Halyk Bank of Kazakhstan (HSBK) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 rose 54.5% year-over-year to KZT 275,016 million, driven by increased lending, transactional business, and a favorable base effect from a one-off loss in Q1 2024; adjusted net income growth was 19.1%.

• Total assets reached KZT 18,855.9 billion as of 31 March 2025, up 1.7% from year-end 2024.

• The digital ecosystem expanded, with the Halyk Super App reaching up to 11.1 million monthly active users and 96% of consumer loans issued digitally.

• Halyk maintained its #1 market position in net income, assets, loans, and deposits in Kazakhstan.

• Management and auditors confirmed compliance with IAS 34 and regulatory requirements.

Financial highlights

• Net interest income before credit loss expense rose 30.1% year-over-year to KZT 325,866 million; interest income up 26.8%, interest expense up 23.4%.

• Net fee and commission income increased by 13.4% year-over-year, driven by higher client activity.

• Net insurance income grew 59.8% year-over-year to KZT 15.5 bn.

• Operating expenses rose 22.2% year-over-year to KZT 69,190 million, mainly due to salary indexation and employee benefits.

• Cost-to-income ratio decreased to 16.5% from 19.9% a year ago.

Outlook and guidance

• No change to 2025 guidance; updates expected after six-month results as regulatory and tax changes are clarified.

• Excess profit tax of 10% on certain banking activities will apply only for 2025 and is not expected to be material.

• Broader tax code changes, including higher corporate tax, will take effect from 2026.

• Minimum reserve requirements may increase, with details pending; impact on net interest income expected.

• Management is monitoring macroeconomic and geopolitical risks, including inflation and fiscal reforms, and expects to maintain a tight monetary policy environment.