Page 1

14 May 2021 Joint Stock Company ' Halyk Savings Bank of Kazakhstan ' Consolidated financial results for the three months ended 31 March 2021 Joint Stock Company ‘ Halyk Savings Bank of Kazakhstan ' and its subsidiaries ( together “ the Bank ” ) ( LSE : HSBK ) releases consolidated financial information for the three months ended 31 March 2021 . Consolidated income statements KZT mln 1Q 2021 1Q 2020 Change , abs Y - O - Y , % Interest income 193,637 179,348 14,289 8.0 % Interest expense ( 86,119 ) ( 75,274 ) ( 10,845 ) 14.4 % Net interest income before credit loss expense 107,518 104,074 3,444 3.3 % Fee and commission income 33,716 30,811 2,905 9.4 % Fee and commission expense ( 15,868 ) ( 16,935 ) 1,067 ( 6.3 % ) Net fee and commission income 17,848 13,876 3,972 28.6 % Net insurance income ( 1 ) 6,995 1,741 5,254 4.0x FX operations ( 2 ) 1,758 ( 41,097 ) 42,855 ( 104.3 % ) Gain / ( loss ) from derivative 10,756 61,145 operations and securities ( 3 ) ( 50,389 ) ( 82.4 % ) Other income , share in profit of associate , 9,271 15,110 ( 5,839 ) ( 38.6 % ) and income from non - banking activities Credit loss expense ( 4 ) ( 6,247 ) ( 20,090 ) 13,843 ( 68.9 % ) Other credit loss expense ( 1,117 ) ( 1,911 ) 794 ( 41.5 % ) Operating expenses ( 40,242 ) ( 5 ) ( 37,490 ) ( 6 ) ( 2,752 ) 7.3 % Income tax expense ( 9,712 ) ( 14,289 ) 4,577 ( 32.0 % ) Net profit attributable to common shareholders 96,828 81,069 15,759 19.4 % Net interest margin , p.a. 4.7 % 5.3 % Return on average equity , p.a. 25.1 % 24.1 % Return on average assets , p.a. 3.8 % 3.5 % Cost - to - income ratio 24.4 % 23.8 % Cost of risk on loans to customers , p.a. 0.4 % 1.7 % ( 1 ) insurance underwriting income ( gross insurance premiums written , net change in unearned insurance premiums , ceded reinsurance share ) less insurance claims incurred , net of reinsurance ( insurance payments , insurance reserves expenses , commissions to agents ) ; ( 2 ) Net gain / loss on foreign exchange operations ; ( 3 ) Net gain from financial assets and liabilities at fair value through profit or loss and net realised gain from financial assets at fair value through other comprehensive income ; ( 4 ) Total credit loss expense , including credit loss expense on loans to customers , amounts due from credit institutions , financial assets at FVTOCI , cash and cash equivalents and other assets . ( 5 ) Including loss from impairment of non - financial assets of KZT 0.4 bn . ( 6 ) Including loss from impairment of non - financial assets of KZT 1.9 bn . 1