Halyk Bank reports 10% growth of share price

Shares of Halyk Bank, the too-big-to-fail bank in Kazakhstan, have grown by 9.8% to $0.35, according to KASE. This increase has been driven by the good mood of investors who cheered the bank’s decision about dividend payouts of $0.056 per one common share, Freedom Broker reported.

«An announcement about upcoming dividend payouts of $0.056 per share has triggered this increase in share price. There was nothing unexpected to us but for the market, the size of dividends was a nice surprise,» Freedom Broker said in a statement.

Halyk Bank now wants shareholders to approve this decision. If they support the payout, the bank will start the process of dividend payouts on June 6, 2023.

«Once the dividend payouts are done, all other money left will be added to an unallotted net profit,» Halyk Bank’s draft agenda of an upcoming annual general meeting says.

Last year, the bank’s net profit rose by 19.8% to $1.2 billion. Given that 10.9 million common shares are available for trading while the aggregated amount of payouts is about $609 million, Halyk Bank is going to pay out roughly 50% of its net profit.

As of December 2022, Halyk Bank possessed $31.4 billion worth of assets, which makes it the leader in the banking sector of Kazakhstan. There are two major stakeholders in the bank: the holding group Almex (69.52%) and The Bank of New York Mellon (28.52%).