 HISTORY
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Halyk Bank of Kazakhstan was founded in 1923 as
a Kazakhstani branch of Soviet SberBank and re-organized
in 1993 as the state savings bank was historically
one of the only Soviet banks that dealt exclusively
in the retail banking market.
Through several steps of gradual privatization
made in 1996-2001 a number of private companies
and over 33,000 private individuals acquired the
state stake and became the shareholders. Halyk
Bank is 100% private commercial bank as of the
time being. Its shares listed on Kazakhstani stock
exchange.
Previous five years were the period of rapid changes
for Halyk Bank. Significant quality changes and
dynamic development lead its way to the position
among top-three commercial banks in Kazakhstan.
MARKET POSITION
Halyk Bank with 16% of total banking assets is
a core bank in Kazakhstani banking system.
Halyk Bank is active both in retail and corporate
market with its country-wide presence through
its unrivalled branch network of 624 branches
and outlets. This allows the bank to tap both
retail and corporate depositors (with market shares
of 27.7% and 22% accordingly) as a source of cheap
and stable funding.
On the lending side, Halyk Bank penetrates a rapidly
growing retail lending (market share of 22.7%)
and attracts new customers to its captured consumer
base (market share of 15.8% in corporate lending).
Its support to the growth of SMEs is also substantial
(with market share of 38% in SME lending).
Halyk Bank also carries the social role by its
agent role in distribution of state salaries,
pensions and other payments from the Government
of the Republic of Kazakhstan.
The Bank holds the major share of Kazakhstani
retail market in payment cards. Wide ATM network
(365 ATMs being 60% of the total ATMs) and over
1 mio payment cards (being ca. 70% of the total
cards issued) represents the key features of the
recognized country leader in Kazakhstani payment
card market.
In addition, Halyk Bank is probably considered
by the population to be the safest domestic bank,
due to its historical financial stability, social
role, and Government backing history. In 1998-1999,
Halyk Bank has effectively maintained a stable
position despite the adverse economic environment,
which was catalysed by the recent Russian and
Asian economic crisys and the devaluation of national
currency Tenge in April 1999.
Further to its new strategy Halyk Bank is turning
its activities internationally. The newly created
International Dept. positions Halyk Bank in the
international markets and accelerate co-operation
with foreign commercial banks and multinational
institutions in Trade and Project Finance. Halyk
Bank uses different types of international facilities
for facilitating financing for Kazakhstani most
important production and infrastructure projects.
It also plans to tap international capital markets
with a Eurobonds issue in 2003.
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Halyk
Bank has the following keys to success:
· It's extensive customer base permitting
to break into new niches and increase market share
in various sectors;
· access to low cost funding from its strong
depositor base assisting in tight competition among
top banks;
· close relationships with the Government
enabling the Bank to be main payment and collection
agent;
· competent and ambitious management tapping
new markets and prime customers;
· capturing international markets and diversifying
Halyk Bank's funding
· close collaboration with global financial
institutions in trade finance enabling to create
new products to satisfy customers' demands
· new market strategy in retail lending aimed
on breakthrough both in mass market and HNWIs.
| PERFORMANCE |
Halyk Banks's main financial indicators as 30 Sept
2002 are:
- assets of KZT 169.908 bln ($1.099 bln),
- share capital of KZT 7,672 bln ($49.6 mio),
- total equity of KZT 12.528 bln ($81 mio),
- net income for 3Q of KZT 1.100 bln ($7.1 mio).
TARGET NICHES
Halyk Bank's strategy positions as the universal
commercial bank active in all sectors with relevant
range of customised products for all customers ranged
by categories.
Being a bank with strong and extensive base of corporate
customers, Halyk Bank is rapidly developing its
retail presence. Halyk Bank's strategy is to divide
retails markets by sectors and relevant products
customization enabled Halyk Bank to conquer a substantial
27.6% of total retail deposits and 53.7% of retail
deposits in local currency. The products are delivered
through a unique extensive branch network of 624
units via separate channels of VIP centers, Personal
Banking and Mass Banking. The program of consumer
lending and mortgage loans has been launched in
2002.
On the side of corporate lending Halyk Bank is doing
best effort in increasing the quality of its services
provided to the existing clients and creating new
relationships in the light of tight competition
in the corporate sector.
The lending to SMEs will be the market of high priority
for Halyk with the assistance of the EBRD program
for SME support in Kazakhstan and Halyk Bank's inner
expertise and its ample source of finance and the
branch network.
As Halyk Bank still undergoes major recent challenges,
its strategy is addressing the following tasks:
· Retaining and increasing its customer base
in strict competition;
· Improvement its IT to facilitate internal
accounting/management systems and customer interface;
· Decrease operating costs to increase overall
performance;
· Enter new niche markets & diversify
its products;
· Capture international markets
We all at Halyk Bank would like to invite all interested
companies and banks consider Kazakhstan among other
investment targets in emerging markets. Halyk Bank
of Kazakhstan would be delighted to provide its
reliable hand of a partner.
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