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.