Kazakh bank Halyk H1 net profit up 8.1 pct

Aug 30. Reuters. ALMATY

* H1 net profit up 8.1 pct yr/yr to 34.2 bln tenge
* Net interest income, assets rise
* Forecast for 2013 net profit unchanged so far

Kazakh bank Halyk H1 net profit up 8.1 pctHalyk Bank, Kazakhstan’s largest lender by assets, said on Friday that first-half net profit rose by 8.1 percent year on year, as its net interest income and assets grew.

Halyk, the oil-rich nation’s most profitable bank, said its net profit in the first six months of this year totalled 34.2 billion tenge ($224 million).

Net interest income before impairment charges increased by 7.8 percent year-on-year to 49.1 billion tenge. Impairment charges fell by 20.7 percent in the same period, reflecting a sufficient provisioning level.

Kazakhstan, Central Asia’s largest economy, weathered the financial crisis and avoided recession, but its banks are still haunted by bad loans, reflecting their past over-exposure to foreign borrowing and bloated real estate markets.

Halyk’s 30-day non-performing loans (NPLs) edged up to 18.7 percent of its loan portfolio as of June 30, from 18.4 percent at the end of March, while 90-day NPLs grew to 17.9 percent from 16.8 percent over the same period.

Halyk’s assets grew by 4.5 percent in the first half of 2013 compared with the first six months of last year.

Halyk said in March it expects its net profit to rise to 74 billion tenge this year from 70 billion tenge in 2012. It did not issue a new forecast for 2013 net profit.

The bank’s largest single shareholder is a company owned by President Nursultan Nazarbayev’s middle daughter, Dinara, and her entrepreneur husband Timur Kulibayev.

($1 = 152.81 tenge)

http://www.reuters.com/article/2013/08/30/halykbank-results-idUSL6N0GV0I420130830

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