Halyk Bank of Kazakhstan Joint Stock Company (HSBK.L) Stock Analysis

Halyk Bank is Kazakhstan’s largest universal banking group and a systemic pillar of the country’s financial system, with roots dating to 1923 and a modern positioning as a diversified, digitally-led financial ecosystem. It combines leading retail, SME, and corporate banking with market-strength positions in insurance, leasing, brokerage, and asset management. Scale is the moat: ~29.5% sector asset share and >35% retail deposit share, supported by the country’s largest branch network (531 outlets), enabling access to low-cost, sticky funding. In 2025, profitability remained exceptional: net income attributable to shareholders rose 14.9% to KZT 1,058,417m and ROAE reached 32.6%, as interest income grew 24.1% on a 13.9% expansion in gross loans. Non-interest income also advanced, with net fees +11.9% and insurance income +26.1%, increasingly driven by the Halyk Super-App (11.1m active retail users) and OnlineBank (371k+ SME/corporate clients). While Kazakhstan is the core market, Halyk is expanding into higher-growth Central Asian corridors—especially Uzbekistan, where exposure increased 34% in 2025—building optionality beyond a maturing home market.