BAKU, Azerbaijan, September 15. International
rating agency Fitch Ratings has affirmed Halyk Bank's Long-Term
Foreign- and Local-Currency Issuer Default Ratings at 'BBB-' with a
Stable Outlook, the bank said.


Fitch also affirmed Halyk Bank's Viability Rating at 'bbb-' and
its National Long-Term Rating at 'AA+(kaz)'.


"Fitch Ratings highlights that Halyk Bank's strong market shares
in Kazakhstan's banking sector, its profitability, adequate
capitalisation and solid liquidity are the key factors supporting
the rating. According to the Agency, the Stable Outlook reflects
its view that Halyk's credit metrics will remain strong in the
medium term", the bank said.


The agency noted that Halyk Bank holds about 29%-30% of
Kazakhstan's banking market in terms of assets, loans and deposits.
Fitch also highlighted the bank's established business model and
strong position in corporate and retail lending, supporting its
profitability through the cycle.


The bank's loan portfolio has a balanced structure, with
corporate lending accounting for about half of gross loans, while
retail lending accounts for 34% and SME lending for 17%. According
to Fitch, single-name concentrations are mitigated by the
reasonable quality of the largest exposures and sound coverage by
hard collateral.


Fitch expects Halyk Bank to maintain its profitability in
2026-2027, supported by a consistently high net interest margin,
which stood at 6.9% in the first half of 2026 on an annualized
basis, strong operating efficiency and a moderate cost of risk.


The agency noted that Halyk Bank's operating profit to
risk-weighted assets ratio averaged 6.7% over the past four
years.







Fitch also assessed the bank's capital position as robust. Halyk
Bank's common equity Tier 1 (CET1) ratio stood at 19% at the end of
the first half of 2026, in line with its four-year average,
supported by strong internal capital generation, moderate growth
and a reasonable dividend policy.


The agency expects the bank's CET1 ratio to remain at 18%-19% in
2026-2027.


Halyk Bank is primarily funded by stable customer deposits,
which accounted for 85% of non-equity funding. The bank's
loans-to-deposits ratio stood at 94%, while its liquidity buffer
covered 27% of total non-equity funding at the end of the first
half of 2026.


"The affirmation of Halyk’s credit ratings by Fitch Ratings
reflects the resilience of the Bank’s business model and its strong
position in Kazakhstan’s banking sector. The maintenance of the
high ratings demonstrates Halyk’s financial strength, the quality
of its loan portfolio and the Bank’s ability to maintain stable
financial performance amid changing economic conditions," the bank
said.


Halyk Bank had total assets of 22.036 trillion tenge as of June
30, 2026, making it the largest lender in Kazakhstan.


The bank has been listed on the Kazakhstan Stock Exchange since
1998, the London Stock Exchange since 2006 and the Astana
International Exchange since 2019. It operates in Kazakhstan,
Georgia and Uzbekistan and has 530 branches and service outlets
across the country.