UPDATE 1-Kazakhstan's Halyk Bank 2007 profit jumps 49 pct

(Adds 2008 outlook, CEO comments)

ALMATY, March 25 (Reuters) - Halyk (HSBKq.L) HSBK.KZ, Kazakhstan's third-largest bank, said on Tuesday its net income rose 49 percent in 2007 to 40.5 billion tenge ($336 million), but projected slower growth of 30 percent this year.

Halyk has mostly dodged the direct effects of last year's global liquidity squeeze thanks to its conservative borrowing and lending strategies. But like other Kazakh banks, it faces high rates on fresh foreign borrowing and the general economic slowdown triggered by the credit crunch.

"We are continuing our lending business as usual but under tighter credit conditions," Halyk Chief Executive Grigory Marchenko said during a conference call.

Some of Halyk's peers such as Kazkommertsbank (KKGByq.L) and Alliance (ALLBq.L) have projected no growth or even a decline in assets and loans due to the need to repay foreign debt.

"We do not need to repay any big-ticket external borrowing in 2008 and it gives us a lot of flexibility," Marchenko said.

He said Halyk was not in a rush to expand despite high demand for loans and would maintain large cash reserves, which currently amount to $3 billion.

"Because of our strong position as a safe haven, we can do a lot of cherry picking," he said.

Marchenko said Halyk would also benefit from the credit crunch since it has stalled the growth of the bank's key cost drivers -- property prices and salaries.

Real estate prices have fallen in Kazakhstan's main cities, Almaty and Astana, after the liquidity squeeze and some large banks are sacking employees to cut costs. (Writing by Olzhas Auyezov)