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Halyk Bank of Kazakhstan plans to increase its net profit in 2014 up to 90-100 billion tenge

August 24, 2014

Joint Stock Company 'Halyk Savings Bank of Kazakhstan' released its interim condensed consolidated financial information for the 6 months ended 30 June 2014.

Interest income increased by 18.5% for 1H 2014 vs. 1H 2013 mainly due to increase in average balances of loans to customers by 14.2% and in average interest rate on loans to customers to 12.0% p.a. for 1H 2014 from 11.6% p.a. for 1H 2013.

Interest expense increased by 1.2% for 1H 2014 vs. 1H 2013 mainly due to increase in average balances of interest-bearing FX term deposits of individuals and legal entities.

The increase in interest expense was partially offset by 27.3% decrease in average balances of debt securities issued and their average interest rates to 7.6% p.a. from 8.1% p.a. As a result, net interest income before impairment charge increased by 32.0% to KZT 64.8bn for 1H 2014 vs. 1H 2013.

Impairment charge decreased by 79.2% for 1H 2014 vs. 1H 2013, mainly due to repayments of overdue indebtedness of some corporate clients in 1Q 2014 which led to release of provisions.

During 2Q 2014 the Bank wrote-off fully provisioned non-performing loans for KZT 57.8bn without legally forgiving claims on the borrowers. As a result allowances for loan impairment decreased by 8.9% vs. 31 December 2013, whereas provisioning level decreased to 16.2% as at 30 June 2014 vs. 17.9% as at 31 December 2013.

The Bank will continue collection of these written-off loans in accordance with its regular procedures.

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Source: AKIpress News Agency (Kyrgyz Republic)

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