Kazakh bank Halyk boosts Q1 net profit

June 1. Reuters. ALMATY

Kazakh bank Halyk boosts Q1 net profitHalyk Bank, Kazakhstan’s second-largest lender, said on Tuesday net income almost trebled in the first quarter of 2010 due mainly to a decrease in impairment charges. Halyk said net profit rose to 11.4 billion tenge ($77.6 million) from 4.1 billion tenge in the first quarter of last year. Impairment charges fell by 53 percent year-on-year.

This was partially offset by a 20 percent decrease in net fees and commissions and a lower net gain on foreign exchange operations, as well as higher operating expenses, the bank said.

Non-performing loans accounted for 21 percent of Halyk’s gross loan portfolio as of March 31.

“The most important message here has to be that the bank is breaking away from the pack and the divergence in fundamentals is starting to show through the numbers,” Renaissance Capital analyst Milena Ivanova-Venturini said in a note.

Kazkommertsbank, Kazakhstan’s largest lender, on Tuesday reported first-quarter net profit of $38 million.