How Does Halyk Bank Company Work?

How does Halyk Bank operate?

Halyk Bank is a leading financial services group in Kazakhstan, demonstrating strong performance. For 2024, it achieved a net profit of KZT 920.99 billion, a 32.8% increase. As of December 31, 2024, its total assets reached KZT 18,548.4 billion.

The bank functions as a universal financial institution, offering a broad spectrum of services including banking, insurance, and asset management. It caters to retail, SME, and corporate clients, with a growing emphasis on digital innovation.

The bank's digital efforts are evident in its Halyk Super-App, which saw a 28.2% rise in payments and transfers in Q3 2024, totaling 252.1 million transactions. This digital push is a key aspect of its strategy, alongside its expansion into lifestyle services, significantly influencing Kazakhstan's financial sector.

Halyk Bank's operations encompass a wide range of financial activities, from traditional lending to modern digital solutions. Its Halyk Bank BCG Matrix analysis would likely highlight its dominant position in various market segments. The bank's revenue generation is diversified across its extensive service offerings, reflecting its comprehensive approach to financial services.

Halyk Bank creates and delivers value through a comprehensive suite of financial services for retail, SME, and corporate clients. Its core operations encompass traditional banking, insurance, leasing, brokerage, and asset management, all increasingly powered by its digital-first strategy. This approach is exemplified by its 'super-app' which integrates banking functions with lifestyle services.

Core Banking and Digital Integration

Halyk Bank offers essential banking services like loans and deposits. Its digital platform, the Halyk Super-App, is central to its operations, allowing for seamless customer engagement and transaction processing.

Expanding Digital Ecosystem

Beyond banking, the super-app integrates e-commerce, travel, and entertainment, creating a comprehensive digital lifestyle hub. This digital-first approach sees 90% of Halyk's retail loans issued through digital channels.

Support for Small and Medium Enterprises

The bank provides tailored digital tools and credit lines to SMEs, recognizing their importance for economic growth. In Q3 2024, the SME gross loan portfolio grew by 17.2% to KZT 1,619 billion (approximately USD 3.56 billion).

Extensive Reach and Accessibility

Halyk Bank maintains a significant physical presence with 542 outlets across Kazakhstan, complementing its digital offerings. As of March 31, 2025, it serves 11.1 million retail active clients and 3.0 thousand corporate active clients.

Value Proposition and Market Position

Halyk Bank's value proposition is built on its integrated digital ecosystem and extensive network, offering enhanced customer convenience and market leadership. Its operations extend to Georgia and Uzbekistan, broadening its distribution capabilities.

• Digital innovation through a 'super-app' strategy.
• Comprehensive financial and lifestyle services.
• Strong support for the SME sector.
• Extensive physical branch network alongside digital channels.
• International presence in Georgia and Uzbekistan.

Understanding Halyk Bank's lending processes reveals a commitment to leveraging technology for efficiency, with a significant portion of retail loans originating digitally. This digital-first approach is a key differentiator in how Halyk Bank works, allowing for streamlined customer account management and faster transaction processing. The bank's role in the Kazakh economy is substantial, supporting economic diversification through its robust SME lending programs. For those interested in the strategic direction, the Growth Strategy of Halyk Bank provides further insights into its market approach.

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Halyk Bank's revenue generation is primarily driven by net interest income and fee and commission income. For the full year 2024, the bank saw its net interest income reach KZT 1,107,910 million, a substantial increase attributed to higher average loan rates and balances. This robust performance boosted the net interest margin to 7.2% in 2024, up from 6.1% in 2023.

Net Interest Income Growth

Net interest income surged to KZT 1,107,910 million in 2024, a significant rise from KZT 797,140 million in 2023. This growth reflects improved yields on customer loans.

Improved Net Interest Margin

The bank's net interest margin expanded to 7.2% per annum in 2024, an increase from 6.1% in the prior year. This enhancement is largely due to higher yields on retail lending portfolios.

Fee and Commission Income

Fee and commission income grew by 5.8% year-over-year in 2024, totaling KZT 211,734 million. This increase is a result of an expanding client base and higher transaction volumes.

Net Fee and Commission Growth

Net fee and commission income saw a positive trend, improving by 10.2% during 2024. This growth is supported by a diverse range of financial services offered by the bank.

Diversified Non-Interest Revenue

The bank's revenue is diversified through insurance, leasing, brokerage, and asset management services. These offerings contribute significantly to its non-interest income streams.

Digital Ecosystem Monetization

Innovative monetization strategies are employed through the bank's digital ecosystem, including its Super-App. This platform facilitates various transactions, generating fees and commissions.

The bank's digital initiatives are proving to be significant revenue drivers. The brokerage service, encompassing Halyk Invest and Halyk Finance, experienced a 55% year-on-year increase in active clients by Q1 2025, reaching 275,000. This indicates a growing monetization of investment-related activities. Furthermore, the Halyk marketplace achieved a Gross Merchandise Value (GMV) of KZT 135.6 billion in Q1 2025, marking a 34% year-on-year growth. This success highlights the effectiveness of cross-selling strategies and platform-based fee generation within the Halyk Bank business model.

Key Digital Revenue Drivers

Halyk Bank leverages its digital platforms to create new revenue streams and enhance existing ones. These digital solutions are central to its overall business model.

• Brokerage services saw a 55% rise in active clients by Q1 2025.
• Halyk Invest and Halyk Finance are key components of this growth.
• The Halyk marketplace recorded KZT 135.6 billion in GMV in Q1 2025.
• This represents a 34% year-on-year increase in marketplace activity.
• Digital channels are crucial for cross-selling and platform fees.
• Understanding Revenue Streams & Business Model of Halyk Bank provides insight into these strategies.

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Halyk Bank has achieved significant milestones through strategic digital advancements and market expansion. Its commitment to technological innovation is evident in the widespread adoption of its digital platforms, impacting how Halyk Bank works and manages customer accounts.

Digital Transformation and Super-App Growth

Halyk Bank's aggressive digital transformation strategy centers on its Super-App, a key driver for innovation. This digital focus has resulted in 90% of retail loans being issued digitally, showcasing a significant shift in Halyk Bank's lending processes.

Strategic International Expansion in Uzbekistan

In 2025, Halyk Bank acquired a 49% stake in Uzbek digital payments company Click for $176.4 million, with Click acquiring a reciprocal 49% stake in Tenge Bank. This move aims to expand Halyk Bank's reach to over 32.1 million people in Uzbekistan, reinforcing its position in the region's digital ecosystem.

Competitive Strengths and Operational Efficiency

Halyk Bank's competitive edge is built on its strong brand, technological leadership, and economies of scale. It boasts the largest customer base and sales-channel network in Kazakhstan, underpinning its role in the Kazakh economy.

Market Position and Financial Performance

As of December 31, 2024, Halyk Bank was the largest lender in Kazakhstan with total assets of KZT 18,548.4 billion. The bank's cost-to-income ratio improved to 17.6% in 2024, demonstrating enhanced operational efficiency and how Halyk Bank works effectively.

Ecosystem Expansion and Future Outlook

Halyk Bank continues to evolve by enhancing its digital offerings and expanding its ecosystem to include non-financial services like car insurance and a marketplace, which saw significant growth in Q1 2025. This strategic diversification is a core part of the Mission, Vision & Core Values of Halyk Bank.

• Digital loan issuance at 90% of retail loans.
• Super-App payments and transfers increased by 28.2% in Q3 2024.
• Acquisition of 49% stake in Uzbek digital payments company Click.
• Cost-to-income ratio improved to 17.6% in 2024.

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Halyk Bank stands as a dominant force in Kazakhstan's financial sector, holding the largest market share across key metrics. Its extensive reach is underscored by a vast customer base and the most comprehensive branch network in the country, facilitating widespread Halyk Bank operations.

Industry Position

As of December 31, 2024, Halyk Bank was the largest financial services group in Kazakhstan, with total assets reaching KZT 18,548.4 billion. The bank commands the largest customer base and the most extensive branch network, comprising 542 branches and service outlets nationwide. Its market share in total assets was 29.5%, total deposits 30.2%, net loans 32.5%, and net income 35.2% as of March 31, 2025, confirming its leading position.

Customer Reach and Regional Presence

Halyk Bank's strong customer loyalty is evident in its continuously growing active user base, with 11.1 million retail active clients as of Q1 2025. Beyond its core market, the bank has established a presence in Georgia and Uzbekistan, expanding its operational footprint.

Identified Risks

Despite its strong standing, Halyk Bank faces potential risks including geopolitical tensions, a global economic slowdown, and increased sanctions compliance. Inflationary pressures, leading to a base rate increase to 16.5% in March 2025, could also impact credit growth and business operations.

Future Outlook and Strategic Initiatives

The bank aims to sustain and grow profitability through its 'super-app' strategy and digital ecosystem development, integrating financial and non-financial services. A strategic partnership with Uzbekistan's Click, valued at $237 million, highlights its regional expansion focus. Halyk Bank anticipates a net profit of $2.2 billion in 2025.

Key Growth Drivers and ESG Commitment

Halyk Bank's business model emphasizes supporting SMEs with tailored digital tools and a commitment to ESG initiatives. This forward-looking approach, detailed in its 2024 Sustainability Report, positions the bank for sustainable growth and enhanced market presence, reflecting its role in the Kazakh economy.

• Dominant market share in Kazakhstan's financial services.
• Extensive branch network and large customer base.
• Strategic expansion into Georgia and Uzbekistan.
• Focus on digital innovation and 'super-app' development.
• Commitment to supporting SMEs and ESG principles.
• Anticipated net profit of $2.2 billion in 2025.
• Understanding Competitors Landscape of Halyk Bank provides further context on its market positioning.

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