Here is a summary of the financial report for JSC Halyk Bank for the first half of 2024
For the six months ended June 30, 2024, JSC Halyk Bank reported a 2.2% year-over-year increase in net income attributable to common shareholders, totaling 379,093 million KZT. This growth was despite the negative impact of a one-off effect related to the early repayment of a Kazakhstan Sustainability Fund (KSF) deposit. Interest income increased by 29.7% compared to the same period in 2023, primarily due to higher average rates and balances of loans to customers. Consequently, net interest income before credit loss expense grew by 32.1%. Net interest margin improved to 7.0% for the first half of 2024, up from 6.0% in the previous year, driven by higher average rates on loans and increased shares of higher-yielding retail loans and FX interest-earning assets. Fee and commission income rose slightly by 1.1%, while fee and commission expenses increased by 2.8%, resulting in a 0.5% decrease in net fee and commission income. Operating expenses rose by 16.3%, leading to a higher cost-to-income ratio of 18.5% compared to 17.7% in the first half of 2023. The banks total assets grew by 8.1% year-to-date, primarily due to an increase in amounts due to customers. Loans to customers increased by 6.7% on a gross basis and 6.6% on a net basis, with a notable rise in retail loans. The banks total equity increased by 4.0% compared to the end of 2023, mainly due to net profit earned during the first half of 2024. As of June 30, 2024, the banks capital adequacy ratios remained strong, with the CET1 ratio at 17.4% and the total capital ratio at 17.5%.
| 1H 2024 | 1H 2023 | YoY % | 2Q 2024 | 2Q 2023 | YoY % | |
|---|---|---|---|---|---|---|
| Interest Income | 1,012,008 | 780,462 | 29.7% | 515,754 | 400,193 | 28.9% |
| Interest Expense | 500,745 | 393,555 | 27.2% | 258,727 | 205,378 | 26.0% |
| Net Interest Income before Credit Loss Expense | 511,263 | 386,907 | 32.1% | 257,027 | 194,815 | 31.9% |
| Fee and Commission Income | 99,730 | 98,689 | 1.1% | 49,656 | 51,284 | -3.2% |
| Fee and Commission Expense | 48,277 | 46,970 | 2.8% | 23,695 | 24,484 | -3.2% |
| Fees and Commissions, Net | 51,453 | 51,719 | -0.5% | 25,961 | 26,800 | -3.1% |
| Net Insurance Income | 14,802 | 28,597 | -48.2% | 5,126 | 9,249 | -44.6% |
| Net Gain on Foreign Exchange Operations, Financial Assets and Liabilities | 90,049 | 59,653 | 51.0% | 44,360 | 30,727 | 44.4% |
| Other Expense/Non-Interest Income | 41,921 | 36,862 | 13.7% | 8,944 | 15,668 | -42.9% |
| Expected Credit Loss Expense and Recovery of Other Credit Loss Expense | 65,747 | 31,102 | 111.4% | 46,753 | 17,535 | 166.5% |
| Operating Expenses | 115,858 | 99,578 | 16.3% | 59,217 | 53,092 | 11.5% |
| Income Tax Expense | 64,948 | 62,243 | 4.3% | 34,319 | 28,271 | 21.4% |
| Net Income | 379,093 | 370,815 | 2.2% | 201,129 | 178,361 | 12.8% |
| Non-controlling Interest | 0 | 1 | 0.0% | 0 | 1 | 0.0% |
| Net Income Attributable to Common Shareholders | 379,093 | 370,814 | 2.2% | 201,129 | 178,360 | 12.8% |
| Net Interest Margin, p.a. | 7.0% | 6.0% | 6.9% | 6.0% | ||
| Return on Average Equity, p.a. | 29.9% | 35.8% | 31.7% | 33.8% | ||
| Return on Average Assets, p.a. | 4.8% | 5.2% | 5.0% | 5.0% | ||
| Cost-to-Income Ratio | 18.5% | 17.7% | 17.3% | 19.1% | ||
| Cost of Risk on Loans to Customers, p.a. | 1.3% | 0.9% | 1.7% | 1.0% |