Fixed Income Analysis /

HALYK BANK: Q2 review: Good results overall

    Tolu Alamutu
    Tolu Alamutu

    Credit Research Analyst, Banks

    Tellimer Research
    22 August 2017
    Published byTellimer Research
    The last standalone report? With the KKB transaction expected to close later in the year, these results may well be the last figures for Halyk as we currently know it. Our Sell recommendation on the Halyk (HSBKKZ) 2021 bond primarily reflects the view that, given the bank’s best-in-class fundamentals, it is difficult to construct a scenario in which a combination of Halyk with KKB looks better than a standalone Halyk. Performance in the second quarter was good. Halyk reported net income of over KZT40bn, generating an annualised ROE of 22.1%. Solid core revenue growth helped offset a qoq rise in provisions, and capital and liquidity metrics remained strong.