REG-JSC Halyk Bank JSC Halyk Bank: Information Note on Current Situation

Halyk Bank AOAnnouncement

04/03/2022 07:00

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   JSC Halyk Bank (HSBK)
   JSC Halyk Bank: Information Note on Current Situation

   04-March-2022 / 07:50 CET/CEST
   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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                     Information Note on Current Situation

   Halyk Bank ("Bank") is  closely following the  development of the  current
   geopolitical situation and greatly  hope that it  will stabilize, and  the
   parties will come to  a peace agreement. It  is worth noting that  ongoing
   events do not have a direct impact on Kazakhstan.

    

   Halyk Group has no direct exposure to Ukraine, neither  on any  sanctioned
   entity.

    

   We have clients - legal entities, which have trade relations with  Russian
   counterparties or  which  logistic  routes go  through  the  territory  of
   Russian Federation. According to our initial estimation, at the moment  we
   have not identified the material risks in our credit portfolio related  to
   supply chain disruptions of our  borrowers. As the situation is  evolving,
   we continue our assessment.

    

   Since 23 February, 2022,  KZT devalued by  more than 13%  vs. USD. At  the
   same time, it  strengthened by  more  than 17%  vs. RUB.  It  is worth  to
   mention, that  over the  past  10 years  the country  experienced  several
   devaluations of a greater magnitude.

   It is also important to note, that the share of foreign currency loans  is
   now at a historic low. Around 20% of the Banks' loan portfolio provided in
   foreign currency, mostly to companies with FX revenues.

    

   In order to prevent the spread of the consequences of an external shock to
   the country's economy, on 24 February, 2022 the National Bank of  Republic
   of Kazakhstan  has increased  the base  rate from  10,25% to  13,5%. As  a
   result, the interest rates on newly issued loans and newly placed deposits
   have started to be repriced.

    

   Halyk Group has limited exposure to Russia mostly via its subsidiary - JSC
   CB Moskommertsbank. It is a  small bank, which is  not even included in  a
   TOP-100 Russian banks. The bank has  an exposure mainly in the retail  and
   SME segment. As of 30  September 2021 and 9 months  of 2021, the share  of
   Moskommertsbank in Halyk Group's total assets and net income was 1.1%  and
   0.7% respectively, on  consolidated IFRS  basis. In addition  to that,  we
   have exposure to couple of Russian corporates directly on balance sheet of
   Halyk Bank.  Both  these  corporates operate  retail  trade  centers  with
   combined net exposure of KZT  26.8 bn or 0.5%  of net credit portfolio  of
   the Halyk Group.

    

   We are closely  following and managing  the situation to  ensure that  the
   Bank safely goes through these challenging times.

    

   About Halyk Bank

    

   Halyk Bank  is Kazakhstan's  leading financial  services group,  operating
   across a variety of segments,  including retail, SME & corporate  banking,
   insurance, leasing, brokerage  and asset management.  Halyk Bank has  been
   listed on the Kazakhstan  Stock Exchange since 1998,  on the London  Stock
   Exchange since 2006 and Astana International Exchange since October 2019.

    

   With total assets of KZT 11,284.5 bn  as at 30 September 2021, Halyk  Bank
   is Kazakhstan's leading lender. The Bank has the largest customer base and
   broadest branch  network  in Kazakhstan,  with  591 branches  and  outlets
   across the country. The Bank  operates in Georgia, Kyrgyzstan, Russia  and
   Uzbekistan.

    

   For more information on Halyk Bank, please visit https://www.halykbank.com

    

                                    - ENDS-

    

    

    

   For further information, please contact:

                        
   Halyk Bank
                        
                        
    
                       +7 727 259 04 30
   Mira Kassenova
                       MiraK@halykbank.kz
                        
    
                       +7 727 259 04 53
   Margulan Tanirtayev
                       Margulant@halykbank.kz
                        
    
                       +7 727 330 16 77
   Nurgul Mukhadi
                       NyrgylMy@halykbank.kz

    

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   ISIN:          US46627J3023
   Category Code: MSCL
   TIDM:          HSBK
   Sequence No.:  146814
   EQS News ID:   1294357


    
   End of Announcement EQS News Service

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