Buying BTA Bank may have harm Halyk Bank: Standard & Poor’s

BTA Bank. Photo courtesy of vesti.kz

Buying BTA Bank may have a negative effect on the financial condition of Halyk Bank Kazakhstan, KazTAG reports citing the analytical report of Standard & Poor’s called Kazakhstan Banking Outlook 2013: Problem Loans Remain High In A Shifting Competitive Landscape. "As we understand, upon agreement of the government Samruk-Kazyna National Welfare Fund offered its share in BTA Bank to Kazakhstan Halyk Bank in exchange for Halyk Bank's share in the Kazakhstan Halyk Bank Pension Fund. In case of this deal Halyk will become the biggest Kazakhstan bank by assets and its market share will make over 25 percent. However, the influence of this deal on its financial profile may be negative, considering the stressful financial situation BTA Bank is currently is," the Agency's report says. "Smaller Alliance Bank and Temirbank are different (from BTA) because they have good positions in the retail segment; Temirbank also shows good capitalization," the Agency writes. "These banks may be of higher interest to potential buyers. Besides, UniCredit bank plans to sell ATFBank, Kazakhstan's fifth biggest bank assets, to Kazakhstan investors," the analysts remind.

Buying BTA Bank may have a negative effect on the financial condition of Halyk Bank Kazakhstan, KazTAG reports citing the analytical report of Standard & Poor’s called Kazakhstan Banking Outlook 2013: Problem Loans Remain High In A Shifting Competitive Landscape. "As we understand, upon agreement of the government Samruk-Kazyna National Welfare Fund offered its share in BTA Bank to Kazakhstan Halyk Bank in exchange for Halyk Bank's share in the Kazakhstan Halyk Bank Pension Fund. In case of this deal Halyk will become the biggest Kazakhstan bank by assets and its market share will make over 25 percent. However, the influence of this deal on its financial profile may be negative, considering the stressful financial situation BTA Bank is currently is," the Agency's report says. "Smaller Alliance Bank and Temirbank are different (from BTA) because they have good positions in the retail segment; Temirbank also shows good capitalization," the Agency writes. "These banks may be of higher interest to potential buyers. Besides, UniCredit bank plans to sell ATFBank, Kazakhstan's fifth biggest bank assets, to Kazakhstan investors," the analysts remind.

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