified as Stage 3, which have dropped to 6.9% as of September 30, 2024, from 12.3% at the end of 2020.
Halyk Bank is the largest financial services group in Kazakhstan, with a broad portfolio that includes retail, SME, and corporate banking, as well as other financial services. The bank has a significant presence in the country, with 563 branches and service outlets, and operates internationally in Georgia and Uzbekistan. As of September 30, 2024, Halyk Bank reported total assets of KZT 17,650.1 billion.
The information in this article is based on a press release statement from Halyk Bank.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.