Last checked at 17 Nov 2015 06:00
JSC Halyk Bank / MiscellaneousJSC Halyk Bank: Consolidated financial results 17-Nov-2015 / 06:59 CET/CESTDissemination of a Regulatory Announcement, transmitted byEquityStory.RS, LLC - a company of EQS Group AG.The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------- 17 November 2015 Joint Stock Company 'Halyk Savings Bank of Kazakhstan' Consolidatedfinancial resultsfor the nine months ended 30 September 2015 Joint Stock Company 'Halyk Savings Bank of Kazakhstan' and its subsidiaries(together 'the Bank') (LSE: HSBK) releases its condensed interimconsolidated financial information for the nine months ended 30 September2015. 9 months 2015 financial highlights * Net income is almost flat YoY at KZT 92.0bn;* Net interest income before impairment charge is up by 17.0%;* Impairment charge is up to KZT 8.5bn (KZT 0.4bn for 9m 2014);* Net interest income is up by 8.8%;* Fees and commissions from transactional banking are up by 14.2%;* Net interest margin is up to 6.5% p.a. (5.6% p.a. for 9m 2014);* Cost-to-income ratio is at 27.7% (28.0% for 9m 2014);* RoAE is at 25.5% p.a. (30.0% p.a. for 9m 2014);* RoAA is at 4.1% p.a. (4.5% p.a. for 9m 2014); * Total assets are up by 35.0%, YTD;* Net loans to customers are up by 19.4%;* Total equity is up by 6.5%;* NPLs 90-day+ ratio is down to 12.8% (12.9% as at 31 December 2014);* Cost of risk 1 is at 0.4% p.a. (0.0% p.a. for 9m 2014). 3Q 2015 financial highlights * Net income is up 31.2% YoY to KZT 36.7bn;* Net interest income before impairment charge is up by 18.1%;* Impairment charge is up to KZT 6.9bn (recoveries of KZT 0.9bn for 3Q2014);* Net interest income is down by 5.6%;* Fees and commissions from transactional banking are up by 10.9%;* Net interest margin is up to 6.3% p.a. (5.6% p.a. for 3Q 2014);* Cost-to-income ratio is at 23.8% (30.4% for 3Q 2014);* RoAE is at 29.8% p.a. (26.1% p.a. for 3Q 2014);* RoAA is at 4.5% p.a. (4.0% p.a. for 3Q 2014); * Total assets are up by 28.3%, q-o-q;* Net loans to customers are up by 11.9%;* Total equity is up by 6.5%;* NPLs 90-day+ ratio is down to 12.8% (13.3% as at 30 June 2015);* Cost of risk1 is at 1.2% p.a. (negative 0.3% p.a. for 3Q 2014). Statement of profit or loss review Interest income increased by 16.1% for 9m 2015 vs. 9m 2014 mainly dueto increase in average balances of net loans to customers by 15.7% andincrease in average interest rate on net loans to customers to 12.4% p.a.for 9m 2015 from 12.1% p.a. for 9m 2014. Interest expense increased by14.4% for 9m2015 vs. 9m 2014 mainly due to local bond issues in 9m 2015 and loans drawnfrom JSC Entrepreneurship Development Fund 'Damu' ('DAMU') and JSC'Development Bank of Kazakhstan' ('DBK'). The increase in interest expensewas partially offset by decrease in average balances of term deposits oflegal entities. As a result, net interest income before impairment charge increased by 17.0% to KZT114.3bn for 9m 2015 vs. 9m 2014. Impairment charge for 9m 2015 increased to KZT 8.5bn vs. KZT 0.4bn during9m 2014. Provisioning level decreased to 13.1% as at 30 September 2015 vs.13.8% as at 30 June 2015 and 14.8% as at 31December 2014 mainly on the back of loan portfolio growth and decrease inNPLs. Fee and commission income from transactional banking (i.e. excludingpension fund and asset management) increased by 14.2% for 9М 2015 vs. 9М2014 mainly as a result of higher volumes of payments and increase incertain tariffs. Other non-interest income increased to KZT 130.1bn for 9M 2015 vs. KZT20.0bn 9M 2014 mainly due to positive revaluation gain for KZT 107.5bn ontrading operations (USD/KZT swaps, off-balance sheet), as a result of KZTdevaluation in August 2015. This gain was partially offset by loss ontranslation differences (other non-interest expenses) for KZT 94.2bn as aresult of short USD position on balance sheet. Operating expenses grew by 12.7% for 9m 2015 vs. 9m 2014 mainl y due toincrease in salaries of theBank's employees starting from 1 July 2014 and consolidation of JSC AltynBank in 4Q 2014. The Bank's cost-to-income ratio decreased to 27.7% for 9m 2015 from 28.0%for 9m 2014 as a result of higher operating income in 9m 2015, driven byinterest income growth and gain on USD/KZT swaps. Statement of financial position review Total assets increased by 35.0% vs. YE 2014 mainly in cash and cashequivalents (88.8%), loans to customers (19.4%) and financial assetsthrough profit or loss (7.9 times). Loans to customers increased by 17.1% on a gross basis and by 19.4% on anet basis vs. YE2014. Gross loan portfolio growth was attributable toincrease in loans across all types of businesses: corporate loans by 15.3%,SME loans by 15.3% and retail loans by 22.5%. 90-day NPL ratio decreased to 12.8% as at 30 September 2015 vs. 13.3% as at30 June. The decrease in 90-day NP L ratio was mainly due to the Bank'sloan portfolio growth and bad loan write-offs for KZT 21.3bn during 3Q2015. As at 30 September 2015, the Bank's IFRS provisions covered 90-dayNPLs by 101.5%. Term deposits and current accounts of legal entities increased by 48.5% and30.5%, respectively, vs.YE 2014 as a result of new funds placed with theBank during 9m 2015, as well as positive revaluation of FX deposits afterKZT depreciation in August 2015. Term deposits of individuals increased by 39.0% and current accounts ofindividuals decreased by1.5% vs.YE 2014. The increase of deposits was mainly a result of KZTdepreciation in August 2015, as well as new funds placed with the Bank. Thedecrease of current accounts was due to partial withdrawal of funds by someclients during 9m 2015 for various consumer purposes. Amounts due to credit institutions increased by 45.6% 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 2015. Debt securities issued increased by 69.8% vs. YE 2014 mainly due tosenior unsubordinated local bonds placed by the Bank with JSC SingleAccumulated Pension Fund during 9m 2015 and, to lesser extent, due torecalculation of USD-denominated Eurobond issues at new KZT exchange rateafter KZT depreciation in August 2015. The local bonds were placed inseveral tranches for the total amount of KZT131.7bn at a 7.5% coupon rate and mature in February 2025. The increase indebt securities issued was partially offset by timely repayment of KZT4.0bn 10-year subordinated local bond bearing a coupon of inflation rateplus 1%, on 13 April 2015 and KZT 3.0bn 10-year subordinated local bondbearing a coupon of 7.5%, on 10 July 2015. On 3 November 2015, the Bank made another scheduled repayment of KZT 5.0bn10-year subordinated local bond bearing a coupon of 15% minus inflationrate. Total equity increased by 6.5% vs. 31 December 2014 due to net profitearned during 9m 2015. The Bank's regulatory capital adequacy ratios decreased to k1 - 17.6%, k1-2-17.6% and k2 - 17.8% as at 30 September 2015 from k1 - 19.1%, k1-2 - 19.1%and k2 - 19.4% as at 30 June 2015, whereas Basel Tier 1 capital adequacyratio and total capital adequacy ratio decreased to 17.9% and 18.3%,respectively, as at 30 September 2015 from 18.7% and 19.4%, respectively,as at 30 June 2015. The decrease in capital adequacy ratios was mainly dueto growth in FX denominated risk weighted assets as a result of KZTdevaluation in August 2015. 1 impairment charge on loans to customers as a percentage of monthlyaverage balances of gross loans to customers, annualised. The condensed interim consolidate financial information for the nine monthsended 30 September 2015, including notes attached thereto, are available onHalyk Bank's website: http://www.hal ykbank.kz/en/financial-reports andhttp://www.halykbank.kz/en/news. For further information please contact: Halyk Bank --------------------------------------------------------------------- 17-Nov-2015 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: 2912 Time of Receipt: 17-Nov-2015 / 06:59 CET/CEST End of Announcement EquityStory.RS, LLC News Service --------------------------------------------------------------------- 413619 17-Nov-2015UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.