RNS Number : 4113H
JSC Halyk Bank
13 November 2025
13 November 2025
Joint Stock Company 'Halyk Bank of Kazakhstan'
Interim condensed consolidated financial results
for the nine months ended 30 September 2025
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 2025.
Consolidated Statement of Profit or Loss
KZT mln
9M 2025
9M 2024
Y-o-Y, abs
Y-o-Y,%
3Q 2025
3Q 2024
Y-o-Y, abs
Y-o-Y,%
Interest income(1)
1,986,382
1,571,860
414,522
26.4%
697,085
559,852
137,233
24.5%
Interest expense
(1,018,110)
(780,174)
(237,936)
30.5%
(369,546)
(272,049)
(97,497)
35.8%
Net interest income before credit loss expense
968,272
791,686
176,586
22.3%
327,539
287,803
39,736
13.8%
Fee and commission income
175,574
153,568
22,006
14.3%
61,257
53,838
7,419
13.8%
Fee and commission expense
(73,767)
(60,991)
(12,776)
20.9%
(27,232)
(22,212)
(5,020)
22.6%
Fees and commissions, net
101,807
92,577
9,230
10.0%
34,025
31,626
2,399
7.6%
Net insurance income (2)
51,331
26,276
25,055
95.4%
25,491
11,474
14,017
X2.2
Net gain on foreign exchange operations, financial assets and liabilities(3)
142,090
149,035
(6,945)
(4.7%)
54,143
58,986
(4,843)
(8.2%)
Other expense/non-interest income (4)
48,133
(31,188)
79,321
(x2.5)
16,660
12,851
3,809
29.6%
Expected credit loss expense and recovery of other credit loss expense
(107,475)
(96,928)
(10,547)
10.9%
(45,957)
(31,181)
(14,776)
47.4%
Operating expenses (5)
(221,309)
(180,699)
(40,610)
22.5%
(74,702)
(64,841)
(9,861)
15.2%
Income tax expense
(172,914)
(111,944)
(60,970)
54.5%
(55,866)
(46,996)
(8,870)
18.9%
Net income
809,935
638,815
171,120
26.8%
281,333
259,722
21,611
8.3%
Non-controlling interest
2
2
0
-
0
2
(2)
-
Net income attributable to common shareholders
809,933
638,813
171,120
26.8%
281,333
259,720
21,613
8.3%
Net interest margin, p.a.
7.2%
7.1%
7.1%
7.3%
Return on average equity, p.a.
33.8%
32.7%
34.3%
38.2%
Return on average assets, p.a.
5.6%
5.2%
5.6%
6.0%
Cost-to-income ratio
16.9%
17.6%
16.3%
16.1%
Cost of risk on loans to customers, p.a.
1.4%
1.3%
1.4%
1.2%
(1) Interest income calculated using the effective interest method and other interest income;
(2) Insurance revenue less insurance service expense, net finance insurance income/(expense) and net reinsurance expense;
(3) Net (loss)/gain on financial assets and liabilities at fair value through profit or loss, net realised (loss)/ gain 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 income/(expense);
(5) Including reversal of/(loss from) impairment of non-financial assets;
In preparing the interim condensed consolidated financial statements of profit or loss for the three and nine months ended 30 September 2024, certain reclassifications have been made to conform the presentation of the statement for the three and nine months ended 30 September 2025, as the current period presentation provides a better understanding of the Group's financial performance.
The reclassification of fees and commission expenses for the three and nine months ended 30 September 2024 in the amount of KZT 5,784 million and KZT 15,282 million, respectively, includes the reclassification of deposit insurance service expenses and other income. The deposit insurance service expenses are directly related to deposit expenses and other income directly relates to reimbursement of commission expense. The Group's management decided to reclassify deposit insurance service expense as interest expenses and other income related to reimbursement of commission expense as fee and commission expenses.
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 2025, note #4b.
Net income attributable to common shareholders for 9M 2025 is up 26.8% year-on-year thanks to increase in lending, transactional and insurance businesses and due to the base effect of one-off recognized loss due to the early repayment of the deposit of KSF in 9M 2024. Net income was negatively affected by excess profits tax, which was introduced on profit from certain banking operations for 2025 only, and by an increase of minimum reserve requirements in 3Q 2025. The net income growth, adjusted to effects from the early repayment of the deposit of KSF, excess profits tax and an increase in minimum reserve requirements, would be 20.6%.
Interest income(1) for 9M 2025 was up 26.4% vs. 9M 2024 mainly due to increase of average balances of loans to customers.
Interest expense for 9M 2025 increased by 30.5% vs. 9M 2024 mainly as a result of the increase in average rate and balances of amounts due to customers, as well as the growth in the share of KZT amounts due to customers.
Despite the increase in average rates in amount due to customers in 9M 2025, NIM was positively impacted by the increase in share of total interest earning assets vs total interest bearing liabilities. As a result, net interest margin has grown to 7.2% for 9M 2025 compared to 7.1% for 9M 2024.
In 9M 2025 compared to 9M 2024, 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 9M 2025 increased by 10.0% vs. 9M 2024 due to increase in net transactional income of legal entities, as well as in fees on letters of credit and guarantees issued. Net transactional income of individuals slightly decreased due to an increase in the amount of bonuses for the loyalty program.
The positive dynamics of other expense/non-interest income (4) in 9M 2025 was impacted by the base effect of one-off recognized loss due to the early repayment of the deposit of KSF in 9M 2024.
Operating expenses(5) for 9M 2025 increased by 22.5% vs. 9M 2024 mainly due to the indexation of salaries and other employee benefits, including the costs of the long-term incentive program as well as IT development related costs.
The Bank's cost-to-income ratio decreased to 16.9% compared to 17.6% for 9M 2024 amid higher operating income for 9M 2025.
Cost of risk in 9M 2025 was at normalized level within the scope of our full year guidance and was at the
level of 1.4%.
Consolidated Statement of Financial Position
KZT mln
30-Sep-25
30-Jun-25
Change Q-o-Q, abs
Change Q-o-Q, %
31-Dec-24
ChangeYTD, abs
Change YTD,%
Total assets
20,410,346
19,615,712
794,634
4.1%
18,548,414
1,861,932
10.0%
Cash and cash equivalents
1,781,551
2,362,269
(580,718)
(24.6%)
1,473,802
307,749
20.9%
Obligatory reserves
834,159
342,042
492,117
X2.4
306,330
527,829
X2.7
Amounts due from credit institutions
200,256
173,881
26,375
15.2%
156,966
43,290
27.6%
T-bills of MinFin & NBRK notes(6)
2,487,956
2,620,517
(132,561)
(5.1%)
2,738,432
(250,476)
(9.1%)
Other securities & derivatives(7)
1,910,723
1,695,588
215,135
12.7%
1,776,082
134,641
7.6%
Gross loan portfolio
13,031,358
12,330,251
701,107
5.7%
12,038,868
992,490
8.2%
Allowance for expected credit losses
(611,402)
(593,695)
(17,707)
3.0%
(573,219)
(38,183)
6.7%
Net loan portfolio
12,419,956
11,736,556
683,400
5.8%
11,465,649
954,307
8.3%
Assets classified as held for sale
11,383
9,516
1,867
19.6%
8,833
2,550
28.9%
Other assets
764,362
675,343
89,019
13.2%
622,320
142,042
22.8%
Total liabilities
17,142,708
16,425,274
717,434
4.4%
15,480,365
1,662,343
10.7%
Amounts due to customers, including:
14,163,375
13,748,127
415,248
3.0%
12,990,043
1,173,332
9.0%
individuals' deposits
7,720,886
7,494,574
226,312
3.0%
7,200,363
520,523
7.2%
term deposits
6,675,906
6,372,044
303,862
4.8%
6,063,129
612,777
10.1%
current accounts
1,044,980
1,122,530
(77,550)
(6.9%)
1,137,234
(92,254)
(8.1%)
legal entities' deposits
6,442,489
6,253,553
188,936
3.0%
5,789,680
652,809
11.3%
term deposits
4,719,737
4,590,841
128,896
2.8%
3,811,441
908,296
23.8%
current accounts
1,722,752
1,662,712
60,040
3.6%
1,978,239
(255,487)
(12.9%)
Debt securities issued
979,743
959,338
20,405
2.1%
879,212
100,531
11.4%
Amounts due to credit institutions
1,138,477
972,772
165,705
17.0%
814,069
324,408
39.9%
Other liabilities
861,113
745,037
116,076
15.6%
797,041
64,072
8.0%
Total equity
3,267,638
3,190,438
77,200
2.4%
3,068,049
199,589
6.5%
(6) Treasury bonds of the Ministry of Finance of the Republic of Kazakhstan and Notes of NBRK;
(7) 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 bonds of the Ministry of Finance of the Republic of Kazakhstan and Notes of NBRK;
As at end of 9M 2025, total assets were up 10.0%, mainly due to increase in amounts due to customers.
Compared with the YE of 2024, loans to customers were up 8.2% on a gross and 8.3% on a net basis, with retail loans growing by 9.0%, while the loan portfolio of legal entities increased by 7.8% on a gross basis.
Stage 3 loans increased to 6.9% as at the end of 3Q 2025 year-to-date as a result of the moratorium on the sale of problem retail loans to collection agencies till May 2026.
Compared with the YE 2024, the deposits of legal entities and the deposits of individuals were up 11.3% and 7.2%, respectively, due to fund inflow from the Bank's clients.
As at the end of 9M 2025, the share of KZT deposits in total deposits was 71.2% compared to 69.1% as at the YE 2024, in corporate deposits the share was 71.7% vs. 70.9% as at the YE 2024, while the share in total retail deposits was 70.7% vs. 67.5% as at YE 2024.
Amounts due to credit institutions increased by 39.9% vs. the YE 2024, due to increase in loans under REPO agreements.
As at the end of 9M 2025, debt securities issued were up 11.4% year-to-date, and the Bank's debt securities portfolio was as follows:
Description of the security
Nominal amount outstanding
Interest rate
Maturity Date
Subordinated coupon bonds
KZT 101.1bn
9.5% p.a.
October 2025
Local bonds
KZT 146.6bn
18.63% p.a. - floating rate
July 2031
Local bonds
KZT 20.0bn
17.04% p.a. - floating rate
December 2027
Local bonds listed at Astana International Exchange
USD 199 mln
3.5% p.a.
May 2027
Local bonds listed at Astana International Exchange
USD 299.7 mln
3.5% p.a.
May 2027
Local bonds listed at Astana International Exchange
USD 332.2mln
3.5% p.a.
May 2027
Local bonds listed at Astana International Exchange
USD 439.5 mln
3.5% p.a.
July 2027
Despite the dividend payments in 2Q and 3Q 2025, as at the end of 9M 2025, total equity of the Bank increased by 6.5% compared to the YE 2024, mainly due to net profit earned by the Bank during 9M 2025.
The Bank's capital adequacy ratios were as follows*:
30-Sep-25
30-Jun-25
31-Mar-25
31-Dec-24
30-Sep-24
Capital adequacy ratios, unconsolidated:
Halyk Bank
k1-1
18.3%
18.5%
19.8%
19.6%
19.2%
k1-2
18.3%
18.5%
19.8%
19.6%
19.2%
k2
18.3%
18.5%
19.8%
19.7%
19.4%
Capital adequacy ratios, consolidated:
CET 1
17.5%
18.1%
19.3%
18.8%
19.0%
Tier 1 capital
17.5%
18.1%
19.3%
18.8%
19.0%
Total capital
17.5%
18.1%
19.3%
18.9%
19.1%
* 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 statements for the nine months ended 30 September 2025, including the notes attached thereto, are available on Halyk Bank's website: http://halykbank.com/financial-results.
A 9M 2025 results webcast will be hosted at 2:00pm London time/7:00pm Almaty time (UTC +05:00) on Thursday, 13 November 2025. A live webcast of the presentation can be accessed via Zoom link after the registration. The registration is open until 13 November 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 30 September 2025, Halyk Bank had total assets amounting to KZT 20,410bn, 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 540 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-
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