Q4 2024 Halyk Bank AO Earnings Call Transcript
Key Points
- Halyk Bank of Kazakhstan JSC (STU:H4L1) reported a record high profit of KZT921 billion for 2024, marking a 32.8% increase year on year.
- The bank achieved a strong net interest margin of 7.2%, supported by a record net interest income of KZT1.1 trillion.
- Halyk Bank's digital platforms showed significant growth, with the B2C Super-App's payment volume rising by 39% and the B2B online bank's payment volume growing by 16% year on year.
- The bank's MSCI ESG rating was upgraded to BBB, and it became the first Kazakhstani commercial bank to issue green bonds.
- Halyk Bank's total loan exposure to Uzbekistan increased by 45% year on year, highlighting its strategic expansion in Central Asia.
- The bank's operating expenses increased by 21.7% compared to 2023, mainly due to salary indexation and other employee benefits.
- There is a moratorium on selling NPLs to external parties until April 2026, which may impact the bank's ability to clean its credit portfolio.
- The share of local currency deposits in total retail deposits stabilized, potentially affecting interest expense dynamics.
- Halyk Travel experienced a slight decline in GMV over the year, indicating challenges in the travel segment.
- The bank's capital adequacy ratios slightly decreased due to dividend payments, and there is ongoing discussion about potential regulatory changes that could impact financial performance.
(audio in progress) Deputy CEO, Risk Management, Data Science and Collateral; Ms. Olga Vuros, Deputy CEO, Corporate Banking; Mr. Nariman Mukushev, Deputy CEO, B2C Banking and Digital Government Services; Mr. Andrey Zavarzin, Deputy CEO, IT and Deck System; Mr. Almas Makhanov, Financial Director; Ms. Mira Tiyanak, Head of FI and IR; and Mr. Nurgul Mukhadi and Mr. Rustam Telish from IR team.
The session will start with the presentation by Halyk team and will be followed by Q&A. Please note that the call is being recorded. We are happy to report that 2024 was a banner year for Halyk. We recorded a record high profit of KZT921 billion, an increase of 32.8% year on year. Our net interest margin was very strong at 7.2% on the back of a record net interest income of KZT1.1 trillion.
Return on average equity, return on average asset set new record as well, while our cost-to-income ratio was the lowest it's ever been. And we hit record highs for total assets, net loans, total deposits and total equity and while keeping our
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