UPDATE 3-Kazakh bank Halyk raises 2012 net profit forecast

Mon Nov 19, 2012 9:15am EST

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* Halyk raises 2012 net profit forecast to 60-64 bln tenge

* 9-month net profit up 92 percent to almost 54 bln tenge

* Outlines dividend policy, sees loan growth in 2013-2015

* Non-performing loans increase (Recasts with new full-year profit target)

ALMATY, Nov 19 (Reuters) - Halyk Bank , Kazakhstan's second-largest lender by assets, raised its 2012 net profit forecast after earlier posting a 92 percent increase in 9-month net profit on Monday.

The bank said it now expects full year net profit of between 60 billion and 64 billion tenge ($399 million-$425 million) from a previous forecast of 60 billion tenge.

Halyk Bank, the most profitable of the Central Asian nation's 38 banks, said earlier its net profit rose year-on-year to almost 54 billion tenge ($359 million) in the first nine months.

Assel Atinova, head of financial institutions at the bank, said during a conference call that the revised net profit target was subject to the performance of the bank's pension fund and volatility on the international securities market.

Halyk's net profit grew by 9.1 percent last year to 39.5 billion tenge, falling just short of its original forecast for net income in 2011 of 40 billion to 45 billion tenge.

Atinova said Halyk's gross loan portfolio was expected to grow by 7 percent this year.

Outlining its strategy for the next three years, the bank said in a presentation to shareholders that it planned to increase its loan portfolio by 10 percent annually from 2013 to 2015.

The bank said it would pay out a minimum 15 percent - and potentially as much as 50 percent - of net profit in dividends in each of the next three years.

Halyk's largest single shareholder is a company owned by President Nursultan Nazarbayev's middle daughter, Dinara, and her entrepreneur husband Timur Kulibayev.

Persistent bad loans continue to hamper the recovery of Kazakhstan's banking sector, hit hard by the global financial crisis in 2007-08 which laid bare banks' exposure to bloated real estate markets and their reliance on external funding.

Halyk said its 30-day and 90-day non-performing loans (NPLs)increased to 20.8 percent and 19.8 percent, respectively, as of Sept. 30 from 20.1 percent and 18.8 percent on June 30.

It said the increase in 30-day and 90-day NPLs was partially offset by the repayment of a number of delinquent loans.

Halyk created regulatory provisions that covered 30-day NPLs by 117.6 percent and 90-day NPLs by 122.4 percent as of Sept. 30, 2012. (Reporting by Mariya Gordeyeva; Writing by Robin Paxton and Dmitry Solovyov; Editing by Helen Massy-Beresford and Mike Nesbit)

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