Last checked at 14 Mar 2016 06:37
JSC Halyk Bank / MiscellaneousJSC Halyk Bank: Consolidated financial results for the year ended 31December 2015 14-March-2016 / 07:37 CET/CESTDissemination of a Regulatory Announcement, transmitted by EquityStory.RS,LLC - a company of EQS Group AG.The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- 14 March 2016 Joint Stock Company 'Halyk Savings Bank of Kazakhstan' Consolidatedfinancial resultsfor the year ended 31 December 2015 Joint Stock Company 'Halyk Savings Bank of Kazakhstan' and its subsidiaries(together 'the Bank') (LSE: HSBK) releases its consolidated financialstatements for the year ended 31 December 2015 prepared in accordance withInternational Financial Reporting Standards, audited by Deloitte, LLP, andsubject to further approval by the Bank's Board of Directors and Annual General Shareholders' Meeting. 12 months 2015 financial highlights * Net income is up by 5.2% YoY, to KZT 120.3bn;* Net interest income before impairment charge is up by 12.9%;* Impairment charge is up by 64.0%;* Net interest income is up by 9.9%;* Fees and commissions from transactional banking are up by 14.0%;* Net interest margin is at 6.2% p.a. (5.8% p.a. for 12m 2014);* Cost-to-income ratio is at 29.2% (29.6% for 12m 2014);* RoAE is at 24.4% p.a. (27.1% p.a. for 12m 2014);* RoAA is at 3.7% p.a. (4.1% p.a. for 12m 2014); * Total assets are up by 58.6%, YTD;* Net loans to customers are up by 32.0%;* Total equity is up by 11.5%;* NPLs 90-day+ ratio is down to 10.3% (12.9% as at 31 December 2014);* Cost of risk* is at 0.4% p.a. (0.4% p.a. for 12m 2014). 4Q 2015 financial highlights * Net income is up 26.6% YoY to KZT 28.3bn;* Net interest income before impairment charge is up by 1.5%;* Impairment charge is down by 48.7%;* Net interest income is up by 13.8%;* Fees and commissions from transactional banking are up by 13.4%;* Net interest margin is at 5.3% p.a. (6.2% p.a. for 4Q 2014);* Cost-to-income ratio is at 33.2% (34.2% for 4Q 2014);* RoAE is at 21.4% p.a. (19.6% p.a. for 4Q 2014);* RoAA is at 2.8% p.a. (3.2% p.a. for 4Q 2014); * Total assets are up by 17.5%, q-o-q;* Net loans to customers are up by 10.6%;* Total equity is up by 4.7%;* NPLs 90-day+ ratio is down to 10.3% (12.8% as at 30 September 2015);* Cost of risk* is at 0.4% p.a. (1.6% p.a. for 4Q 2014). * impairment charge on loans to customers as a percentage of monthlyaverage balances of gross loans to customers, annualised. Consolidated Income Statements Interest income increased by 21.0% for 12m 2015 vs. 12m 2014 mainly due toincrease in average balances of net loans to customers by 19.6%, partiallydriven by KZT devaluation in August 2015, and overall increase of interestrates on interest-earning assets for 12m 2015. Interest expense increasedby 35.0% for 12m 2015 vs. 12m 2014 due increase in average balances ofinterest-bearing liabilities, partially driven by KZT devaluation in August2015, and overall increase of interest rates on interest-bearingliabilities for 12m 2015. As a result, net interest income beforeimpairment charge increased by 12.9% to KZT 150.3bn for 12m 2015 vs. 12m2014. Impairment charge increased by 64.0% for 12m 2015 vs. 12m 2014 mainly dueto the growth of loan portfolio and one-off repayment of a large-ticketimpaired corporate loan occurred in 2014. Impairment charge for 4Q 2015decreased by 48.3% vs. 3Q 2015 mainly on the back of some impaired loanrepayments during 4Q 2015 and improvement in financial standing of severalcorporate borrowers. Cost of risk was flat at 0.4% p.a. vs. 12m 2014 anddecreased to 0.4% p.a. for 4Q 2015 vs. 1.2% p.a. for 3Q 2015. Provisioninglevel decreased to 12.3% as at 31 December 2015 vs.13.1% as at 30 September 2015 and 14.8% as at 31 December 2014 mainly dueto write-offs of fully provisioned non-performing loans for KZT 18.3bn and,to lesser extent, due to loan portfolio growth. Fee and commission income from transactional banking (i.e. excludingpension fund and asset management) increased by 14.0% for 12М 2015 vs. 12М2014 as a result of higher volumes of payments and increase in certaintariffs. Other non-interest income (excluding insurance) increased 2.0-fold for 12M2015 vs. 12M 2014 mainly due to positive revaluation gain for KZT 153.2bnon derivative and trading operations (USD/KZT swaps, off-balance sheet), asa result of continuing KZT devaluation. This gain was partially offset byloss on translation differences for KZT 169.5bn as a result of short USDposition on balance sheet. Operating expenses grew by 13.5% for 12m 2015 vs. 12m 2014 mainly due toincrease in salaries of the Bank's employees starting from 1 July 2014 andconsolidation of JSC Altyn Bank in 4Q2014. The Bank's cost-to-income ratio decreased to 29.2% for 12m 2015 from 29.6%for 12m 2014 as a result of higher operating income in 12m 2015, driven byinterest income growth and gain on USD/KZT swaps. Consolidated statements of financial position Total assets increased by 58.6% vs. YE 2014 mainly in cash and cashequivalents (2.6 times), loans to customers (32.0%) and financial assetsthrough profit or loss (11.3 times). Loans to customers increased by 28.3% on a gross basis and by 32.0% on anet basis vs. YE2014. Gross loan portfolio growth was attributable toincrease in loans across all types of businesses: corporate loans by 29.8%,SME loans by 30.7% and retail loans by 23.3%. 90-day NPL ratio decreased to 10.3% as at 31 December 2016 vs. 12.8% as at30 September 2015. The decrease in 90-day NPL ratio was a combination ofrepayments and restructuring of several corporate loans overdue by morethan 90 days, bad loan write-offs and the Bank's loan portfolio growthduring 4Q 2015. As at 31 December 2015, the Bank's IFRS provisions covered90-day NPLs by 118.5%. Deposits of legal entities and individuals increased by 72.6% and 57.0%,respectively, vs. YE2014, as a result of new funds placed with the Bank during 12m 2015, as well as positive revaluation of FX deposits after KZTdevaluation in August 2015. Amounts due to credit institutions increased by 57.0% vs. YE 2014 mainlydue to loans drawn by the Bank in 1Q 2015 from government entities DAMU andDBK within the framework of state programmes, supporting certain sectors ofeconomy, as well as higher volumes of REPO- transactions made through theKazakhstan Stock Exchange in 3Q and 4Q 2015. Debt securities issued increased by 92.1% vs. YE 2014 mainly due to seniorunsubordinated local bonds placed by the Bank with JSC Single AccumulatedPension Fund during 1H 2015 and, to lesser extent, due to recalculation ofUSD-denominated Eurobond issues at new KZT exchange rate after KZTdevaluation in August 2015. The local bonds were placed in several tranchesfor the total amount of KZT 131.7bn at a 7.5% coupon rate and mature inFebruary 2025. The increase in debt securities issued was partially offsetby timely repayment of three subordinated local bond issues: for KZT 4.0bnbearing a coupon of inflation rate plus 1% on 13 April 2015, KZT 3.0bnbearing a coupon of 7.5% on 10 July 2015 and KZT 5.0bn bearing a coupon of15% minus inflation rate on 3November 2015. Total equity increased by 11.5% vs. 31 December 2014 due to net profitearned during 12m 2015, partially offset by the Bank's preferred sharesbuy-back for KZT 24.2bn during the reporting period. The Bank's regulatory capital adequacy ratios were at k1 - 17.3%, k1-2-17.3% and k2 - 17.5% as at 31 December 2015 vs. k1 - 17.6%, k1-2 -17.6%and k2 - 17.8% as at 30 September 2015, whereas Basel Tier 1 capitaladequacy ratio and total capital adequacy ratio were at 17.5% and17.7%, respectively, as at 31 December 2015 vs. 17.9% and 18.3%,respectively, as at 30 September2015. Decimal decrease in capital adequacy ratios as at YE 2015 was mainlydue to growth in FXdenominated risk-weighted assets as a result of continued KZT devaluationin 4Q 2015. The consolidated financial information for the year ended 31 December 2015,including the notes attached thereto, are available on Halyk Bank's website: http://www.halykbank.kz/en/financial- reports andhttp://www.halykbank.kz/en/news. For further information please contact: Halyk Bank Dauren Karabayev +7 727 259 68 10Viktor Skryl +7 727 259 04 27Mira Kasenova +7 727 259 04 30 --------------------------------------------------------------------------- 14-March-2016 The EquityStory.RS, LLC Distribution Services includeRegulatory Announcements, Financial/Corporate News and Press Releases.Media archive at www.dgap.de/ukreg --------------------------------------------------------------------------- Language: English Company: JSC Halyk Bank 109V, Abay ave 050008 Almaty Kazakhstan Phone: +7 727 259 04 27 Fax: +7 727 259 04 64 E-mail: halykteam@halykbank.kz Internet: http://halykbank.kz ISIN: US46627J3023 WKN: A0LF36 Category Code: MSC TIDM: HSBK Sequence Number: 3044 Time of Receipt: 14-March-2016 / 07:37 CET/CEST End of Announcement EquityStory.RS, LLC News Service --------------------------------------------------------------------------- 444655 14-March-2016UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.