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JSC Halyk Bank (HSBK)
November 18, 2022
Joint Stock Company ‘Halyk Savings Bank of Kazakhstan’ Consolidated financial results for the nine months ended September 30, 2022
Joint Stock Company ‘Halyk Savings Bank of Kazakhstan’ and its subsidiaries (together “the Bank”) (LSE: HSBK) releases consolidated financial information for the nine months ended September 30, 2022.
Consolidated income statements KZT mln
The interest income for 3Q 2022 increased by 46.2% vs. 3Q 2021 mainly due to increase in average rate and balances of loans to customers. The interest expense for 3Q 2022 increased by 68.7% vs. 3Q 2021, this stemmed mainly from to the increase in average rate and balances of amounts due to customers. The net interest margin increased to 5.8% p.a. for 3Q 2022 compared to 5.5% p.a. for 3Q 2021 mainly due to improved structure of placement of interest-bearing liabilities into interest-earning assets with increased share of high-yielding retail and SME loans and due to increase in the average rate and average balances of FX amounts due from credit institutions and FX interest-earning cash and cash equivalents following the global increase of USD interest rates.
The cost of risk on loans to customers for 9M 2022 and 3Q 2022 was at normalized level within the scope of our full year guidance of 1.5%.
In 9M 2022, the overall dynamics of the fee and commission income and expense was affected by the increased transactional activity as a result of the clients inflow due to changes in the operating landscape. Consequently, the net fee and commission income increased by 35.8% in 3Q 2022 vs. 3Q 2021. Fee and commission income for 3Q 2022 increased by 41.7% vs. 3Q 2021 as a result of growing volumes of transactional banking, mainly in plastic card operations, bank transfers – settlements and cash operations.
Other non-interest income (9) increased by 4.8x for 3Q 2022 vs. 3Q 2021 mainly due to the volatility of exchange rates and interest rates, which resulted in significant growth of net gain from financial assets and liabilities at fair value through profit or loss and of net gain on foreign exchange operations.
The net insurance income (10) for 3Q 2022 decreased by 83.5% year-on-year, due to increase in insurance reserve expenses on unsecured consumer loans with a borrower’s life insurance bundle.
The operating expenses rose by 15.2% year-on year in 3Q 2022, mainly due to the indexation of salaries and other employee benefits starting from March 1, 2022, increase in charity expenses and IT investments. The cost-to-income ratio equalled 18.9% in 3Q 2022, compared with 23.5% in 3Q 2021, as operating income increased in the reporting period.
Statement of financial position review KZT mln
As at the end of 3Q 2022, total assets were up 17.5% year-to-date. This was due to the growth in amounts due to customers to support the expansion of lending business.
Compared with the end of 2021, loans to customers were up 27.1% on a gross and 27.7% on a net basis. The increase in the gross loan portfolio was attributable to a rise of 25.4% in corporate, 19.4% in SME and 34.2% in retail loans.
Stage 3 ratio increased to 8.0% as at the end of 3Q 2022 mainly due to migration of individual corporate loans and retail loans from Stage 1 and 2 to Stage 3.
Compared with the end of 2021, the deposits of legal entities and individuals were up 35.5% and 10.8%, respectively, as a result of the clients inflow due to changes in the operating landscape. As at the-end of 3Q 2022, the share of KZT deposits in total corporate deposits was 53.6% compared to 52.9% as at the YE 2021, while the share in total retail deposits was almost flat vs. the YE 2021 and stayed at 50.5%.
As at the end of 3Q 2022, the debt securities issued were down 5.1% year-to-date, following the redemption of the local unsubordinated bonds denominated in KZT with a coupon rate of 8.75% in amount of KZT 93,632 million on 19 January 2022. As at the date of this press-release, the Bank’s debt securities portfolio was as follows:
In 9M 2022 the total equity of the Bank increased by KZT 324.7bn or by 20.6% compared to the YE 2021 whereas the net income for 9M 2022 amounted to KZT 417.1bn. This was due to the loss on revaluation of debt financial assets at fair value through other comprehensive income, which totaled for KZT 111.8bn in 9M 2022. The loss mainly relates to the treasury bills of the Ministry of Finance of Kazakhstan, which have decreased in price due to the base rate hike from 10.25% to 14.5% in the nine months of this year.
The Bank’s capital adequacy ratios were as follows*:
* 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 nine months ended September 30, 2022, including the notes attached thereto, are available on Halyk Bank’s website: .
The 9M & 3Q 2022 results webcast will be hosted at 1:00 p.m. London time/8:00 a.m. EST on Monday, November 21, 2022. A live webcast of the presentation can be accessed via Zoom link after the registration. The registration is open until November 21, 2022 (including), for the registration please
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 14,207.9bn as at September 30, 2022, Halyk Bank is Kazakhstan’s leading lender. The Bank has the largest customer base and broadest branch network in Kazakhstan, with 575 branches and outlets across the country. The Bank operates in Georgia, Kyrgyzstan, Russia, Uzbekistan and Tajikistan.
For more information on Halyk Bank, please visit
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| ISIN: | US46627J3023 |
| Category Code: | MSCL |
| TIDM: | HSBK |
| Sequence No.: | 201702 |
| EQS News ID: | 1490963 |
| End of Announcement | EQS News Service |
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