ASTANA, Kazakhstan, August 17. Kazakhstan's Halyk Bank has increased the capitalization of JSC Halyk Bank Georgia by acquiring 18,000 preferred shares of the Georgian branch for over $11 million, Trend reports.
This transaction occurred on August 3, 2023, and was designed to promote the expansion outlined in the development strategy of JSC Halyk Bank Georgia, according to the interim condensed consolidated financial statements of Halyk Bank issued from January through June 2023.
The entire ownership of Halyk Bank Georgia is held by Halyk Bank. The Georgian branch began operating in the banking industry in 2008 and primarily provides services to corporations, small and medium-sized organizations, and individuals.
Halyk Bank Georgia has eight branches, according to Halyk Bank's 2022 annual report. The bank's share of the Georgian market amounted to 1 percent by assets at the end of 2022, with total assets of 984 million lari, equivalent to 170 billion tenge ($367 million). The loan book (gross amount) amounted to 660 million lari, equivalent to 114 billion tenge ($246 million) at the end of 2022, while the equity amounted to 155 million lari, equivalent to 26 billion tenge ($56 million). Net profit for 2022 amounted to 14 million lari, equivalent to 2 billion tenge ($2 million).
Halyk Bank also owns affiliate institutions in Georgia, including JSC Halyk Bank Kyrgyzstan and JSCB Tenge Bank in Uzbekistan. In 2022, Halyk Bank sold its subsidiary banks in Russia (the buyer of Moskommertsbank is unknown) and Tajikistan (CJSC International Bank of Tajikistan acquired 100% of the shares). In its annual report for 2022, Halyk Bank places a strong emphasis on the strategic direction of Uzbekistan's globalization.