Kazakh bank Halyk sees loss in Q1 due to provisions

* Recorded loss in Jan-Feb, expects to extend into March

* Loss due to provisions against bad loans

By Olzhas Auyezov

MOSCOW, April 15 (Reuters) - Halyk (HSBKq.L), Kazakhstan's third-largest bank, said on Wednesday it expects to incur a net loss in the first quarter of 2009 because of rising provisions.

Halyk's net income plunged 64 percent last year to $96 million due to rising impairment charges. Managing director Dauren Karabayev told a conference call the bank had continued creating reserves this year as non-performing loans grew.

This resulted in a net loss in January-February 2009 to Kazakh accounting standards, he said, without giving the exact figure. Kazakh banks do not give monthly updates to international accounting standards.

"We do expect a loss in March as well," Karabayev said during the conference call. "In terms of (full-year) net income, we cannot provide any meaningful guidance."

He said Halyk could come up with an outlook after reporting results for the first or second quarter.

Economic growth in Kazakhstan has almost halted after a decade of rapid expansion, making it hard for borrowers to repay bank loans. Some banks, in turn, are having trouble repaying their own debt.

One large bank, Alliance (ALLBq.L), announced debt restructuring plans earlier this week while another lender, BTA BTAS.KZ, is considering such an option. (Editing by David Holmes)