18 November 2024
Joint Stock Company 'Halyk
Bank of Kazakhstan'
Interim condensed
consolidated financial results
for the nine months ended 30
September 2024
Joint Stock Company 'Halyk Bank of
Kazakhstan' and its subsidiaries (together "the Bank") (LSE: HSBK;
KASE: HSBK, HSBKd; AIX: HSBK, HSBK.Y) releases interim condensed
consolidated financial information for the nine months ended 30
September 2024.
Interim Condensed
Consolidated Statement of Profit or Loss
KZT
mln
|
|
9M 2024
|
9M 2023
|
Y-o-Y, abs
|
Y-o-Y,%
|
3Q 2024
|
3Q 2023
|
Y-o-Y, abs
|
Y-o-Y,%
|
|
Interest income(1)
|
1,571,860
|
1,206,284
|
365,576
|
30.3%
|
559,852
|
425,822
|
134,030
|
31.5%
|
|
Interest expense
|
(768,345)
|
(600,950)
|
(167,395)
|
27.9%
|
(267,600)
|
(207,395)
|
(60,205)
|
29.0%
|
|
Net
interest income before credit loss expense
|
803,515
|
605,334
|
198,181
|
32.7%
|
292,252
|
218,427
|
73,825
|
33.8%
|
|
Fee and commission income
|
153,568
|
150,527
|
3,041
|
2.0%
|
53,838
|
51,838
|
2,000
|
3.9%
|
|
Fee and commission expense
|
(76,273)
|
(71,087)
|
(5,186)
|
7.3%
|
(27,996)
|
(24,117)
|
(3,879)
|
16.1%
|
|
Fees and commissions, net
|
77,295
|
79,440
|
(2,145)
|
(2.7%)
|
25,842
|
27,721
|
(1,879)
|
(6.8%)
|
|
Net insurance income (2)
|
26,276
|
26,347
|
(71)
|
(0.3%)
|
11,474
|
(2,250)
|
13,724
|
(x5.1)
|
|
Net gain on foreign exchange
operations, financial assets and
liabilities(3)
|
149,035
|
102,511
|
46,524
|
45.4%
|
58,986
|
42,858
|
16,128
|
37.6%
|
|
Other expense/non-interest income
(4)
|
(27,735)
|
45,637
|
(73,372)
|
(x0.6)
|
14,186
|
8,775
|
5,411
|
61.7%
|
|
Expected credit loss expense and
recovery of other credit loss expense
|
(96,928)
|
(70,793)
|
(26,135)
|
36.9%
|
(31,181)
|
(39,691)
|
8,510
|
(21.4%)
|
|
Operating expenses
(5)
|
(180,699)
|
(154,148)
|
(26,551)
|
17.2%
|
(64,841)
|
(54,570)
|
(10,271)
|
18.8%
|
|
Income tax expense
|
(111,944)
|
(94,549)
|
(17,395)
|
18.4%
|
(46,996)
|
(32,306)
|
(14,690)
|
45.5%
|
|
Net income
|
638,815
|
539,779
|
99,036
|
18.3%
|
259,724
|
168,964
|
90,760
|
53.7%
|
|
Non-controlling interest
|
2
|
1
|
1
|
-
|
2
|
-
|
2
|
-
|
|
Net
income attributable to common shareholders
|
638,813
|
539,778
|
99,035
|
18.3%
|
259,722
|
168,964
|
90,758
|
53.7%
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest margin, p.a.
|
7.1%
|
6.3%
|
|
|
7.3%
|
6.8%
|
|
|
|
Return on average equity, p.a.
|
32.7%
|
34.3%
|
|
|
38.2%
|
31.3%
|
|
|
|
Return on average assets, p.a.
|
5.2%
|
5.1%
|
|
|
6.0%
|
4.8%
|
|
|
|
Cost-to-income ratio
|
17.6%
|
17.9%
|
|
|
16.1%
|
18.3%
|
|
|
|
Cost of risk on loans to customers, p.a.
|
1.3%
|
1.1%
|
|
|
1.2%
|
1.6%
|
|
|
(1)
Interest income calculated using the effective interest method and
other interest income;
(2)
Insurance revenue less insurance service expense and net
reinsurance expense;
(3)
Net gain on financial assets and liabilities at fair value through
profit or loss, net realised gain/(loss) from financial assets at
fair value through other comprehensive income, net foreign exchange
gain;
(4)
Share in profit of associate, income on non-banking activities,
other (expense)/income;
(5)
Including (loss from)/reversal of impairment of non-financial
assets;
In preparing the consolidated
financial information for the year ended 31 December 2023, the
Group carried out an inventory of its financial instruments. The
inventory process identified financial instruments measured at fair
value through profit or loss that were previously restricted in use
and were incorrectly measured at cost. The Group revaluated these
financial instruments and recognized prior period
adjustments.
The consolidated statement of profit
or loss for the nine months ended 30 September 2023 has been
reclassified to conform to the presentation for the year ended 31
December 2023 because the presentation of the current year report
provides a clearer picture of the Group's financial performance.
All of the ratios were also recalculated accordingly. For more
detailed information please refer to Halyk Group's interim
condensed consolidated financial
information for the nine months ended 30 September 2024, note #4b.
Net
income attributable to common shareholders
for 9M 2024 is up 18.3% year-on-year thanks to
notable increase in lending and transactional businesses.
Interest income(1) for 9M 2024 was up 30.3% vs.
9M 2023 mainly due to increase in average rate and balances of
loans to customers.
Interest expense for 9M 2024
increased by 27.9% vs. 9M 2023 mainly as a result of the growth in
average rate on amounts due to customers and growth in the share of
KZT amounts due to customers. Consequently, net interest income before credit loss
expense for 9M 2024 grew by 32.7% vs. 9M 2023.
In 9M 2024 net interest margin was affected by the
increase in average rates on both loans to customers and amounts
due to customers. Furthermore, net
interest margin was positively impacted by the increase in
the share of higher yielding retail loans in total loan portfolio
and share of loans to customers in total interest earning assets,
as well as increase in the share of KZT interest-earning cash and
cash equivalents. As a result, net interest margin has grown to
7.1% p.a. for 9M 2024 compared to 6.3% p.a. for 9M 2023.
Fee
and commission income in 9M 2024 vs.
9M 2023 increased by 2.0%. It was negatively impacted by base
effect related to transition to amortization of tariff packages for
legal entities starting from November 2023. Moreover, there was a
revision of some retail tariffs in 2H of 2023. On top of that, the
amount of bonuses for the loyalty program significantly grew due to
increased transactional activity of retail clients and growing
share of QR payments.
Fee
and commission expense in 9M 2024
vs. 9M 2023 grew by 7.3% mainly due to increase in service fees on
payment cards and in deposit insurance fees payable to the
Kazakhstan Deposit Insurance Fund following the retail deposits
amount growth. As a result, despite the growth of clients'
transactional activity, the net
fee and commission income for 9M 2024 decreased by 2.7% vs.
9M 2023.
Other expense/non-interest income
(4) in 9M 2024
was negatively impacted by a one-off recognized loss from the full
prepayment of a deposit of the Kazakhstan Sustainability Fund
(KSF), which were made on April 8, 2024.
Operating expenses(5) for 9M 2024 increased by
17.2% vs. 9M 2023 mainly
due to the indexation of salaries and other employee
benefits.
The cost-to-income ratio equalled 17.6% in
9M 2024, compared with 17.9%
in 9M 2023 due to higher operating income for 9M
2024.
Cost of risk in 9M 2024
was at normalized level within the scope of our
full year guidance and was at the level of 1.3%.
Interim Condensed
Consolidated Statement of Financial Position
KZT
mln
|
|
30-Sep-24
|
|
30-Jun-24
|
|
Change
Q-o-Q, abs
|
|
Change
Q-o-Q, %
|
|
31-Dec-23
|
|
Change
YTD, abs
|
|
Change
YTD, %
|
|
Total assets
|
17,650,108
|
|
16,749,875
|
|
900,233
|
|
5.4%
|
|
15,494,368
|
|
2,155,740
|
|
13.9%
|
|
Cash and
reserves(6)
|
2,248,355
|
|
1,683,725
|
|
564,630
|
|
33.5%
|
|
1,622,181
|
|
626,174
|
|
38.6%
|
|
Amounts due from credit
institutions
|
144,704
|
|
146,054
|
|
(1,350)
|
|
(0.9%)
|
|
171,754
|
|
(27,050)
|
|
(15.7%)
|
|
T-bills of MinFin &
NBRK notes(7)
|
2,784,832
|
|
2,626,122
|
|
158,710
|
|
6.0%
|
|
2,125,941
|
|
658,891
|
|
31.0%
|
|
Other securities &
derivatives(8)
|
1,539,503
|
|
1,802,581
|
|
(263,078)
|
|
(14.6%)
|
|
1,614,666
|
|
(75,163)
|
|
(4.7%)
|
|
Gross loan portfolio
|
10,884,432
|
|
10,433,521
|
|
450,911
|
|
4.3%
|
|
9,774,798
|
|
1,109,634
|
|
11.4%
|
|
Stock of provisions(9)
|
(556,743)
|
|
(535,784)
|
|
(20,959)
|
|
3.9%
|
|
(489,926)
|
|
(66,817)
|
|
13.6%
|
|
Net loan portfolio
|
10,327,689
|
|
9,897,737
|
|
429,952
|
|
4.3%
|
|
9,284,872
|
|
1,042,817
|
|
11.2%
|
|
Assets classified as held for
sale
|
11,480
|
|
21,396
|
|
(9,916)
|
|
(46.3%)
|
|
111,542
|
|
(100,062)
|
|
(89.7%)
|
|
Other assets
|
593,545
|
|
572,260
|
|
21,285
|
|
3.7%
|
|
563,412
|
|
30,133
|
|
5.3%
|
|
Total liabilities
|
14,770,832
|
|
14,173,325
|
|
597,507
|
|
4.2%
|
|
13,017,414
|
|
1,753,418
|
|
13.5%
|
|
Amounts due to customers,
including:
|
11,974,486
|
|
11,615,902
|
|
358,584
|
|
3.1%
|
|
10,929,504
|
|
1,044,982
|
|
9.6%
|
|
retail deposits
|
6,543,795
|
|
6,376,470
|
|
167,325
|
|
2.6%
|
|
5,828,645
|
|
715,150
|
|
12.3%
|
|
term deposits
|
5,581,796
|
|
5,304,080
|
|
277,716
|
|
5.2%
|
|
4,808,592
|
|
773,204
|
|
16.1%
|
|
current accounts
|
961,999
|
|
1,072,390
|
|
(110,391)
|
|
(10.3%)
|
|
1,020,053
|
|
(58,054)
|
|
(5.7%)
|
|
legal entities deposits
|
5,430,691
|
|
5,239,432
|
|
191,259
|
|
3.7%
|
|
5,100,859
|
|
329,832
|
|
6.5%
|
|
term deposits
|
3,500,441
|
|
3,634,420
|
|
(133,979)
|
|
(3.7%)
|
|
3,338,099
|
|
162,342
|
|
4.9%
|
|
current accounts
|
1,930,250
|
|
1,605,012
|
|
325,238
|
|
20.3%
|
|
1,762,760
|
|
167,490
|
|
9.5%
|
|
Debt securities issued
|
818,756
|
|
657,236
|
|
161,520
|
|
24.6%
|
|
653,393
|
|
165,363
|
|
25.3%
|
|
Amounts due to credit
institutions
|
1,203,263
|
|
1,012,134
|
|
191,129
|
|
18.9%
|
|
778,311
|
|
424,952
|
|
54.6%
|
|
Other liabilities
|
774,327
|
|
888,053
|
|
(113,726)
|
|
(12.8%)
|
|
656,206
|
|
118,121
|
|
18.0%
|
|
Total equity
|
2,879,276
|
|
2,576,550
|
|
302,726
|
|
11.7%
|
|
2,476,954
|
|
402,322
|
|
16.2%
|
(6)
Cash and cash equivalents and obligatory reserves;
(7)
Treasury bonds of the Ministry of Finance of the Republic of
Kazakhstan and NBRK notes;
(8)
Financial assets at fair value through profit or loss, financial
assets at fair value through other comprehensive income and debt
securities at amortized cost, net of allowance for expected credit
losses less Treasury bills of the Ministry of Finance of the
Republic of Kazakhstan and NBRK notes;
(9)
Allowance for expected credit losses;
As
at end of 3Q 2024, total assets were up 13.9% year-to-date
mainly due to increase in amounts due to
customers and amount due to credit institutions.
Compared with the YE of 2023,
loans to customers were up
11.4% on a gross and 11.2% on a net basis. The increase in the
gross loan portfolio was attributable to a rise of 25.0% in retail
loans, while legal entities loan portfolio were up 5.0%.
As at the end of 3Q 2024,
Stage 3 loans decreased
from the level of 7.5% to 6.9% year-to-date as a result of workout
of problem loans and loan portfolio growth.
Compared with the YE 2023,
the deposits of legal
entities and the deposits
of individuals were up 6.5% and 12.3%,
respectively, due to fund inflow from the Bank's
clients.
As at the-end of 3Q 2024, the share
of KZT deposits in total corporate deposits was 73.2% compared to
72.9% as at the YE 2023, while the share in total retail deposits
was 67.9% vs. 63.4% as at YE 2023.
Amounts due to credit institutions increased by 54.6% vs. the YE 2023,
due to increase in loans under REPO agreements and syndicated term
loan for USD 300mln attracted by the Bank in September
2024.
As at the end of 3Q 2024,
debt securities
issued were up 25.3% year-to-date
and the Bank's debt securities portfolio was as follows:
|
Description of the security
|
Nominal amount
outstanding
|
Interest
rate
|
Maturity
Date
|
|
|
|
|
|
|
Local bonds
|
KZT
100bn
|
7.5%
p.a.
|
November
2024
|
|
Local bonds
|
KZT
131.7bn
|
7.5%
p.a.
|
February
2025
|
|
Subordinated coupon bonds
|
KZT
101.1bn
|
9.5%
p.a.
|
October
2025
|
|
Local bonds
|
KZT
39.1bn
|
12.8%
p.a.
|
July
2031
|
|
Local bonds listed at
Astana
International Exchange
|
USD
191mln
|
3.5%
p.a.
|
May
2025
|
|
Local bonds listed at
Astana
International Exchange
|
USD
300 mln
|
3.5%
p.a.
|
May
2025
|
|
Local bonds listed at
Astana
International Exchange
|
USD
409.7
mln
|
3.5%
p.a.
|
July
2025
|
As at the end of 3Q 2024,
total equity of the Bank
increased by 16.2% compared to the YE 2023, mainly due to net
profit earned by the Bank during 9M 2024, which was partially
offset by the payment of dividends.
The Bank's capital adequacy ratios
were as follows*:
|
|
30-Sep-24
|
30-Jun-24
|
31-Mar-24
|
31-Dec-23
|
30-Sep-23
|
|
Capital adequacy ratios, unconsolidated:
|
|
Halyk Bank
|
|
k1-1
|
19.2%
|
17.6%
|
19.0%
|
19.6%
|
18.6%
|
|
k1-2
|
19.2%
|
17.6%
|
19.0%
|
19.6%
|
18.6%
|
|
k2
|
19.4%
|
17.7%
|
19.2%
|
19.9%
|
19.0%
|
|
Capital adequacy ratios, consolidated:
|
|
CET 1
|
19.0%
|
17.4%
|
19.5%
|
19.3%
|
18.2%
|
|
Tier 1 capital
|
19.0%
|
17.4%
|
19.5%
|
19.3%
|
18.2%
|
|
Total capital
|
19.1%
|
17.5%
|
19.7%
|
19.6%
|
18.5%
|
* The minimum regulatory capital adequacy
requirements are 9.5%, for k1, 10.5% for k1-2 and 12% for k2,
including a conservation buffer of 3% and systemic buffer of 1% for
each.
The interim condensed consolidated
financial information for the nine months ended 30 September 2024,
including the notes attached thereto, are available on Halyk Bank's
website: http://halykbank.com/financial-results.
A 9M and 3Q 2024 results webcast
will be hosted at 2:00pm London time/7:00pm Almaty time (UTC
+05:00) on Tuesday, 19 November 2024. A live webcast of the
presentation can be accessed via Zoom link after the registration.
The registration is open until 19 November 2024
(including), for the registration
please
click here.
About Halyk Bank
Halyk Bank is the leading financial
services group in Kazakhstan, with a diversified presence across
retail, SME, and corporate banking, as well as insurance, leasing,
brokerage, asset
management and lifestyle services. Halyk Bank has been listed on
the Kazakhstan Stock Exchange since 1998, the London Stock Exchange
since 2006, and the Astana International Exchange since
2019.
As of 30 September 2024, Halyk Bank
had total assets amounting to KZT 17,650.1bn, making it the largest lender in Kazakhstan. The Bank boasts
the country's largest customer base and the most extensive branch
network, with 563 branches and service outlets across nationwide. Additionally,
the Bank operates in Georgia and Uzbekistan.
For more information on Halyk Bank, please visit
https://www.halykbank.com
-
ENDS-
For
further information, please contact:
|
Halyk Bank
|
|
|
Mira
Tiyanak
|
+7 727 259
04 30
MiraK@halykbank.kz
|
|
Rustam Telish
|
+7 727 330 15 66
RustamT3@halykbank.kz
|
|
Nurgul Mukhadi
|
+7 727 330 16 77
NyrgylMy@halykbank.kz
|