Halyk Bank posts 32.8% surge in annual net income

ALMATY - Joint Stock Company ’Halyk Bank of Kazakhstan’ reported a 32.8% increase in net income for the fiscal year 2024, according to the consolidated financial statements and independent auditors’ report released Thursday. The bank attributed the rise to significant growth in lending and transactional businesses.

The bank, listed on the London Stock Exchange (LON:LSEG) (LSE: HSBK), Kazakhstan Stock Exchange (KASE: HSBK, HSBKd), and Astana International Exchange (AIX: HSBK, HSBK.Y), saw its interest income climb by 30% compared to the previous year, primarily due to higher average rates and balances of loans to customers. Interest expenses also rose by 21.8%, influenced by increased average rates on customer amounts due and growth in deposits as part of total liabilities.

Fee and commission income experienced a 5.8% uptick year-over-year, driven by a larger client base and increased client transactional activity. The bank’s net fee and commission income improved by 10.2% for the same period.

The net interest margin for the bank improved to 7.2% per annum for the year 2024, up from 6.1% in the previous year, reflecting higher yields on retail loans and a larger share of loans to customers in total interest-earning assets.

Operating expenses for the bank increased by 21.7% compared to the previous year, due to salary indexation and other employee benefits, including costs associated with a long-term incentive program. Despite this, the bank’s cost-to-income ratio improved, dropping to 17.6% from 19.2%.

The bank’s total assets grew by 19.7% year-to-date, with a notable increase in amounts due to customers. Gross loans to customers jumped by 23.2%, and net loans by 23.5%, with growth across all business segments. The share of non-performing loans (Stage 3) decreased from 7.5% to 6.3% year-to-date due to problem loan resolutions and portfolio expansion.

Deposits from legal entities and individuals both saw robust growth, 13.5% and 23.5% respectively. The bank’s total equity rose by 23.9% year-to-date, mainly attributable to the net profit earned during the year.

This financial performance reflects Halyk Bank’s position as a leading lender in Kazakhstan, with an extensive branch network and the largest customer base in the country. The bank’s capital adequacy ratios remained well above the minimum regulatory requirements.

The information is based on a press release statement from Halyk Bank. For more details, interested parties can access the full financial statements and auditors’ report on the bank’s website.

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