Q3 2024 Halyk Bank AO Earnings Call Transcript
Key Points
- Halyk Bank of Kazakhstan JSC (STU:H4L1) reported a strong increase in net income, rising 29.1% quarter-on-quarter and 53.7% year-on-year.
- The bank's digital platform has seen significant growth, with monthly active users of the Super-App up 11% year-on-year and daily active users up 21%.
- Retail loan issuance increased by over 30% for the quarter and over 51% year-on-year, with digital loans making up 91% of the portfolio.
- The bank maintains a leading 39% share of active salary clients among the country's employee population.
- Halyk Bank's net interest margin improved to 7.1% for the nine months of 2024, up from 6.3% in the same period of 2023, driven by an increase in high-yielding retail loans.
- Fee and commission income only increased by 2% year-on-year, impacted by the transition to amortization of tariff packages and revision of some retail tariffs.
- Net fee and commission income decreased by 2.7% due to increased service fees for payment cards and higher deposit insurance fees.
- Operating expenses increased by 17.2% for the nine months of 2024, mainly due to salary indexation and other employee benefits.
- The cost-to-income ratio, although improved, is expected to rise in the fourth quarter due to seasonal increases in operating expenses.
- The proposed dividend for 2023 is only 15% of net income, which may be lower than some investors anticipated.
Good day, ladies and gentlemen. Thank you for joining us on this conference call to discuss Halyk Bank's interim results for the third quarter and the first nine months of 2024. I'm Mira Tiyanak, Head of FI and IR.
Joining me on the call today from our side are Mr. Umut Shayakhmetova, Chief Executive Officer; Mr. Murat Koshenov, Deputy CEO, Finance, Subsidiaries, Compliance and International Activities; Mr. Roman Maszczyk, Deputy CEO, Risk-Management, Data Science and Collateral; Ms. Olga Vuros, Deputy CEO, Corporate Banking; Mr. Dauren Sartayev, Deputy CEO; SME Banking, Transactional Banking, PR and Marketing; Mr. Nariman Mukushev, Deputy CEO, Retail Banking, Digital Government Services, Ecosystem and Customer Experience; Mr. Viktor Skryl, Strategy Director; Nurgul Mukhadi and Rustam Telish from IR team.
And we will begin this call today with a presentation by the Halyk Bank team followed by time for Q&A session. Please note that the call is being recorded.
First up, I would like to update you on progress
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