Halyk Bank - Almaty Trip: Warmth in a Winter Chill
We visited chilly Almaty this week (-25 degrees, but a lot warmer than Astana) to meet Halyk Bank's management, National Bank officials and some other banking sector representatives. Our overall impression was positive: the macro backdrop is supportive (3.5%+ 2018E GDP), the banking sector cleanup is clearly progressing, and Halyk Bank appears to be working hard on its merger with KKB. There are many areas in which the two banks complement each other and which offer potential synergies. Halyk Bank's management also plans to get out on the road in the coming weeks, which is very welcome. We expect more numbers in terms of synergies and guidance around the 4Q17 results, due in March. Halyk Bank's share price is up 31% YTD and 23% since we published our strong BUY note in early January. We retain our positive view on the stock, keeping a BUY recommendation and target price of $16 per GDR.
Sberbank CIB Investment Research is a research firm offering equity, fixed income, economics, and strategy research. It covers analysis on all aspects of Russia’s capital markets, issues and industries. The firm analyzes trends in Russia and combines local knowledge with a global perspective. It processes macroeconomic data, market and company-specific news, stock quotes and other information for providing research reports. The firm provides details and latest prices on the most traded names and most traded paper on all segments Russian market. In strategy research, it provides thematic research, tips and descriptions of the methodology used to evaluate companies.
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