In This Article:
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Net Income: Increased by 29.1% quarter-on-quarter and 53.7% year-on-year, reaching KZT638.8 billion for the nine months.
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Total Bank Assets: KZT17.65 trillion as of October 1, up 13.9% since the beginning of the year.
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Interest Income: Rose by 30.3% for the nine months.
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Interest Expense: Increased by 27.9% due to higher average rates.
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Net Interest Income: Grew by 38.7% for the nine months compared to the previous year.
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Net Interest Margin: Increased to 7.1% per annum for the nine months, up from 6.3% the previous year.
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Fee and Commission Income: Increased by 2% year-on-year for the nine months.
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Operating Expenses: Increased by 17.2% for the nine months.
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Cost-to-Income Ratio: 17.6% for the nine months, compared to 17.9% the previous year.
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Loans to Customers: Up 11.4% on a gross basis and 11.2% on a net basis compared to year-end 2023.
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Retail Loans: Increased by 25% year-to-date.
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Deposits of Individuals: Grew by 12.3% compared to year-end 2023.
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Capital Adequacy Ratio: Increased in Q3 2024 due to net profit earned.
Release Date: November 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Halyk Bank of Kazakhstan JSC (STU:H4L1) reported a strong increase in net income, rising 29.1% quarter-on-quarter and 53.7% year-on-year.
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The bank's digital platform has seen significant growth, with monthly active users of the Super-App up 11% year-on-year and daily active users up 21%.
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Retail loan issuance increased by over 30% for the quarter and over 51% year-on-year, with digital loans making up 91% of the portfolio.
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The bank maintains a leading 39% share of active salary clients among the country's employee population.
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Halyk Bank's net interest margin improved to 7.1% for the nine months of 2024, up from 6.3% in the same period of 2023, driven by an increase in high-yielding retail loans.
Negative Points
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Fee and commission income only increased by 2% year-on-year, impacted by the transition to amortization of tariff packages and revision of some retail tariffs.
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Net fee and commission income decreased by 2.7% due to increased service fees for payment cards and higher deposit insurance fees.
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Operating expenses increased by 17.2% for the nine months of 2024, mainly due to salary indexation and other employee benefits.
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The cost-to-income ratio, although improved, is expected to rise in the fourth quarter due to seasonal increases in operating expenses.
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The proposed dividend for 2023 is only 15% of net income, which may be lower than some investors anticipated.