Permission for establishment of Halyk Project LLP.

11 October 2012

PRESS-RELEASE

Оn obtaining the permission for establishment of "Halyk Project" LLP,

the subsidiary on management of doubtful and bad assets (the "SPV")

Joint Stock Company "Halyk Savings Bank of Kazakhstan" ("Halyk Bank") (LSE: HSBK) announces that it has been the first among commercial banks of Kazakhstan to receive the regulator's permission for establishment of the subsidiary on management of doubtful and bad assets.

According to the resolution of the National Bank of the Republic of Kazakhstan №308 dated 21 September 2012, Halyk Bank was issued the permission №1 dated 4 October 2012 for establishment of "Subsidiary of Halyk Bank of Kazakhstan on management of the parent bank's doubtful and bad assets "Halyk Project" LLP.

"Halyk Project" LLP is established within the framework of "Concept on improvement of asset quality of commercial banks: problems and solutions" developed by the National Bank of the Republic of Kazakhstan in 2011, as well as the Law of the Republic of Kazakhstan "On amendments and addendums to some legislative acts of the Republic of Kazakhstan on regulation of banking activity and financial organisations in terms of risk minimisation". 

Along with JSC "Problem Loans Fund", established under the umbrella of the National Bank of the Republic of Kazakhstan, the SPV provides extra mechanism for management and improvement of quality of commercial banks' loan portfolios.

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JSC "Halyk Bank" is the leading financial services group and the leading retail bank in Kazakhstan with the largest customer base and the broadest branch network. Halyk Bank is developing as a universal financial services group rendering a wide range of services (banking services, pension asset management, insurance, leasing, brokerage services and asset management) to its retail, SME and corporate clients. Halyk Bank is also conducting business in Russia, Georgia and Kyrgyzstan.