Kazakh Kazkommertsbank confirms talks on deal with Halyk Bank

By bne IntelliNews January 22, 2017

Kazakhstan’s largest bank Kazkommertsbank (KKB), recently rebranded as Qazkom, has entered preliminary negotiations for an unspecified “deal” with Halyk Bank, KKB said in a press release on January 20.

The deal possibly refers to merger talks which, according to some reports, the two banks have been engaged in since late 2016. Reuters referred to such talks last November citing sources close to the negotiations, but KKB dismissed its report as false speculation. A merger would create a bank with assets of $27bn, four times the size of the country's third largest bank Tsesnabank, and six times as big as the local unit of Russian Sberbank, which currently ranks as the No.4 Kazakh lender.

“Further information will be provided as and when appropriate,” KKB’s press release added.

The potential merger could only take place after May 2017, when Halyk Bank redeems a $638mn Eurobond issue, as the bond covenants would stand in the way of the deal, according to Reuters.

KKB and Halyk Bank, which are both linked to President Nursultan Nazarbayev, account for 37% of Kazakhstan's banking system assets. There is conjecture that the merger could involve the write-down of bad assets belonging to KKB, which could involve help from the government.

Halyk Bank, listed on the London and Almaty stock exchanges, has a market capitalisation of $1.7bn. Domestically-listed KKB has a market capitalisation of around $540mn.

KKB is controlled by Kazakh businessman Kenes Rakishev, a son-in-law of Defence Minister Imangali Tasmagambetov. In April, Rakishev increased his stake in the lender from 28.67% to 43.15%. He now directly and indirectly (through Qazaq Financial Group) controls 71.23% of KKB's common stock.

Nazarbayev’s daughter Dinara, together with her husband Timur Kulibayev, has a controlling stake in Halyk Bank.

Related Articles

Ukraine's central bank cuts key policy rate to 12.5%

The National Bank of Ukraine (NBU) will cut its key policy rate by 0.5 percentage points to 12.5% per annum from May 26. The move is consistent with the pursuit of inflation ... more

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

World Bank forecasts a 0.4% y/y decline in Belarus's GDP for 2017

The Belarusian economy will decline by 0.4% year-on-year in 2017, followed by a modest growth of 0.7% in 2018 and 1.2% in 2019, the World Bank forecasts in its Belarus Economic Update published on ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss