Halyk Bank — Favourable outlook for H226
Halyk Bank reported a 16.1% y-o-y decline in net income to KZT212.8bn in Q226, implying an annualised return on average equity of 23.5% in Q226 compared with 32.2% in Q225. The lower net profit was due to the combination of a lower net interest margin (NIM) of 6.7% (vs 7.1% in Q225), resulting from the new minimum reserve requirements gradually introduced from Q325, a fall in net fee and commission (F&C) income, the net insurance result and net foreign exchange gains. That said, management reiterated its FY26 return on equity (ROE) guidance of c 29% (implying a substantial step-up in profitability in H226), as it expects Halyk to benefit from multiple positive factors, including continued robust loan book growth, a reduction in the base rate, strong results from its fx dealing business, rebounding net F&C income, as well as the reversal of some negative effects in the insurance business. Halyk’s extraordinary general meeting (EGM) on 20 August approved the payment of a dividend of KZT28.09 per share, which brings the total payout from 2025 earnings to KZT58.19 (up c 15% y-o-y), implying a c 60% payout ratio and a yield of 15.4% based on the last closing price.
