REG - JSC Halyk Bank JSC Halyk Bank-37QB - Consolidated financial results for the FY 2025

Halyk Bank AOAnnouncement

19/03/2026 07:05

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RNS Number : 2966X  JSC Halyk Bank  19 March 2026

19 March 2026

 

Joint Stock Company 'Halyk Bank of Kazakhstan'

Consolidated financial results

for the year ended 31 December 2025

 

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 information for the year ended 31 December 2025.

 

 Consolidated Statement of Profit or Loss

KZT mln

 

                                                                                 12M 2025     12M 2024     Y-o-Y, abs  Y-o-Y,%  4Q 2025    4Q 2024    Y-o-Y, abs  Y-o-Y,%
 Interest income(()(1)())                                                        2,694,957    2,170,786    524,171      24.1%   708,575    598,926    109,649      18.3%
 Interest expense                                                                (1,407,219)  (1,062,876)  (344,343)    32.4%   (389,109)  (282,702)  (106,407)    37.6%
 Net interest income before credit loss expense                                  1,287,738    1,107,910    179,828      16.2%   319,466    316,224    3,242        1.0%
 Fee and commission income                                                       238,954      211,734      27,220       12.9%   63,380     58,166     5,214        9.0%
 Fee and commission expense                                                      (98,805)     (86,450)     (12,355)     14.3%   (25,038)   (25,459)   421         (1.7%)
 Fees and commissions, net                                                       140,149      125,284      14,865       11.9%   38,342     32,707     5,635        17.2%
 Net insurance income (()(2)())                                                  62,964       49,932       13,032       26.1%   11,633     23,656     (12,023)    (50.8%)
 Net gain on foreign exchange operations, financial assets and liabilities((3))  203,671      216,915      (13,244)    (6.1%)   61,581     67,880     (6,299)     (9.3%)
 Other expense/non-interest income ((4))                                         67,919       (6,303)      74,222      (x10.8)  19,786     24,885     (5,099)     (20.5%)
 Expected credit loss expense and recovery of other credit loss expense          (156,208)    (128,472)    (27,736)     21.6%   (48,733)   (31,544)   (17,189)     54.5%
 Operating expenses ((5))                                                        (307,996)    (263,373)    (44,623)     16.9%   (86,687)   (82,674)   (4,013)      4.9%
 Income tax expense                                                              (239,817)    (180,902)    (58,915)     32.6%   (66,903)   (68,958)   2,055       (3.0%)
 Net  income                                                                     1,058,420    920,991      137,429      14.9%   248,485    282,176    (33,691)    (11.9%)
 Non-controlling interest                                                        3            3            0           -        1          1          0           -
 Net income attributable to common shareholders                                  1,058,417    920,988      137,429      14.9%   248,484    282,175    (33,691)    (11.9%)

 Net interest margin, p.a.                                                       7.1%         7.2%                              6.9%       7.6%
 Return on average equity, p.a.                                                  32.6%        34.0%                             29.4%      37.5%
 Return on average assets, p.a.                                                  5.4%         5.5%                              4.8%       6.3%
 Cost-to-income ratio                                                            17.5%        17.6%                             19.2%      17.8%
 Cost of risk on loans to customers, p.a.                                        1.4%         1.2%                              1.3%       0.9%

 

 

(1)      Interest income calculated using the effective interest method
and other interest income;

(2)      Insurance revenue less insurance service expense, net insurance
finance expense and net reinsurance expense;

(3)      Net 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 (impairment loss)/reversal of impairment of
non-financial assets;

 

 

 

Net income attributable to common shareholders for 12M 2025 is up 14.9%
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 12M 2024.

 

Interest income((1)) for 12M 2025 was up 24.1% vs. 12M 2024 mainly due to
increase of average balances of loans to customers.

 

Interest expense for 12M 2025 increased by 32.4% vs. 12M 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.

 

Net interest margin decreased to 7.1% for 12M 2025 compared to 7.2% for 12M
2024 due to the introduction of new minimum reserve requirements coefficients
and faster repricing of average interest bearing liabilities compared to
average interest earning assets following the increase in the base rate.

 

Net fee and commission income for 12M 2025 increased by 11.9% vs. 12M 2024 as
a result of increased number of clients and the growth of clients'
transactional activity both of individuals and legal entities.

 

The positive dynamics of other expense/non-interest income ((4)) in 12M 2025
was impacted by the base effect of one-off recognized loss due to the early
repayment of the deposit of KSF in 12M 2024.

 

Operating expenses((5)) for 12M 2025 increased by 16.9% vs. 12M 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 slightly decreased to 17.5% compared to 17.6%
for 12M 2024 amid higher operating income for 12M 2025.

 

Cost of risk in 12M 2025 was at normalized level in line with our full year
guidance and was at the level of 1.4%.

 

 

 

 

Consolidated Statement of Financial Position

KZT mln

                                          31-Dec-25       30- Sep -25      Change           Change         31-Dec-24       Change YTD, abs      Change YTD, %

                                                                           Q-o-Q, abs       Q-o-Q, %
 Total assets                             20,908,456      20,410,346       498,110           2.4%          18,548,414      2,360,042             12.7%
 Cash and cash equivalents                1,694,431       1,781,551        (87,120)         (4.9%)         1,473,802       220,629               15.0%
 Obligatory reserves                      862,148         834,159          27,989            3.4%          306,330         555,818               x2.8
 Amounts due from credit institutions     181,288         200,256          (18,968)         (9.5%)         156,966         24,322                15.5%
 T-bills of MinFin & NBRK notes((6))      2,502,059       2,487,956        14,103            0.6%          2,738,432       (236,373)            (8.6%)
 Other securities & derivatives((7))      1,846,649       1,910,723        (64,074)         (3.4%)         1,776,082       70,567                4.0%
 Gross loan portfolio                     13,714,721      13,031,358       683,363           5.2%          12,038,868      1,675,853             13.9%
 Allowance for expected credit losses     (603,804)       (611,402)        7,598            (1.2%)         (573,219)       (30,585)              5.3%
 Net loan portfolio                       13,110,917      12,419,956       690,961           5.6%          11,465,649      1,645,268             14.3%
 Assets classified as held for sale       8,896           11,383           (2,487)          (21.8%)        8,833           63                    0.7%
 Other assets                             703,065         764,362          (61,297)         (8.0%)         622,320         80,745                13.0%
 Total liabilities                        17,408,105      17,142,708       265,397           1.5%          15,480,365      1,927,740             12.5%
 Amounts due to customers, including:     14,338,804      14,163,375       175,429           1.2%          12,990,043      1,348,761             10.4%
 individuals' deposits                    7,976,450       7,720,886        255,564           3.3%          7,200,363       776,088               10.8%
    term deposits                         6,781,175       6,675,906        105,269           1.6%          6,063,129       718,046               11.8%
    current accounts                      1,195,275       1,044,980        150,295           14.4%         1,137,234       58,042                5.1%
 legal entities' deposits                 6,362,353       6,442,489        (80,135)         (1.2%)         5,789,680       572,673               9.9%
    term deposits                         4,675,777       4,719,737        (43,960)         (0.9%)         3,811,441       864,336               22.7%
    current accounts                      1,686,576       1,722,752        (36,176)         (2.1%)         1,978,239       (291,663)            (14.7%)
 Debt securities issued                   970,098         979,743          (9,645)          (1.0%)         879,212         90,886                10.3%
 Amounts due to credit institutions       1,270,128       1,138,477        131,651           11.6%         814,069         456,059               56.0%
 Other liabilities                        829,075         861,113          (32,038)         (3.7%)         797,041         32,034                4.0%
 Total equity                             3,500,351       3,267,638        232,713           7.1%          3,068,049       432,302               14.1%

 

(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 12M 2025, total assets were up 12.7% year-to-date, mainly driven
by an increase in amounts due to customers.

 

Compared with the YE of 2024, loans to customers were up 13.9% on a gross and
14.3% on a net basis, with retail loans growing by 10.8%, while the loan
portfolio of legal entities increased by 15.5% on a gross basis.

 

Stage 3 loans increased to 7.7% as at the end of 4Q 2025 year-to-date as a
result of the moratorium on the sale of problem retail loans to collection
agencies till May 2026 and the migration of few corporate clients from Stage 2
to Stage 3.

 

Compared with the YE 2024, the deposits of legal entities and the deposits of
individuals were up 9.9% and 10.8%, respectively, due to fund inflow from the
Bank's clients.

 

As at the end of 12M 2025, the share of KZT deposits in total deposits was
71.7% compared to 69.1% as at the YE 2024, in corporate deposits the share was
70.4% vs. 70.9% as at the YE 2024, while the share in total retail deposits
was 72.7% vs. 67.5% as at YE 2024.

 

Amounts due to credit institutions increased by 56.0% vs. the YE 2024, due to
increase in loans under REPO agreements.

 

As at the end of 12M 2025, debt securities issued were up 10.3% 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 182.1bn                 18.63% p.a. - floating rate  July 2031
 Local bonds                   KZT 20.0bn                  17.83% p.a. - floating rate  December 2027
 Local bonds listed at Astana  USD  196.5 mln              3.5% p.a.                    May 2027

 International Exchange
 Local bonds listed at Astana  USD  299.6 mln              3.5% p.a.                    May 2027

 International Exchange
 Local bonds listed at Astana  USD  500 mln                3.5% p.a.                    May 2027

 International Exchange
 Local bonds listed at Astana  USD  496.4 mln              3.5% p.a.                    July 2027

 International Exchange

 

As at the end of 12M 2025, total equity of the Bank increased by 14.1%
compared to the YE 2024, due to net profit earned by the Bank during 12M
2025.

 

The Bank's capital adequacy ratios were as follows*:

 

       31-Dec-25  30-Sep-25  30-Jun-25  31-Mar-25  31-Dec-24
 Capital adequacy ratios, unconsolidated:
 Halyk Bank
 k1-1  18.9%      18.0%      18.5%      19.8%      19.3%
 k1-2  18.9%      18.0%      18.5%      19.8%      19.3%
 k2    18.9%      18.0%      18.5%      19.8%      19.4%

 

* 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 2025, including the notes attached thereto, are
available on Halyk Bank's website:

https://halykbank.com/results-and-presentations
(https://halykbank.com/results-and-presentations) .

 

A 12M and 4Q 2025 results webcast will be hosted at 2:00pm London time/7:00pm
Almaty time (UTC +05:00) on Thursday, 19 March 2026. A live webcast of the
presentation can be accessed via Zoom link after the registration. The
registration is open until 19 March 2026 (including), for the registration
please click here.
(https://halykbank-kz.zoom.us/webinar/register/WN_qsgxC06wRxiN2yCNde-kkA)

 

 

 

 

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 2025, Halyk Bank had total assets amounting to KZT 20,908bn,
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 531
branches and service outlets across nationwide. Additionally, the Bank
operates in Georgia and Uzbekistan.

 

For more information on Halyk Bank, please visit https://halykbank.com/
(https://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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