Consolidated financial results for the FY 2024
27 March 2025
Joint Stock Company 'Halyk Bank of Kazakhstan'
Consolidated financial results
for the year ended 31 December 2024
Joint Stock Company 'Halyk Bank of Kazakhstan' and its subsidiaries (together "the Bank") (LSE: HSBK; KASE: HSBK, HSBKd; AIX: HSBK, HSBK.Y) releases consolidated financial statements and independent auditors' report for the year ended 31 December 2024.
Consolidated Statement of Profit or Loss
KZT mln
|
|
12M 2024 |
12M 2023 |
Y-o-Y, abs |
Y-o-Y,% |
4Q 2024 |
4Q 2023 |
Y-o-Y, abs |
Y-o-Y,% |
|
Interest income(1) |
2,170,786 |
1,669,782 |
501,004 |
30.0% |
598,926 |
463,498 |
135,428 |
29.2% |
|
Interest expense |
(1,062,876) |
(872,642) |
(190,234) |
21.8% |
(282,701) |
(261,745) |
(20,956) |
8.0% |
|
Net interest income before credit loss expense |
1,107,910 |
797,140 |
310,770 |
39.0% |
316,225 |
201,753 |
114,472 |
56.7% |
|
Fee and commission income |
211,734 |
200,060 |
11,674 |
5.8% |
58,166 |
49,533 |
8,633 |
17.4% |
|
Fee and commission expense |
(86,450) |
(86,347) |
(103) |
0.1% |
(22,007) |
(25,207) |
3,200 |
(12.7%) |
|
Fees and commissions, net |
125,284 |
113,713 |
11,571 |
10.2% |
36,159 |
24,326 |
11,833 |
48.6% |
|
Net insurance income (2) |
49,932 |
52,265 |
(2,333) |
(4.5%) |
23,656 |
25,918 |
(2,262) |
(8.7%) |
|
Net gain on foreign exchange operations, financial assets and liabilities(3) |
216,915 |
158,653 |
58,262 |
36.7% |
67,880 |
56,142 |
11,738 |
20.9% |
|
Other expense/non-interest income (4) |
(6,303) |
(1,490) |
(4,813) |
x4.2 |
21,432 |
(47,127) |
68,559 |
(145.5%) |
|
Expected credit loss expense and recovery of other credit loss expense |
(128,472) |
(89,102) |
(39,370) |
44.2% |
(31,544) |
(18,309) |
(13,235) |
72.3% |
|
Operating expenses (5) |
(263,373) |
(216,405) |
(46,968) |
21.7% |
(82,674) |
(62,257) |
(20,417) |
32.8% |
|
Income tax expense |
(180,902) |
(121,338) |
(59,564) |
49.1% |
(68,958) |
(26,789) |
(42,169) |
157.4% |
|
Net income |
920,991 |
693,436 |
227,555 |
32.8% |
282,176 |
153,657 |
130,402 |
83.6% |
|
Non-controlling interest |
3 |
1 |
|
|
1 |
- |
|
|
|
Net income attributable to common shareholders |
920,988 |
693,435 |
227,553 |
32.8% |
282,175 |
153,657 |
130,401 |
83.6% |
|
|
|
|
|
|
|
|
|
|
|
Net interest margin, p.a. |
7.2% |
6.1% |
|
|
7.5% |
6.0% |
|
|
|
Return on average equity, p.a. |
34.0% |
32.1% |
|
|
37.5% |
26.4% |
|
|
|
Return on average assets, p.a. |
5.5% |
4.8% |
|
|
6.3% |
4.2% |
|
|
|
Cost-to-income ratio |
17.6% |
19.2% |
|
|
17.8% |
23.5% |
|
|
|
Cost of risk on loans to customers, p.a. |
1.2% |
1.0% |
|
|
0.9% |
0.7% |
|
|
(1) Interest income calculated using the effective interest method and other interest income;
(2) Insurance revenue less insurance service expense, financial expenses from insurance contracts issued 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, loss from impairment of assets held for sales and other expense, net;
(5) Including reversal of impairment of non-financial assets;
Net income attributable to common shareholders for 12M 2024 is up 32.8% year-on-year thanks to notable increase in lending and transactional businesses.
Interest income(1) for 12M 2024 was up 30.0% vs. 12M 2023 mainly due to increase in average rate and balances of loans to customers.
Interest expense for 12M 2024 increased by 21.8% vs. 12M 2023 mainly as a result of the increase in average rate on amounts due to customers, as well as the growth in the share of KZT amounts due to customers and in the share of deposits in total liabilities.
Certain reclassifications have been made to the consolidated statement of profit or loss for the year ended 31 December 2023 to conform with the presentation of the statement for the year ended 31 December 2024, as the current year presentation provides a better understanding of the Group's financial performance.
The reclassification of fee and commission expenses for 2023 in the amount of KZT 13,357 million includes the reclassification of deposit insurance expenses. As these expenses are directly related to deposit expenses, the Group's management decided to reclassify them as interest expenses. Accordingly, a reclassification was also made in the consolidated statement of cash flows for the year ended 31 December 2023.
All of the ratios were also recalculated accordingly. For more detailed information please refer to Halyk Group's consolidated financial statements and independent auditors' report for the year ended 31 December 2024, note #4b.
In 12M 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 7.2% p.a. for 12M 2024 compared to 6.1% p.a. for 12M 2023.
Despite the negative effect from transition to amortization of tariff packages for legal entities starting from November 2023 and revision of some retail tariffs in 2H of 2023, Fee and commission income in 12M 2024 vs. 12M 2023 was up by 5.8% as a result of increased number of clients and ramp-up of clients' transactional activity, as well as growth in fees on letters of credit and guarantees issued.
Fee and commission expense in 12M 2024 vs. 12M 2023 stayed almost flat. The increase in service fees on payment cards was offset by partial reimbursement of expenses on loyalty program by international payment system. As a result, the net fee and commission income for 12M 2024 increased by 10.2% vs. 12M 2023.
Other expense/non-interest income (4) in 12M 2024 was negatively impacted by higher one-off recognized loss in a view of expected early repayment of the deposit of KSF in accordance with the IFRS compared to the same impact in 2023.
Operating expenses(5) for 12M 2024 increased by 21.7% vs. 12M 2023 mainly due to the indexation of salaries and other employee benefits, including the costs of the long-term incentive program.
The Bank's cost-to-income ratio decreased to 17.6% compared to 19.2% for 12M 2023 amid higher operating income for 12M 2024.
Cost of risk in 12M 2024 was at a normalized level as per our guidance at the level of 1.2%.
Consolidated Statement of Financial Position
KZT mln
|
|
31-Dec-24 |
|
30-Sep-24 |
|
Change YTD, abs |
|
Change Q-o-Q, % |
|
31-Dec-23 |
|
Change YTD, abs |
|
Change YTD, % |
|
Total assets |
18,548,414 |
|
17,650,108 |
|
898,306 |
|
5.1% |
|
15,494,368 |
|
3,054,046 |
|
19.7% |
|
Cash and reserves(6) |
1,780,132 |
|
2,248,355 |
|
(468,223) |
|
(20.8%) |
|
1,622,181 |
|
157,951 |
|
9.7% |
|
Amounts due from credit institutions |
156,966 |
|
144,704 |
|
12,262 |
|
8.5% |
|
171,754 |
|
(14,788) |
|
(8.6%) |
|
T-bills of MinFin & NBRK notes(7) |
2,738,432 |
|
2,784,832 |
|
(46,400) |
|
(1.7%) |
|
2,125,941 |
|
612,491 |
|
28.8% |
|
Other securities & derivatives(8) |
1,776,082 |
|
1,539,503 |
|
236,579 |
|
15.4% |
|
1,614,666 |
|
161,416 |
|
10.0% |
|
Gross loan portfolio |
12,038,868 |
|
10,884,432 |
|
1,154,436 |
|
10.6% |
|
9,774,798 |
|
2,264,070 |
|
23.2% |
|
Allowance for expected credit losses |
(573,219) |
|
(556,743) |
|
(16,476) |
|
3.0% |
|
(489,926) |
|
(83,293) |
|
17.0% |
|
Net loan portfolio |
11,465,649 |
|
10,327,689 |
|
1,137,960 |
|
11.0% |
|
9,284,872 |
|
2,180,777 |
|
23.5% |
|
Assets classified as held for sale |
8,833 |
|
11,480 |
|
(2,647) |
|
(23.1%) |
|
111,542 |
|
(102,709) |
|
(92.1%) |
|
Other assets |
622,320 |
|
593,545 |
|
28,775 |
|
4.8% |
|
563,412 |
|
58,908 |
|
10.5% |
|
Total liabilities |
15,480,365 |
|
14,770,832 |
|
709,533 |
|
4.8% |
|
13,017,414 |
|
2,462,951 |
|
18.9% |
|
Amounts due to customers, including: |
12,990,043 |
|
11,974,486 |
|
1,015,558 |
|
8.5% |
|
10,929,504 |
|
2,060,539 |
|
18.9% |
|
individuals' deposits |
7,200,363 |
|
6,543,795 |
|
656,568 |
|
10.0% |
|
5,828,645 |
|
1,371,718 |
|
23.5% |
|
term deposits |
6,063,129 |
|
5,581,796 |
|
481,334 |
|
8.6% |
|
4,808,592 |
|
1,254,537 |
|
26.1% |
|
current accounts |
1,137,234 |
|
961,999 |
|
175,234 |
|
18.2% |
|
1,020,053 |
|
117,181 |
|
11.5% |
|
legal entities' deposits |
5,789,681 |
|
5,430,691 |
|
358,990 |
|
6.6% |
|
5,100,859 |
|
688,822 |
|
13.5% |
|
term deposits |
3,811,441 |
|
3,500,441 |
|
311,000 |
|
8.9% |
|
3,338,099 |
|
473,342 |
|
14.2% |
|
current accounts |
1,978,239 |
|
1,930,250 |
|
47,990 |
|
2.5% |
|
1,762,760 |
|
215,479 |
|
12.2% |
|
Debt securities issued |
879,212 |
|
818,756 |
|
60,456 |
|
7.4% |
|
653,393 |
|
225,819 |
|
34.6% |
|
Amounts due to credit institutions |
814,069 |
|
1,203,263 |
|
(389,194) |
|
(32.3%) |
|
778,311 |
|
35,758 |
|
4.6% |
|
Other liabilities |
797,041 |
|
774,327 |
|
22,713 |
|
2.9% |
|
656,206 |
|
140,835 |
|
21.5% |
|
Total equity |
3,068,049 |
|
2,879,276 |
|
188,773 |
|
6.6% |
|
2,476,954 |
|
591,095 |
|
23.9% |
(6) Cash and cash equivalents and obligatory reserves;
(7) Treasury bills of the Ministry of Finance of the Republic of Kazakhstan and Notes of NBRK;
(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 Notes of NBRK;
As at end of 4Q 2024, total assets were up 19.7% year-to-date mainly due to increase in amounts due to customers.
Compared with the YE of 2023, loans to customers were up 23.2% on a gross and 23.5% on a net basis. The increase in the gross loan portfolio was driven by the growth across all business segments, with retail loans growing by 33.3%, and the loan portfolio of legal entities increasing by18.4%.
As at the end of 4Q 2024, Stage 3 loans decreased from the level of 7.5% to 6.3% 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 13.5% and 23.5%, respectively, due to fund inflow from the Bank's clients.
As at the-end of 4Q 2024, the share of KZT deposits in total deposits was 69.1% compared to 67.8% as at the YE 2023, in corporate deposits the share was 70.9% vs. 72.9% as at the YE 2023, while the share in total retail deposits was 67.5% vs. 63.4% as at YE 2023.
Amounts due to credit institutions increased by 4.6% vs. the YE 2023, due to increase in loans under REPO agreements and syndicated term loan for USD 300mln attracted by the Bank.
As at the end of 12M 2024, debt securities issued were up 34.6% 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 131.7bn |
7.5% p.a. |
February 2025 |
|
Subordinated coupon bonds |
KZT 101.1bn |
9.5% p.a. |
October 2025 |
|
Local bonds |
KZT 140.2bn |
12.79% p.a. |
July 2031 |
|
Local bonds |
KZT 20.0bn |
TONIA+1.25% |
December 2027 |
|
Local bonds listed at Astana International Exchange |
USD 190 mln |
3.5% p.a. |
May 2025 |
|
Local bonds listed at Astana International Exchange |
USD 298 mln |
3.5% p.a. |
May 2025 |
|
Local bonds listed at Astana International Exchange |
USD 423.5mln |
3.5% p.a. |
July 2025 |
As at the end of 12M 2024, total equity of the Bank increased by 23.9% compared to the YE 2023, mainly due to net profit earned by the Bank during 12M 2024, which was partially offset by the payment of dividends.
The Bank's capital adequacy ratios were as follows*:
|
|
31-Dec-24 |
30-Sep-24 |
30-Jun-24 |
31-Mar-24 |
31-Dec-23 |
|
Capital adequacy ratios, unconsolidated: |
|||||
|
Halyk Bank |
|||||
|
k1-1 |
19.6% |
19.2% |
17.6% |
19.0% |
19.6% |
|
k1-2 |
19.6% |
19.2% |
17.6% |
19.0% |
19.6% |
|
k2 |
19.7% |
19.4% |
17.7% |
19.2% |
19.9% |
|
Capital adequacy ratios, consolidated: |
|||||
|
CET 1 |
18.8% |
19.0% |
17.4% |
19.5% |
19.3% |
|
Tier 1 capital |
18.8% |
19.0% |
17.4% |
19.5% |
19.3% |
|
Total capital |
18.9% |
19.1% |
17.5% |
19.7% |
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 statements and independent auditors' report for the year ended 31 December 2024, including the notes attached thereto, are available on Halyk Bank's website: http://halykbank.com/financial-results.
A 12M and 4Q 2024 results webcast will be hosted at 2:00pm London time/7:00pm Almaty time (UTC +05:00) on Thursday, 27 March 2025. A live webcast of the presentation can be accessed via Zoom link after the registration. The registration is open until 27 March 2025 (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 31 December 2024, Halyk Bank had total assets amounting to KZT 18,548.4bn, making it the largest lender in Kazakhstan. The Bank boasts the country's one of the largest customer base and the most extensive branch network, with 542 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 |
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