17 May 2024
Joint Stock Company 'Halyk
Bank of Kazakhstan'
Consolidated financial
results
for the three months ended 31
March 2024
Joint Stock Company 'Halyk Bank of
Kazakhstan' and its subsidiaries (together "the Bank")
(LSE: HSBK) releases consolidated financial
information for the three months ended 31 March 2024.
Consolidated income
statements
KZT
mln
|
|
1Q 2024
|
1Q 2023
|
Change, abs
|
Y-o-Y,%
|
|
Interest income
|
496,254
|
380,269
|
115,985
|
30.5%
|
|
Interest expense
|
(242,018)
|
(188,177)
|
(53,841)
|
28.6%
|
|
Net
interest income before credit loss expense
|
254,236
|
192,092
|
62,144
|
32.4%
|
|
Fee and commission income
|
50,074
|
47,405
|
2,669
|
5.6%
|
|
Fee and commission expense
|
(24,582)
|
(22,486)
|
(2,096)
|
9.3%
|
|
Net
fee and commission income
|
25,492
|
24,919
|
573
|
2.3%
|
|
Net insurance income (1)
|
9,676
|
19,348
|
(9,672)
|
(50.0%)
|
|
Net gain on foreign exchange
operations, financial assets and
liabilities(2)
|
45,689
|
28,926
|
16,763
|
58.0%
|
|
Other expense/non-interest income
(3)
|
(50,865)
|
21,194
|
(72,059)
|
(x2.4)
|
|
Expected credit loss expense and
recovery of other credit loss expense
|
(18,994)
|
(13,567)
|
(5,427)
|
40.0%
|
|
Operating expenses
(4)
|
(56,641)
|
(46,486)
|
(10,155)
|
21.8%
|
|
Income tax expense
|
(30,629)
|
(33,972)
|
3,343
|
(9.8%)
|
|
Net
profit
|
177,964
|
192,454
|
(14,490)
|
(7.5%)
|
|
Net
profit attributable to common shareholders
|
177,964
|
192,454
|
(14,490)
|
(7.5%)
|
|
|
|
|
|
|
|
Net
interest margin, p.a.
|
7.1%
|
6.0%
|
|
|
|
Return on average equity, p.a.
|
27.7%
|
37.3%
|
|
|
|
Return on average assets, p.a.
|
4.6%
|
5.4%
|
|
|
|
Cost-to-income ratio
|
19.9%
|
16.2%
|
|
|
|
Cost of risk on loans to customers, p.a.
|
0.9%
|
0.8%
|
|
|
(1)
Insurance revenue less insurance service expense and net
reinsurance expense;
(2)
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;
(3)
Share in profit of associate, income on non-banking activities,
other expense;
(4)
Including reversal of/(loss from) impairment of non-financial
assets;
In preparing the interim condensed
consolidated financial information for the three months ended 31
March 2024, 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 three months ended 31 March 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 financial
statements for 1Q 2024, note #4b.
Net
profit attributable to common shareholders
decreased to KZT 178.0bn in 1Q 2024, down 7.5%
compared with KZT 192.5bn in 1Q 2023, despite increase in lending
and transactional businesses, due to one off recognized loss
for KZT 66.1bn (pre-tax) in view of expected early repayment of the
deposit of JSC Kazakhstan Sustainability Fund (KSF) in accordance
with the IFRS.
Interest income for 1Q 2024
increased by 30.5% vs. 1Q 2023 mainly due to increase in average
rate and balances of loans to customers.
Interest expense for 1Q 2024
increased by 28.6% vs. 1Q 2023 mainly as a result of the growth in
average rate on amounts due to customers and increase in the share
of KZT amounts due to customer. Consequently, net interest income for 1Q 2024 grew by 32.4%
vs. 1Q 2023.
In 1Q 2024, net interest margin was affected by the
increase in average rates on both loans to customers and amounts
due to customers. Furthermore, the share of loans to customers in
total interest earning assets has increased. Moreover, there was an
increase in the average rate of FX amounts due from credit
institutions and FX interest-earning cash and cash equivalents
following the increase of USD interest rates, as well as increase
in the share of KZT interest-earning cash and cash equivalents. As
a result, net interest margin increased to 7.1% p.a. for 1Q 2024
compared to 6.0% p.a. for 1Q 2023.
In 1Q 2024 compared to 1Q 2023, the
overall dynamics of fee and
commission income and expense was driven by the increased
number of clients and the growth of clients' transactional
activity. Net fee and commission income for 1Q 2024 increased by
2.3% vs. 1Q 2023 due to increase in net transactional income of
individuals(5)
as well as in fees on letters of credit and
guarantees issued.
Other expense/non-interest income
(6) decreased
by x2.4 for 1Q 2024 vs. 1Q 2023 mainly due to one off recognized
loss for KZT 66.1bn (pre-tax) in view of expected early repayment
of the deposit of KSF in accordance with the IFRS.
Operating expenses for 1Q 2024
increased by 21.8% vs. 1Q 2023 mainly due to the indexation of
salaries and other employee benefits starting from 1 March
2023.
Cost of risk on loans to
customers for 1Q 2024 was at normalized level within the scope of
our full year guidance and was at the level of
0.9%.
The cost-to-income ratio equalled 19.9% in
1Q 2024, compared with 16.2% in 1Q 2023
due to higher operating expenses
for 1Q 2024.
(5)
Transactional income of individuals, less transactional expenses of
individuals and less loyalty program bonuses;
(6) Share in profit of associate, income on non-banking
activities, other expense;
Statement of
financial position review
KZT
mln
|
|
31-Mar-24
|
|
31-Dec-23
|
|
Change, abs
|
|
Change
YTD, %
|
|
Total assets
|
15,910,944
|
|
15,494,368
|
|
416,576
|
|
2.7%
|
|
Cash and reserves
|
1,873,511
|
|
1,622,181
|
|
251,330
|
|
15.5%
|
|
Amounts due from credit
institutions
|
154,033
|
|
171,754
|
|
(17,721)
|
|
(10.3%)
|
|
T-bills & NBK notes
|
2,264,214
|
|
2,125,941
|
|
138,273
|
|
6.5%
|
|
Other securities &
derivatives
|
1,595,270
|
|
1,614,666
|
|
(19,396)
|
|
(1.2%)
|
|
Gross loan portfolio
|
9,811,644
|
|
9,774,798
|
|
36,846
|
|
0.4%
|
|
Stock of provisions
|
(512,352)
|
|
(489,926)
|
|
(22,426)
|
|
4.6%
|
|
Net loan portfolio
|
9,299,292
|
|
9,284,872
|
|
14,420
|
|
0.2%
|
|
Assets held for sale
|
125,807
|
|
111,542
|
|
14,265
|
|
12.8%
|
|
Other assets
|
598,817
|
|
563,412
|
|
35,405
|
|
6.3%
|
|
Total liabilities
|
13,246,474
|
|
13,017,414
|
|
229,060
|
|
1.8%
|
|
Total deposits,
including:
|
11,211,283
|
|
10,929,504
|
|
281,779
|
|
2.6%
|
|
retail deposits
|
5,850,404
|
|
5,828,645
|
|
21,759
|
|
0.4%
|
|
term
deposits
|
4,962,819
|
|
4,808,592
|
|
154,227
|
|
3.2%
|
|
current
accounts
|
887,585
|
|
1,020,053
|
|
(132,468)
|
|
(13.0%)
|
|
corporate deposits
|
5,360,879
|
|
5,100,859
|
|
260,020
|
|
5.1%
|
|
term
deposits
|
3,809,577
|
|
3,338,099
|
|
471,478
|
|
14.1%
|
|
current
accounts
|
1,551,302
|
|
1,762,760
|
|
(211,458)
|
|
(12.0%)
|
|
Debt securities
|
655,735
|
|
653,393
|
|
2,342
|
|
0.4%
|
|
Amounts due to credit
institutions
|
669,815
|
|
778,311
|
|
(108,496)
|
|
(13.9%)
|
|
Other liabilities
|
709,641
|
|
656,206
|
|
53,435
|
|
8.1%
|
|
Equity
|
2,664,470
|
|
2,476,954
|
|
187,516
|
|
7.6%
|
As
at end of 1Q 2024, total assets were up 2.7% year-to-date
due to increase in amounts due to customers.
Compared with the end of 2023,
loans to customers were up
0.4% on a gross and 0.2% on a net basis. The increase in the gross
loan portfolio was attributable to a rise of 7.9% in retail loans,
while corporate loan portfolio and SME loan portfolio were down by
2.6% and 4.7%, respectively, due to seasonal effect.
As at the end of 1Q 2024,
Stage 3 loans remain at the
level of 7.5% despite some increase in absolute terms.
Compared with the end of 4Q 2023,
the deposits of legal
entities and the deposits
of individuals were up 5.1% and 0.4%,
respectively, due to fund inflow from the Bank's
clients.
As at the end of 1Q 2024, the share
of KZT deposits in total corporate deposits was 69.9% compared to
72.9% as at the YE 2023, while the share in total retail deposits
was 65.2% vs. 63.4% as at YE 2023.
As at the end of 1Q 2024,
debt securities
issued were slightly up by 0.4%
year-to-date. As at the end of 1Q 2024, 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 listed at
Astana
International Exchange
|
USD
185.5mln
|
3.5%
p.a.
|
May
2025
|
|
Local bonds listed at
Astana
International Exchange
|
USD
299.9mln
|
3.5%
p.a.
|
May
2025
|
|
Local bonds listed at
Astana
International Exchange
|
USD
229.8mln
|
3.5%
p.a.
|
July
2025
|
In 1Q 2024, total equity of the Bank increased by
7.6% compared to the YE 2023, mainly due to net profit earned by
the Bank during 1Q 2024.
The Bank's capital adequacy ratios
were as follows*:
|
|
31-Mar-24
|
31-Dec-23
|
30-Sep-23
|
30-Jun-23
|
31-Mar-23
|
|
Capital adequacy ratios, unconsolidated:
|
|
Halyk Bank
|
|
k1-1
|
19.0%
|
19.6%
|
18.6%
|
18.1%
|
20.2%
|
|
k1-2
|
19.0%
|
19.6%
|
18.6%
|
18.1%
|
20.2%
|
|
k2
|
19.2%
|
19.9%
|
19.0%
|
18.4%
|
20.6%
|
|
Capital adequacy ratios, consolidated:
|
|
CET 1
|
19.5%
|
19.3%
|
18.2%
|
17.9%
|
19.3%
|
|
Tier 1 capital
|
19.5%
|
19.3%
|
18.2%
|
17.9%
|
19.3%
|
|
Total capital
|
19.7%
|
19.6%
|
18.5%
|
18.3%
|
19.6%
|
* 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 consolidated financial
information for the three months ended 31 March 2024, including the
notes attached thereto, are available on Halyk Bank's
website: http://halykbank.com/financial-results.
A 1Q 2024 results webcast will be
hosted at 3:00pm London time/7:00pm Almaty time (UTC +05:00) on
Monday, 20 May 2024. A live webcast of the presentation can be
accessed via Zoom link after the registration. The registration is
open until 20 May 2024 (including), for the
registration please
click here.
About Halyk Bank
Halyk Bank is Kazakhstan's leading
financial services group, operating across a variety of segments,
including retail, SME & corporate banking, insurance, leasing,
brokerage and asset management. Halyk Bank has been listed on the
Kazakhstan Stock Exchange since 1998, on the London Stock Exchange
since 2006 and Astana International Exchange since October
2019.
With total assets of KZT 15,910.9bn
as at 31 March, 2024, Halyk Bank is Kazakhstan's leading
lender. The Bank has the largest customer base and broadest branch
network in Kazakhstan, with 571
branches and outlets across the country. The Bank
also 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
|