BCS Global Markets on 25 June commenced analytical coverage of the Kazakh economy and the leading bank in Kazakhstan – Halyk Bank. The initiation of coverage – BCS GM’s second, after KAZ Minerals (a copper and polymetallic miner) – is yet another step in BCS GM’s commitment to meet the growing demand and appetite of our customers for an expanded portfolio of analytical research with a focus on emerging and developed markets.
Halyk Bank, as Sberbank is for Russia, is the proxy for Kazakhstan and ranks #1 by all metrics – assets, deposits, loans. A merger in 2018 with the 2nd largest bank in Kazakhstan, Kazcommerzbank (KKB), further strengthened the positions of Halyk Bank – with the merger of the two giants, Halyk Bank is now set strongly in a quite underpenetrated market – GDP/loans of 22% vs 46% in Russia.
Kazakhstan’s economy, driven by commodities (crude oil production and the metallurgy) and prudent fiscal policy, rebounded in 2017-18 and is expected to maintain solid, albeit softer, growth in 2019-20.
Kirill Chuyko, Head of Research, BCS GM Research Department commented:
The expanded coverage is a part of our strategy to deliver actionable investment ideas on nearby markets, including Kazakhstan, Ukraine and Georgia. Indeed, the idea speaks for itself – since the release, Halyk Bank stock has gained 8% on the back of a key trigger – dividend policy upgrade.
A message from management of BCS Global Markets
The continuously evolving nature of the global coronavirus situation has meant we at BCS Global Markets (BCS) are taking all necessary steps to keep business disruption to an absolute minimum.
Effective from today (Wednesday 18th March) employees from all divisions of the business based in our Russia, UK, USA and Cyprus offices who can work from home without creating any even minor possible risk for business continuity of the Group will be working remotely. It is very much business as usual at BCS. Our employees are equipped with secure access to our systems and will follow their normal working hours, keeping in regular contact with their colleagues and clients.
Despite ongoing disruption caused by COVID-19, we want to also assure you that following a sustained period of positive performance, our capital and liquidity position remains very strong. The business is well-placed to meet any subsequent financial challenges and will continue to go above and beyond for our clients.