Kazakhstan’s Halyk Bank reported a 15.3% year-on-year decline in first-half 2026 net profit to approximately KZT 500 billion, reflecting tighter net interest margins and rising funding costs. The bank maintained its full-year 2026 net income guidance at KZT 1 trillion, alongside a return on average equity target of 29%.
Net interest income rose 2.6% to KZT 1.27 trillion, driven by a 12.2% increase in interest income to KZT 1.27 trillion, though this was partially offset by a 21.6% surge in interest expenses. The net interest margin contracted to 6.8% from 7.3% in the prior-year period, while adjusted NIM stood at 7.2% excluding the impact of higher reserve requirements. Operating expenses increased 5.5% year-on-year, lifting the cost-to-income ratio to 19.2% from 17.2% in H1 2025.
Fee and commission income fell 19.6% year-on-year but rose 18.4% sequentially from Q1 2026, as management highlighted competitive pressures in retail transactional banking. Gross customer loans expanded 13.2% year-on-year to KZT 14.0 trillion, with net loans up 13%, while the cost of risk remained stable at 1.4%, projected to reach 1.5% for the full year. Stage 3 loans rose to 8.6% of the portfolio by end-June.
The bank’s market share in retail lending reached 17.8%, with corporate lending at 47.6% of the gross corporate loan book, valued at KZT 6.8 trillion. Retail deposits totaled KZT 8.3 trillion, up 10.5% year-on-year, while SME gross loans grew 24.7% to KZT 2.4 trillion. Digital adoption remained robust, with the Halyk SuperApp reporting 8.6 million monthly active users and 234.7 million payments processed in H1, a year-on-year increase of 8.1%.
Management reiterated guidance for 2026, targeting retail net loan growth of 8% to 10%, corporate and SME net loan growth of 10% to 13%, and total net loan growth of 9% to 12%. Net fee and commission income is expected to rise by 10%, while NIM is forecast around 6.8%. The bank’s shares last traded at $34.05, down 2.85% on the day.
