Kazakhstan’s two largest lenders reportedly in merger talks

By bne IntelliNews November 16, 2016

Kazakhstan's two largest lenders Kazkommertsbank (KKB) and Halyk Bank are reportedly discussing a merger, Reuters reported on November 15, citing unnamed sources.

The deal, if agreed, 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.

KKB and Halyk Bank, both with links to President Nursultan Nazarbayev, account for 37% of Kazakhstan's banking system assets. On the other hand, the merger could involve the write-down of bad assets belonging to KKB, which could involve help from the government, the report said.

The potential merger could only take place after May 2017, when Halyk Bank redeems a $638mn Eurobond, as the bond's covenants would stand in the way of the deal. according to Reuters. Halyk Bank declined to comment on the report, while KKB's press office said it was unaware of any merger talks.

Halyk Bank, listed on the London and Almaty stock exchanges, has a market capitalisation of $1.7bn. Domestically-listed KKB has a market capitalisation is about $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 shares.

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

Related Articles

Russian central bank reportedly hacked for $31mn from abroad

Russian banks holding deposits in the Central Bank of Russia (CBR) were hacked this year for RUB2bn ($31mn), CNN reported, quoting unnamed CBR officials. "We were lucky to return some of money," ... more

Fitch says Uzbek state-owned banks remain stable

State-owned Uzbek banks remain stable, while their Long-Term Issuer Default Ratings (IDRs) depend on sovereign support, Fitch said a report released on November 28. ... ... more

Azerbaijan eyes privatisation of its largest lender

The Azerbaijani government will communicate a privatisation plan for the country's largest bank, International Bank of Azerbaijan (IBA), in 2017, Rufat Aslanli, chairman of the country's financial ... more

Register here to continue reading this article and 2 more for free or 12 months full access inc. Magazine and Weekly Newspaper for just $119/year.

If you have already registered, enter the information below with the same email you used previously and you will be granted immediate access.

IntelliNews Pro subscribers click here

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

Thank you for purchasing a bne IntelliNews subscription. We look forward to serving you as one of our paid subscribers. An email confirmation will be sent to the email address you have 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.

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

IntelliNews Pro subscribers click here

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.

If you have already registered, enter the information below with the same email you used previously and you will be granted immediate access.

Thank you. Please complete your registration by confirming your email address. The 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