Halyk Bank of Kazakhstan (HSBK) Q3 2025 earnings summary

Executive summary

• Net income for the nine months ended 30 September 2025 was KZT 809.9 billion, up 26.8% year-over-year, driven by strong growth in net interest and fee income.

• Maintained leading market positions in net income, assets, loans, and deposits, with digital engagement and ecosystem expansion boosting transaction volumes in B2C and B2B.

• Super-App users reached 8.3 million, with B2C transaction volume and digital brokerage activity rising sharply.

• Updated 2025 guidance raises net income target to over KZT 1 trillion, with 2026 targets set for further growth despite regulatory headwinds.

• Deloitte review found no material misstatements in interim financial information.

Financial highlights

• Total assets increased to KZT 20.4 trillion, up 10% year-to-date; net loan portfolio grew 8.3% to KZT 12.4 trillion.

• Net interest income rose 22.3% year-over-year to KZT 968.3 billion; net fee and commission income increased 10% to KZT 101.8 billion.

• Operating expenses rose 22.5% due to salary indexation and IT investments; cost-to-income ratio improved to 16.9%.

• Retail deposits increased 18% year-over-year, with 94% of new deposits opened digitally.

• Loans to customers grew 8.2% gross, with retail loans up 9% and legal entities up 7.8%.

Outlook and guidance

• 2025 net income guidance raised to above KZT 1 trillion, incorporating higher taxes and reserve requirements.

• 2026 targets: loan growth 12%-16%, NIM ~7%, cost of risk ~1.5%, fee income up 10%-15%, cost-to-income 18%-19%, ROE ~30%, CET-1 ratio 17%-19%.

• Net income target for 2026 is KZT 1.1 trillion, with all regulatory changes factored in.

• Management continues to monitor economic and political developments, including inflation and regulatory changes, to support business sustainability.

• The new Tax Code effective from 2026 is not expected to materially impact deferred tax for 2025.