Q4 2025 Halyk Bank AO Earnings Call Transcript
Key Points
- Halyk Bank of Kazakhstan JSC (FRA:H4L1) reported a 14.9% year-on-year increase in net income, demonstrating strong overall performance.
- The bank maintained a high return on equity at 32.6% and a net interest margin of 7.1%, reflecting robust profitability.
- Digital platforms showed strong momentum with double-digit growth in both volumes and transactions, enhancing customer engagement.
- The bank distributed 60% of net income as dividends in 2025, with dividends per share increasing threefold compared to 2019 levels.
- Halyk Bank expanded its lending exposure to Uzbekistan by 34% year-on-year, highlighting regional growth opportunities.
- The introduction of an excess profit tax and increased minimum reserve requirements posed challenges to profitability.
- Net interest margin slightly decreased to 7.1% in 2025 from 7.2% in 2024 due to new regulatory requirements and faster pricing of liabilities.
- Stage 3 loans increased to 7.7% by the end of 2025, partly due to regulatory restrictions on selling problem loans to collection agencies.
- The bank revised its guidance for 2026, expecting lower net income growth due to higher interest rates persisting longer than initially estimated.
- Operating expenses increased by 16.9% compared to 2024, driven by salary indexation, employee benefits, and IT development costs.
Good day, ladies and gentlemen.
Thank you for joining us. I'm Victor Skrill, strategy director for Hale Bank.
We have our executive team joining us on the call today, including Ms. Ouhamed, executive Officer, Mr. Dorian Sartaev, first deputy CEO for B2B Banking, marketing, and PR and transactional business, Mr. Murat Kasenov, CFO and Deputy CEO for finance, subsidiaries, compliance, and international activities. Mr. Raman Marchik, Deputy CEO for Risk Management, Data Science, and collateral.
Ms. Olga Vas, Deputy CO for corporate banking, Mr. Nariman Mukusev, deputy CEO for B2C Banking, digital government services and ecosystem. Mr. Mikhail Hassin, Deputy CO for IT.
Mr. Almaz Mohanov, finance director, Ms. Mira Tenak, head of FINAR, and Mr. Ostam Tilli from IR team.
Today we will begin with a short video overview of the group's results and key highlights followed by a presentation and Q&A. Please note that the call is being recorded.
(video starts)
Good day and thank
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