Credit in Focus: Halyk Bank – The last standalone report. Good performance overall: With the KKB transaction expected to close later in the year, the H1 results will 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.