Halyk Bank of Kazakhstan (HSBK) Q2 2025 earnings summary

Executive summary

• Net income for H1 2025 reached KZT 528.6 billion, up 39.4% year-on-year, driven by strong digital ecosystem growth and market leadership in Kazakhstan.

• Total assets increased to KZT 19.6 trillion as of June 2025, with significant growth in both B2C and B2B platforms and digital user engagement.

• Strategic partnership with Click in Uzbekistan expanded the addressable market to 57 million people and $316 billion in payment volume, with reciprocal shareholdings.

• Maintained #1 market position in Kazakhstan across net income, assets, loans, and deposits.

• Deloitte LLP review found no material misstatements in interim financials under IAS 34.

Financial highlights

• Net interest income rose 27.2% year-on-year to KZT 640.7 billion; net fee and commission income up 11.2% to KZT 67.8 billion.

• Total assets increased by 5.8% year-to-date to KZT 19.6 trillion; total equity up 4% to KZT 3.19 trillion.

• Net interest margin (NIM) improved to 7.2% from 6.9% year-on-year; ROAE at 32.2% for Q2 2025.

• Cost-to-income ratio improved to 17.2%-17.8% from 18.5% year-on-year.

• Loans to customers up 2.54% from year-end 2024; retail loans up 4.3%; deposits of legal entities and individuals up 8% and 4.1%, respectively.

Outlook and guidance

• Net loan portfolio growth expected at 15%-20% for retail, corporate, and SME segments in 2025.

• Net fee and commission income growth projected at 10%-15%.

• Cost of risk expected at 1.4%; consolidated net income guidance at KZT 1 trillion; NIM guidance at 7%.

• Return on average equity expected above 30%.

• Management expects inflation to remain within 10.5-12.5% in 2025, with no monetary policy easing.