Good eveni ng, ladies and gentlemen. Welcome to Halyk Bank conference call on presentation of financial results for the six months of 2021. The session will start with the presentation by our team and will be followed up by Q&A session. Please note that the call is being recorded. Participants to today's call on Halyk Bank side are Ms. Umut Shayakhmetova, Chief Executive Officer, Mr. Anton Musin, First Deputy CEO, Digital Banking, Transactional Business, and IT, Ms. Aliya Karpykova, Deputy CEO, Chief Financial Officer, Mr. Murat Koshenov, Deputy CEO, Corporate Banking, International Activities, Mr. Dauren Sartayev, Deputy CEO, SME Banking, PR, and Marketing, Mr. Zhumabek Mamutov, Deputy CEO, Retail Banking, Mr. Viktor Skryl, Financial Director, Finance and Subsidiaries, Mr. Almas Makhanov, Chief Risk Officer, Mira Kassenova, Head of FI & IR, and myself, Margulan Tanirtayev from IR team. Let me start with overview of Halyk Group consolidated financial results for the first half and second quarter of 2021. During the first half, the bank generated KZT 225.4 billion in year of net income. The increase by 44.5% compared to the first half of the last year was due to the overall business growth across all segments and recovery of credit loss expense, which reflect the economy rebound and bank's leading position on the financial markets. In the first half of this year, we demonstrated 29.9% return on average equity and 4.3% return on assets. Next slide, please. Total assets of the group increased by 5.9% versus the end of first quarter of 2021 as a result of growth in amounts due to customers, both individuals and legal entities. Customer deposits increased by 7.5% versus the end of first quarter due to fund inflow from the bank's clients. Next slide, please. Interest expense for the first half of this year increased by 12.1% versus the first half of 2020, mainly due to the increase of average balance and share of KZT deposits in the amounts due to customers, which was partially offset by the decrease in interest expense on debt securities as a result of a redemption of bank's high-yielding eurobonds. Interest income for the first half of 2021 increased by 13.3% versus the first half of 2020, mainly due to increase in average balances of loans to customers. Net interest margin decreased to 5% per annum for the first half of 2021 compared to 5.2% per annum for the first half of 2020, mainly due to transfers in placement from high yielding NBRK notes into low yielding FX deposit with the NBRK following the repayment of swap agreement. Net interest margin decreased to 5.4% per annum for the second quarter of 2021 compared to 4.7% per annum for the first quarter of 2021, mainly due to improved structure of placement of interest-bearing liabilities into interest-earning assets and due to savings on coupon payments as a result of an early redemptions of bank high yielding Eurobonds. Net interest margin in the first quarter of 2021 was negatively affected by the accelerated amortization of discount in the amount of KZT 5 billion on bank's Eurobonds due to its full prepayment in the first quarter of this year. Next slide, please. Compared to the first half of the last year, our gross fee and commission income increased by 17% as a result of growing volumes of transactional banking, mainly in plastic card operations, bank transfer settlements, and cash operations. The increase in fees derived from bank transfer settlements for the first half of this year by 36.4% versus the first half of the last year was mainly due to increase in merchant fees as a result of growing volume of online installment loans issued. The increase in fee and commission expense for the first half of 2021 by 4.8% versus the first half of 2020 was mainly due to the increase in payment card expenses as a result of growing volumes of transactional banking and non-cash transactions, which was partially offset by the decrease in deposit insurance fees payable to the Kazakhstan Deposit Insurance Fund due to lower rates for the bank on the back of increase of capital adequacy ratios. Next slide, please. Operating expenses for the first half of this year increased by 12% versus the first half of the last year, mainly due to the indexation of salaries and other employee benefits starting from the 1st March of this year, increase in charity expenses as a result of one-time contribution to charities on Halyk, and increase in IT investments. The bank's cost-to-income ratio decreased to 23.5% compared to 25.8% for the first half of 2020 due to higher operating income for the first half of this year. Next slide, please. On the balance sheet, compared with the end of the first quarter of 2021, loans to customers increased by 11.9% on a gross basis and 13.3% on a net basis, while corporate loans increased by 12.8% on a gross basis, and SME and retail loans increased by 7.3% and 13% on a gross basis, respectively. Next slide. 90-day plus NPL ratio decreased to 4% from 4.4%, and cost of risk decreased to -0.8% from 0.4% as at the end of the 1st quarter of 2021, mainly due to repayments of large ticket problem and previously impaired corporate loans. The provisioning rate decreased to 6.8%. The NPL 90-day plus coverage ratio was at 175.2%. Next slide. As at the end of the 2nd quarter of 2021, stage three ratio decreased to 10.4% from 12.2% as at the end of the 1st quarter of this year, mainly due to repayments of large ticket problem and previously impaired corporate loans. We are additionally showing here how well the workout of problem loans collateral was done by the bank's SPVs during the 1st half of this year. Next slide, please. On liability side, the corporate and retail deposits increased by 5.8% and 9% respectively, compared to the end of the first quarter of this year, due to fund inflow from the bank's clients. As at the end of the second quarter of this year, the share of corporate KZT deposits in total corporate deposits was 57.3%, compared to 56.6% as at the end of the first quarter of this year. The share of retail KZT deposits in total retail deposits was 49.2%, compared to 47.5% as at the end of the first quarter of 2021. Next slide, please. Compared with the year-end of 2020, total equity increased by 1.1% as a result of net profit earned by the bank during the first half of 2021, which was partially offset by the payment of dividends for 2020. The bank's capital adequacy ratio decreased as a result of risk-weighted assets growth by 11.1% versus the end of the first quarter of 2021 and payment of dividends for 2020, with CET1 and total capital adequacy ratio standing at 21.1% and at 22.1%. Next slide, please. Based on our six-month financial results and following the revision of the overall business growth prospects, we have updated the outlook for the financial year of 2021. Retail net loan portfolio growth is expected to be in the area of 27%. Corporate and SME net loan portfolio growth is expected to be in the area of 19%. Total net loan portfolio growth is expected to be in the area of 21%. Growth of net fee and commission income is expected to be in the area of 29%. Cost of risk is expected to be in the area of 30 basis points. Consolidated net income is to be around KZT 450 billion. Return on average equity is to be in the area of 28%. Net interest margin outlook remains unchanged and is expected to be in the area of 5%. Cost-to-income ratio also remains unchanged and expected to be in the area of 27%. Now I would like to hand over to Mira Kassenova, Head of FI&IR. Good evening, everybody. I would like to provide you with digital and business segment updates. Customer engagement within our core online platforms, Homebank and Onlinebank, has continued to grow monthly in Q2 2021. The number of monthly and daily active users of Homebank app, our key retail digital channel, has increased by 74% and 90% year-on-year, respectively. Monthly active users reached 3.3 million in Q2 2021, and we are well on track to reach our 4 million target by 2021 year-end. We see a strong growth in our mobile platform for businesses, Onlinebank app. Notably, number of its monthly active users has increased by over five times year-on-year. The app is ranked number one within the respective category in Kazakhstan and is highly scored by both Android and iOS users, reflecting seamless experience and service we offer to our clients. At the same time, the web platform of Onlinebank remains a key digital channel, where we see 37% growth in monthly active users. In the 30th month, we launched majority of services and functions that we planned for 2021 within our platforms. This includes a number of innovative services such as online loan refinance or e-car registration through Homebank, and Speeding Block and Halyk POS within Onlinebank. Next slide, please. Web migration of customers to our digital platform supported strong growth in credit and non-credit products for retail clients and businesses. Online sales were the key driver of retail loan growth, as we now issue over 55% of loans digitally, plus 20 percentage points year-on-year. For online retail deposit share, in spite of the fact that we stay on the same level, but the number of online deposits has grown by 45%. We see continuous shift to cashless transactions. Over 52% of retail payment volume were implemented by non-cash card transactions in Q2 of this year, and a notable increase from 32% a year ago. For SME business, we are well on track with our annual plan, reaching 6,100 digital loans issued in the first half of 2021. We started new relationships with almost 20,000 business clients entirely via Onlinebank in the first half, and we see strong growth in Online KZT payments number and volumes, which have grown by 30% and 33% year-on-year in Q2 2021, respectively. In Q3, we expect to increase online onboarding of new businesses with the launch of additional functionalities and benefit from a seasonal ramp-up in online lending, supported by both standard products and state-subsidized programs. Next slide, please. We see a substantial progress across our retail ecosystem verticals. Payments within our online auto insurance platform increased 5x year-on-year, while GMV of Halyk Travel and Kino.kz app has increased by 3x and 6x year-on-year, respectively. We almost hit the number of customers in Halyk Invest we targeted for 2021, as our investor platform expands swiftly. Development of our marketplace platform, Halyk Market, remains a key priority for us. Our network expanded to 224 partners, offering over 88,000 SKUs nationwide as of June 2021, and we're focused to expand our footprint further. Halyk Market is fully integrated with Halyk Homebank app, and we offer full range of checkout and financing options, as well as additional features such as order tracking. Our marketplace GMV reached KZT 20.6 billion in Q2 2021. At the same time, we are expanding our ecosystem, introducing new services in Homebank app, which are convenient for our clients and support high customer engagement and cross-sell in our [ecosystem]. For example, we launched Halyk Remote Refillment Service, which enables our customers to easily pay and be served at the gas station without getting out of the car. Next slide, please. Turning to retail segment, we would like to highlight solid performance across key dimensions. We see increasing digital footprint with our Homebank app and growing transaction activity. The transaction volumes have increased by 31% year-over-year and we processed over KZT 13.6 trillion of transactions in the first half this year. More importantly, products per customer increased to three versus two point five a year ago, reflecting strong customer engagement. Retail loans and deposits are showing strong growth of 17.3% and 12.5% year to date, our market share by retail loans reached 18.2% as of first half 2021. Next slide. As mentioned, we have shown a very robust growth in retail lending. Notably, loan portfolio growth for the first half year of higher versus the first half 2020 dynamics. Our retail portfolio has grown by 16.6% on standalone basis year to date, while the loan issuance volumes have increased by almost 2x year-on-year in the first half of this year. At the same time, asset quality has improved with retail NPL ratio decreasing from 6.2% in Q1 to 5.5% in Q2, while we maintain conservative provision levels. We see continuous demand for retail financing across products and continue to grow our market issuance volumes, reaching record high new loan disbursements in June 2021. The growth has been primarily driven by digital sales, which increased 10x year-on-year and reached 22% of total retail loan sales in the first half of 2021. Next slide, please. In corporate banking, our loan book has expanded by 12.8% QoQ or 19.5% year-over-year in Q2 2021, as we increased financing volumes for new and existing customers with the recovery of Kazakhstan economy. Corporate portfolio remains well diversified because industries were affected and comprise 32% of the loan book and are primarily issued to the borrowers with affected income. Corporate NPL ratio decreased to 2.5%, while we maintain conservative provision coverage of over 235% as of Q2 2021, which reflects solid asset quality and our prudent risk management. We're glad to see increasing cross-sell, further strengthening customer engagement and growing transactional activity with 1,800 active corporate clients, 5.52 products per borrower and 169.7 monthly transactions per active transactor, plus 25% year-over-year. Next slide, please. We continue to develop Onlinebank as a powerful platform for our SME and corporate customers. Over the last month, we added a number of services such as Halyk Pay, Signal Glass, Aska Cashbox, and Apple Pay for legal entities. We also introduced simple tariff packages and online loans for individual depositors via app. Most of our customers are actively using Onlinebank, either in app via web interface and that's for 99% of payments and transactions online. The convenient digital performance has been a strong catalyst for our client base growth, as well, 60% of new clients were onboarded online in the first half of 2021. Next slide, please. Where part of the performance were achieved in consumer banking recently, supported by the implementation of our digital initiatives, which were mentioned previously. We currently have over 353,000 consumer customers and continue to focus on offering a wide range of daily banking and transactional services online to meet our clients' needs. As a result, number of active transactors has increased by 30% to almost 90,000. Consumer loan portfolio grew by 26%, while the number of borrowers has doubled year-on-year in the first half of 2021. The loan portfolio is well diversified within service, trade, agriculture and other sectors and demonstrates healthy asset quality. The segment NPL ratio has decreased to 7.3% as of the end of the Q2. Next slide, please. In the first half of 2021, we achieved 45% increase in loan issuance volumes versus the first half of 2020. We continue our strong shift to digital, with 92% of loans to small enterprises issued online. Our convenient solo online onboarding supports strong influx of new customers. In the first half, we onboarded over 68% of new clients online. The number of small enterprise borrowers has increased by 70% year to date, with 58% share of digital loans while the loan portfolio has grown by more than 20%. Ladies and gentlemen, this completes our presentation. Now we would like to open the floor for your questions, please. Just a quick instruction. To state a question, you can raise your hand in Zoom, or if you joined via the cell phone, please press star nine to raise your hand. You can also enter your question in the written form via chat, and while stating your question, please also mention your name and company. The first question comes from Elena Tsareva. Elena, please go ahead. Yes. Good afternoon. Thank you very much for the presentation and congratulations with the record results. I have several questions. Maybe the first one on your cost of risk guidance for this year. It assumes that more or less you guide for the second half of this year, 0.8% cost of risk, more or less at this area. That was previously the guidance for the full year. This is normalized cost of risk you see going forward for the next year as well, and if any guidance like how all these big releases maybe any expectations for another one of provision release the same size or different size going forward, maybe some sectors you see can recover some bad exposures or something else. That will be helpful. This is my first question. Hello, Elena. This is Almas Makhanov. Yes, for the second half of the year, we expect cost of risk to come back to normal levels. The guidance for entire year incorporates that. In terms of the 2022 and going forward, it is hard to provide any guidance because we see that the factors that impact the quality also come from change in economy. Overall, you can say that for the years going forward, we will keep on track based on our historical levels. On one of provision releases, any understanding how sectors evolve or it's just any potential for big reversals going forward? Maybe some particular area that recover stronger, you see some exposures recovery for them. Yes. No specific areas that we see that might recover in big numbers. As you know, we have been working on a legacy portfolio that came from the purchase of [Kazkommertsbank]. That legacy portfolio keeps decreasing. I think going forward, you should see in terms of recoveries, you should see our normal numbers. Namely, maybe you should look at agricultural sector that might recover. No specific guidance for any specific sectors. Elena, did I answer your question? Yes. Just a quick follow-up. If any understanding of the amount of this legacy portfolio from Kazkommertsbank, if you can disclose it? Yes. I think if you look at the NPL levels and Stage 3 levels, you could say that relatively half of that amount may be still attributes to legacy portfolio, but it's been decreasing and maturing pretty well for the past three years. It's about half of our Stage 3 loans. Understood. Thank you. The next question is on your capital position and actually upgraded guidance. Given that higher ROE and yet it's accompanied by stronger growth expectations, but still feels that like CAR is running CET1 ratio is running above what you guided for 2021, 2022 guidance on CMD above 70%. If any idea of a ny guidance for possible payouts for this year, given such a robust dynamic would be helpful. Hello, Elena. This Murat. Yes, we upgraded guidance for return on average equity from 27% to 28%, which is also higher than the figure which we recorded for last year. We also upgrading the growth of our credit portfolio from net portfolio from 16% to 21%. If you see actually the risk-weighted assets growth is also quite significant. It's probably a bit premature as normally we are not discussing the exact dividend payout, which is normally decision which is done in the first quarter of next year. By that time, probably we again would be looking what are the prospects of growth, what the expected profitability of that growth would be, and also we'd be looking what the current capital position would be at that point of time. Far probably it's a bit premature, but yeah, we upgrading both the return on equity, but also we upgrading the guidance for growth as well. Understood. Thank you very much. On digital ecosystem projects, if you can disclose what kind of investments you already did, you plan to do within mid-term horizon, like percentage of equity or maybe in absolute terms would be helpful? I think this is probably not a big figure from the capital position. So far, all the proprietary ecosystem investments which are showing in our presentation on slide 19 is actually done organically through developing our own solutions. I don't think that we'll be spending big in terms of the capital position, but definitely we are determined to continue developing our ecosystem services going forward as well. Understood. Thank you much. Just a quick follow-up with what we discussed on dividends as well. Given that it's still early to say about next year growth in loans, but given that this year growth is quite spectacular and typical what we see before, it was quite subdued on corporate side. May we see the same strong, of course, it will be from a higher base, but still can be the same strong demand next year? There is something structural shifts in loan demand from corporate SMEs, or maybe some ideas in terms of growth expectations beyond this year. Probably I will not give the specific figures, probably let's give the answer from directional perspective. The growth which we are seeing now is actually coming from various sources. It's on the large corporate side. We see demand from SME, also from small business for which we developed actually digital lending platform. Retail, it's the growth coming from our regular installment loans, which are given to people who receive salaries, but also related to buy now, pay later types of loans. At the same time, we saw that the portion which attributed, for example, mortgages actually shrink because of additional money, which was allowed for people to be disbursed from their pension accounts. Part of that actually used in the first quarter to repay mortgages. Our auto loan portfolio is quite small. Next to all the sources which I mentioned, it is also potential to growth in terms of the mortgages and auto loans as well. It's quite, I would say, broadly based demand, which we are seeing now in legal entities, which is both for large corporate and SME. We also saw demand coming for working capital loans as well as for capital expenditures. It seems like there were some periods during which businesses were under-investing, now the time also comes to catch up with their plans. Understood. Thank you very much for detail answers. That's it from my side. Thank you. The next question comes from Andrew Keeley. Andrew, please go ahead. Hello, can you hear me? Yes. Okay, great. Well, you answered some of the questions. I guess, just to follow up on the lending. Incredibly strong 2Q, particularly on the corporate side relative to the 1Q. Any kind of color on why such lumpy quarter in terms of the growth? I guess you're kind of expecting that that will slow down to a low mid-single-digits over the next couple of quarters. Just interested to know why there was such strong growth in the 2Q. On the retail side, it's interesting what you said about the releasing pension funds early, so people were paying down mortgages. It's still pretty striking with the difference in the growth between the consumer lending and the mortgages. I'm just wondering, given how low the penetration of mortgages is in Kazakhstan, when do you see the chances of this kind of market picking up and the growth returning there? In terms of the unsecured loans, could you tell us a little, any detail you can give us on the relative shares of cash loans and buy now, pay later, or anything on the kind of curation or size of the loans would be great. Thank you. Thank you very much, Andrew, for your questions. Well, regarding the spike in lending to large corporates in the second quarter, actually this is due to the fact that we working on pipeline and on large corporate segment, it takes quite some time, actually. Most of the loans which was disbursed in the second quarter, we start working on them even in the first quarter last year as well as beginning of this year. It's simply like part of this loan, actually, the transactions was closed not in the first quarter but in the second quarter. There's no more specific reasons for that. We continue to have a strong pipeline also remaining, which we think is one of the driver why we are raising the guidance for the second half of this year. When it will be realized, particularly smoothly in the third or fourth quarter, or it will be more realized in one of these quarters, it's again, for large corporates, it'd be difficult to say because you can appreciate that working on transaction can take quite some time. Well, in terms of mortgages, actually, the mortgages in the market were growing quite significantly. I do not have specific statistics for early years, but if you look for 2019 sector-wise, mortgages grew by 32%. In 2020, they again grew by 32%. Cumulatively, actually, mortgages grew in these two years something like by 80%. Actually, they were flat in the first quarter, simply because there were some repayments of mortgages which was done from pension fund proceeds. Already in the second quarter this year, mortgages resumed their growth by 11%. It is actually growing quite fast. Frankly, I don't think that the growth can be any quicker, given that it's already taking place for quite some time. Obviously, one of the main drivers for that growth are the government programs. I think that the continuation of that growth partially would be subject to how long these government incentives, government programs would last. Even apart from that, there is some commercial mortgages available on the market as well, and so that also might support the growth in the mortgages, but probably to a lesser extent. Regarding your question, the split between salary loans and buy now, pay later loans, I guess we are not providing that statistics. I'm afraid that at this point of time, I'm not able to provide figures on that question. Okay. Fair enough. Thank you. I guess it's just interesting your point on the mortgages that during that time of very strong market growth, I think Halyk's overall mortgage book has basically been flat. It's been quite a long period of time when your mortgage book hasn't really been growing, and all the growth has been in consumer. I guess, sorry, just a final follow-up. Obviously you're talking about the consumer growth coming through the expansion of digital loans and tapping into your payroll base. Can you give us any sense of how much further potential you have in terms of consumer lending to your payroll base? Probably you're not going to tell us what share of that number you've lent to, just generally, is there quite a long way to go still to run in terms of tapping into your payroll base? Thank you. Again, probably I'm not talking about some sp ecific figures, but we think that the current penetration allow us to further grow in terms of the number of customers. Also, if you see there's a continuation of increase in salaries. Actually, already for three years, there is increase in salaries. Actually, the salary increase became more broadly based because also people who actually work in the area of education, healthcare, they're also seeing increase, actually from the start of pandemic, and that is also growing in real terms. As we discussed in our previous calls, these are one of the main components of our target clients and one of the main share of our current salaried customers. The growth might be coming from further penetration as well as from increased base from existing customers. Okay. Thank you very much. Thank you. Next question comes from Leonid Bez. Leonid, please go ahead. Leonid, you may unmute yourself and ask your question, please. Oh, okay. Thank you. Congratulations with outstanding results for the second quarter. I have a couple of questions. What is the impact of new COVID wave starting in July? What do you think could be the impact on the third and fourth quarters? Hello, Leonid. Good question. Indeed, we are seeing a spike probably for the last one and a half months. Actually, in terms of numbers, the figures are higher than we witnessed during the previous waves. Yeah. What we are seeing, first of all, the number of people who vaccinated actually has increased. If you saw in our presentation on slide 40, currently there are 6 million people who already received the first component, and close to 5 million people who received the second component. From that perspective, actually, Kazakhstan surpassed Russia in terms of percentage of people who received either full vaccination or at least the first component. What areas are still impacted? On educational, not all universities would be open again this autumn. Part of the students would continue to study online. At least it was pledged that schools would be reopened and would start working online. In terms of the businesses, it seems like the government found some formula, which actually have, let's say, three components. Component number one is vaccination. The businesses, and especially those which involve a lot of interaction with customers, there is increased demand for workers to be vaccinated. The second one, the government actually, there was a digital platform called Ashyq, which in Kazakh means open, was developed, where actually each person can see his status, right? If the person is infected, it has a red status until he gets cleared. It can be yellow if the person is considered as a contacted. It can be blue if there is no specific status. If the person is actually vaccinated, or if he has three months past his infection, he has a green status. Actually, most of shops, especially bigger ones like shopping malls, all restaurants, they are required to check the people status through that system. Actually, there are many cases when people with, for example, a red status was actually detected through that systems, and they get penalized. This is kind of the third element, how the government wants to make sure that business stay open, but with some control over the infected people. The fourth one is so-called the weekends lockdowns. For example, cafes, restaurants, hairdressers, shops in locations which have a red status, they actually closed. They can work on weekdays, but they're closed on the weekends. Obviously, this affected certain companies who operate only offline, and who has not changed business model into online mode. It seems like many businesses, at least in large cities, they kind of adapted to the situation which we are witnessing now. Thank you. It's helpful. You expect there is no big impact on your business in this year as opposed to the last year, yeah? I think it will be isolated to certain businesses. If we talk, for example, restaurants, there are many restaurants who already adapted themselves, and they see a big sales done through deliveries. These deliveries firms, I think they're increasing their businesses. Interestingly, in Kazakhstan, we have such, let's say, delivery startups from Europe, like Glovo and Wolt. I think they're expanding their business in Kazakhstan quite rapidly. Not only in Almaty and Astana, but also in some other cities across the country as well. Okay. Second question. Given your outstanding results on second quarter, your guidance for the full year, it seems quite conservative. Am I right? Yes. The rate you expect about KZT 450 billion in net income compared with almost KZT 130 billion in second quarter alone. Even if we deducted one-time gain, it is about KZT 120 billion for second quarter alone. As I understand, you are expecting continued growth of credits and so on. Could you give some more comment about your guidance for full year? I think there are probably one or two reasons for that. One is on the cost of risk, because in the first half, there was a release of provisions, and in the second half of this year, we're expecting kind of normalization of cost of risk. The pre-provision figures would be somewhat different. Secondly, we have expansion in our retail, not only on the credit side, but also on the fees and commission. There are further plans to grow our active client base, and that would involve some expenses related to loyalty programs. The bigger one, I think, would be cost of risk impact. Okay. Thank you. The next question comes from Can Demir. Can Demir, go ahead. Can you hear me? Yes, Kander. Yes. Hi. Thanks for taking my questions. I wanted to ask you about SMEs. If I look at the SME borrowers as a percentage of total SME clients, only a small portion of your SME client base actually borrow from the bank. I was going to ask you, how do you plan to strengthen your foothold further in this field? Is that an accurate prediction to say that SMEs will be the next battlegrounds in the sector? That's my first question. The second question is, could you also tell us your definition of corporates and SMEs in the bank? The third question, this is not really related to the second quarter results, but just to get a general idea of what's going on. On the retail side, can you talk a bit about regulation risk there? How does regulator regulate interest rates and APRs on unsecured lending? It would be great to know that. Thanks. Thanks a lot. Yes. Well, thank you very much for your question. I think it's good point to discuss on SME because we're not regularly discuss that particular segment, which I think it's not becoming the battleground. I think it's already the full battleground. This is a segment on which we probably increased our focus during last couple of years. If you look at the slide 27, where we are seeing the shift to digital on SME side, this is exactly the showcase how we are tackling that segment. If we start, for example, from segmentation, there is no kind of the hard segmentation, so we look at the revenues per group of customers. The difference between small business and large business is in the area of KZT 10 billion, which is the annual revenue for the group. There's an obviously between small business and medium business. Within small business, we have another category, which is called individual entrepreneurs. Actually, last year, we launched a big digitalization project where we did two things. One thing, we introduced a solution which allows digital onboarding of these individual entrepreneurs. For that, they do not need to come to the bank. It's actually a matter of minutes during which we would be onboarding these customers. If you see from this slide, actually, in the first half of this year, 68% of new accounts opened for individual entrepreneurs were done through this digital platform. The next thing, we introduced digital lending to these individual entrepreneurs. Actually, again, for getting these credits, they do not need to come to the bank because they have already the account opens digitally. They also can apply through their mobile application for these loans. There is a very quick time to yes and time to money. It's up to four hours time to money. Again, if you look for this slide, actually 92% of loans, which was granted to small businesses in the first half of this year, were digital loans. Again, this is the area of interest because it's growing quite fast. By doing that, we're expanding the number of our customers. Secondly, we allow these customers to get credits in a quicker and more convenient way. Another point, I think it was a good question from your side. Indeed, the penetration for the entire SME segment is not that high. For us, I think it's the next area on which we should focus is actually to penetrate in our transactional banking system. To do that, we launched another project, which is called Data Factory. This project, which we launched beginning of this year, which aims on one hand on retail customers, and secondly on SME customers. Through this project, we also want to expand transactional activities of our client base, and secondly, also to expand our lending products into our transactional client base. This is a good catch. It's an important segment for us. It became tight in terms of competition because few banks are focused on that. We think that we are good placed to perform well and to outperform the market in that segment. Okay, got it. Regarding your question regarding the regulation, yes, there is a regulation in place which governs the maximum rates. It is calculated in effective rates terminology, so it's not only nominal rates, but also all the fees which are attached. The maximum cap is 56% in effective rates, annual effective rates. Okay. It's obviously impossible to foresee that, do you feel that the regulator is a bit worried about where the rates are in this market? Because these are very high margin products and probably very profitable for the banks as well. I mean, you as well as your peers. Do you see anything there, any risks emerging possibly? I don't think there is some near-term risks on that side because the competition, I think, is driving the rates at the first place. This is number one. Reason number two, except banks, there are non-banking financial institutions like microfinance organizations, which are also actually targeting more or less the same client base. Some of them are also developing digital solutions. For them, the maximum allowed rate is 100%. From that perspective, I think they are a bit more under pressure. I think first, the rates for that category would start reducing before there might be a reduction come on the bank side. Again, what we're seeing now, actually, the market is making its own job and competition is driving the pricing. Another reason is for SME in general, there is quite a number of governmental programs which allows many SME customers to get credits even lower than inflation. There are many government programs on which SME can get loans at 6%. There is specific conditions which are applied for that category. Okay, got it. This is very helpful. Thank you very much. The next question comes from Tunde Oyewale. Tunde, please go ahead. Hello, can you hear me? Yes, we can. Okay. Sorry, I think I was on mute earlier. Thanks for the presentation. My question is on your super app. Your digitalization effort, right? I am curious to get an update on progress on that front. In Q1, you mentioned you made about KZT 1.7 billion tenge in fees from buy now, pay later loans. Do you mind giving an update on the first half numbers for that in terms of the contribution to your fee income? That is my first question, and then I have a subsequent question on that as well. Tunde, hello. This is Viktor Skryl. Let me answer your questions. With respect to super app development, we are adding a number of services. As Murat mentioned earlier, we included a number of services, for example, government service called Ashyq, which means open. It also allows us to attract new customers. We also added another service, which is called remote guest application, where driver can go to gas station and load and fill the tank with fuel without need to exiting a car. You can use this service in application. Also, we continue to add more and more merchants to our application. We also built Homebank as a window to other services within our group, like insurance, Travel, Kino.kz, Invest. These all services are available at fingertip. You can access that through our super app. With respect to your second question of how much fees we generate from this buy now, pay later product and other ecosystem products. I would say for this year, we target around 50% of net fee and commission growth coming from that services. Okay. Thanks for that. The question I have, and hopefully you focused on this slide number 19 now is, you've had a big, huge growth in your number of merchants and partners. You went from 47 to 224. I recall you had said you have 219 target for the year, so you're making progress on that. When I look at the GMV growth, quote, unquote, It doesn't seem to have moved that much. I'm wondering, is it because you're moving towards a smaller size merchants now? What are the dynamics going on there? One second, please. Tunde, this is because these merchants were attracted, the most of them were attracted during last month. We are due to see increase in GMV for these newly added merchants. Okay. Understood. Thanks. The last question from me on this point is, can you give me a sense of how profitable this whole super app marketplace venture has been for you? I know it's still quite new for Halyk Bank. It started mostly last year. Is it loss-making? Is it profitable? If it's profitable, in sense of returns, is it similar to the overall bank or is it still fairly insignificant? Just any color on that would be helpful. Thanks. Yes. Tunde, thank you for this question. We see that our applications are generally profitable because first of all, they generate leads, which create sales. On the other hand, and secondly, we are able to eliminate staff costs because those leads are created during these channels. At this stage, we do not provide exact numbers, but our analysis shows that this channel and this application is profitable. Sure. Thanks. We have several questions from our chat. The first comes from Ivan Kralj. In which areas of digital banking are you lagging behind Kaspi.kz, and what are you doing to catch up with them? Hi, everyone. It's Zhumabek. Good question. Frankly speaking, I would like to say that we are not lagging. In my opinion, we are trying to be closer to the concrete direction. Let me mark the marketplace, this business line. I'm sure that you are very interested in that area of business. Why I'm saying that we are not lagging, why I'm saying that we are catching them, because I am looking in this business line through number of years on the market. If you look at us, we are just at the initial stage. We are only six to eight months time that we have presented our business line as a marketplace on the market. According to our results that were presented today, you see that we are growing on quarter-to-quarter, and we have still very strong potential to grow further. If you compare us across our main competitor, you of course understand that the business that you are trying to compare with us, if you look at number of years on the market, they are not, I think, comparable to these figures. It's better if you compare us with dynamics on the market. If I will finish my answer to the question, I would like to say that in marketplace business line, we are trying to catch up with our competitors, and we are trying to grow much further than our main players on the market. Of course, we understand that being successful in this direction, we will be also very quite efficient, and we will have strong growth in acquiring business at all. Next question comes from Simon Ploense. The first question is, fantastic results. Well done. Do you have an aspirational target for the net fee and commission income as a% of total net income? Yes. We currently do not have such target. We would get back to that once we announce our next strategy. At this stage, I may say that around one third of our operating income are coming from non-interest income sources. The next question from Simon is, how does Halyk POS compare to other incumbent competitors in terms of customer, ease of use, setup and pricing? Can you repeat one question one more time, please? Next question from Simon. How does Halyk POS compare to the other incumbent competitors in terms of customer, ease of use, setup and pricing? Thank you, Simon, for your question. Regarding the comparing of our Halyk POS to other the same decision on the market. First of all, I would like to say that we have a very simple onboarding process. When any merchant who likes to get this payment decision, they can do it purely online 100%. This is one of the main features that we have in our product. If you compare it to tariffs that we are offer, that tariffs is very comfortable for our potential customers. We think that our offer that we call Halyk POS is very competitive right now on the market. We have also introduced PIN on Glass as a decision in our Halyk POS payment offer that can give more opportunities when you compare our decision to our competitors. It means that you can make transaction more than certain amount through this electronic POS that can be used through any smartphone of our customer, of our merchant. This is the new service that we have introduced, PIN on Glass. Still you cannot find the same decision on the market at current time. The next question from the chat comes from anonymous participant. There is actually three questions. First of them, how much of the provision reversal is due to macro assumption changes? How much due to actual NPL upgrades? Second question, can you elaborate the source of retail loan growth, salary loans, buy now, pay later, secured or unsecured, and et cetera? The last question, can you comment on outlook for risk-weighted asset density given high retail loan growth? First on the third question. Let me answer the first and the third question. In the second quarter, reversal of provisions was mainly due to recoveries on problem loans and impaired loans. No impact from macro assumption changes. For the third question, we do not expect rapid change in RWA structure, but given the growth levels for retail loans, we expect some changes, increase of retail loans in loan portfolio structure. For the second question, like Murat mentioned earlier, we do not provide this type of specific details. As you've seen from statutory reports, the growth was coming from unsecured loans for third quarter. Yeah. The last question from the chat comes from Patrick Pastollnigg. Congrats for the spectacular set of results. Net interest margin at 5.4% was a very positive surprise. Could you talk about the positive negatives that led you to not change 2021 guidance above 5%? Was the sequentially higher average interest rate on loans to customers in second quarter mostly driven by change in a mix, i.e., BNPL, installment type of products? Yes. Let's answer this question. For 2021, we expect 5% net interest margin, which of course include results for the first quarter when we had negative impact from repayment of the Eurobond. Secondly, we see that share of KZT deposits is increasing because of stable exchange rate. On that source of funding, we bear high interest expense. Also we see that corporate loans are also increasing, and they typically yielding lower rate compared to retail and SME group. Overall, this lead us to net interest margin of 5%. Dear ladies and gentlemen, it seems that there is no questions remaining. This completes our presentation. Thank you very much for participation. As usual, our IR Team remains open for any further questions. Have a great rest of the day and bye.