"ASYL INVEST" JCS keeps the forecast on net profit of "Halyk Bank" for 2011 on the level of KZT 45.5 billion

/IRBIS, August 17, 2011/ - Analysts of "Asyl INVEST" preserve forecast on net profit of JSC "Halyk Savings Bank of Kazakhstan" in 2011 at 45.5 billion tenge, indicated in the survey released today by the bank's financial results for the first half of 2011. Recall on the eve the bank published its financial results for the first half of 2011. It is noted that the bank's fee income rose yoy by 43%, which analysts "Asyl INVEST" think as positive note, the bank's activities in this period, because last year, this source of income is significantly reduced. "Obviously, the commission profitability of bank is being restored, which is favorable for the growth of net profits", - was stated in the review of the "Asyl INVEST". In this case, as indicated, net interest margin remained stable. In the second quarter value of the index was 4.2%, which at the same period last year. In annual terms, ie over the past four quarters, the margin was 4.5%, also at the level of last year. "Asyl INVEST" also notes that the bank increased lending in the first half, which allowed maintaining profitability. However, the share of high-yield portfolio of assets since the beginning of the year fell 49% to 52%. The Bank remains highly liquid. It was also indicated that the operating efficiency of the bank declined slightly. Y/y growth in operating expenses amounted to 9%. Indicator of cost to income before deduction of provisions rose to 29.8% from 29.3% during the same period of last year. The level of provisions for loan portfolio of the bank amounted to 19.8%, which is higher than at the beginning of the year by 0.9 percentage points. Analysts believe, the bank is forming provisions adequately. It is noted that the bank's capitalization level remains high, the bank's equity capital is 13.2% of assets. Capital still being used inefficiently, as credit growth remains low, but the return on capital increases. Over the past 4 quarters ending the first half of 2011, ROAE of bank was 14%, which is the highest value since 2008. In addition, the profitability of capital at times higher than its competitors, which allows the "Asyl Invest" to give a higher rating on shares on parameter P / BV. "We believe the results are positive for the bank's shares. The Bank is meeting plans to net profit due to stable profitability, a significant increase in fee income and control operating costs and thus generates an adequate provisions for problem loans, whose share in the portfolio of loans from the first quarter of 2011, remains stable. We maintain our forecast of net profit for 2011 at 45.5 billion tenge and our recommendation is to "buy" shares of the bank" - "ASYL INVEST" believes. [2011-08-17]