Halyk Bank of Kazakhstan (HSBK) Q4 2024 earnings summary

Executive summary

• Achieved record net income of KZT 921 billion in 2024, up 32.8% year-over-year, with strong profitability and operational performance.

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

• Significant digital engagement: 91% of B2C and 94% of SME loans issued digitally, with robust growth in digital payments and app usage.

• Expanded presence in Uzbekistan, with loan exposure up 45% year-to-date and leadership in cross-border payments.

• S&P and Moody's upgraded the bank to investment grade; MSCI ESG rating improved to BBB; first Kazakhstani bank to issue green bonds.

Financial highlights

• Net interest income reached KZT 1,108 billion (+39% YoY); net fee and commission income KZT 125 billion (+10.2% YoY).

• Total assets grew 19.7% year-to-date to KZT 18,548 billion; net loans up 23.5% to KZT 11,466 billion.

• Cost-to-income ratio improved to a record low of 17.6%; NIM at 7.2% and ROE at 34%.

• Total deposits increased 18.9% YTD to KZT 12,990 billion; total equity up 23.9% to KZT 3,068 billion.

• Loans-to-deposit ratio increased to 88.3% from 85% in 2023.

Outlook and guidance

• 2025 guidance: net loan portfolio growth 17–22%, retail loan growth 20–25%, corporate/SME loan growth 15–20%.

• Net income targeted at KZT 1.1 trillion; ROE 30–33%; NIM around 7.5%; cost-to-income 17–19%.

• Net fee and commission income expected to grow 10–15%; cost of risk circa 1.3%.