BAKU, Azerbaijan, September 7. S&P Global
Ratings has affirmed its 'BBB-/A-3' issuer credit ratings and
'kzAAA' national scale rating on Halyk Bank, while revising the
outlook on its long-term global scale ratings to positive,
according to the agency.


Halyk Bank remains the largest bank in Central Asia. While its
operations are less diversified than those of similarly rated
European, Middle Eastern and African peers, the bank holds a
predominant domestic market share of about 30% in terms of loans
and deposits, S&P said.


The agency expects Halyk Bank to retain high levels of capital
adequacy, with its risk-adjusted capital (RAC) ratio projected at
about 9.0%-9.5% over the forecast period. Its earnings buffer,
which measures the bank's ability to cover normalized losses, is
expected to remain above 3%, which S&P considers high in an
international context.


At the same time, asset quality indicators have been slipping,
with Stage 3 loans reaching 8.6% as of mid-2026. However, S&P
expects the reclassification of corporate exposures and eventual
write-off of retail Stage 3 loans, together with resilient
macroeconomic prospects, to result in nonperforming loans trending
below 7% in 2027-2028.


"The positive outlook on Halyk Bank reflects our view that the
eventual slowdown in inflation and lower policy rates - together
with resilient economic growth - may help reduce the economic risks
faced by the banking sector of Kazakhstan," S&P said.


S&P noted that Kazakh banking regulation and supervision has
continually improved, which, combined with accumulated solid
capital and sovereign strength, will help preserve stability in the
Kazakh financial system and enable it to better navigate business
and economic cycles.







Therefore, the agency revised upward its industry risk score for
the Kazakhstani banking sector to '6' from '7'. The industry risk
trend is now stable.


Following the recent upgrade of Kazakhstan's sovereign rating to
'BBB/A-2' on August 21, 2026, S&P revised the economic risk
score for the country's banking sector to positive from stable.


The agency said the revision reflects its expectation that
resilient macroeconomic prospects could gradually ease potential
sources of economic imbalances, specifically elevated inflation,
faced by domestic financial institutions. Together with stronger
regulatory oversight, this should translate into better asset
quality metrics, which S&P still sees as a weakness of the
Kazakh banking sector.


According to Trend's analysis, the positive outlook on Halyk Bank
reflects a broader improvement in the assessment of Kazakhstan's
economy and financial sector. The upgrade of the country's
sovereign rating to BBB from BBB- in August was followed by
improved ratings for several major Kazakh companies and financial
institutions, indicating stronger confidence in the country's
economic and institutional conditions.


The improvement in Kazakhstan's banking sector assessment is
also supported by stronger regulation, solid capitalization and
expectations of easing inflationary pressures. If these trends
continue, they could further strengthen the credit profiles of
Kazakh banks and other major borrowers.