Halyk Bank — Strong year-on-year earnings growth in Q225

Halyk Bank delivered a strong 26.1% y-o-y increase in net profit to KZT253.6bn in Q225, leading to a healthy annualised return on equity (ROE) of 32.2% (up from 31.7% in Q224). Loan book growth moderated in H125, with gross loans to individuals and legal entities increasing by 4.3% and 1.4% versus end-2024, respectively. Management still guides to a solid FY25 net loan portfolio growth of 15–20%, slightly down from 17–22% guided previously, as retail loan growth expectations have been slightly reduced to 15–20%, from 20–25% previously. Halyk’s operating expenses rose by 30.7% y-o-y in Q225, mostly due to an increase in salaries and employee benefits (with a contribution from the recently launched long-term incentive programme) and the expansion of Halyk’s IT headcount to drive its digitalisation agenda. Its cost-to-income ratio (CIR) came in at a low 17.8% in Q225, with management expecting 17–19% in FY25. Halyk’s robust capital ratios of over 18% at end-June 2025 encouraged management to recommend a second dividend from FY24 net income of KZT21.0 per share, which, together with the first payment, represents a 60% payout ratio and at the current share price implies a healthy 14% yield.