| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | -100 |
| Intrinsic value (DCF) | 55336.62 | 172020 |
| Graham-Dodd Method | 16.20 | -50 |
| Graham Formula | 479.00 | 1390 |
JSC Halyk Bank (HSBK.L) is a leading financial institution in Kazakhstan, offering a comprehensive suite of banking and financial services across retail, corporate, SME, and investment banking segments. Headquartered in Almaty, the bank operates extensively in Kazakhstan and has a growing presence in Russia, Kyrgyzstan, Tajikistan, Georgia, and Uzbekistan. Halyk Bank provides a diverse range of services, including deposit products, consumer loans, mortgages, trade finance, foreign exchange, and insurance solutions. With a robust network of 24 regional branches, 120 sub-regional offices, and 445 cash settlement units, the bank serves individual customers, SMEs, and large corporate clients. As a subsidiary of JSC HG Almex, Halyk Bank benefits from strong domestic market penetration and a well-established brand. The bank’s digital transformation, including online banking services, enhances customer accessibility and operational efficiency. Operating in a high-growth Central Asian market, Halyk Bank is strategically positioned to capitalize on regional economic expansion and increasing financial inclusion.
Halyk Bank presents a compelling investment case due to its dominant position in Kazakhstan’s banking sector, strong profitability (net income of $920.99 billion KZT in FY 2023), and consistent dividend payouts ($2.25 per share). The bank’s low beta (0.659) suggests relative stability compared to broader market volatility. However, risks include exposure to geopolitical tensions in Central Asia and reliance on Kazakhstan’s commodity-driven economy. The bank’s zero total debt and substantial cash reserves ($1.78 trillion KZT) provide financial resilience, while its diversified revenue streams mitigate sector-specific risks. Investors should monitor regulatory changes in Kazakhstan and regional economic conditions.
Halyk Bank holds a dominant position in Kazakhstan’s banking sector, leveraging its extensive branch network and strong brand recognition. Its competitive advantage lies in its diversified service offerings, spanning retail, corporate, and investment banking, which reduce dependency on any single revenue stream. The bank’s digital initiatives, including online banking and card processing, enhance customer retention and operational efficiency. However, competition is intensifying with the rise of digital-first banks and fintech entrants in Central Asia. Halyk Bank’s regional expansion (particularly in Uzbekistan and Georgia) provides growth opportunities but also exposes it to regulatory and currency risks in emerging markets. Compared to regional peers, Halyk Bank benefits from scale and government-backed stability but faces challenges in innovation and customer acquisition against agile competitors. Its zero-debt balance sheet and high liquidity position it well for strategic acquisitions or weathering economic downturns.