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UPDATE 1-Kazakhstan's Halyk Bank says KKB deal to affect profitability, dividend
March 13, 2017 / 7:43 AM / 8 months ago

UPDATE 1-Kazakhstan's Halyk Bank says KKB deal to affect profitability, dividend

(Adds quotes, context)

ALMATY, March 13 (Reuters) - Kazakhstan’s second-biggest lender, Halyk Bank, said it will pay a dividend this year if a planned takeover of rival Kazkommertsbank (KKB) falls through.

Halyk, which has this month provisionally agreed to take over KKB, expects its net income to rise to over 140 billion tenge ($440 million) this year from 131.4 billion in 2016, Chief Executive Umut Shayakhmetova told reporters.

“If the deal with KKB happens, then obviously the numbers will change with respect to assets and profitability,” she said.

“If the KKB deal does not happen, the bank (Halyk) may pay a very large dividend.”

Halyk did not pay a dividend from 2015 profit, but in the previous years, it had paid out at least 25 percent of annual profits in dividends.

Shayakhmetova did not say how much Halyk would pay for KKB.

Kazakhstan’s central bank said separately on Monday that KKB would sell half of its assets to a state-run ‘bad bank’ before its proposed takeover by Halyk. (Reporting by Mariya Gordeyeva; Writing by Olzhas Auyezov; Editing by Maria Kiselyova and Louise Heavens)

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