OREANDA-NEWS. As at the end of 2015, the net profit of JSC Halyk Bank amounted to KZT120.3 billion, by KZT20.3 billion more than the forecast. Halyk Bank is the most lucrative commercial bank in Kazakhstan.

Interest income in 2015 increased by 21.0% vs. 2014 mainly due to the growing average balances of net loans to customers by 19.6%, caused by the tenge devaluation in August 2015, to some extent, and the generally increasing interest rates on interest-earning assets over 12 months 2015. 

Interest expenses increased by 35.0% in 2015 vs. YE2014 due to the growing average balances of interest-bearing liabilities, also caused by the tenge devaluation in August 2015, to some extent, and the generally increasing interest rates on interest-bearing liabilities over 2015.

As a result, net interest income before impairment charge increased by 12.9% to KZT150.3 billion in 2015 vs. YE2014. The net interest margin made up 6.2% p.a. (5.8% p.a. in 2014).

Return on average equity (RoAE) reached 24.4% p.a. (27.1% p.a. in 2014), return on average assets (RoAA) - 3.7% p.a. (4.1% p.a. in 2014).

The assets increased by 58.6% vs. YE2014 and amounted to KZT4.5 trillion. Shareholders' equity increased by 11.5% vs. YE2014 and amounted to KZT529.9 billion.

Loans to customers rose by 28.3% on a gross basis and by 32.0% on a net basis vs. YE2014. The growth of gross loans to customers was due to an increase in all segments: corporate loans (29.8%), SME loans (30.7%) and retail loans (23.3%).

The share of NPL 90+ ratio calculated under the regulatory requirements, as at 01.01.2016 amounted to 9.2%, falling down by 2.8% to YE2015.

Amounts due to credit institutions increased by 57.0% vs. YE2014 mainly due to borrowings raised by the Bank in 1Q2015 from public organizations "Damu" and Development Bank of Kazakhstan in the framework of government economic support programs, as well as to increasing volume of repo transactions with the Kazakhstan Stock Exchange in 3Q2015 and 4Q2015.

In the course of implementation of "Business Road Map 2020", a unified program for entrepreneurship support and business development, Halyk Bank has been among the leading commercial banks in terms of the loan portfolio and number of borrowers whom the loans were approved. The Bank confidently holds the 1st place among the commercial banks by the number of projects under the interest rates subsidizing program – 1.107 projects as of 01.01.2016, this figure rose by 347 projects for the year, the Bank's portfolio for interest rates subsidizing - KZT147.6 billion tenge, with the Bank's share 11.0% among second-tier banks.

Debt securities issued increased by 92.1% vs. YE2014 mainly as a result of bond issue placement in JSC Single Accumulative Pension Fund by the Bank for six months of 2015, and, to a lesser extent, due to the USD denominated Eurobonds revalued at the new rate because of KZT devaluation in August 2015. The bonds were issued in several tranches totaling KZT131.7 billion, coupon rate of 7.5%, and maturing in February 2025.

The Bank has the following ratings assigned by international rating agencies: BB by Fitch Ratings; BB by Standard & Poor`s and Ba2 - Moody's Investors Service.

JSC Halyk Bank actively refinances mortgage loans under the state program of refinancing mortgage loans: on 14 March 2016, the Bank accepted 2,492 applications in the amount of KZT14.5 billion, of them 1.882 loans were refinanced to the amount of KZT10.1 billion.

In 2015, the Bank strengthened its leading position in retail banking: the Bank's share in the market of STB retail deposits comprised 20.6%, increase of retail deposits in 2015 amounted to KZT535.2 billion. Retail loan portfolio grew by 23.3%. The retail loan portfolio growth was primarily due to the consumer loans. In 2015, the loan issuances exceeded those of 2014 and amounted to more than KZT297 billion. Halyk Bank is leading in the market of card services, the Bank's share is 43.4%. 

The proportion of payments made via remote channels of sales in 2015 amounted to 68.9%, which is 7.3% more vs. 2014. The Personal Internet Banking users increased by more than 58%, reaching 700,000 customers. In 2015, the users made more than 2.4 million payments and transfers. In the fall 2015, Halyk Bank has launched a new solution – free Mobile «myHalyk» app for Internet Banking users. The number of application downloads has reached 100,000 by the year end. The application is in the top three most popular apps in the category "Finance" in the App Store and Google Play. In 2015, the number of SMS-Banking active users increased by 56% vs. YE2014 and comprised 1.296 million connections. As at YE2015, the number of transactions in payment terminals of the Bank increased more than fourfold vs. YE2014, which accounted for 4.4 million transactions.

About the Bank

JSC Halyk Bank is the backbone bank in Kazakhstan with the largest customer base and the broadest branch network. The Bank is developing as a universal financial services group rendering a wide range of services - banking services, brokerage, insurance, leasing, and asset management services to its retail, SME and corporate clients. The Bank also operates in Russia, Georgia and Kyrgyzstan.

Halyk Bank is a sole Kazakh company to be ranked in the annual global ranking of the American Forbes Global 2000.

In 2015, Halyk Bank was awarded as the best financial institution in Kazakhstan by Euromoney magazine, and was named the "Bank of the Year" by The Banker.