Financial Results and Presentations

Halyk Bank’s Q126 results reflect a combination of seasonal factors, a strengthening of the tenge against the US dollar (which reduced the reported KZT value of foreign-currency loans and deposits), customer caution amid continued high inflation and the new tax code, coupled with the impact of the new minimum reserve requirement (MRR). Against this backdrop, Halyk delivered an annualised return on average equity (ROE) of 25.9% (vs 34.6% in Q125). This was supported by continued strength in its net interest margin (NIM), which reached 7.0% in Q126 (vs 6.9% in Q425 and 7.5% in Q125), and good cost control (with a cost-to-income ratio of 18.2%). Net F&C income declined by 26.1% y-o-y, mainly due to weak ‘buy now, pay later’ transactional income and only gradual pass-through of the VAT recently introduced for certain banking operations. However, Halyk expects an improvement in the net F&C income dynamics in the coming quarters. Annualised cost of risk remains somewhat elevated at 1.5% (mostly driven by the ongoing moratorium on the sale of retail exposures to collection agencies) but is considered manageable by the company. Halyk retains a solid capital buffer with a k1 capital ratio of 21.0% at end-March 2026 versus the minimum regulatory requirement of 9.5%.