Halyk Bank of Kazakhstan (HSBK) investor relations material

Executive summary

• Net income for Q1 2026 was KZT 234.8 billion, down 14.6% year-on-year, mainly due to increased reserve requirements and tighter retail lending regulation, with EPS at KZT 21.57 versus KZT 25.29 year-over-year.

• Digital ecosystem engagement remained strong, with 8.5 million monthly active users and 6 million monthly transacting users, and high digitalization in loan and deposit origination.

• The bank maintained leading market positions in assets, loans, deposits, and net income, with robust capital adequacy and asset quality.

• Performance aligned with full-year 2026 guidance, despite regulatory headwinds and seasonal effects.

Financial highlights

• Net interest income before credit loss expense rose 2.3% year-on-year to KZT 333.4 billion; net fee and commission income fell 26.1% year-on-year.

• Retail gross loan book reached KZT 4.6 trillion, up 8.3% year-on-year; SME loans up 27.7% to KZT 2.3 trillion; corporate loan portfolio at KZT 6.5 trillion, up 8.5% year-on-year.

• Total assets increased to KZT 21.2 trillion as of 31 March 2026, up from KZT 20.9 trillion at year-end 2025.

• Operating expenses increased 7.8% year-on-year, mainly due to IT and VAT costs; cost-to-income ratio rose to 18.2%.

• Total equity rose to KZT 3.74 trillion, up 6.9% from year-end 2025.

Outlook and guidance

• Full-year 2026 guidance remains unchanged, with management confident in achieving targets; fee and commission income expected to improve from Q2.

• Lending growth in retail expected to align with annual guidance; cost of risk remains within expectations.

• Management expects monetary policy easing in H2 2026, with inflation at 11.0% in Q1 2026 and GDP growth of 2.5% year-on-year.

• Macro environment seen as balanced, with no major changes to guidance anticipated.