REG - JSC Halyk Bank JSC Halyk Bank-37QB - 9M and 3Q financial results
13/11/2025 08:00
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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 Change 31-Dec-24 Change YTD, abs Change YTD, %
Q-o-Q, abs Q-o-Q, %
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 USD 199 mln 3.5% p.a. May 2027
International Exchange
Local bonds listed at Astana USD 299.7 mln 3.5% p.a. May 2027
International Exchange
Local bonds listed at Astana USD 332.2 mln 3.5% p.a. May 2027
International Exchange
Local bonds listed at Astana USD 439.5 mln 3.5% p.a. July 2027
International Exchange
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
(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.
(https://halykbank-kz.zoom.us/webinar/register/WN_GP56N6aDRti_-PNJB6XkVw)
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-
For further information, please contact:
Halyk Bank
Mira Tiyanak +7 727 259 04 30
Ir@halykbank.kz
MiraK@halykbank.kz (mailto:MiraK@halykbank.kz)
Rustam Telish +7 727 330 15 66
RustamT3@halykbank.kz (mailto:RustamT3@halykbank.kz)
Yekaterina Svanbayeva +7 727 330 12 88
EkaterinaS@halykbank.kz (mailto:EkaterinaS@halykbank.kz)
Laura Kustubayeva +7 (727) 259 60 27
LauraKus@halykbank.kz (mailto:LauraKus@halykbank.kz)
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