DGAP-News: JSC Halyk Bank: 1H 2013 Results
(firmenpresse) - EquityStory.RS, LLC-News: JSC Halyk Bank / Key word(s): Half Year
Results
JSC Halyk Bank: 1H 2013 Results
30.08.2013 / 11:52
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30 August 2013
Joint Stock Company 'Halyk Savings Bank of Kazakhstan'
Consolidated financial results
for the six months ended 30 June 2013
Joint Stock Company 'Halyk Savings Bank of Kazakhstan' and its subsidiaries
(together 'the Bank') (LSE: HSBK) releases its condensed interim
consolidated financial information for the 6 months ended 30 June 2013.
6 months 2012 financial highlights
- Net income is up by 8.1% to KZT 34.2bn, YoY;
- Net interest income before impairment charge is up by 7.8%;
- Impairment charge is down by 20.7%;
- Fees and commissions from transactional banking are up by 22.5%;
- ROAE is up to 20.4% p.a. (17.8% p.a. for 1H 2012);
- ROAA is up to 2.8% p.a. (2.6% p.a. for 1H 2012);
- Total assets are up by 4.5%, YTD;
- Net loans to customers are up by 1.3%;
- Liquid assets are up by 13.7%;
- Amounts due to legal entities are up by 1.3%;
- Amounts due to individuals are up by 15.6%;
- Debt securities issued are down by 13.1%;
- Total equity is up by 4.3%.
Income statement review
Interest income increased by 9.9% for 1H 2013 vs. 1H 2012 mainly due to
increase in average balances of loans to customers by 13.2% and amounts due
from credit institutions by 97.6%, partially offset by decrease in average
interest rates on loans to customers to 11.6% p.a. for 1H 2013 vs. 11.9%
p.a. for 1H 2012 and decrease in average balances of debt securities
portfolio by 5.5% for 1H 2013 vs. 1H 2012. Interest expense increased by
12.7% for 1H 2013 vs. 1H 2012 mainly due to increase in average balances of
term deposits of individuals, as well as higher interest rates offered by
the Bank to its corporate clients on KZT deposits. As a result, net
interest income before impairment charge increased by 7.8% to KZT 49.1bn
for 1H 2013 vs. 1H 2012.
Net interest margin increased to 4.7% p.a. for 2Q 2013 from 4.4% p.a. for
1Q 2013 as a result of increase in average interest rates on loans to
customers to 11.6% p.a. for 2Q 2013 from 11.5% p.a. for 1Q 2013 and
decrease in average interest rates on amounts due to customers to 2.8% p.a.
for 2Q 2013 from 3.2% p.a. for 1Q 2013.
Impairment charge decreased by 20.7% for 1H 2013 vs. 1H 2012, reflecting
sufficient provisioning level achieved by the Bank and continued
stabilization of the loan portfolio quality. Allowances for loan impairment
remained flat at 18.7% of the gross loan portfolio vs.YE 2012.
Fee and commission income from transactional banking (i.e. excluding
pension fund and asset management) increased by 22.5% for 1H 2013 vs. 1H
2012 as a result of growing volumes of transactional banking business.
Net pension fund and asset management fees decreased by 62.8% for 1H 2013
vs. 1H 2012 due to decrease in performance fees to negative KZT 0.5bn for
1H 2013 from KZT 4.0 bn for 1H 2012 mainly as a result of unrealized losses
in the pension assets portfolio resulting from the decrease in market value
of gold and certain Kazakhstan securities, as well as ongoing changes in
the pension system, investment restrictions imposed by the National Bank of
Kazakhstan and higher share of cash in the investment portfolio of Halyk
Pension Fund as a result of such restrictions. Asset management fees
increased by 14.7% for 1H 2013 vs. 1H 2012 as a result of growing size of
assets under management.
Other non-interest income (excluding insurance) decreased by 29.8% for 1H
2013 vs. 1H 2012 mainly as a result of 2.6-fold decrease in other income
and 11.0-fold decrease in net realized gain from available-for-sale
investment securities. Income from trading and asset and liability
management operations which comprise net gain from financial assets and
liabilities through profit or loss and net gain on foreign exchange
operations was flat and amounted to KZT 3.8 bn for 1H 2013 vs. KZT 3.8 bn
for 1H 2012. The decrease in foreign exchange dealing was mainly due to
lower margins in customer transactions in 1H 2013 vs. 1H 2012 and certain
one-off customer transactions in 1H 2012.
Insurance underwriting income less insurance claims incurred, net of
reinsurance, decreased by 5.6% for 1H 2013 vs. 1H 2012 mainly due to more
conservative policy of recognising expenses related to medical insurance
payments starting from 2013. The decrease in insurance underwriting income
less insurance claims incurred, net of reinsurance was partially offset by
46.2% increase in insurance underwriting income due to growing volumes of
life and non-life insurance business, as well as newly introduced
regulatory requirement limiting the amount of upfront payment by life
insurance companies under pension annuity contracts and hence increasing
the portion of the pension annuity contracts to be retained for future
payments.
Insurance underwriting income less insurance claims incurred, net of
reinsurance, increased by 34.1% for 2Q 2013 vs. 2Q 2012 mainly as a result
of 22.0% increase in insurance underwriting income due to growing volumes
of life and non-life insurance business. The increase in insurance
underwriting income less insurance claims incurred, net of reinsurance was
partially offset by 67.8% increase in insurance reserves mainly as a result
of newly introduced regulatory requirement limiting the amount of upfront
payment by life insurance companies under pension annuity contracts and
hence increasing the portion of the pension annuity contracts to be
retained for future payments.
Operating expenses increased by 10.1% for 1H 2013 vs. 1H 2012 mainly due to
17.5% increase in salaries and other employee benefits as a result of
adjustment in salaries of employees of the Bank and its subsidiaries
starting from 1 January 2013, as well as bonus payments and extra staff
hiring in some of the Bank's subsidiaries.
Statement of financial position review
Total assets increased by 4.5% vs. YE 2012 mainly as a result of growing
volumes of business and comprised of increase in insurance assets by 30.4%,
cash and cash equivalents by 16.2%, net loans to customers by 1.3% and 10.1
times increase in investments in precious metals.
Liquid assets increased by 13.7% vs. YE2012 mainly due to the inflow of new
funds from the Bank's customers.
Loans to customers grew by 1.3% on a gross and net basis vs. YE 2012. Gross
loan portfolio growth was attributable to increase in consumer loans by
18.6%, partially off-set by decrease in corporate loans by 1.4%, loans to
SMEs by 0.4% and mortgage loans by 3.7%. The decrease in corporate, SME and
mortgage loans was mainly a result of loan repayments exceeding new loan
issues.
30-day and 90-day NPLs were at 18.7% and 17.9%, respectively, as at 30 June
2013 vs. 18.4% and 16.8%, respectively, as at 31 March 2013. The increase
in 90-day NPLs was a result of few 30-day NPLs, previously provisioned,
becoming overdue by more than 90 days. The Bank created IFRS provisions
that covered 30-day NPLs by 90.3% and 90-day NPLs by 93.4% as at 30 June
2013.
Term deposits of legal entities decreased by 1.4% vs.YE 2012 mainly as a
result of low interest rates offered by the bank on FX deposits in 1Q 2013.
Term deposits of legal entities increased by 10.0% during 2Q 2013 mainly as
a result of inflow of new deposits during 2Q 2013.
Current accounts of legal entities increased by 3.0% vs. YE 2012 as a
result of growing volumes of transactional banking business. Current
accounts of legal entities decreased by 4.9% during 2Q 2013 as a result of
partial withdrawal of funds by some of the Bank's corporate clients to
finance their on-going business needs.
Term deposits and current accounts of individuals increased by 15.4% and
16.3%, respectively, vs.YE 2012 due to growing volumes of retail banking
business.
Debt securities issued decreased by 13.1% vs YE2012 as a result of
repayment in full of one of the Bank's Eurobond issues for the outstanding
amount of USD 270 million bearing a coupon rate of 7.75% p.a. The repayment
was made on 13 May 2013 out of the Bank's own funds, utilising the existing
liquidity on its balance sheet.
As at 30 June 2013, the Bank's debt securities issued mainly consisted of
three outstanding Eurobond issues for USD 500 million, USD 700 million and
USD 500 million with bullet maturity in October 2013, May 2017 and January
2021, respectively.
Total equity increased by 4.3% vs. YE 2012 mainly on the back of net profit
earned during 1H 2013, partially offset by payment of dividends in amount
of KZT 12,221 mln to common shareholders (or KZT 1.12 per common share) and
dividends in amount of KZT 2,241 mln to preferred shareholders (or KZT 11.2
per preferred share).
Regulatory Tier 1 capital adequacy ratios k1-1 and k1-2 and total capital
adequacy ratio k2 were at 10.0%, 11.9% and 15.3%, respectively, as at 30
June 2013 vs. 10.6%, 12.9% and 15.4%, respectively, as at 31 March 2013 and
8.4%, 10.2% and 15.4%, respectively, as at 31 December 2012. Basel Tier 1
capital adequacy ratio and total capital adequacy ratio were at 16.5% and
18.1%, respectively, as at 30 June 2013 vs. 16.6% and 18.5%, respectively,
as at 31 March 2013 and 16.2% and 18.3%, respectively, as at 31 December
2012.
The condensed interim consolidated financial information for the six months
ended 30 June 2013, including notes attached thereto, are available on
Halyk Bank's website http://www.halykbank.kz/en/financial-reports and
http://www.halykbank.kz/en/news).
For further information please contact:End of Corporate News
Halyk Bank
+7 727 259 68 10
Dauren Karabayev +7 727 259 04 27
Viktor Skryl +7 727 330 17 19
Yelena Perekhoda +7 727 330 14 62
Rassul Issayev
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