Earnings release
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RNS Number : 1073RJSC Halyk Bank18 August 2026 18 August 2026 Joint Stock Company 'Halyk Bank of Kazakhstan'Interim condensed consolidated financial resultsfor the six months ended 30 June 2026 Joint Stock Company 'Halyk Bank of Kazakhstan' and its subsidiaries (together "theBank") (LSE: HSBK; KASE: HSBK, HSBKd; AIX: HSBK, HSBK.Y) releases interim condensedconsolidated financial information for the six months ended 30 June 2026. Consolidated Statement of Profit or LossKZT mln 1H 2026 1H 2025 Y-o-Y,abs Y-o-Y,% 2Q 2026 2Q 2025 Y-o-Y,abs Y-o-Y,% Interest income(1) 1,446,153 1,289,297 156,856 12.2% 725,041 660,100 64,941 9.8% Interest expense (788,530) (648,564) (139,966) 21.6% (400,787) (345,233) (55,554) 16.1%Net interest income beforecredit loss expense 657,623 640,733 16,890 2.6% 324,254 314,867 9,387 3.0% Fee and commission income 108,091 114,317 (6,226) (5.4%) 56,358 57,451 (1,093) (1.9%) Fee and commission expense (53,578) (46,535) (7,043) 15.1% (26,807) (23,447) (3,360) 14.3% Fees and commissions, net 54,513 67,782 (13,269) (19.6%) 29,551 34,004 (4,453) (13.1%) Net insurance income (2) (6,056) 25,840 (31,896) (123.4%) (14,241) 10,382 (24,623) (237.2%) Net gain on foreign exchangeoperations, financial assets and liabilities(3) 85,242 87,947 (2,705) (3.1%) 48,580 65,531 (16,951) (25.9%) Other expense/non-interest income (4) 13,208 31,473 (18,265) (58.0%) 7,497 10,857 (3,360) (30.9%) Expected credit loss expenseand recovery of other creditloss expense (104,029) (61,518) (42,511) 69.1% (51,218) (38,580) (12,638) 32.8% Operating expenses (5) (154,619) (146,607) (8,012) 5.5% (80,030) (77,412) (2,618) 3.4% Income tax expense (98,315) (117,048) 18,733 (16.0%) (51,634) (66,063) 14,429 (21.8%) Net income 447,567 528,602 (81,035) (15.3%) 212,759 253,586 (40,827) (16.1%) Non-controlling interest (1) 2 (3) - - 2 (2) -Net income attributable tocommon shareholders 447,568 528,600 (81,032) (15.3%) 212,759 253,584 (40,825) (16.1%) Net interest margin, p.a. 6.8% 7.3% 6.7% 7.1%Return on average equity,p.a. 24.8% 33.6% 23.5% 32.2% Return on average assets,p.a. 4.2% 5.6% 3.9% 5.3% Cost-to-income ratio 19.2% 17.2% 20.2% 17.8%Cost of risk on loans tocustomers, p.a. 1.4% 1.4% 1.4% 1.5% (1) Interest income calculated using the effective interest method and other interest income;(2) Insurance revenue less insurance service expense, net finance insurance expense and net reinsurance expense;(3) Net gain on financial assets and liabilities at fair value through profit or loss, net realised loss from financial assets at fair valuethrough other comprehensive income, net foreign exchange gain;(4) Share in profit of associate, income on non-banking activities, other income;(5) Including loss from)/reversal of impairment of non-financial assets; Interest income(1) for 1H 2026 was up 12.2% vs. 1H 2025 mainly due to increase ofaverage balances of loans to customers.
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Interest expense for 1H 2026 increased by 21.6% vs. 1H 2025 mainly as a result of theincrease in average interest rate and balances of amounts due to customers, as well asthe growth in the share of KZT amounts due to customers. Consequently, net interestincome for 1H 2026 grew by 2.6% vs. 1H 2025. Net interest margin decreased to 6.8% for 1H 2026 compared to 7.3% for 1H 2025 dueto the introduction of new minimum reserve requirements coefficients. NIM adjusted forthe effect of tightened minimum reserve requirements would be 7.2%. Net fee and commission income for 1H 2026 decreased by 19.6% vs. 1H 2025 mainlydue to negative dynamics of BNPL transactional income amid tighter underwritingresulting from regulatory changes, as well as the gradual pass-through of VAT on certainbanking services to clients, at the same time net fee and commission income for 2Q 2026increased by 18.4% vs. 1Q 2026. The negative dynamics of other expense/non-interest income (4) in 1H 2026 was mainlydriven by the base effect from one-off income booked in stress asset managementsubsidiary of the Bank due to the work-out of certain assets and liabilities in 1H 2025. Expected credit losses are in line with our full year guidance. Cost of risk in 1H 2026was at normalized level of 1.4%. Operating expenses(5) for 1H 2026 increased by 5.5% vs. 1H 2025 mainly due to theindexation of salaries and other employee benefits, as well as IT development relatedcosts and increase in VAT. The Bank's cost-to-incomeratio increased to 19.2% compared to 17.2% for 1H 2025amid lower operating income in 1H 2026. Net income attributable to common shareholders for 1H 2026 is down 15.3% year-on-year due to the impact of increased minimum reserve requirements, tighter regulation inretail lending and increase in average interest rate on amounts due to customers amidflat average interest rate on loans. Consolidated Statement of Financial PositionKZT mln 30-Jun-26 31-Mar-26 ChangeQ-o-Q,abs ChangeQ-o-Q,% 31-Dec-25 ChangeYTD, abs Change YTD, % Total assets 22,036,296 21,195,608 840,688 4.0% 20,908,456 1,127,840 5.4% Cash and reserves 2,848,731 2,842,119 6,612 0.2% 2,556,579 292,152 11.4% Amounts due fromcredit institutions 209,657 192,392 17,265 9.0% 181,288 28,369 15.6% T-bills of MinFin & NBRK notes(6) 3,070,524 3,119,902 (49,378) (1.6%) 2,502,059 568,465 22.7% Other securities & derivatives(7) 1,875,712 1,559,830 315,882 20.3% 1,845,652 30,060 1.6% Gross loan portfolio 13,958,237 13,410,654 547,583 4.1% 13,714,721 243,516 1.8% Allowance for expectedcredit losses (692,540) (652,123) (40,417) 6.2% (603,804) (88,736) 14.7% Net loan portfolio 13,265,697 12,758,531 507,166 4.0% 13,110,917 154,780 1.2% Assets classified asheld for sale 15,718 13,861 1,857 13.4% 8,896 6,822 76.7% Other assets 750,257 708,973 41,284 5.8% 703,065 47,192 6.7% Total liabilities 18,393,180 17,454,666 938,514 5.4% 17,408,105 985,075 5.7% Amounts due tocustomers, including: 14,870,624 13,888,541 982,083 7.1% 14,338,804 531,820 3.7% individuals' deposits 8,278,673 7,892,911 385,762 4.9% 7,976,451 302,222 3.8% term deposits 7,139,767 6,860,953 278,814 4.1% 6,781,175 358,592 5.3% current accounts 1,138,906 1,031,958 106,948 10.4% 1,195,276 (56,370) (4.7%) legal entities' deposits 6,591,951 5,995,630 596,321 9.9% 6,362,353 229,598 3.6% term deposits 4,593,727 4,151,256 442,471 10.7% 4,675,777 (82,050) (1.8%) current accounts 1,998,224 1,844,374 153,850 8.3% 1,686,576 311,648 18.5% Debt securities issued 1,185,823 902,828 282,995 31.3% 970,098 215,725 22.2% Amounts due to creditinstitutions 1,403,974 1,765,173 (361,199) (20.5%) 1,270,128 133,846 10.5%
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Other liabilities 932,759 898,124 34,635 3.9% 829,075 103,684 12.5% Total equity 3,643,116 3,740,942 (97,826) (2.6%) 3,500,351 142,765 4.1% (6) Treasury bonds of the Ministry of Finance of the Republic of Kazakhstan and Notes of NBRK;(7) Financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income and debtsecurities at amortized cost, net of allowance for expected credit losses less Treasury bonds of the Ministry of Finance of theRepublic of Kazakhstan and notes of NBRK; As at the end of 1H 2026, total assets were up 5.4% year-to-date. Year-on-year, loans to customers increased by 13.2% on a gross basis and by 13.0% on anet basis. Compared with the YE of 2025, loans to customers were up 1.8% on a grossand 1.2% on a net basis. Stage 3 loans increased to 8.6% as at the end of 1H 2026 year-to-date as a result ofcontinuing moratorium on the sale of problem retail loans to collection agencies, as wellas lower retail loan portfolio growth. On year-on-year basis, deposits of legal entities and the deposits of individuals were up5.4% and 10.5%.Compared with the YE 2025, the deposits of legal entities and the deposits of individualswere up 3.6% and 3.8%. As at the end of 1H 2026, the share of KZT deposits in total deposits was 71.4%compared to 71.7% as at the YE 2025, in corporate deposits the share was 67.0% vs.70.4% as at the YE 2025, while the share in total retail deposits was 75.0% vs. 72.7% as atYE 2025. Amounts due to credit institutions increased by 10.5% vs. the YE 2025, due to increasein loans under REPO agreements. As at the end of 1H 2026, debt securities issued were up 22.2% year-to-date, mainly dueto the issuance of bonds listed on AIX with a coupon rate of 3.5% in May and June 2026.As at the end of 1H 2026 the Bank's debt securities portfolio was as follows: Description of thesecurity Nominalamountoutstanding Interest rate Maturity Date Local bonds KZT 182.1bn 14.85% p.a. - floating rate July 2031 Local bonds KZT 20.0bn 19.53% p.a. - floating rate December2027Local bonds listed atAstanaInternational Exchange USD 191 mln 3.5% p.a. May 2027 Local bonds listed atAstanaInternational Exchange USD 293.9 mln 3.5% p.a. May 2027 Local bonds listed atAstanaInternational Exchange USD 500 mln 3.5% p.a. May 2027 Local bonds listed atAstanaInternational Exchange USD 481.9mln 3.5% p.a. July 2027 Local bonds listed atAstanaInternational Exchange USD 500 mln 3.5% p.a. May 2028 Local bonds listed atAstanaInternational Exchange USD 56.7 mln 3.5% p.a. June 2028 As at the end of 1H 2026, total equity of the Bank increased by 4.1% compared to the YE2025, due to net profit earned by the Bank during 1H 2026. The Bank's capital adequacy ratios were as follows*: 30-Jun-26 31-Mar-26 31-Dec-25 30-Sep-25 30-Jun-25
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Capital adequacy ratios, unconsolidated:Halyk Bankk1-1 19.0% 21.0% 18.9% 18.0% 18.5%k1-2 19.0% 21.0% 18.9% 18.0% 18.5%k2 19.0% 21.0% 18.9% 18.0% 18.5% * The minimum regulatory capital adequacy requirements are 9.5%, for k1, 10.5% for k1-2and 12% for k2, including a conservation buffer of 3% and systemic buffer of 1% for each. The interim condensed consolidated statements for the six months ended 30 June 2026,including the notes attached thereto, are available on Halyk Bank's website:https://halykbank.com/results-and-presentations. A 1H 2026 results webcast will be hosted at 3:00pm London time/7:00pm Almaty time (UTC+05:00) on Tuesday, 18 August 2026. A live webcast of the presentation can be accessed viaZoom link after the registration. The registration is open until 18 August 2026 (including),for the registration please click here. About Halyk Bank Halyk Bank is the leading financial services group in Kazakhstan, with a diversifiedpresence across retail, SME, and corporate banking, as well as insurance, leasing,brokerage, asset management and lifestyle services. Halyk Bank has been listed on theKazakhstan Stock Exchange since 1998, the London Stock Exchange since 2006, and theAstana International Exchange since 2019. As of 30 June 2026, Halyk Bank had total assets amounting to KZT 22,036bn, making itthe largest lender in Kazakhstan. The Bank boasts the country's one of the largestcustomer base and the most extensive branch network, with 530 branches and serviceoutlets across nationwide. Additionally, the Bank operates in Georgia and Uzbekistan. For more information on Halyk Bank, please visit https://halykbank.com/ - ENDS- For further information, pleasecontact:Halyk Bank Mira Tiyanak +7 727 259 04 30Ir@halykbank.kz MiraK@halykbank.kz Rustam Telish +7 727 330 15 66RustamT3@halykbank.kz Yekaterina Svanbayeva +7 727 330 12 88EkaterinaS@halykbank.kz Laura Kustubayeva +7 (727) 259 60 27LauraKus@halykbank.kz This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authorityto act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this informationmay apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information
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