Interim report
Page 1
JSC HALYK BANK Interim condensed consolidated financial information (unaudited) for the nine months ended 30 September 2025
Page 2
JSC Halyk Bank Table of contents Page STATEMENT OF MANAGEMENT’S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2025 (UNAUDITED) 1 REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION 2 INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2025 (UNAUDITED): Interim condensed consolidated statement of financial position (unaudited) 3 Interim condensed consolidated statement of profit or loss (unaudited) 4 Interim condensed consolidated statement of other comprehensive income (unaudited) 5 Interim condensed consolidated statement of changes in equity (unaudited) 6-7 Interim condensed consolidated statement of cash flows (unaudited) 8-9 Selected explanatory notes to the interim condensed consolidated financial information (unaudited) 10-61
Page 8
JSC Halyk Bank Interim Condensed Consolidated Statement of Changes in Equity for the Nine Months ended 30 September 2025 (unaudited) (millions of Kazakhstani Tenge) 6 Share capital Share premium reserve Treasury shares Share-based payment reserve Cumulative translation reserve* Revaluation reserve of financial assets at fair value through other comprehen- sive income* Property revaluation reserve* Retained earnings* Total equity Non- controlling interest Total equity 31 December 2024 209,027 8,769 (263,625) 10,000 12,098 (3,281) 52,580 3,042,469 3,068,037 12 3,068,049 Net income - - - - - - - 809,933 809,933 2 809,935 Other comprehensive income/(loss) - - - - 11,283 (69,581) (5) - (58,303) - (58,303) Total comprehensive income/(loss) - - - - 11,283 (69,581) (5) 809,933 751,630 2 751,632 Treasury shares purchased (Note 15) - - (9,350) - - - - - (9,350) - (9,350) Treasury shares sold (Note 15) - 19 8,261 - - - - - 8,280 - 8,280 Accrued and released stock options - - - (6,350) - - - 7,841 1,491 - 1,491 Dividends - common shares - - - - - - - (552,464) (552,464) - (552,464) Release of property and equipment revaluation reserve on depreciation and disposal of previously revalued assets - - - - - - (1,670) 1,670 - - - 30 September 2025 (unaudited) 209,027 8,788 (264,714) 3,650 23,381 (72,862) 50,905 3,309,449 3,267,624 14 3,267,638 *These amounts are included within retained earnings and other reserves in the interim condensed consolidated statement of financial position.
Page 10
JSC Halyk Bank Interim Condensed Consolidated Statement of Cash Flows for the Nine Months ended 30 September 2025 (unaudited) (millions of Kazakhstani Tenge) 8 Nine months ended 30 September 2025 (unaudited) Nine months ended 30 September 2024 (unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Interest received from financial assets at fair value through profit or loss 45,979 28,988 Interest received from cash equivalents and amounts due from credit institutions 204,708 113,162 Interest received on financial assets at fair value through other comprehensive income 162,097 134,592 Interest received on debt securities at amortised cost, net of allowance for expected credit losses 51,395 52,386 Interest received from loans to customers 1,387,585 1,164,400 Interest paid on due to customers (908,033) (685,545) Interest paid on due to credit institutions (49,934) (27,668) Interest paid on debt securities issued (36,830) (20,722) Interest paid on deposit insurance and other liabilities (17,454) (12,897) Fee and commission received 174,792 150,810 Fee and commission paid (71,035) (61,396) Receipts from financial derivatives 27,085 28,968 Other income received/(expense paid) 35,965 (39,881) Operating expenses paid (202,355) (148,853) Cash from insurance activities, net 90,856 88,535 Net reinsurance service expenses paid (39,524) (29,074) Cash flows from operating activities before changes in net operating assets 855,297 735,805 Changes in operating assets and liabilities: (Increase)/decrease in operating assets: Obligatory reserves (527,828) (45,269) Financial assets at fair value through profit or loss (17,691) (146,856) Amounts due from credit institutions (19,261) 48,383 Loans to customers (832,971) (996,884) Assets classified as held for sale 475 1,578 Insurance contract assets 3,934 5,639 Other assets (85,039) 26,863 Increase/(decrease) in operating liabilities: Amounts due to customers 1,093,654 992,467 Amounts due to credit institutions 328,771 235,201 Financial liabilities at fair value through profit or loss 3,187 (208) Insurance contract liabilities 38,695 70,099 Other liabilities 27,832 78,557 Net cash inflow from operating activities before income tax 869,055 1,005,375 Income tax paid (192,752) (99,696) Net cash inflow from operating activities 676,303 905,679 CASH FLOWS FROM INVESTING ACTIVITIES: Disposal of subsidiary - (33,559) Purchase and prepayment for property and equipment and intangible assets (52,598) (44,138) Proceeds on sale of property and equipment 4,376 76 Proceeds on sale of investment property 5,194 802 Proceeds on sale of commercial property 4,115 10,687 Proceeds on sale of financial assets at fair value through other comprehensive income 938,130 230,534 Purchase of financial assets at fair value through other comprehensive income (390,707) (663,478) Purchase of debt securities at amortised cost, net of allowance for expected credit losses (411,338) (7,031) Proceeds on sale and maturity of debt securities at amortised cost, net of allowance for expected credit losses 42,323 205,462 Capital expenditures on commercial property (1) (47) Net cash inflow/(outflow) from investing activities 139,494 (300,692)
Page 12
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (millions of Kazakhstani Tenge) 10 1. Principal activities JSC Halyk Bank (“the Bank”) and its subsidiaries (collectively, “the Group”) provide corporate and retail banking services principally in Kazakhstan, Georgia and Uzbekistan, leasing services in Kazakhstan, as well as asset management, insurance and brokerage services in Kazakhstan. The primary state registration of the Bank with the authorities of justice of Kazakhstan was made on 20 January 1994. The Bank operates under license No. 1.2.47/230/38/1 for carrying out banking and other operations and activities on the securities market, renewed by the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market on 23 June 2023. The Bank is a member of the obligatory deposit insurance system provided by the JSC Kazakhstan Deposit Insurance Fund. The Bank’s primary business includes originating loans and guarantees, collecting deposits, trading in securities and foreign currencies, executing transfers, cash and payment card operations as well as rendering other banking services to its customers. In addition, the Bank acts as a non-exclusive agent of the Government of the Republic of Kazakhstan in channeling various budgetary payments and pensions through its nationwide branch network. The Bank has a primary listing with the Kazakhstan Stock Exchange ("KASE") and Astana International Exchange. The Bank's Global Depository Receipts ("GDRs") are primary listed on the London Stock Exchange, KASE and Astana International Exchange. The Group is ultimately controlled by Timur Kulibayev and his wife Dinara Kulibayeva via JSC HG Almex. As at 30 September 2025 the Bank operated through its head office in Almaty and its 25 regional branches, 119 sub-regional offices and 396 cash settlement units (31 December 2024: 25, 119 and 398, respectively) located throughout Kazakhstan. The address of the Bank’s registered office is 40 Al-Farabi Avenue, Almaty, A26M3K5, Republic of Kazakhstan. As at 30 September 2025, the number of the Group’s employees amounted to 16,704 (31 December 2024 – 16,656). The interim condensed consolidated financial information of the Group for the nine months ended 30 September 2025 was authorised for issue by the Management Board on 10 November 2025. Legal proceedings From time to time and in the normal course of business, claims against the Group are received from customers and counterparties. Management is of the opinion that no material unaccrued losses will be incurred and accordingly no provision has been made in this interim condensed consolidated financial information. Operating environment Kazakhstan is one of the emerging economies, which are often characterised by high levels of GDP growth, an emerging financial infrastructure, and a significant share of state participation. At the same time, emerging markets are subject to political, social, and legislative risks that differ from those of more developed markets. Kazakhstan is integrated into the global economy, while geographically adjacent to large economic markets, thereby occupying the position of the main "transit hub" in the Central Asian region.
Page 13
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 11 Due to the fact that the economy of Kazakhstan is export-oriented, changes in world prices for raw materials have a significant impact on it. In addition to world prices for energy resources, the further development of the Kazakh economy also largely depends on fiscal discipline and the geopolitical situation in the region. During the third quarter of 2025, the average price of Brent oil was around 68.17 USD per barrel (66.71 USD per barrel during the second quarter of 2025). According to the short-term economic indicator, for the period from January to August 2025, the economy of Kazakhstan grew by 9.1% compared to the same period of the previous year. Annual inflation in third quarter of 2025 amounted to 12.9%. As at 30 September 2025, the Committee on Monetary Policy of the National Bank of the Republic of Kazakhstan (“NBRK”) keep the base rate to the level of 16.5% per annum with the corridor +/- 1 pp. On 13 October 2025, the Monetary Policy Committee of the NBRK decided to increase the base rate to 18.0% per annum with a corridor of +/- 1 pp. This decision was made amid persistent inflationary pressure due to ongoing tariff reforms, fiscal stimulus, and robust consumer demand. In September, annual inflation accelerated to 12.9%, leading to an expected increase in the NBRK base rate at its upcoming meeting. In September 2025, the NBRK increased minimum reserve requirements (“MRR”) for second-tier banks. The changes are aimed at reducing excess liquidity in the banking sector and strengthening anti-inflation measures within the NBRK's monetary policy. The new MRR requirements will be implemented gradually over the course of the year. As at 30 September 2025 and 31 December 2024, the Group's obligatory reserves including MRR amounted to KZT 834,159 million and KZT 306,330 million, respectively. Management of the Group is monitoring developments in the economic and political situation, including any sanctions related risks, and taking measures it considers necessary to support the sustainability and development of the Group’s business for the foreseeable future. On 12 July 2023, the Law of the Republic of Kazakhstan "On the Return of Illegally Acquired Assets to the State" (hereinafter referred to as the "Law") was signed. The Law entered into force on 24 July 2023, with the exception of Articles 7, 12-31, which entered into force on 12 September 2023. The Asset Return Committee of the Prosecutor General's Office of the Republic of Kazakhstan (hereinafter referred to as the "Committee") is the authorised body for asset return. The objectives of the Committee are to identify and return illegally acquired assets, develop international legal cooperation in this area, identify and eliminate the causes and conditions that contributed to the illegal concentration of economic resources and the illegal withdrawal of assets, as well as other objectives in accordance with the legislative acts of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan. The Group's management believes that this Law does not have a significant impact on the Group's activities, including the Group's loan portfolio. Ownership As at 30 September 2025 and 31 December 2024, the Group’s shares were represented by common shares only.
Page 14
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 12 As at 30 September 2025 and 31 December 2024, the Group was owned by the following shareholders, which own individually more than 5% of the issued shares of the Group: 30 September 2025 (unaudited) 31 December 2024 Total shares (Common shares) Stake in total shares in circulation Total shares (Common shares) Stake in total shares in circulation JSC HG Almex 7,583,538,228 69.5% 7,583,538,228 69.7% GDR holders 3,025,953,560 27.7% 3,075,090,560 28.3% Other 299,981,242 2.8% 221,345,828 2.0% Total shares in circulation (on consolidated basis) 10,909,473,030 100% 10,879,974,616 100% 2. Basis of presentation Accounting basis The interim condensed consolidated financial information of the Group has been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting”. This interim condensed consolidated financial information has been prepared assuming that the Group is a going concern, as the Group have the resources to continue in operation for the foreseeable future. In making this assessment, the management have considered a wide range of information in relation to present and future economic conditions, including projections of cash flows, profit and capital resources. The interim condensed consolidated financial information is unaudited and does not include all the information and disclosures required in the annual financial statements. The Group omitted disclosures, which would substantially duplicate the information contained in its audited annual consolidated financial statements for the year ended 31 December 2024 prepared in accordance with IFRS Accounting Standards as issued by International Accounting Standards Board ("IASB"), such as accounting policies and details of accounts, which have not changed significantly in amount or composition. Additionally, the Group has provided disclosures, where significant events have occurred subsequent to the issuance of the Group’s annual consolidated financial statements for the year ended 31 December 2024 prepared in accordance with IFRS. Management believes that the disclosures in this interim condensed consolidated financial information are adequate to make the information presented not misleading if this interim condensed consolidated financial information is read in conjunction with the Group’s annual consolidated financial statements for the year ended 31 December 2024 prepared in accordance with IFRS. In management’s opinion, this interim condensed consolidated financial information reflects all adjustments necessary to present fairly the Group’s financial position, results of the operations, changes in shareholders’ equity and cash flows for the interim reporting periods. This interim condensed consolidated financial information is presented in millions of Kazakhstani Tenge (“KZT” or “Tenge”), except for earnings per share amounts and unless otherwise indicated.
Page 15
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 13 Consolidated subsidiaries No significant changes in the Group structure occurred during nine months ended 30 September 2025 in comparison with the structure as at 31 December 2024, except for the following: On 31 July 2025, LLP KUSA Halyk ceased operations due to reorganisation by merging with LLP Halyk Activ. Investments in associates On 23 July 2025, the Group entered into a strategic agreement to acquire 49% of shares in JSC Click, as well as to sell 49% of shares in its subsidiary bank in Uzbekistan, JSCB Tenge Bank, to shareholders of JSC Click. In accordance with the terms of the agreement, the Group will pay USD 176.4 million for 49% of shares in JSC Click. In turn, shareholders of JSC Click will pay USD 60.76 million for 49% of shares in JSCB Tenge Bank. As of the date of issue of this interim condensed consolidated financial information, the deal was not finalized. 3. Significant accounting policies The same accounting policies, presentation and methods of computation have been followed in this interim condensed consolidated financial information as were applied in the preparation of the Group’s consolidated financial statements for the year ended 31 December 2024. Adoption of new and revised Standards New and revised IFRS Standards that are effective for the current year The following amendments and interpretations are effective for the Group beginning 1 January 2025: Amendments to IAS 21 – Lack of Exchangeability 1 January 2025 Amendments to SASB Standards to enhance their international applicability 1 January 2025 The above standards and interpretations were reviewed by the Group's management and determined to not have a significant effect on the Interim condensed consolidated financial information of the Group. New and revised IFRS Standards in issue but not yet effective At the date of authorisation of this financial information, the Group has not applied the following new and revised IFRS Standards that have been issued but are not yet effective: New or revised standard or interpretation Applicable to annual reporting periods beginning on or after Amendments IFRS 9 and IFRS 7 regarding the classification and measurement of financial instruments 1 January 2026 Annual Improvements to IFRS Accounting Standards – Volume 11 1 January 2026 IFRS 18 – Presentation and Disclosures in Financial Statements 1 January 2027 IFRS 19 – Subsidiaries without Public Accountability: Disclosures 1 January 2027
Page 16
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 14 The Group is currently assessing the potential impact of the above IFRS standards. Until the Group completes its analysis, it is not possible to make a reasonable estimate of the financial effect. 4. 4a. Significant accounting estimates In preparing this interim condensed consolidated financial information, the significant judgments made by the management in applying the Group’s accounting policies and the key sources of estimation uncertainty were consistent with those that applied to the Group’s annual consolidated financial statements for the year ended 31 December 2024 prepared in accordance with IFRS. There have been no changes to the basis upon which the significant accounting estimates have been determined compared with 31 December 2024. 4b. Reclassifications In preparing the interim condensed consolidated financial statements of profit or loss for the three and nine months ended 30 September 2024, certain reclassifications have been made to conform the presentation of the statement for the three and nine months ended 30 September 2025, as the current period presentation provides a better understanding of the Group’s financial performance. The reclassification of fees and commission expenses for the three and nine months ended 30 September 2024 in the amount of KZT 5,784 million and KZT 15,282 million, respectively, includes the reclassification of deposit insurance service expenses and other income. The deposit insurance service expenses are directly related to deposit expenses and other income directly relates to reimbursement of commission expense. The Group's management decided to reclassify deposit insurance service expense as interest expenses and other income related to reimbursement of commission expense as fee and commission expenses. As previously reported Reclassified As reclassified Consolidated statement of profit or loss Three months ended 30 September 2024 (unaudited) Three months ended 30 September 2024 (unaudited) Three months ended 30 September 2024 (unaudited) Fee and commission expenses (27,996) 5,784 (22,212) Interest expenses (267,600) (4,449) (272,049) Other income/(expense) 9,274 (1,335) 7,939 As previously reported Reclassified As reclassified Consolidated statement of profit or loss Nine months ended 30 September 2024 (unaudited) Nine months ended 30 September 2024 (unaudited) Nine months ended 30 September 2024 (unaudited) Fee and commission expenses (76,273) 15,282 (60,991) Interest expenses (768,345) (11,829) (780,174) Other income/(expense) (56,396) (3,453) (59,849) In accordance with the requirement of IFRS 17, the effect of the time value of money, the change in the time value of money, the effects of financial risk and changes in financial risk should be included in
Page 17
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 15 insurance finance income or expenses and should be excluded from insurance service expenses. For the three and nine months ended 30 September 2024, the Group reclassified finance expenses from insurance service expenses in the amount of KZT 12,935 million and KZT 19,801 million, respectively. As previously reported Reclassified As reclassified Consolidated statement of profit or loss Three months ended 30 September 2024 (unaudited) Three months ended 30 September 2024 (unaudited) Three months ended 30 September 2024 (unaudited) Insurance service expenses (47,256) 12,935 (34,321) Net finance insurance expenses - (12,935) (12,935) As previously reported Reclassified As reclassified Consolidated statement of profit or loss Nine months ended 30 September 2024 (unaudited) Nine months ended 30 September 2024 (unaudited) Nine months ended 30 September 2024 (unaudited) Insurance service expenses (142,183) 19,801 (122,382) Net finance insurance expenses - (19,801) (19,801) 5. Cash and cash equivalents Cash and cash equivalents comprise: 30 September 2025 (unaudited) 31 December 2024 Cash on hand 273,426 271,019 Correspondent accounts with Organisation for Economic Co-operation and Development countries (the “OECD”) based banks 161,524 237,969 Correspondent accounts with Kazakhstan banks 69,795 18,161 Correspondent accounts with non-OECD based banks 61,616 84,877 Correspondent accounts with NBRK - 2 Overnight deposits with OECD based banks 28,441 79 Overnight deposits with non-OECD based banks 11,072 3,562 Short-term deposits with NBRK 665,743 800,985 Short-term deposits with banks (incl. loans under reverse repurchase agreements) 482,462 55,117 Short-term deposits with OECD based banks 27,472 - Short-term deposits with non-OECD based banks - 2,031 Total cash and cash equivalents 1,781,551 1,473,802 As at 30 September 2025 and 31 December 2024, allowance for expected credit losses on short-term deposits included in cash and cash equivalents comprised KZT 21 million and KZT 27 million, respectively.
Page 18
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 16 Interest rates and currencies in which interest earning cash and cash equivalents are denominated are as follows: 30 September 2025 (unaudited) 31 December 2024 KZT Foreign currencies KZT Foreign currencies Overnight deposits with OECD based banks - 1.1%-4.1% - 6.3% Overnight deposits with non-OECD based banks - 8.0%-12.0% - 6.3%-20.0% Short-term deposits with NBRK 15.5%-16.5% - 15.3% - Short-term deposits with banks (incl. loans under reverse repurchase agreements) 15.0%-17.0% 15.0%-16.3% 13.9%-15.5% 13.5% Short-term deposits with OECD based banks - 4.2% - - Short-term deposits with non-OECD based banks - - - 9.0% Fair value of assets pledged and carrying amounts of loans under reverse repurchase agreements included into short-term deposits with Kazakhstan banks as at 30 September 2025 and 31 December 2024 are as follows: 30 September 2025 (unaudited) 31 December 2024 Carrying amount of loans Fair value of collateral Carrying amount of loans Fair value of collateral Treasury bonds of the Ministry of Finance of the Republic of Kazakhstan 405,024 405,359 37,747 37,733 Corporate bonds 40,680 40,693 633 631 Treasury bills of the Ministry of Finance of the Republic of Uzbekistan 28,420 28,291 10,022 10,023 Eurobonds of the foreign states 6,128 6,192 3,179 3,228 Bonds of Kazakhstan banks 1,647 1,622 3,018 3,109 Bonds of JSC Development Bank of Kazakhstan 563 554 518 529 482,462 482,711 55,117 55,253 As at 30 September 2025 and 31 December 2024, maturities of loans under reverse repurchase agreements were less than one month.
Page 19
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 17 6. Financial assets and liabilities at fair value through profit or loss Financial assets at fair value through profit or loss comprise: 30 September 2025 (unaudited) 31 December 2024 Financial assets at fair value through profit or loss: Treasury bonds of the Ministry of Finance of the Republic of Kazakhstan 201,382 183,327 Corporate bonds 193,186 218,794 Eurobonds of foreign states 166,865 150,714 Bonds of international financial organisations 78,540 9,529 Bonds of foreign organisations 60,351 66,346 Bonds of Kazakhstan banks 47,081 44,974 Equity securities of foreign corporations 33,138 42,847 Equity securities of Kazakhstan corporations 31,177 34,737 Bonds of JSC Development Bank of Kazakhstan 14,267 24,919 Derivative financial instruments 13,401 30,487 Notes of NBRK - 16,143 Total financial assets at fair value through profit or loss 839,388 822,817 Financial liabilities at fair value through profit or loss comprise: 30 September 2025 (unaudited) 31 December 2024 Financial liabilities at fair value through profit or loss: Derivative financial instruments 10,160 6,973 Interest rates on financial assets at fair value through profit or loss are presented in the table below. Interest rates in the table below are calculated as weighted average of the effective interest rates for the respective financial assets: 30 September 2025 (unaudited) 31 December 2024 Treasury bonds of the Ministry of Finance of the Republic of Kazakhstan 12.8% 13.0% Corporate bonds 11.8% 12.6% Eurobonds of foreign states 4.1% 5.0% Bonds of international financial organisations 4.6% 11.2% Bonds of foreign organisations 6.8% 6.7% Bonds of Kazakhstan banks 15.5% 15.9% Bonds of JSC Development Bank of Kazakhstan 12.4% 13.3% Notes of NBRK - 14.3% As at 30 September 2025 and 31 December 2024, financial assets at fair value through profit or loss included bonds with a fair value of KZT 7,756 million and KZT 7,554 million, respectively, pledged as collateral under repurchase agreements with other banks (Note 12). Settlements under all agreements valid as at 30 September 2025 and 31 December 2024 were made before 20 October 2025 and 17 January 2025, respectively.
Page 20
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 18 Derivative financial instruments comprise: 30 September 2025 (unaudited) 31 December 2024 Fair value Fair value Notional amount Asset Liability Notional amount Asset Liability Foreign currency contracts Swaps 1,862,703 5,685 5,394 545,598 29,453 4,630 Forwards 859,495 7,392 4,373 128,663 190 350 Spots 529,152 324 393 35,976 844 1,993 3,251,350 13,401 10,160 710,237 30,487 6,973 7. Amounts due from credit institutions Amounts due from credit institutions comprise: 30 September 2025 (unaudited) 31 December 2024 Deposit pledged as collateral 83,766 66,596 Term deposits and restricted accounts 57,137 53,495 Loans to credit institutions 59,628 37,027 200,531 157,118 Less - Allowance for expected credit losses (275) (152) Total amounts due from credit institutions 200,256 156,966 Interest rates and maturities of amounts due from credit institutions are as follows: 30 September 2025 (unaudited) 31 December 2024 Interest rate, % Maturity, year Interest rate, % Maturity, year Deposit pledged as collateral 1.8%-4.2% 2025-2046 1.8%-4.6% 2025-2046 Term deposits and restricted accounts 8.5%-19.5% 2025-2026 7.0%-20.0% 2025-2026 Loans to credit institutions 1.7%-19.5% 2025-2027 1.3%-8.5% 2025-2027
Page 21
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 19 8. Financial assets at fair value through other comprehensive income Debt securities comprise: 30 September 2025 (unaudited) 31 December 2024 Treasury bonds of the Ministry of Finance of the Republic of Kazakhstan 1,678,727 2,017,155 Corporate bonds 184,824 256,684 Eurobonds of foreign states 168,926 120,848 Bonds of JSC Development Bank of Kazakhstan 153,467 222,438 Bonds of foreign organisations 143,633 229,093 Bonds of international financial organisations 32,090 31,184 Bonds of Kazakhstan banks 19,111 20,668 Local municipal bonds 10,800 11,328 Bonds of the Ministry of Finance of the Republic of Uzbekistan 4,769 - Treasury bills of the Central Bank of the Republic of Uzbekistan - 3,878 2,396,347 2,913,276 Equity securities comprise: 30 September 2025 (unaudited) 31 December 2024 Equity securities of Kazakhstan corporations 13,841 11,484 13,841 11,484 Total financial assets at fair value through other comprehensive income 2,410,188 2,924,760 As at 30 September 2025 and 31 December 2024, financial assets measured at fair value through other comprehensive income included bonds of JP Morgan Securities PLC with a fair value of KZT 152,576 million and bonds of JP Morgan Securities PLC, Goldman Sachs International with a fair value of KZT 196,881 million, respectively, pledged under repurchase agreements with other banks (Note 12). All repurchase agreements as at 30 September 2025 and 31 December 2024 will mature before 17 November 2025. As at 30 September 2025 and 31 December 2024, the allowance for expected credit losses on financial assets at fair value through other comprehensive income comprised KZT 1,959 million and KZT 4,365 million, respectively.
Page 22
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 20 Interest rates and maturities of financial assets at fair value through other comprehensive income securities are presented in the table below. Interest rates in the table below are calculated as the weighted average of the effective interest rates for the respective securities: 30 September 2025 (unaudited) 31 December 2024 Interest rate, % Maturity, year Interest rate, % Maturity, year Treasury bonds of the Ministry of Finance of the Republic of Kazakhstan 8.0% 2025-2045 7.0% 2025-2045 Corporate bonds 10.2% 2026-2047 9.2% 2025-2047 Eurobonds of the foreign states 3.9% 2026-2034 3.8% 2025-2034 Bonds of JSC Development Bank of Kazakhstan 4.8% 2026-2032 6.4% 2025-2032 Bonds of foreign organisations 6.7% 2026-2029 5.0% 2025-2029 Bonds of international financial organisations 8.5% 2026-2030 8.7% 2025-2030 Bonds of Kazakhstan banks 12.5% 2026-2029 11.5% 2026-2029 Local municipal bonds 10.8% 2026 10.8% 2026 Bonds of the Ministry of Finance of the Republic of Uzbekistan 14.8% 2028 - - Treasury bills of the Central Bank of Republic Uzbekistan - - 7.0% 2028-2029 9. Debt securities at amortised cost, net of allowances for expected credit losses Debt securities at amortised cost, net of allowances for expected credit losses comprise: 30 September 2025 (unaudited) 31 December 2024 Treasury bonds of the Ministry of Finance of the Republic of Kazakhstan 607,847 521,807 Corporate bonds 278,316 217,839 Bonds of the foreign states 160,455 - Bonds of JSC Development Bank of Kazakhstan 85,077 - Bonds of international financial organisations 15,418 - Notes of National Bank of Georgia 1,181 2,292 Bonds of foreign organisations 809 4,004 Bonds of the Central Bank of the Republic of Uzbekistan - 20,995 Total debt securities at amortised cost, net of allowances for expected credit losses 1,149,103 766,937 As at 30 September 2025 and 31 December 2024, for debt securities measured at amortised cost, the allowance for expected credit losses amounted to KZT 790 million and KZT 577 million, respectively. As at 30 September 2025 and 31 December 2024, debt securities at amortised cost, net of allowances for expected credit losses, included Treasury bonds of the Ministry of Finance of the Republic of Kazakhstan at fair value of KZT 226,934 million and KZT 37,607 million, respectively, pledged under repurchase agreements with the other banks (see Note 12). All repurchase agreements as at 30 September 2025 and 31 December 2024 matured before 4 November 2025 and 5 January 2025, respectively. Interest rates and maturities of debt securities at amortised cost, net of allowance for expected credit losses are presented in the table below. Interest rates in the table below are calculated as the weighted average of the effective interest rates for the respective securities.
Page 23
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 21 30 September 2025 (unaudited) 31 December 2024 Interest rate, % Maturity, year Interest rate, % Maturity, year Treasury bonds of the Ministry of Finance of the Republic of Kazakhstan 8.9% 2026-2037 9.0% 2026-2027 Corporate bonds 6.2% 2027-2030 4.0% 2027 Bonds of the foreign states 4.2% 2025 - - Bonds of JSC Development Bank of Kazakhstan 5.8% 2026-2030 - - Bonds of international financial organisations 5.8% 2025 - - Notes of National Bank of Georgia 9.0% 2028 9.7% 2025-2028 Bonds of foreign organisations 5.8% 2025 5.5% 2025 Bonds of the Central Bank of the Republic of Uzbekistan - - 15.7% 2025 10. Loans to customers Loans to customers comprise: 30 September 2025 (unaudited) 31 December 2024 Originated loans to customers 13,008,120 12,016,120 Overdrafts 23,238 22,748 13,031,358 12,038,868 Stage 1 11,902,661 11,209,639 Stage 2 230,367 66,208 Stage 3 876,688 743,676 Purchased or originated credit-impaired assets (“POCI”) 21,642 19,345 Total 13,031,358 12,038,868 Less – Allowance for expected credit losses (611,402) (573,219) Loans to customers 12,419,956 11,465,649 During the nine months ended 30 September 2025, the Group reclassified certain corporate customers from stage 1 to stage 2 due to an increase in credit risk that was caused by a temporary deterioration in the operating performance of these customers. The Group will monitor further dynamics in the operating performance of customers for the purposes of accounting for the impact on the Group's assets. The weighted average interest rate on loans to customers is calculated as interest income on loans to customers divided by monthly average balances of loans to customers. For the nine months ended 30 September 2025, average interest rate on loans amounted to 17.2% (for the nine months ended 30 September 2024 – 17.0%). As at 30 September 2025, the Group’s loan concentration to the ten largest borrowers was KZT 2,520,695 million, which comprised 19% of the Group’s total gross loan portfolio (as at 31 December 2024 – KZT 2,151,550 million, 18%) and 77% of the Group’s total equity (as at 31 December 2024 – 70%). As at 30 September 2025, the allowance for expected credit losses created against these loans was KZT 28,441 million (as at 31 December 2024 – KZT 18,548 million).
Page 24
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 22 As at 30 September 2025 and 31 December 2024, loans were granted to the following sectors: 30 September 2025 (unaudited) % 31 December 2024 % Retail loans: - consumer loans 3,968,637 29% 3,640,383 30% - mortgage loans 554,924 4% 508,879 4% 4,523,561 4,149,262 Services 1,187,928 9% 1,143,985 10% Energy 874,557 7% 763,144 6% Wholesale trade 836,221 6% 920,217 8% Metallurgy 735,454 6% 613,974 5% Retail trade 702,971 5% 662,041 5% Mining 509,330 4% 341,200 3% Chemical industry 375,749 3% 317,733 3% Food industry 372,909 3% 328,982 3% Financial services 366,280 3% 357,826 3% Construction 359,662 3% 380,757 3% Machinery 354,494 3% 351,955 3% Agriculture 343,308 3% 336,138 3% Transportation 339,036 3% 310,993 2% Real estate 333,771 3% 357,828 3% Oil and gas 269,753 2% 283,334 2% Communication 179,514 1% 106,599 1% Hotel industry 141,374 1% 107,878 1% Light industry 80,824 1% 75,725 1% Other 144,662 1% 129,297 1% 13,031,358 100% 12,038,868 100% Restructured and modified loans to customers The Group derecognises a financial asset, such as a loan to a customer, if the terms of the contract are renegotiated in such a way that it effectively becomes a new loan and the difference is recognised as a gain or loss on derecognition before an impairment loss is recognised. On initial recognition, loans to customers are classified in Stage 1 for the purpose of estimating expected credit losses, unless the loan originated is considered POCI. If the modification does not result in a significant change in cash flows, then derecognition does not occur. No material modification gain/(loss) of loans to customers was recognised in the third quarter of 2025 and 2024. As at 30 September 2025, accrued but not recorded interest on loans comprised KZT 339,862 million (31 December 2024 – KZT 268,373 million). During the nine months ended 30 September 2025 and the year ended 31 December 2024, the Group received financial and non-financial assets by taking possession of collateral it held as security. During the nine months ended 30 September 2025 and the year ended 31 December 2024, such assets of KZT 3,940 million and KZT 6,157 million, respectively, are included in assets classified as held for sale. As at 30 September 2025 and 31 December 2024, loans to customers included loans of KZT 321,691 million and KZT 354,105 million, respectively, which terms were renegotiated. Otherwise, these loans would be past due.
Page 25
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 23 The following is a reconciliation of the gross carrying amounts at the beginning and end of period: Nine months ended 30 September 2025 (unaudited) Stage 1 Stage 2 Stage 3 POCI Total At the beginning of the period 11,209,639 66,208 743,676 19,345 12,038,868 Transfer to Stage 1 82,167 (29,324) (52,843) - - Transfer to Stage 2 (302,389) 307,366 (4,977) - - Transfer to Stage 3 (213,147) (133,745) 346,892 - - New originations or purchases of financial assets 5,273,946 - - - 5,273,946 Assets derecognised or repaid*/** (4,008,009) (17,869) (52,044) (497) (4,078,419) Write-offs - - (112,502) (855) (113,357) Changes in the gross value of financial assets* (139,546) 37,731 8,486 3,649 (89,680) At the end of the period 11,902,661 230,367 876,688 21,642 13,031,358 Nine months ended 30 September 2025 (unaudited) Corporate Business Stage 1 Stage 2 Stage 3 POCI Total At the beginning of the period 5,600,143 20,095 337,672 15,970 5,973,880 Transfer to Stage 1 26,755 (1,231) (25,524) - - Transfer to Stage 2 (157,709) 157,709 - - - Transfer to Stage 3 (8,471) (35,280) 43,751 - - New originations or purchases of financial assets 2,548,902 - - - 2,548,902 Assets derecognised or repaid*/** (2,534,943) (11,196) (4,003) (201) (2,550,343) Write-offs - - (31,989) (641) (32,630) Changes in the gross value of financial assets* 487,247 32,756 (14,690) 3,601 508,914 At the end of the period 5,961,924 162,853 305,217 18,729 6,448,723
Page 26
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 24 Nine months ended 30 September 2025 (unaudited) Retail Business Stage 1 Stage 2 Stage 3 POCI Total At the beginning of the period 3,847,416 32,404 269,187 263 4,149,270 Transfer to Stage 1 42,427 (19,343) (23,084) - - Transfer to Stage 2 (95,653) 99,784 (4,131) - - Transfer to Stage 3 (160,008) (67,028) 227,036 - - New originations or purchases of financial assets 1,187,172 - - - 1,187,172 Assets derecognised or repaid*/** (652,819) (3,805) (22,513) - (679,137) Write-offs - - (64,409) - (64,409) Changes in the gross value of financial assets* (94,811) 4,799 20,650 27 (69,335) At the end of the period 4,073,724 46,811 402,736 290 4,523,561 Nine months ended 30 September 2025 (unaudited) SME Business Stage 1 Stage 2 Stage 3 POCI Total At the beginning of the period 1,762,080 13,709 136,817 3,112 1,915,718 Transfer to Stage 1 12,985 (8,750) (4,235) - - Transfer to Stage 2 (49,027) 49,873 (846) - - Transfer to Stage 3 (44,668) (31,437) 76,105 - - New originations or purchases of financial assets 1,537,872 - - - 1,537,872 Assets derecognised or repaid*/** (820,247) (2,868) (25,528) (296) (848,939) Write-offs - - (16,104) (214) (16,318) Changes in the gross value of financial assets* (531,982) 176 2,526 21 (529,259) At the end of the period 1,867,013 20,703 168,735 2,623 2,059,074
Page 27
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 25 Nine months ended 30 September 2024 (unaudited) Stage 1 Stage 2 Stage 3 POCI Total At the beginning of the period 8,992,052 51,860 700,518 30,368 9,774,798 Transfer to Stage 1 58,008 (20,970) (37,038) - - Transfer to Stage 2 (101,456) 106,497 (5,041) - - Transfer to Stage 3 (170,040) (58,598) 228,638 - - New originations or purchases of financial assets 7,007,413 - - - 7,007,413 Assets derecognised or repaid*/** (3,851,244) (5,458) (126,217) (17,743) (4,000,662) Write-offs - - (43,285) (5,211) (48,496) Changes in the gross value of financial assets* (1,876,413) (3,164) 17,720 13,236 (1,848,621) At the end of the period 10,058,320 70,167 735,295 20,650 10,884,432 Nine months ended 30 September 2024 (unaudited) Corporate Business Stage 1 Stage 2 Stage 3 POCI Total At the beginning of the period 4,620,873 13,307 385,026 24,368 5,043,574 Transfer to Stage 1 5,637 (796) (4,841) - - Transfer to Stage 2 (11,080) 11,080 - - - Transfer to Stage 3 (30,325) (942) 31,267 - - New originations or purchases of financial assets 3,572,304 - - - 3,572,304 Assets derecognised or repaid*/** (2,465,320) - (45,790) (17,328) (2,528,438) Write-offs - - - (5,147) (5,147) Changes in the gross value of financial assets* (709,922) (1,637) (16,560) 13,593 (714,526) At the end of the period 4,982,167 21,012 349,102 15,486 5,367,767
Page 28
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 26 Nine months ended 30 September 2024 (unaudited) Retail Business Stage 1 Stage 2 Stage 3 POCI Total At the beginning of the period 2,890,959 20,966 198,334 2,146 3,112,405 Transfer to Stage 1 33,672 (14,657) (19,015) - - Transfer to Stage 2 (64,465) 69,346 (4,881) - - Transfer to Stage 3 (95,356) (38,046) 133,402 - - New originations or purchases of financial assets 2,103,154 - - - 2,103,154 Assets derecognised or repaid*/** (634,334) (2,072) (57,288) (3) (693,697) Write-offs - - (37,659) - (37,659) Changes in the gross value of financial assets* (625,560) 631 29,938 (115) (595,106) At the end of the period 3,608,070 36,168 242,831 2,028 3,889,097 Nine months ended 30 September 2024 (unaudited) SME Business Stage 1 Stage 2 Stage 3 POCI Total At the beginning of the period 1,480,220 17,587 117,158 3,854 1,618,819 Transfer to Stage 1 18,699 (5,517) (13,182) - - Transfer to Stage 2 (25,911) 26,071 (160) - - Transfer to Stage 3 (44,359) (19,610) 63,969 - - New originations or purchases of financial assets* 1,331,955 - - - 1,331,955 Assets derecognised or repaid*/** (751,590) (3,386) (23,139) (412) (778,527) Write-offs - - (5,626) (64) (5,690) Changes in the gross value of financial assets* (540,931) (2,158) 4,342 (242) (538,989) At the end of the period 1,468,083 12,987 143,362 3,136 1,627,568 * Changes in the gross value of financial assets includes changes in gross carrying amount associated with partial repayment of debt, accrual of interest income and foreign exchange differences */**The derecognition or redemption of financial assets includes the gross carrying amount of loans classified as assets held for sale.
Page 29
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 27 The movements in accumulated allowances for expected credit losses of loans to customers were as follows: Three months ended 30 September 2025 (unaudited) Nine months ended 30 September 2025 (unaudited) Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total At the beginning of the period (131,696) (39,061) (417,136) (5,802) (593,695) (142,185) (14,934) (409,882) (6,218) (573,219) Transfer to Stage 1 (3,857) 1,152 2,705 - - (18,140) 3,628 14,512 - - Transfer to Stage 2 1,900 (2,159) 259 - - 6,482 (7,822) 1,340 - - Transfer to Stage 3 4,988 26,601 (31,589) - - 14,184 41,674 (55,858) - - Changes in risk parameters* 13,437 (19,393) (28,872) 1,137 (33,691) 50,363 (55,618) (103,706) 4,607 (104,354) New originations or purchases of financial assets* (26,255) (235) (480) - (26,970) (73,696) (235) (480) - (74,411) Derecognition of financial assets*/** 11,378 126 4,099 - 15,603 33,962 1,638 15,211 189 51,000 Restoration of reserves for previously written-off assets*** (968) 19 (2,158) (1,360) (4,467) (2,104) 9 (11,575) (4,853) (18,523) Write-offs - - 34,088 641 34,729 - - 112,502 855 113,357 Foreign exchange differences and other movements (631) 859 (3,128) (11) (2,911) (570) (431) (4,276) 25 (5,252) At the end of the period (131,704) (32,091) (442,212) (5,395) (611,402) (131,704) (32,091) (442,212) (5,395) (611,402)
Page 30
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 28 Three months ended 30 September 2025 (unaudited) Nine months ended 30 September 2025 (unaudited) Corporate Business Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total At the beginning of the period (22,155) (24,892) (171,621) (5,300) (223,968) (22,190) (8,233) (207,562) (5,623) (243,608) Transfer to Stage 1 (938) - 938 - - (6,949) - 6,949 - - Transfer to Stage 2 15 (15) - - - 662 (662) - - - Transfer to Stage 3 14 14,839 (14,853) - - 31 20,236 (20,267) - - Changes in risk parameters* 2,158 (15,058) 5,858 1,096 (5,946) 11,011 (36,170) 15,892 4,937 (4,330) New originations or purchases of financial assets* (6,360) - - - (6,360) (16,465) - - - (16,465) Derecognition of financial assets*/** 3,666 6 283 - 3,955 10,403 986 783 - 12,172 Restoration of reserves for previously written-off assets*** (317) - (369) (1,360) (2,046) (479) - (6,613) (4,913) (12,005) Write-offs - - - 641 641 - - 31,989 641 32,630 Foreign exchange differences and other movements (487) 921 (3,446) (7) (3,019) (428) (356) (4,381) 28 (5,137) At the end of the period (24,404) (24,199) (183,210) (4,930) (236,743) (24,404) (24,199) (183,210) (4,930) (236,743)
Page 31
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 29 Three months ended 30 September 2025 (unaudited) Nine months ended 30 September 2025 (unaudited) Retail Business Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total At the beginning of the period (88,936) (5,435) (186,156) (76) (280,603) (97,596) (4,547) (145,998) (71) (248,212) Transfer to Stage 1 (2,167) 704 1,463 - - (9,383) 2,684 6,699 - - Transfer to Stage 2 1,563 (1,797) 234 - - 4,619 (5,878) 1,259 - - Transfer to Stage 3 4,511 3,838 (8,349) - - 12,597 10,735 (23,332) - - Changes in risk parameters* 9,792 (2,655) (32,696) 76 (25,483) 32,415 (8,479) (100,234) 71 (76,227) New originations or purchases of financial assets* (13,440) (231) (480) - (14,151) (41,335) (231) (480) - (42,046) Derecognition of financial assets*/** 5,094 70 1,366 - 6,530 15,846 232 5,105 - 21,183 Restoration of reserves for previously written-off assets*** (480) 20 (785) - (1,245) (1,213) 10 (3,798) - (5,001) Write-offs - - 29,002 - 29,002 - - 64,409 - 64,409 Foreign exchange differences and other movements (77) (26) (111) - (214) (90) (38) (142) - (270) At the end of the period (84,140) (5,512) (196,512) - (286,164) (84,140) (5,512) (196,512) - (286,164)
Page 32
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 30 Three months ended 30 September 2025 (unaudited) Nine months ended 30 September 2025 (unaudited) SME Business Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total At the beginning of the period (20,605) (8,734) (59,359) (426) (89,124) (22,399) (2,154) (56,322) (524) (81,399) Transfer to Stage 1 (752) 448 304 - - (1,808) 944 864 - - Transfer to Stage 2 322 (347) 25 - - 1,201 (1,282) 81 - - Transfer to Stage 3 463 7,924 (8,387) - - 1,556 10,703 (12,259) - - Changes in risk parameters* 1,487 (1,680) (2,034) (35) (2,262) 6,937 (10,969) (19,364) (401) (23,797) New originations or purchases of financial assets* (6,455) (4) - - (6,459) (15,896) (4) - - (15,900) Derecognition of financial assets*/** 2,618 50 2,450 - 5,118 7,713 420 9,323 189 17,645 Restoration of reserves for previously written-off assets*** (171) (1) (1,004) - (1,176) (412) (1) (1,164) 60 (1,517) Write-offs - - 5,086 - 5,086 - - 16,104 214 16,318 Foreign exchange differences and other movements (67) (36) 429 (4) 322 (52) (37) 247 (3) 155 At the end of the period (23,160) (2,380) (62,490) (465) (88,495) (23,160) (2,380) (62,490) (465) (88,495)
Page 33
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 31 Three months ended 30 September 2024 (unaudited) Nine months ended 30 September 2024 (unaudited) Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total At the beginning of the period (137,292) (8,495) (383,934) (6,063) (535,784) (122,149) (7,362) (347,655) (12,760) (489,926) Transfer to Stage 1 (4,734) 1,336 3,398 - - (16,299) 3,404 12,895 - - Transfer to Stage 2 1,792 (3,071) 1,279 - - 4,354 (7,064) 2,710 - - Transfer to Stage 3 4,118 3,783 (7,901) - - 9,552 10,236 (19,788) - - Changes in risk parameters* 9,325 (3,318) (24,087) (31) (18,111) 29,445 (9,538) (94,307) 554 (73,846) New originations or purchases of financial assets* (31,227) - - - (31,227) (86,890) - - - (86,890) Derecognition of financial assets*/** 13,488 152 2,476 1 16,117 37,958 462 19,241 6,607 64,268 Restoration of reserves for previously written-off assets*** (81) (8) (2,775) (156) (3,020) (402) 237 (11,215) (5,835) (17,215) Write-offs - - 15,596 - 15,596 - - 43,285 5,211 48,496 Foreign exchange differences and other movements (393) (25) 152 (48) (314) (573) (21) (962) (74) (1,630) At the end of the period (145,004) (9,646) (395,796) (6,297) (556,743) (145,004) (9,646) (395,796) (6,297) (556,743)
Page 34
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 32 Three months ended 30 September 2024 (unaudited) Nine months ended 30 September 2024 (unaudited) Corporate Business Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total At the beginning of the period (21,178) (2,820) (205,292) (5,338) (234,628) (21,561) (3,010) (194,810) (11,770) (231,151) Transfer to Stage 1 - - - - - (141) 3 138 - - Transfer to Stage 2 9 (9) - - - 73 (274) 201 - - Transfer to Stage 3 4 37 (41) - - 105 37 (142) - - Changes in risk parameters* 1,307 (79) (2,782) 170 (1,384) 4,881 169 (19,204) 674 (13,480) New originations or purchases of financial assets* (5,704) - - - (5,704) (16,217) - - - (16,217) Derecognition of financial assets*/** 3,738 - 913 1 4,652 11,417 - 12,040 6,444 29,901 Restoration of reserves for previously written-off assets*** (8) - (1,068) (156) (1,232) (116) 201 (5,525) (5,816) (11,256) Write-offs - - - - - - - - 5,147 5,147 Foreign exchange differences and other movements (193) (10) 228 (62) (37) (466) (7) (740) (64) (1,277) At the end of the period (22,025) (2,881) (208,042) (5,385) (238,333) (22,025) (2,881) (208,042) (5,385) (238,333)
Page 35
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 33 Three months ended 30 September 2024 (unaudited) Nine months ended 30 September 2024 (unaudited) Retail Business Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total At the beginning of the period (94,782) (4,016) (131,166) (268) (230,232) (81,229) (3,326) (116,332) (169) (201,056) Transfer to Stage 1 (3,067) 799 2,268 - - (12,939) 2,398 10,541 - - Transfer to Stage 2 1,584 (2,843) 1,259 - - 3,590 (6,036) 2,446 - - Transfer to Stage 3 3,654 2,586 (6,240) - - 8,281 7,124 (15,405) - - Changes in risk parameters* 6,297 (2,015) (13,578) (45) (9,341) 18,362 (5,768) (51,904) (79) (39,389) New originations or purchases of financial assets* (19,777) - - - (19,777) (53,489) - - - (53,489) Derecognition of financial assets*/** 6,707 73 904 - 7,684 18,020 201 3,490 - 21,711 Restoration of reserves for previously written-off assets*** (19) (8) (1,243) - (1,270) (48) (17) (4,201) (41) (4,307) Write-offs - - 13,995 - 13,995 - - 37,659 - 37,659 Foreign exchange differences and other movements (88) (14) (44) 15 (131) (39) (14) (139) (9) (201) At the end of the period (99,491) (5,438) (133,845) (298) (239,072) (99,491) (5,438) (133,845) (298) (239,072)
Page 36
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 34 Three months ended 30 September 2024 (unaudited) Nine months ended 30 September 2024 (unaudited) SME Business Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total At the beginning of the period (21,332) (1,659) (47,476) (457) (70,924) (19,359) (1,026) (36,513) (821) (57,719) Transfer to Stage 1 (1,667) 537 1,130 - - (3,219) 1,003 2,216 - - Transfer to Stage 2 199 (219) 20 - - 691 (754) 63 - - Transfer to Stage 3 460 1,160 (1,620) - - 1,166 3,075 (4,241) - - Changes in risk parameters* 1,721 (1,224) (7,727) (156) (7,386) 6,202 (3,939) (23,199) (41) (20,977) New originations or purchases of financial assets* (5,746) - - - (5,746) (17,184) - - - (17,184) Derecognition of financial assets*/** 3,043 79 659 - 3,781 8,521 261 3,711 163 12,656 Restoration of reserves for previously written-off assets*** (54) - (464) - (518) (238) 53 (1,489) 22 (1,652) Write-offs - - 1,601 - 1,601 - - 5,626 64 5,690 Foreign exchange differences and other movements (112) (1) (32) (1) (146) (68) - (83) (1) (152) At the end of the period (23,488) (1,327) (53,909) (614) (79,338) (23,488) (1,327) (53,909) (614) (79,338) * FS line “Credit loss expense” in the interim condensed consolidated statement of profit or loss is comprised from “Changes in risk parameters”, “New originations or purchases of financial assets” and “Derecognition of financial assets”. */** Derecognition of financial assets includes changes in the amount of provisions for fully repaid loans to customers. ***FS line “Restoration of reserves for previously written-off assets***” includes sums of income received from the repayment of previously written off assets, as well as adjustments to the gross carrying amount of loans resulting from the purchase of JSC Kazkommertsbank, and from the accrual of interest income on impaired loans. During the nine months ended 30 September 2025 and 2024, the Group wrote off loans in the amount of KZT 113,357 million and KZT 48,496 million, respectively, without cessation of the right to claim on the loan for tax purposes, which is not subject to taxation, except when the write-off occurred due to sale of loans. Allowance for expected credit losses and provisions For the nine months ended 30 September 2025, credit loss expense on loans to customers comprised KZT 127,765 million (30 September 2024 – KZT 96,468 million).
Page 37
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 35 11. Amounts due to customers Amounts due to customers include the following: 30 September 2025 (unaudited) 31 December 2024 Recorded at amortised cost: Term deposits: Individuals 6,675,906 6,063,129 Legal entities 4,719,737 3,811,441 11,395,643 9,874,570 Current accounts: Legal entities 1,722,752 1,978,239 Individuals 1,044,980 1,137,234 2,767,732 3,115,473 Total amounts due to customers 14,163,375 12,990,043 As at 30 September 2025, the Group’s ten largest groups of related customers accounted for approximately 12% of the total amounts due to customers (31 December 2024 – 8%), where each group of related customers represents customers related to each other within that group. As at 30 September 2025, amounts due to customers included amounts held as collateral of KZT 195,042 million (31 December 2024 – KZT 186,619 million). Management believes that in the event of withdrawal of funds, the Group would be given sufficient notice to release its liquid assets to secure the repayment. During nine months ended 30 September 2024, the Group recognised the loss in amount of KZT 66,114 million in the consolidated income statement for the nine months ended 30 September 2024 due to the early repayment of the deposit of JSC Kazakhstan Sustainability Fund. An analysis of customer accounts by sectors is as follows: 30 September 2025 (unaudited) % 31 December 2024 % Individuals and entrepreneurs 7,720,886 55% 7,200,363 55% Wholesale trade 977,357 6% 1,020,073 8% Other consumer services 787,783 6% 825,805 6% Transportation 713,635 5% 422,244 3% Construction 656,414 5% 544,728 4% Metallurgy 589,209 4% 387,855 3% Financial sector 524,062 4% 418,183 3% Oil and gas 485,415 3% 588,046 5% Healthcare and social services 311,152 2% 295,352 2% Energy 250,055 2% 232,073 2% Education 246,556 2% 191,908 1% Government and state-controlled companies 152,971 1% 131,667 1% Communication 107,965 1% 106,650 1% Insurance and pension funds activity 40,116 1% 18,799 1% Other 599,799 3% 606,297 5% 14,163,375 100% 12,990,043 100%
Page 38
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 36 12. Amounts due to credit institutions Amounts due to credit institutions comprise: 30 September 2025 (unaudited) 31 December 2024 Recorded at amortised cost: Loans and deposits from Kazakhstan banks (incl. loans under repurchase agreements) 255,609 47,683 Loans and deposits from non-OECD based banks 200,504 196,089 Loans from JSC Entrepreneurship Development Fund DAMU 149,892 91,839 Correspondent accounts 147,226 136,803 Loans and deposits from OECD based banks (incl. loans under repurchase agreements) 145,562 157,222 Loans from JSC Development Bank of Kazakhstan 80,407 80,605 Loans from JSC Agrarian Credit Corporation 70,437 65,378 Deposits of JSC Eurasian Development Bank 66,633 16,960 Loans from JSC Industrial Development Fund 13,726 17,352 Deposits of JSC Kazpost 6,040 - Deposits of JSC National Payment Corporation of the National Bank of the Republic of Kazakhstan 1,962 4,138 Loans from other financial organisations 479 - Total amounts due to credit institutions 1,138,477 814,069 As at 30 September 2025 and 31 December, loans and deposits from non-OECD based banks included syndicated loan in the amount of USD 200 million and USD 300 million with maturity on 16 September 2027, respectively. Interest rates and maturities of amounts due to credit institutions are as follows: 30 September 2025 (unaudited) 31 December 2024 Interest rate, % Maturity, year Interest rate, % Maturity, year Loans and deposits from Kazakhstan banks (incl. loans under repurchase agreements) 3.3%-18.0% 2025-2026 8.0%-15.1% 2025-2026 Loans and deposits from non-OECD based banks 1.0%-18.0% 2025-2027 2.5%-12.8% 2025-2027 Loans from JSC Entrepreneurship Development Fund DAMU 1.0%-13.0% 2025-2040 1.0%-13.0% 2025-2035 Loans and deposits from OECD based banks (incl. loans under repurchase agreements) 4.5%-15.2% 2025 5.0%-6.8% 2025 Loans from JSC Development Bank of Kazakhstan 1.0%-2.0% 2029-2037 1.0%-2.0% 2029-2037 Loans from JSC Agrarian Credit Corporation 1.5% 2026 1.5% 2025-2026 Deposits of JSC Eurasian Development Bank 18.0% 2025 1.2%-5.0% 2025 Loans from JSC Industrial Development Fund 1.0%-17.0% 2029-2030 1.0%-17.0% 2029-2030 Deposits of JSC Kazpost 3.3% 2025 - - Deposits of JSC National Payment Corporation of the National Bank of the Republic of Kazakhstan 15.5% 2025 13.8% 2025 Loans from other financial organisations 2.0%-18.0% 2030 - -
Page 39
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 37 The fair value of assets pledged and the carrying value of loans included in loans and deposits from Kazakhstan banks under repurchase agreements as at 30 September 2025 and 31 December 2024, are as follows: 30 September 2025 (unaudited) 31 December 2024 Fair value of collateral Carrying amount of loans Fair value of collateral Carrying amount of loans Financial assets at fair value through other comprehensive income (Note 8) 152,576 140,562 196,881 159,045 Debt securities at amortised cost, net of allowance for expected credit losses (Note 9) 226,934 226,971 37,607 37,581 Financial assets at fair value through profit or loss (Note 6) 7,756 7,748 7,554 7,666 387,266 375,281 242,042 204,292 Details of transferred financial assets that are not derecognised in their entirety as at 30 September 2025 and 31 December 2024, are disclosed below. In accordance with the contractual terms of the loans from certain OECD based banks, the Group is required to maintain certain financial ratios. Loans under repurchase agreements are used by the Group to provide current cash flows in KZT within the Group’s operating activities. The Group regularly uses this type of instrument to attract short-term liquidity and plans to continue raising funds through loans under repurchase agreements when necessary. The Group has determined that it retains substantially all the risks and rewards of these securities, which include credit risk and market risk, and therefore it has not derecognised them. In addition, it recognises a financial liability for cash received as collateral. Debt securities at amortised cost, net of allowance for expected credit losses Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income (Note 9) (Note 6) (Note 8) As at 30 September 2025 (unaudited): Fair value of transferred assets 226,934 7,756 152,576 Carrying amount of associated liabilities 226,971 7,748 140,562 As at 31 December 2024: Fair value of transferred assets 37,607 7,554 196,881 Carrying amount of associated liabilities 37,581 7,666 159,045 Certain of the Group’s outstanding financing agreements include covenants restricting the Group’s ability to create security interests over its assets. Should the Group default under these covenants, this could result in cross-accelerations and cross-defaults under the terms of the Group’s other financing arrangements. The management of the Group believes that as at 30 September 2025 and 31 December 2024 the Group was in compliance with covenants.
Page 40
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 38 13. Debt securities issued Debt securities issued consisted of the following: 30 September 2025 (unaudited) 31 December 2024 Recorded at amortised cost: Subordinated debt securities issued: KZT denominated bonds, fixed rate 109,839 98,747 Total subordinated debt securities outstanding 109,839 98,747 Unsubordinated debt securities issued: USD denominated bonds 704,938 484,287 KZT denominated bonds 164,966 296,178 Total unsubordinated debt securities outstanding 869,904 780,465 Total debt securities outstanding 979,743 879,212 On 4 June 2024, the Group issued bonds listed on KASE in the total amount of KZT 290,000 million with a floating interest rate, of which KZT 39,135 million was placed on 25 July 2024, KZT 100,828 million on 20 December 2024, KZT 207 million on 24 December 2024 and KZT 6,400 million on 5 February 2025 with a coupon rate of 13.6% per annum for the second coupon period. As at 30 September 2025, KZT 146,569 million were placed (31 December 2024 - KZT 140,169 million). On 17 October 2024, the Group issued green bonds for a total amount of KZT 20,000 million with a floating interest rate, listed on the KASE, of which KZT 20,000 million was placed on 3 December 2024, with a coupon rate of TONIA Compounded plus a margin of 1.3% per annum. As at 30 September 2025 and 31 December 2024, KZT 20,000 million were placed. On 25 November 2024, the Group fully repaid ten-year coupon bonds with a par value of KZT 100,000 million and a coupon rate of 7.5%. On 21 February 2025, the Group fully repaid ten-year coupon bonds with a par value of KZT 131,652 million and a coupon rate of 7.5%. On 19 May 2025, the Group fully repaid two-year bonds listed on AIX with a par value of USD 200 million and a coupon rate of 3.5%. On 20 May 2025, the Group issued bonds listed on AIX in the total amount of USD 200 million with a coupon rate of 3.5%, of which as at 30 September 2025 USD 199 million were placed. On 29 May 2025, the Group fully repaid three-year bonds listed on AIX with a par value of USD 1.8 million and a coupon rate of 4.0%. On 29 May 2025, the Group fully repaid two-year bonds listed on AIX with a par value of USD 300 million and a coupon rate of 3.5%. On 30 May 2025, the Group issued bonds listed on AIX in the total amount of USD 800 million with a coupon rate of 3.5%, of which as at 30 September 2025 USD 631.9 million were placed.
Page 41
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 39 On 3 July 2025, the Group fully repaid two-year bonds listed on AIX with a par value of USD 500 million and a coupon rate of 3.5%. On 4 July 2025, the Group issued two-year bonds listed on AIX with a par value of USD 500 million and a coupon rate of 3.5%, of which as at 30 September 2025 USD 439.5 million were placed. The coupon rates and maturities of these debt securities issued are as follows: 30 September 2025 (unaudited) 31 December 2024 Coupon rate, % Maturity, year Coupon rate, % Maturity, year Subordinated debt securities issued: KZT denominated bonds, fixed rate 9.5% 2025 9.5% 2025 Unsubordinated debt securities issued: USD denominated bonds 3.5% 2025 3.5%-4.0% 2025 KZT denominated bonds 17.0%- 18.6% 2027-2031 7.5%-12.8% 2025-2031 As at 30 September 2025, accrued interest on debt securities issued was KZT 22,140 million (as at 31 December 2024 – KZT 18,209 million). Subordinated securities are unsecured obligations of the Group and are subordinated in right of payments to all present and future senior indebtedness and certain other obligations of the Group. Coupon payments on debt securities issued are payable on a semi-annual and an annual basis. Reconciliation of liabilities arising from financing activities The table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Group’s consolidated statement of cash flows as cash flows from financing activities. Cash changes Non-cash changes 1 January 2025 Issuance of debt securities Redemption and repayment of debt securities Foreign exchange movement Changes in amortised cost 30 September 2025 (unaudited) Debt securities issued 879,212 720,383 (667,946) 40,204 7,890 979,743 Cash changes Non-cash changes 1 January 2024 Issuance of debt securities Redemption and repayment of debt securities Foreign exchange movement Changes in amortised cost 30 September 2024 (unaudited) Debt securities issued 653,393 166,136 (33,897) 18,805 14,319 818,756
Page 42
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 40 14. Taxation The income tax expense comprises: Three months ended 30 September 2025 (unaudited) Three months ended 30 September 2024 (unaudited) Nine months ended 30 September 2025 (unaudited) Nine months ended 30 September 2024 (unaudited) Current income tax expense 57,976 44,512 174,994 125,041 Deferred income tax (benefit)/expense (2,110) 2,484 (2,080) (13,097) Total income tax expense 55,866 46,996 172,914 111,944 The income tax rate for Kazakhstan legal entities was 20% for the three and nine months ended 30 September 2025 and 2024. On 18 July 2025, a new Tax Code was approved, which is effective starting from 1 January 2026. The adoption of new tax rates has not had any material impact on deferred income tax for the nine months ended 30 September 2025. In addition, in connection with the new provision of the Tax Code, valid until 18 July 2025, the Group has recognized the income tax on excess income at a rate of 10% in the current income tax expense in the amount of KZT 30,553 million. The effective income tax rate differs from the statutory income tax rate. The Group has offset deferred tax assets and liabilities on the interim condensed consolidated statement of financial position where a right of offset existed. Management believes that the Group is in compliance with the tax laws affecting its operations; however, the risk remains that relevant authorities could take differing positions with regard to interpretive issues. 15. Equity The number of shares authorised, issued and fully paid as at 30 September 2025 and 31 December 2024, were as follows: Share capital authorised Share capital authorised and not issued Fully paid and issued share capital Share capital repurchased Outstanding shares 30 September 2025 (unaudited) Common 25,000,000,000 (11,552,455,218) 13,447,544,782 (2,538,071,752) 10,909,473,030 31 December 2024 Common 25,000,000,000 (11,552,455,218) 13,447,544,782 (2,567,570,166) 10,879,974,616
Page 43
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 41 All shares are KZT denominated. Movements of shares outstanding are as follows: Number of shares Nominal/ placement amount Common shares Common shares 31 December 2023 10,902,171,591 (49,487) Purchases of treasury shares (30,970,744) (6,445) Sale of treasury shares 8,773,769 1,334 31 December 2024 10,879,974,616 (54,598) Purchases of treasury shares (36,234,042) (9,350) Sale of treasury shares 65,732,456 8,280 30 September 2025 (unaudited) 10,909,473,030 (55,668) Repurchased securities are held as treasury shares as a reduction of shareholders’ equity and, in accordance with the laws of the Republic of Kazakhstan, cannot be cancelled. At the same time, the repurchased treasury shares of the Bank are not included in the calculation of basic and diluted earnings per share (“EPS”) and dividend per share. In the event that the Bank sells the repurchased shares, the standard procedure established by the legislation of the Republic of Kazakhstan for declared but not placed shares will be applied. Common shares As at 30 September 2025 and 31 December 2024, share capital comprised KZT 209,027 million. As at 30 September 2025, the Group held 2,538,071,752 shares of the Group’s common shares as treasury shares at KZT 264,714 million (31 December 2024 – 2,567,570,166 shares at KZT 263,625 million). Each common share outstanding is entitled to one vote and dividends. Treasury shares are not entitled to any vote or dividends. Share premium reserve Share premium reserve represents an excess of contributions received over the nominal value of shares issued.
Page 44
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 42 16. Commitments and contingencies, provisions The Group’s financial commitments and contingencies comprised the following: 30 September 2025 (unaudited) 31 December 2024 Guarantees issued 916,040 984,144 Commercial letters of credit 128,428 113,993 Commitments to extend credit 98,559 109,307 Financial commitments and contingencies 1,143,027 1,207,444 Less: cash collateral against letters of credit (47,653) (37,606) Less: provisions (5,709) (10,964) Financial commitments and contingencies, net 1,089,665 1,158,874 Guarantees issued represent bank guarantees issued by the Group by order of its clients, and which are in effect as at the reporting date. As at 30 September 2025, uncovered guarantees issued for the ten largest customers/groups of customers accounted for 45% of the Group’s total financial guarantees (31 December 2024 – 49%) and represented 13% of the Group’s total equity (31 December 2024 – 16%). Commercial letters of credit represent letters of credit issued by the Group by order of its clients, and under which, as at the reporting date, the payment has not yet been made. As at 30 September 2025, the ten largest unsecured letters of credit accounted for 59% of the Group’s total commercial letters of credit (31 December 2024 – 62%) and represented 2% of the Group’s total equity (31 December 2024 – 2%). The Group requires the provision of collateral when originating financial instruments related to borrowing. The exception is when it is determined that there is no need for collateral as a result of an assessment of the borrower's credit risk or an analysis of other deposits held by the Group. Collateral varies and may include deposits held in banks, government securities and other assets. Provision represents other credit loss expenses against letters of credit and guarantees issued. Capital commitments As at 30 September 2025, the Group had capital expenditures commitments in respect of construction in progress for KZT 18,886 million, of which KZT 17,588 million relates to the construction of the Group’s administrative buildings in Astana and Tashkent (31 December 2024 – KZT 24,398 million, KZT 19,288 million, respectively). Operating lease commitments There were no material operating lease commitments under irrevocable operating leases outstanding as at 30 September 2025 and 31 December 2024.
Page 45
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 43 17. Net interest income Three months ended 30 September 2025 (unaudited) Three months ended 30 September 2024 (unaudited) Nine months ended 30 September 2025 (unaudited) Nine months ended 30 September 2024 (unaudited) Interest income: Loans to customers 523,967 424,985 1,512,284 1,230,245 - Retail business 230,254 180,225 663,020 510,378 - Corporate business 207,460 173,378 598,924 511,145 - SME business 86,253 71,382 250,340 208,722 Cash and cash equivalents and amounts due from credit institutions 80,968 51,744 205,069 115,249 Financial assets at fair value through other comprehensive income 50,480 53,258 156,991 142,723 Debt securities at amortised cost, net of allowance for expected credit losses 21,026 13,146 52,947 39,617 Other financial assets 2,269 2,009 7,012 5,534 Interest income calculated using effective interest method 678,710 545,142 1,934,303 1,533,368 Financial assets at fair value through profit or loss 18,375 14,710 52,079 38,492 Other interest income 18,375 14,710 52,079 38,492 Total interest income 697,085 559,852 1,986,382 1,571,860 Interest expense: Amounts due to customers (330,721) (240,087) (903,102) (697,852) - Individuals (185,960) (129,810) (463,821) (364,643) - Legal entities (144,761) (110,277) (439,281) (333,209) Amounts due to credit institutions (15,821) (14,221) (52,558) (34,385) Debt securities issued (16,588) (12,987) (44,720) (35,041) Deposit insurance (6,101) (4,449) (16,874) (11,829) Other financial liabilities (315) (305) (856) (1,067) Total interest expense (369,546) (272,049) (1,018,110) (780,174) Net interest income before credit loss expense 327,539 287,803 968,272 791,686 Other financial liabilities include loss on initial recognition of long-term financial accounts receivable. For the three and nine months ended 30 September 2025, the total interest income calculated using the effective interest rate (“EIR”) method for financial assets measured at amortised cost comprised KZT 628,230 million and KZT 1,777,312 million, respectively (for the three and nine months ended 30 September 2024: KZT 491,884 million and KZT 1,390,645 million, respectively).
Page 46
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 44 18. Fees and commissions Fee and commission income is derived from the following sources: Three months ended 30 September 2025 (unaudited) Three months ended 30 September 2024 (unaudited) Nine months ended 30 September 2025 (unaudited) Nine months ended 30 September 2024 (unaudited) Transactional income of individuals 39,627 35,445 116,045 103,636 Transactional income of legal entities 13,453 11,400 37,658 30,320 Letters of credit and guarantees issued 7,139 6,945 22,081 19,659 Other 4,310 2,443 9,282 7,160 Loyalty program (3,272) (2,395) (9,492) (7,207) Total fee and commission income 61,257 53,838 175,574 153,568 Fee and commission expense is derived from the following sources: Three months ended 30 September 2025 (unaudited) Three months ended 30 September 2024 (unaudited) Nine months ended 30 September 2025 (unaudited) Nine months ended 30 September 2024 (unaudited) Transactional expense of individuals (23,611) (19,791) (64,423) (53,139) Transactional expense of legal entities (1,767) (1,288) (4,687) (3,736) Other (1,854) (1,133) (4,657) (4,116) Total fee and commission expense (27,232) (22,212) (73,767) (60,991) Transactional income of individuals and legal entities includes fee and commission income derived from bank transfers on settlements and salary projects, maintenance of customer accounts and plastic card operations, cash operations and servicing customers’ pension payments. Transactional expense of individuals and legal entities includes fee and commission expense derived from payment cards, bank transfers and cash operations. Minor adjustments between transactional income and expenses of individuals and legal entities were made in the prior period ended 30 June 2025 in the total amount of KZT 560 million and KZT 429 million, respectively. These reclassifications did not impact the total amounts of income and expenses for fee and commission for the nine months ended 30 September 2025.
Page 47
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 45 19. Net (loss)/gain from financial assets and liabilities at fair value through profit or loss Net (loss)/gain on financial assets and liabilities at fair value through profit or loss comprises: Three months ended 30 September 2025 (unaudited) Three months ended 30 September 2024 (unaudited) Nine months ended 30 September 2025 (unaudited) Nine months ended 30 September 2024 (unaudited) Net (loss)/gain on operations with financial assets and liabilities at fair value through profit or loss: Realised net (loss)/gain on derivative operations (17,120) (5,722) 27,085 28,968 Unrealised net gain/(loss) on derivative operations 5,484 (7,233) (1,972) 50 Net (loss)/gain on trading operations (912) 18,678 (17,457) 26,791 Total net (loss)/gain on operations with financial assets and liabilities at fair value through profit or loss (12,548) 5,723 7,656 55,809 20. Net foreign exchange gain Net foreign exchange gain comprises: Three months ended 30 September 2025 (unaudited) Three months ended 30 September 2024 (unaudited) Nine months ended 30 September 2025 (unaudited) Nine months ended 30 September 2024 (unaudited) Dealing, net 33,614 37,823 100,289 97,475 Translation differences, net 33,181 15,060 36,085 (6,361) Total net foreign exchange gain 66,795 52,883 136,374 91,114
Page 48
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 46 21. Operating expenses Operating expenses comprised: Three months ended 30 September 2025 (unaudited) Three months ended 30 September 2024 (unaudited) Nine months ended 30 September 2025 (unaudited) Nine months ended 30 September 2024 (unaudited) Salaries and other employee benefits 42,813 38,752 135,506 107,155 Depreciation and amortisation expenses 6,123 5,143 17,470 14,766 Taxes other than income tax 5,023 3,015 11,511 8,293 Information services 2,911 2,219 8,861 6,214 Communication 2,215 2,157 6,581 6,250 Advertisement 2,370 1,508 5,636 3,717 Utilities expenses 1,615 1,347 4,655 4,279 Charity 1,076 1,670 4,509 5,326 Security 1,512 1,379 4,366 4,084 Repairs and maintenance 1,596 1,671 3,991 3,858 Rent 1,028 898 2,865 2,655 Professional services 980 1,832 1,987 3,028 Stationery and office supplies 466 638 1,575 2,009 Other 4,979 2,612 11,800 9,111 Total operating expenses 74,707 64,841 221,313 180,745 22. Earnings per share Basic and diluted earnings per share are calculated by dividing the net profit for the period attributable to equity holders of the Bank by the weighted average number of participating shares outstanding during the period. The following table presents basic and diluted earnings per share: Three months ended 30 September 2025 (unaudited) Three months ended 30 September 2024 (unaudited) Nine months ended 30 September 2025 (unaudited) Nine months ended 30 September 2024 (unaudited) Basic and diluted earnings per share Net profit for the period attributable to equity holders of the parent 281,333 259,720 809,933 638,813 Earnings attributable to common shareholders 281,333 259,720 809,933 638,813 Weighted average number of common shares for the purposes of basic earnings per share 10,889,726,200 10,902,809,845 10,896,364,705 10,903,050,879 Basic and diluted earnings per share (in Tenge) 25.83 23.82 74.33 58.59
Page 49
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 47 As required by KASE rules for listed companies, the book value of one share per each class of shares as at 30 September 2025 and 31 December 2024 is disclosed as follows: 30 September 2025 (unaudited) Class of shares Outstanding shares Equity (as calculated per KASE rules) Book value of one share, in KZT Common 10,909,473,030 3,246,424 297.6 3,246,424 31 December 2024 Class of shares Outstanding shares Equity (as calculated per KASE rules) Book value of one share, in KZT Common 10,879,974,616 3,051,826 280.50 3,051,826 Equity attributable to common shares is calculated as the difference between the total equity and total net book value of intangible assets. The management of the Group believes that it fully complies with the requirement of KASE as at the reporting date. 23. Financial risk management Risk management is fundamental to the Group's financial activities. The main risks inherent in the Group's operations are those related to: • Credit risk; • Liquidity risk; • Operational risk; and • Market risk. There were no changes in the policies and procedures related to financial risk management during the nine months ended 30 September 2025 compared to the year ended 31 December 2024 that affect the financial risk indicators presented in the interim condensed consolidated financial information.
Page 50
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 48 Liquidity Risk In order to manage liquidity risk, the Group analyses the financial assets and liabilities, and obligatory reserves taking into account payment schedules for loans issued to customers. The following tables provide an analysis of financial assets and liabilities grouped on the basis of the remaining period from the reporting date to the earliest of the contractual maturity date or available maturity date, except for financial assets at fair value through profit or loss in the form of securities (excluding derivative financial instruments) which are included in the column “Less than 1 month” as they are available to meet the Group’s short-term liquidity needs. 30 September 2025 (unaudited) Less than 1 month 1 to 3 months 3 months to 1 year 1 to 5 years Over 5 years Total FINANCIAL ASSETS: Cash and cash equivalents 1,781,551 - - - - 1,781,551 Obligatory reserves 436,280 119,081 195,967 57,009 25,822 834,159 Financial assets at fair value through profit or loss 814,705 - - 24,683 - 839,388 Amounts due from credit institutions 85,178 5,208 25,447 47,824 36,599 200,256 Financial assets at fair value through other comprehensive income 35,443 5,812 394,805 1,004,048 970,080 2,410,188 Debt securities at amortised cost, net of allowance for expected credit losses 18,287 28,576 404,616 600,357 97,267 1,149,103 Loans to customers 270,192 665,929 6,625,755 4,035,558 822,522 12,419,956 Other financial assets 151,056 2,452 20,724 18,246 5,002 197,480 3,592,692 827,058 7,667,314 5,787,725 1,957,292 19,832,081 FINANCIAL LIABILITIES: Amounts due to customers 7,659,678 2,255,798 3,774,442 245,302 228,155 14,163,375 Amounts due to credit institutions 617,803 65,436 72,650 188,526 194,062 1,138,477 Financial liabilities at fair value through profit or loss 8,138 - - 2,022 - 10,160 Debt securities issued 110,179 - - 718,226 151,338 979,743 Other financial liabilities 248,214 4,988 3,179 1,355 1,726 259,462 8,644,012 2,326,222 3,850,271 1,155,431 575,281 16,551,217 Net position (5,051,320) (1,499,164) 3,817,043 4,632,294 1,382,011 3,280,864 Accumulated gap (5,051,320) (6,550,484) (2,733,441) 1,898,853 3,280,864
Page 51
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 49 31 December 2024 Less than 1 month 1 to 3 months 3 months to 1 year 1 to 5 years Over 5 years Total FINANCIAL ASSETS: Cash and cash equivalents 1,473,802 - - - - 1,473,802 Obligatory reserves 155,375 36,419 87,331 17,977 9,228 306,330 Financial assets at fair value through profit or loss 796,114 - - 26,703 - 822,817 Amounts due from credit institutions 107,311 201 28,194 20,914 346 156,966 Financial assets at fair value through other comprehensive income 85,452 58,855 796,077 1,207,152 777,224 2,924,760 Debt securities at amortised cost, net of allowance for expected credit losses 47 9,534 41,011 716,345 - 766,937 Loans to customers 411,039 910,887 5,907,457 3,656,734 579,532 11,465,649 Other financial assets 38,342 4,448 13,192 28,251 3,644 87,877 3,067,482 1,020,344 6,873,262 5,674,076 1,369,974 18,005,138 FINANCIAL LIABILITIES: Amounts due to customers 6,807,195 1,623,880 3,599,228 754,614 205,126 12,990,043 Amounts due to credit institutions 311,045 43,262 123,989 178,042 157,731 814,069 Financial liabilities at fair value through profit or loss 6,463 - - 510 - 6,973 Debt securities issued 11,547 124,061 582,554 20,920 140,130 879,212 Other financial liabilities 210,534 1,610 9,398 569 343 222,454 7,346,784 1,792,813 4,315,169 954,655 503,330 14,912,751 Net position (4,279,302) (772,469) 2,558,093 4,719,421 866,644 3,092,387 Accumulated gap (4,279,302) (5,051,771) (2,493,678) 2,225,743 3,092,387 As at 30 September 2025 and 31 December 2024 the Group complies with main liquidity ratios and regulatory liquidity requirements. The analysis of liabilities by maturity does not reflect the historical stability of customer current account balances, which have traditionally been repaid over a longer period than indicated in the tables above. In this regard, Management believes that although a substantial portion of current accounts and customer deposits are on demand and mature in less than one month, diversification of these deposits by number and type of depositors, and the past experience of the Group, indicate that these deposits provide a long- term and stable source of funding for the Group. Therefore, an essential part of the Group’s current accounts is considered to be stable resources for the purposes of liquidity analysis and management. Additionally, the accumulated gap can be sufficiently covered by refinancing with the repurchase agreements and sale of liquid government and other high-quality rated securities or attracting long-term debt funding on capital markets when necessary.
Page 52
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 50 Currency Risk The Group’s exposure to foreign currency exchange rate risk is as follows: 30 September 2025 (unaudited) USD EURO RUR Other Total foreign currencies KZT Total FINANCIAL ASSETS: Cash and cash equivalents 322,978 54,333 42,740 139,605 559,656 1,221,895 1,781,551 Obligatory reserves 31,690 9,190 7,119 18,054 66,053 768,106 834,159 Financial assets at fair value through profit or loss 394,625 - 7 78 394,710 444,678 839,388 Amounts due from credit institutions 132,225 - 6,285 33,119 171,629 28,627 200,256 Financial assets at fair value through other comprehensive income 1,017,943 282,125 5,251 4,771 1,310,090 1,100,098 2,410,188 Debt securities at amortised cost, net of allowance for expected credit losses 567,651 - - 1,181 568,832 580,271 1,149,103 Loans to customers 2,581,025 171,750 505 156,394 2,909,674 9,510,282 12,419,956 Other financial assets 118,633 254 367 3,798 123,052 74,428 197,480 5,166,770 517,652 62,274 357,000 6,103,696 13,728,385 19,832,081 FINANCIAL LIABILITIES Amounts due to customers 3,550,822 278,184 29,637 214,430 4,073,073 10,090,302 14,163,375 Amounts due to credit institutions 457,684 30,339 132,919 21,032 641,974 496,503 1,138,477 Financial liabilities at fair value through profit or loss 212 - 344 - 556 9,604 10,160 Debt securities issued 704,866 - - - 704,866 274,877 979,743 Other financial liabilities 89,346 3,079 1,210 2,515 96,150 163,312 259,462 4,802,930 311,602 164,110 237,977 5,516,619 11,034,598 16,551,217 Net position – on-balance 363,840 206,050 (101,836) 119,023 587,077 2,693,787 3,280,864 Net position – off-balance (274,494) (204,835) 87,228 39,620 (352,481) 369,658 Net position 89,346 1,215 (14,608) 158,643 234,596 3,063,445
Page 53
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 51 31 December 2024 USD EURO RUR Other Total foreign currencies KZT Total FINANCIAL ASSETS: Cash and cash equivalents 303,453 76,454 26,787 79,777 486,471 987,331 1,473,802 Obligatory reserves 48,259 8,891 3,190 3,394 63,734 242,596 306,330 Financial assets at fair value through profit or loss 311,360 7,368 14 160 318,902 503,915 822,817 Amounts due from credit institutions 118,842 2 2,081 21,936 142,861 14,105 156,966 Financial assets at fair value through other comprehensive income 1,404,657 239,007 7,664 - 1,651,328 1,273,432 2,924,760 Debt securities at amortised cost, net of allowance for expected credit losses 220,923 - - 24,207 245,130 521,807 766,937 Loans to customers 2,122,954 174,601 6,280 128,380 2,432,215 9,033,434 11,465,649 Other financial assets 2,185 592 1,511 2,086 6,374 81,503 87,877 4,532,633 506,915 47,527 259,940 5,347,015 12,658,123 18,005,138 FINANCIAL LIABILITIES Amounts due to customers 3,570,187 246,083 42,582 157,989 4,016,841 8,973,202 12,990,043 Amounts due to credit institutions 438,384 24,676 10,157 17,733 490,950 323,119 814,069 Financial liabilities at fair value through profit or loss 840 - 510 - 1,350 5,623 6,973 Debt securities issued 484,287 - - - 484,287 394,925 879,212 Other financial liabilities 1,865 1,343 72 1,104 4,384 218,070 222,454 4,495,563 272,102 53,321 176,826 4,997,812 9,914,939 14,912,751 Net position – on-balance 37,070 234,813 (5,794) 83,114 349,203 2,743,184 3,092,387 Net position – off-balance 120,411 (204,932) 9,348 (26,664) (101,837) 117,062 Net position 157,481 29,881 3,554 56,450 247,366 2,860,246
Page 54
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 52 24. Capital risk management The Group’s capital management objectives, which are a broader concept than the “equity” on the face of the consolidated statement of financial position, are as follows: • To comply with the capital requirements set by NBRK; • To safeguard the Group’s ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders; and • To maintain a strong capital base to support the development of its business. There were no changes in the capital adequacy management process during the nine months ended 30 September 2025 compared to the year ended 31 December 2024. The below table summarises the regulatory capital composition and capital adequacy ratios of the Group for the periods ended 30 September 2025 and 31 December 2024. Individual entities within the Group and the Group complied with all of the externally imposed capital requirements to which they are subject. 30 September 2025 (unaudited) 31 December 2024 Composition of regulatory capital CET 1 Capital Common shares, net of treasury shares (55,687) (54,598) Share premium 8,788 8,769 Retained earnings of prior years 2,430,197 2,066,418 Net income for the current year 809,935 920,991 Accumulated disclosed reserves 61,478 55,063 Non-controlling interest 14 12 Property and financial assets at fair value through other comprehensive income revaluation reserves (23,916) 44,934 Less: goodwill and intangible assets (24,318) (19,278) Less: cumulative translation reserve (23,381) (12,098) Common Equity Tier 1 (CET 1) Capital 3,183,110 3,010,213 Additional tier 1 Tier 2 Subordinated debt - 19,749 Total qualifying for Tier 2 capital - 19,749 Total regulatory capital 3,183,110 3,029,962 Risk weighted assets 18,246,025 16,011,836 CET 1 capital adequacy ratio 17.45% 18.80% Tier 1 capital adequacy ratio 17.45% 18.80% Total capital adequacy ratio 17.45% 18.92%
Page 55
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 53 25. Segment analysis The Group is managed and reported on the basis of four main operating segments – corporate banking, SME banking, retail banking and investment banking. These segments are strategic business units that offer different products and services and are managed separately. No significant changes in the Group segments occurred during the nine months ended 30 September 2025 in comparison with the year ended 31 December 2024. There were no transactions between business segments during the nine months ended 30 September 2025 and 2024.
Page 56
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 54 Segment information for the main reportable business segments of the Group as at 30 September 2025 and 2024 and for the nine months then ended is set out below: Retail Banking Corporate banking SME banking Investment banking Unallocated Total As at 30 September 2025 and for the Nine months then ended (unaudited) External revenues 783,831 937,448 311,329 231,463 308,029 2,572,100 Total revenues 783,831 937,448 311,329 231,463 308,029 2,572,100 Total revenues comprise: - Interest income 663,020 808,443 250,341 254,414 10,164 1,986,382 - Fee and commission income, including: 108,227 31,266 32,358 - 3,723 175,574 Transaction income of individuals 116,045 - - - - 116,045 Transaction income of legal entities - 11,619 26,039 - - 37,658 Letters of credit and guarantees issued - 15,903 6,178 - - 22,081 Other 684 3,801 1,074 - 3,723 9,282 Loyalty program (8,502) (57) (933) - - (9,492) - Net gain/(loss) from financial assets and liabilities at fair value through profit or loss - 30,419 - (22,951) 188 7,656 - Net gain on foreign exchange operations 12,584 61,429 28,933 - 33,428 136,374 - Recovery of other credit loss expense/(other credit loss expense) - 5,891 (303) - - 5,588 - Share in profit of associate - - - - 12,168 12,168 - Recovery of impairment of non-financial assets - - - - 4 4 - Insurance revenue, income on non-banking activities and other income/(expense) - - - - 248,354 248,354 Total revenues 783,831 937,448 311,329 231,463 308,029 2,572,100 - Interest expense (480,209) (357,710) (134,882) (44,720) (589) (1,018,110) - Net realised loss from financial assets measured at fair value through other comprehensive income - - - (1,940) - (1,940) - (Expected credit loss expense)/recovery of expected credit loss expense (92,690) (1,767) (28,671) 10,394 (329) (113,063) - Fee and commission expense (66,073) (2,274) (4,262) (1,137) (21) (73,767) - Operating expenses (117,835) (16,949) (25,104) (2,562) (58,863) (221,313) - Insurance service expense - - - - (111,663) (111,663) - Net finance insurance expense - - - - (9,871) (9,871) - Net reinsurance expense - - - - (39,524) (39,524) Total expenses (756,807) (378,700) (192,919) (39,965) (220,860) (1,589,251) Segment result 27,024 558,748 118,410 191,498 87,169 982,849 Income before income tax expense 27,024 558,748 118,410 191,498 87,169 982,849 Income tax expense - - - - (172,914) (172,914) Net profit 27,024 558,748 118,410 191,498 (85,745) 809,935 Total segment assets 4,244,198 8,693,902 1,962,026 4,434,848 1,075,372 20,410,346 Total segment liabilities 7,475,144 5,371,010 2,413,301 979,743 903,510 17,142,708 Other segment items: Capital expenditures (52,598) Depreciation and amortisation (17,470) Investments in associate 60,356
Page 57
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 55 Retail Banking Corporate banking SME banking Investment banking Unallocated Total As at 31 December 2024 and for the Nine months ended 30 September 2024 (unaudited) External revenues 620,047 702,018 261,940 225,549 233,363 2,042,917 Total revenues 620,047 702,018 261,940 225,549 233,363 2,042,917 Total revenues comprise: - Interest income 510,379 633,037 208,673 214,871 4,900 1,571,860 - Fee and commission income, including: 97,467 26,294 26,953 - 2,854 153,568 Transaction income of individuals 103,636 - - - - 103,636 Transaction income of legal entities - 8,534 21,786 - - 30,320 Letters of credit and guarantees issued 31 14,496 5,132 - - 19,659 Other 902 3,369 35 - 2,854 7,160 Loyalty program (7,102) (105) - - - (7,207) - Net gain from financial assets and liabilities at fair value through profit or loss - 47,243 - 8,566 - 55,809 - Net realised gain from financial assets measured at fair value through other comprehensive income - - - 2,112 - 2,112 - Net gain/(loss) on foreign exchange operations 12,201 60,012 25,804 - (6,903) 91,114 - Share in profit of associate - - - - 12,146 12,146 - Recovery of other credit loss expense - 1,546 510 - 7 2,063 - Recovery of non-financial assets - - - - 46 46 - Insurance revenue, income on non-banking activities and other income/(expense) - (66,114) - - 220,313 154,199 Total revenues 620,047 702,018 261,940 225,549 233,363 2,042,917 - Interest expense (376,472) (249,880) (118,464) (35,041) (317) (780,174) - (Expected credit loss expense)/recovery of expected credit loss expense (74,201) 2,304 (25,252) (473) (1,369) (98,991) - Fee and commission expense (55,012) (2,491) (2,846) (639) (3) (60,991) - Operating expenses (98,077) (12,065) (20,763) (1,768) (48,072) (180,745) - Insurance service expense - - - - (122,382) (122,382) - Net finance insurance expense - - - - (19,801) (19,801) - Net reinsurance expense - - - - (29,074) (29,074) Total expenses (603,762) (262,132) (167,325) (37,921) (221,018) (1,292,158) Segment result 16,285 439,886 94,615 187,628 12,345 750,759 Income before income tax expense 16,285 439,886 94,615 187,628 12,345 750,759 Income tax expense - - - - (111,944) (111,944) Net profit 16,285 439,886 94,615 187,628 (99,599) 638,815 Total segment assets 3,901,850 7,488,151 1,831,990 4,420,694 905,729 18,548,414 Total segment liabilities 6,952,536 4,289,967 2,482,390 879,212 876,260 15,480,365 Other segment items: Capital expenditures (44,138) (44,138) Depreciation and amortisation (14,766) (14,766) Investments in associate 57,136 57,136
Page 58
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 56 Geographical information Information for the main geographical areas of the Group is set out below as at 30 September 2025 and 31 December 2024 and for the nine months ended 30 September 2025 and 2024. Kazakhstan OECD Non-OECD Total 30 September 2025 (unaudited) Total assets 18,674,349 1,016,312 719,685 20,410,346 31 December 2024 Total assets 17,003,325 836,324 708,765 18,548,414 Nine months ended 30 September 2025 (unaudited) External revenues 2,432,326 72,891 66,883 2,572,100 Capital expenditures (45,267) - (7,331) (52,598) Nine months ended 30 September 2024 (unaudited) External revenues 1,941,747 50,607 51,907 2,044,261 Capital expenditures (41,234) - (2,904) (44,138) External revenues, assets and credit related commitments have generally been allocated based on domicile of the counterparty. Cash on hand, property and equipment and capital expenditure have been allocated based on the country in which they are physically held. 26. Fair values of financial instruments IFRS defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value of the Group's financial assets and financial liabilities measured at fair value on a recurring basis. There were no changes in the methods and assumptions used to measure the fair value of financial instruments that are measured at fair value by the Group during the nine months ended 30 September 2025 compared to the year ended 31 December 2024.
Page 59
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 57 Financial Assets/Liabilities Fair value 30 September 2025 (unaudited) 31 December 2024 Fair value hierarchy Valuation technique(s) and key input(s) Significant unobservable input(s) Relationship of unobservable inputs to fair value Non-derivative financial assets at fair value through profit or loss (Note 6) 267,564 258,592 Level 1 Quoted prices in an active market. Not applicable Not applicable Non-derivative financial assets at fair value through profit or loss, excluding options (Note 6) 535,749 521,032 Level 2 Quoted prices in a market that is not sufficiently active. Not applicable Not applicable Non-derivative financial assets at fair value through profit or loss, excluding options (Note 6) 22,674 12,706 Level 3 Valuation model based on internal rating model. Percentage discount The greater discount - the smaller fair value Derivative financial assets at fair value through profit or loss, excluding options (Note 6) 13,401 30,487 Level 2 Discounted cash flows. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period). Not applicable Not applicable Total financial assets at fair value through profit or loss 839,388 822,817 Derivative financial liabilities at fair value through profit or loss, excluding options (Note 6) 10,160 6,973 Level 2 Discounted cash flows. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting year). Not applicable Not applicable Total financial liabilities at fair value through profit or loss 10,160 6,973 Non-derivative financial assets at fair value through other comprehensive income (Note 8) 921,679 730,682 Level 1 Quoted prices in an active market. Not applicable Not applicable Non-derivative financial assets at fair value through other comprehensive income (Note 8) 1,449,504 2,150,894 Level 2 Quoted prices in a market that is not active. Not applicable Not applicable Non-derivative financial assets at fair value through other comprehensive income – unquoted securities (Note 8) 39,005 43,184 Level 3 Unquoted securities Percentage discount The greater discount - the smaller fair value Financial assets at fair value through other comprehensive income 2,410,188 2,924,760
Page 60
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 58 The tables below summarise the Group’s financial assets and liabilities held at fair value by valuation methodology as at 30 September 2025 and 31 December 2024, before any allowances for expected credit losses. During the nine months ended 30 September 2025 and 2024, there were no transfers between levels. Non-derivative financial assets at fair value through other comprehensive income – unquoted securities (Level 3) Non-derivative Financial assets at fair value through other comprehensive income - excluding options (Level 3) 31 December 2023 53 132,682 Income/(expense) recognised in profit or loss 43,131 (119,976) 31 December 2024 43,184 12,706 (Expense)/income recognised in profit or loss (4,179) 9,968 30 September 2025 (unaudited) 39,005 22,674 Fair value of financial assets and financial liabilities that are not measured at fair value on a recurring basis (but fair value disclosures are required). There were no changes in the methods and assumptions used to measure the fair value of financial instruments that are not measured at fair value by the Group during the nine months ended 30 September 2025 compared to the year ended 31 December 2024. The following table sets out the carrying amount and fair values of financial assets and liabilities not carried at their fair values: 30 September 2025 (unaudited) 31 December 2024 Carrying amount Fair value Carrying amount Fair Value Financial assets Amounts due from credit institutions 200,256 200,977 156,966 159,886 Debt securities at amortised cost, net of allowance for expected credit losses 1,149,103 1,111,808 766,937 723,439 Loans to customers 12,419,956 12,576,180 11,465,649 11,567,889 Financial liabilities Amounts due to customers 14,163,375 14,168,470 12,990,043 13,074,197 Amounts due to credit institutions 1,138,477 1,156,262 814,069 834,992 Debt securities issued 979,743 982,704 879,212 875,975
Page 61
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 59 30 September 2025 (unaudited) Level 1 Level 2 Level 3 Total Financial assets Amounts due from credit institutions - 200,977 - 200,977 Debt securities at amortised cost, net of allowance for expected credit losses 146,971 964,027 810 1,111,808 Loans to customers - - 12,576,180 12,576,180 Financial liabilities Amounts due to customers - 14,168,470 - 14,168,470 Amounts due to credit institutions - 1,156,262 - 1,156,262 Debt securities issued - 982,704 - 982,704 31 December 2024 Level 2 Level 3 Total Financial assets Amounts due from credit institutions 159,886 - 159,886 Debt securities at amortised cost, net of allowance for expected credit losses 720,340 3,099 723,439 Loans to customers - 11,567,889 11,567,889 Financial liabilities Amounts due to customers 13,074,197 - 13,074,197 Amounts due to credit institutions 834,992 - 834,992 Debt securities issued 875,975 - 875,975 The carrying amounts of cash equivalents, obligatory reserves, other financial assets and other financial liabilities approximates fair value due to the short-term nature of such financial instruments.
Page 62
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 60 27. Related party transactions Related parties or transactions with related parties are assessed in accordance with IAS 24 “Related Party Disclosures”. Related parties may enter into transactions that would not occur between unrelated parties. The terms and amounts of transactions with related parties are generally no different from transactions between unrelated parties. When considering each possible related party, the substance of the relationship between the parties is taken into account, and not just their legal form. During third quarter 2025 and 2024, the Group entered into arm-length transactions with entities where the Group’s shareholders were one of the participants. Management believes that any control of these entities is with unrelated parties as per IFRS through the level of holding control or trust management arrangements, which are in compliance with Kazakhstan legislation. As such, these transactions are not disclosed as being with related parties. The Group had the following balances outstanding as at 30 September 2025 and 31 December 2024 with related parties: 30 September 2025 (unaudited) 31 December 2024 Related party balances Total category as per financial statements caption Related party balances Total category as per financial statements caption Loans to customers before allowance for expected credit losses 35,558 13,031,358 12,197 12,038,868 - entities with joint control or significant influence over the entity 35,305 11,923 - key management personnel of the entity or its parent 236 259 - other related parties 17 15 Allowance for expected credit losses (146) (611,402) (37) (573,219) - entities with joint control or significant influence over the entity (142) (33) - key management personnel of the entity and its parent (3) (3) - other related parties (1) (1) Other assets 66,688 321,597 59,227 197,183 - Investments in associates 66,688 59,227 Amounts due to customers 220,804 14,163,375 263,054 12,990,043 - the parent 141,023 207,429 - entities with joint control or significant influence over the entity 59,383 47,450 - key management personnel of the entity or its parent 4,112 2,978 - other related parties 16,286 5,197 Debt securities issued 352,077 979,743 339,659 879,212 - the parent 349,854 338,604 - key management personnel of the entity or its parent 2,223 1,055
Page 63
JSC Halyk Bank Selected Explanatory Notes to the Interim Condensed Consolidated Financial Information for the Nine Months ended 30 September 2025 (unaudited) (continued) (millions of Kazakhstani Tenge) 61 The following amounts resulted from transactions with related parties and have been reflected in the interim condensed consolidated statement of profit or loss for the Nine months ended 30 September 2025 and 2024: Nine months ended 30 September 2025 (unaudited) Nine months ended 30 September 2024 (unaudited) Related party transactions Total category as per financial statements caption Related party transactions Total category as per financial statements caption Interest income calculated using effective interest method 1,250 1,934,303 1,020 1,533,368 - entities with joint control or significant influence over the entity 1,236 1,004 - key management personnel of the entity or its parent 13 16 - other related parties 1 - Interest expense (10,828) (1,018,110) (10,090) (780,174) - the parent (7,426) (7,765) - entities with joint control or significant influence over the entity (3,053) (1,833) - key management personnel of the entity or its parent (181) (240) - other related parties (168) (252) Share in profit of associate 12,168 12,168 12,146 12,146 Operating expenses (2,000) (221,313) (2,200) (180,745) - entities with joint control or significant influence over the entity (2,000) (2,200) Nine months ended 30 September 2025 (unaudited) Nine months ended 30 September 2024 (unaudited) Related party transactions Total category as per financial statements caption Related party transactions Total category as per financial statements caption Key management personnel compensation: (5,547) (135,506) (4,634) (107,155) - short-term employee benefits (5,547) (4,634) 28. Subsequent events On 31 October 2025, the Group fully repaid ten-year subordinated coupon bonds with a par value of KZT 101,144 million and a coupon rate of 9.5%.