- Oops!Something went wrong.Please try again later.
- Oops!Something went wrong.Please try again later.
JSC Halyk Bank (HSBK)
14 May 2021
Joint Stock Company 'Halyk Savings Bank of Kazakhstan'
Consolidated financial results
for the three months ended 31 March 2021
Joint Stock Company 'Halyk Savings Bank of Kazakhstan' and its subsidiaries (together "the Bank") (LSE: HSBK) releases consolidated financial information for the three months ended 31 March 2021.
Consolidated income statements
Net profit attributable to common shareholders increased by 19.4% to KZT 96.8bn for 1Q 2021 compared to KZT 81.1bn for 1Q 2020 mainly due to increase in net insurance income, net fee and commission income and decrease in credit loss expense.
Interest income for 1Q 2021 increased by 8.0% to KZT 193.6bn compared to KZT 179.3bn for 1Q 2020 mainly due to increase in average balances of loans to customers. Interest expense for 1Q 2021 increased by 14.4% to KZT 86.1bn compared to KZT 75.3bn for 1Q 2020 mainly due to the increase of average balance and share of KZT deposits in the amounts due to customers and due to accelerated amortisation of discount on Bank's Eurobonds in the amount of KZT 5bn due to its full prepayment on 1 March 2021. Net interest margin decreased to 4.7% p.a. for 1Q 2021 compared to 5.3% p.a. for 1Q 2020 mainly due to transfers in placement from high-yielding NBRK notes into low-yielding FX deposit with NBRK following the repayment of SWAP agreement and due to accelerated amortisation of discount on Bank's Eurobonds in the amount of KZT 5bn due to its full prepayment on 1 March 2021.
Cost of risk on loans to customers for 1Q 2021 was at 0.4% reflecting normalization of post-COVID performance along with repayments of problem loans. 90-day NPL ratio increased to 4.4% from 4.1% as at the end of 2020 mainly due to migration of previously impaired corporate loans to NPL.
Fee and commission income for 1Q 2021 increased by 9.4% vs. 1Q 2020 as a result of growing volumes of transactional banking, mainly in plastic card operations, as well as bank transfers - settlements.
The decrease in fee and commission expense Y-o-Y was mainly due to the decrease in deposit insurance fees payable to the Kazakhstan Deposit Insurance Fund due to lower rates for the Bank on the back of increase of capital adequacy ratios, partially offset by the increase in payment cards expenses as a result of increased number of transactions of other banks' cards in the acquiring network of the Bank.
Other non-interest income (7) decreased by 38.0% to KZT 21.8bn for 1Q 2021 vs. KZT 35.2bn for 1Q 2020 due to higher net gain from derivative operations and securities in 1Q 2020 affected by the SWAP agreement with NBRK for the amount of USD 912 mln, which was fully repaid in July 2020.
Net insurance income (8) for 1Q 2021 significantly increased vs. 1Q 2020 as a result of new unsecured lending program with a borrower's life insurance bundle.
Operating expenses (including loss from impairment of non-financial assets) for 1Q 2021 increased by 7.3% vs. 1Q 2020 mainly due to the indexation of salaries and other employee benefits starting from 1 March, 2021.
The Bank's cost-to-income ratio increased to 24.4% compared to 23.8% for 1Q 2020 due to higher operating expenses for 1Q 2021
Statement of financial position review
Total assets remain unchanged vs. the end of YE 2020, despite the decrease in debt securities, which was partially offset by increase in amounts due to customers.
Compared with YE 2020, total loans to customers increased by 0.8% on a gross basis and 0.8% on a net basis, while corporate loans decreased by 1.2% on a gross basis and SME and retail loans increased by 2.7% and 3.8% on a gross basis, respectively.
As at the end of 1Q 2021, Stage 3 ratio remained almost flat at 12.2%.
Deposits of legal entities and individuals increased by 1.1% and 3.0%, respectively, compared to the YE 2020, due to fund inflow from the Bank's clients. As at the 1Q 2021, the share of corporate KZT deposits in total corporate deposits was 56.6% compared to 59.9% as at the YE 2020, whereas the share of retail KZT deposits in total retail deposits was 47.5% compared to 45.9% as at the YE 2020.
Debt securities issued decreased by 39.2% compared to YE 2020 as a result of full prepayment of Bank's Eurobonds on 1 March 2021 and due to timely and full redemption of the Bank's Eurobonds on 28 January 2021. As at the date of this press-release, the Bank's debt securities portfolio was as follows:
As at the end of 1Q 2021, total equity increased by 6.0% compared with the YE 2020.
The Bank's capital adequacy ratios were as follows*:
* minimum capital regulatory adequacy requirements: k1 - 8.5%, k1-2 - 9.5% and k2 - 11%, including conservation buffer of 2% and systemic buffer of 1% for each of these ratios.
The consolidated financial information for three months ended 31 March 2021, including the notes attached thereto, are available on Halyk Bank's website: http://halykbank.com/financial-results
A 1Q 2021 results webcast will be hosted at 2:00 p.m. London time/9:00 a.m. EST on Monday, 17 May 2021. A live webcast of the presentation can be accessed via Zoom link after the registration. The registration is open until 17 May, 2021 (including), for the registration please click here.
About Halyk Bank
Halyk Bank is Kazakhstan's leading financial services group, operating across a variety of segments, including retail, SME & corporate banking, insurance, leasing, brokerage and asset management. Halyk Bank has been listed on the Kazakhstan Stock Exchange since 1998, on the London Stock Exchange since 2006 and Astana International Exchange since October 2019.
With total assets of KZT 10,389.6 bn as at 31 March 2021, Halyk Bank is Kazakhstan's leading lender. The Bank has the largest customer base and broadest branch network in Kazakhstan, with 600 branches and outlets across the country. The Bank operates in Georgia, Kyrgyzstan, Russia, Tajikistan and Uzbekistan.
For more information on Halyk Bank, please visit https://www.halykbank.com
For further information, please contact:
EQS News ID:
End of Announcement
EQS News Service