UPDATE 2-Kazakh bank Halyk raises 2010 profit f'cast

* 2010 net income forecast 32-33 bln tenge

* H1 net income 16.6 bln tenge

* Higher net fees, lower impairment charges

* Higher H1 net than rival Kazkommertsbank

(Adds forecast, quotes)

ALMATY, Aug 31 (Reuters) - Halyk Bank HSBK.KZ (HSBKq.L), Kazakhstan's No. 2 lender by assets, raised its 2010 net profit forecast on Tuesday after its first-half income quadrupled thanks to lower bad loan charges.

Halyk, the country's most profitable bank, expects 2010 net income to reach 32 billion to 33 billion tenge ($217-$224 million), more than double its profit last year, Deputy Chief Executive Dauren Karabayev told a conference call.

"If in 2010 our earnings growth is more about low provisioning charges, next year we expect that earnings will be growing on the back of higher revenues -- more lending -- but also recovery of NPLs," Karabayev said.

Kazakhstan's banking sector, one of the first and hardest hit by the global financial crisis, is recovering in tandem with an improving economy. Gross domestic product grew 8 percent in the first six months of 2010. Halyk boosted net income to 16.6 billion tenge in the first half of 2010, attributing its growth to a 51.8 percent fall in its loan impairment charge, as well as an increase in net fees and commission income and a decrease in interest expense.

In terms of net income, the bank outperformed domestic rival Kazkommertsbank KKGB.KZ(KKGByq.L), which on Friday reported a net first-half profit of 10.2 billion tenge ($69 million).

Halyk said its net interest income increased to 19.1 billion tenge in the first six months of 2010 from a year-ago loss of 5.5 billion tenge.

Net loans to customers fell 3.7 percent as loan repayments exceeded new loans issued.

Halyk halved its loan growth target from the 10 percent forecast at the end of the first quarter.

"We expect loan growth to be around 5 percent for 2010," said Karabayev. "But we expect that the corporate segment will grow faster, by approximately 7 percent."

Halyk posted net income of 15.9 billion tenge in 2009, which despite the financial crisis was 9 percent higher than the previous year, propped up by fees and commissions. (Reporting by Robin Paxton and Olga Orininskaya; Editing by Will Waterman)