LSE:HSBK

Stock Analysis Report

Halyk Savings Bank of Kazakhstan

Executive Summary

Joint Stock Company Halyk Savings Bank of Kazakhstan, together with its subsidiaries, provides corporate and retail banking services primarily in the Republic of Kazakhstan, Russia, Kyrgyzstan, Tajikistan, and Georgia.

Rewards

Trading at 67.3% below its fair value

Earnings are forecast to grow 6.7% per year

Earnings grew by 36.9% over the past year

Risk Analysis

High level of non-cash earnings

Unstable dividend track record

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Halyk Savings Bank of Kazakhstan's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HSBK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.6%

HSBK

-14.8%

GB Banks

-2.2%

GB Market


1 Year Return

-22.7%

HSBK

-45.4%

GB Banks

-25.9%

GB Market

Return vs Industry: HSBK exceeded the UK Banks industry which returned -44% over the past year.

Return vs Market: HSBK underperformed the UK Market which returned -25% over the past year.


Shareholder returns

HSBKIndustryMarket
7 Day1.6%-14.8%-2.2%
30 Day-37.1%-31.0%-21.7%
90 Day-33.1%-44.2%-29.6%
1 Year-15.0%-22.7%-43.4%-45.4%-22.2%-25.9%
3 Year45.5%24.3%-42.9%-49.1%-16.1%-26.6%
5 Year46.9%15.4%-43.0%-53.2%-4.6%-26.2%

Price Volatility Vs. Market

How volatile is Halyk Savings Bank of Kazakhstan's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Halyk Savings Bank of Kazakhstan undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HSBK ($8.5) is trading below our estimate of fair value ($26.02)

Significantly Below Fair Value: HSBK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HSBK is good value based on its PE Ratio (3.3x) compared to the Banks industry average (4.7x).

PE vs Market: HSBK is good value based on its PE Ratio (3.3x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: HSBK is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: HSBK is overvalued based on its PB Ratio (0.8x) compared to the GB Banks industry average (0.4x).


Next Steps

Future Growth

How is Halyk Savings Bank of Kazakhstan forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HSBK's forecast earnings growth (6.7% per year) is above the savings rate (0.5%).

Earnings vs Market: HSBK's earnings (6.7% per year) are forecast to grow slower than the UK market (15.6% per year).

High Growth Earnings: HSBK's earnings are forecast to grow, but not significantly.

Revenue vs Market: HSBK's revenue (2.4% per year) is forecast to grow faster than the UK market (2.4% per year).

High Growth Revenue: HSBK's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HSBK's Return on Equity is forecast to be high in 3 years time (23.1%)


Next Steps

Past Performance

How has Halyk Savings Bank of Kazakhstan performed over the past 5 years?

26.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HSBK has a high level of non-cash earnings.

Growing Profit Margin: HSBK's current net profit margins (55.3%) are higher than last year (44.4%).


Past Earnings Growth Analysis

Earnings Trend: HSBK's earnings have grown significantly by 26.3% per year over the past 5 years.

Accelerating Growth: HSBK's earnings growth over the past year (36.9%) exceeds its 5-year average (26.3% per year).

Earnings vs Industry: HSBK earnings growth over the past year (36.9%) exceeded the Banks industry 29.6%.


Return on Equity

High ROE: HSBK's Return on Equity (25.6%) is considered high.


Next Steps

Financial Health

How is Halyk Savings Bank of Kazakhstan's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HSBK has a low level of unsold assets or inventory.

Debt Coverage by Assets: HSBK's debt is covered by short term assets (assets are 2.2x debt).


Financial Institutions Analysis

Asset Level: HSBK's level of assets compared to its equity is low.

Allowance for Bad Loans: HSBK has a low allowance for bad loans.

Low Risk Liabilities: HSBK's liabilities are made up of primarily low risk sources of funding.

Loan Level: HSBK has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HSBK's loans are broadly funded by customer deposits.

Level of Bad Loans: HSBK has a high level of bad loans (14.54%)


Next Steps

Dividend

What is Halyk Savings Bank of Kazakhstan's current dividend yield, its reliability and sustainability?

10.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HSBK's dividend (11.34%) is higher than the bottom 25% of dividend payers in the UK market (2.67%).

High Dividend: HSBK's dividend (11.34%) is in the top 25% of dividend payers in the UK market (7.36%)


Stability and Growth of Payments

Stable Dividend: HSBK has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: HSBK's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.6%), HSBK's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HSBK's dividends in 3 years are forecast to be covered by earnings (72.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Umut Shayakhmetova (50yo)

11.25s

Tenure

Ms. Umyt Bolathanovna Shayakhmetova has been Chairman of Management Board and Chief Executive Officer of Joint Stock Company Halyk Savings Bank Of Kazakhstan (also known as Halyk Bank of Kazakhstan) since  ...


Leadership Team

NamePositionTenureCompensationOwnership
Umut Shayakhmetova
Chairperson of the Management Board & Director11.25yrsno datano data
Aliya Karpykova
Deputy Chairperson of Management Board and Deputy Chairperson of Finance8.5yrsno datano data
Zhannat Satubaldina
Deputy Chairman of Management Board and Deputy Chairperson of Operations1.75yrsno datano data
Murat Koshenov
Deputy Chairman of the Management Board5.58yrsno datano data
Aivar Bodanov
Deputy Chairman of the Management Board2.08yrsno datano data
Yertai Salimov
Deputy Chairman of the Management Board5.17yrsno datano data
Aslan Talpakov
Deputy Chairman of Management Board4.75yrsno datano data
Nurlan Zhagiparova
Deputy Chairman of the Management Board1.75yrsno datano data
Dauren Sartayev
Deputy Chairman of the Management Board1.75yrsno datano data
Mikhail Kablashev
Deputy Chairman of the Management Board & Deputy Chairman of IT Development1.08yrsno datano data

3.4yrs

Average Tenure

46yo

Average Age

Experienced Management: HSBK's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Umut Shayakhmetova
Chairperson of the Management Board & Director11.25yrsno datano data
Alexander Pavlov
Independent Chairman of the Board16.08yrsno datano data
Christof Ruehl
Independent Director12.83yrsno datano data
Franciscus Cornelis Kuijlaars
Independent Director11yrsno datano data
Arman Dunaev
Independent Director6.58yrsno datano data
Mazhit Tuleubekovich
Director6yrsno datano data
Anton Musin
Independent Director1yrno datano data

11.0yrs

Average Tenure

61yo

Average Age

Experienced Board: HSBK's board of directors are seasoned and experienced ( 11 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.5%.


Top Shareholders

Company Information

Joint Stock Company Halyk Savings Bank of Kazakhstan's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Joint Stock Company Halyk Savings Bank of Kazakhstan
  • Ticker: HSBK
  • Exchange: LSE
  • Founded: 1923
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: US$2.477b
  • Shares outstanding: 291.41m
  • Website: https://halykbank.kz

Number of Employees


Location

  • Joint Stock Company Halyk Savings Bank of Kazakhstan
  • 40 Al-Farabi Avenue
  • Almaty
  • A26M3K5
  • Kazakhstan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HSBKLSE (London Stock Exchange)YesGDR EACH REPR 40 ORD SHS'REGS' (SPON)GBUSDDec 2006
H4L1DB (Deutsche Boerse AG)YesGDR EACH REPR 40 ORD SHS'REGS' (SPON)DEEURDec 2006
HSBKLBATS-CHIXE (BATS 'Chi-X Europe')YesGDR EACH REPR 40 ORD SHS'REGS' (SPON)GBUSDDec 2006
37QBLSE (London Stock Exchange)GDR EACH REPR 40 ORD SHS '144A' (SPON)GBUSDApr 2009
HSBKKAS (Kazakhstan Stock Exchange)Common SharesKZKZTMay 2009

Biography

Joint Stock Company Halyk Savings Bank of Kazakhstan, together with its subsidiaries, provides corporate and retail banking services primarily in the Republic of Kazakhstan, Russia, Kyrgyzstan, Tajikistan, and Georgia. It operates through four segments: Corporate Banking, Small and Medium Enterprises Banking SME, Retail Banking, and Investment banking. The company originates loans and guarantees; collects deposits; trades in securities and foreign currencies; executes transfers; and offers cash and payment card processing, and other banking services. Its products and services include current and correspondent accounts; various deposit products; investment savings products; credit and debit cards; consumer loans and mortgages; custody, cash, and foreign currency related services; overdrafts; other credit facilities; and letters of credit, trade finance products, foreign exchange, documentary, and capital market services. In addition, it offers leasing, telecommunications, broker and dealer, cash collection, and asset management services; and property and casualty, liability, personal, and life insurance products, as well as Internet, online, mobile, and SMS banking services. The company serves individuals, corporate clients and financial organizations, and SME clients and individual entrepreneurs. As of December 31, 2018, it operated through 23 regional branches, 121 sub-regional offices, and 503 cash settlement units. The company was founded in 1923 and is headquartered in Almaty, the Republic of Kazakhstan. Joint Stock Company Halyk Savings Bank of Kazakhstan operates as a subsidiary of JSC Holding Group ALMEX 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 21:19
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.