EX-99.1 2 kspi-ex99_1.htm EX-99.1 EX-99.1

 

Exhibit 99.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

JOINT STOCK COMPANY

KASPI.KZ

 

Interim Condensed Consolidated

Financial Information
For the nine months ended

30 September 2024 (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Joint Stock Company Kaspi.kz

 

 

Table of Contents

 

 

Page

 

interim condensed consolidated financial information

FOR THE Three and NINE MONTHS ended 30 SEPTEMBER 2024 (unaudited):

 

Interim condensed consolidated statements of profit or loss (unaudited)

3

 

 

Interim condensed consolidated statements of other comprehensive income (unaudited)

4

 

 

Interim condensed consolidated statements of financial position (unaudited)

5

 

 

Interim condensed consolidated statements of changes in equity (unaudited)

6

 

 

Interim condensed consolidated statements of cash flows (unaudited)

7-8

 

 

Selected explanatory notes to the interim condensed consolidated financial information (unaudited)

9-32

 

 

 

2

Joint Stock Company Kaspi.kz

 

Interim Condensed Consolidated Statements of Profit or Loss

For the three and nine months ended 30 September 2023 and 2024 (Unaudited)

(in millions of KZT, except for earnings per share which are in KZT)

 

 

 

Notes

Nine Months Ended

Three Months Ended

 

 

 

30

September

2023

30

September

2024

30

September

2023

30 September

2024

 

 

 

 

 

 

 

 

REVENUE

4,5,18

1,342,697

1,801,805

508,436

649,754

 

Net fee revenue

 

682,287

907,495

266,833

329,430

 

Interest revenue

 

602,604

773,757

217,166

283,620

 

Retail revenue

 

37,133

115,216

16,027

39,542

 

Other gains/(losses)

 

20,673

5,337

8,410

(2,838)

 

 

 

 

 

 

 

 

COSTS AND OPERATING EXPENSES

6,18

(621,834)

(903,108)

(228,873)

(316,441)

 

Interest expenses

 

(344,431)

(451,521)

(123,957)

(158,937)

 

Transaction expenses

 

(20,078)

(21,418)

(7,238)

(8,009)

 

Cost of goods and services

 

(108,085)

(212,147)

(40,749)

(76,449)

 

Technology & product development

 

(60,079)

(80,212)

(22,138)

(27,538)

 

Sales & marketing

 

(13,802)

(31,058)

(5,073)

(10,651)

 

General & administrative expenses

 

(18,194)

(22,458)

(6,515)

(7,293)

 

Provision expenses

7

(57,165)

(84,294)

(23,203)

(27,564)

 

 

 

 

 

 

 

 

NET INCOME BEFORE TAX

 

720,863

898,697

279,563

333,313

 

 

 

 

 

 

 

 

Income tax

8

(120,086)

(158,264)

(47,071)

(58,937)

 

 

 

 

 

 

 

 

NET INCOME

 

600,777

740,433

232,492

274,376

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

Shareholders of the Company

 

597,073

727,843

231,156

269,693

 

Non-controlling interest

 

3,704

12,590

1,336

4,683

 

NET INCOME

 

600,777

740,433

232,492

274,376

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

Basic (KZT)

9

3,143

3,835

1,218

1,419

 

Diluted (KZT)

9

3,116

3,806

1,207

1,409

 

 

3

Joint Stock Company Kaspi.kz

 

Interim Condensed Consolidated Statements of Other Comprehensive Income

For the three and nine months ended 30 September 2023 and 2024 (Unaudited)

(in millions of KZT)

 

 

 

Nine Months Ended

Three Months Ended

 

30 September

2023

30 September

2024

30 September

2023

30 September

2024

NET INCOME

600,777

740,433

232,492

274,376

 

 

 

 

 

OTHER COMPREHENSIVE INCOME

 

 

 

 

Items that will not be reclassified subsequently to profit or loss:

 

 

 

 

Movement in investment revaluation reserve for equity instruments at FVTOCI

67

48

48

10

Items that may be reclassified subsequently to profit or loss:

 

 

 

 

Movement in investment revaluation reserve for debt instruments at FVTOCI:

 

 

 

 

Gains/(losses) arising during the period, net of tax KZT Nil

14,334

8,197

(2,458)

28,218

Expected credit losses/(recoveries) recognised in profit or loss

720

(278)

536

(19)

Reclassification of losses included in profit or loss, net of tax KZT Nil

3,116

1,600

2,015

22

Foreign exchange differences on translation of foreign operations

(59)

408

(247)

799

 

 

 

 

 

Other comprehensive income/(loss) for the period

18,178

9,975

(106)

29,030

 

 

 

 

 

TOTAL COMPREHENSIVE INCOME

618,955

750,408

232,386

303,406

Attributable to:

 

 

 

 

Shareholders of the Company

615,060

737,713

231,051

298,418

Non-controlling interest

3,895

12,695

1,335

4,988

TOTAL COMPREHENSIVE INCOME

618,955

750,408

232,386

303,406

 

 

4

Joint Stock Company Kaspi.kz

 

Interim Condensed Consolidated Statements of Financial Position

As at 31 December 2023 and 30 September 2024 (Unaudited)

(in millions of KZT, except for earnings per share which are in KZT)

 

 

 

Notes

31 December 2023

30 September

2024

ASSETS:

 

 

 

Cash and cash equivalents

10

820,466

506,634

Mandatory cash balances with National Bank of the Republic of Kazakhstan

 

47,110

52,679

Due from banks

17

30,683

35,050

Investment securities and derivatives

11,17

1,377,772

1,431,290

Loans to customers

12,17,18

4,235,957

5,244,716

Property, equipment and intangible assets

 

174,346

205,224

Other assets

18

135,598

145,018

 

 

 

 

TOTAL ASSETS

 

6,821,932

7,620,611

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

Due to banks

13,17

154

50,927

Customer accounts

14,17,18

5,441,456

5,959,138

Debt securities issued

17

99,468

49,831

Subordinated debt

17

62,369

60,910

Other liabilities

18

115,272

124,257

 

 

 

 

TOTAL LIABILITIES

 

5,718,719

6,245,063

 

 

 

 

EQUITY:

 

 

 

Issued capital

15

130,144

130,144

Treasury shares

15

(152,001)

(151,521)

Additional paid-in-capital

 

506

506

Revaluation reserve of financial assets and other reserves

 

9,719

19,589

Share-based compensation reserve

16

34,810

26,477

Retained earnings

 

1,054,945

1,314,913

Total equity attributable to Shareholders of the Company

 

1,078,123

1,340,108

Non-controlling interest

 

25,090

35,440

TOTAL EQUITY

 

1,103,213

1,375,548

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

6,821,932

7,620,611

 

5

Joint Stock Company Kaspi.kz

 

Interim Condensed Consolidated Statements of Changes in Equity

For the nine months ended 30 September 2023 and 2024 (Unaudited)

(in millions of KZT)

 

 

 

Issued capital

Treasury shares

Additional paid-
in capital

Revaluation reserve of financial assets and other reserves

Share-based compensation reserve

Retained earnings

Total equity attributable to
Shareholders of the Company

Non-controlling interest

Total equity

Balance at 31 December 2022

130,144

(94,058)

506

(9,201)

29,274

762,500

819,165

6,524

825,689

Net income

-

-

-

-

-

597,073

597,073

3,704

600,777

Other comprehensive income

-

-

-

17,987

-

-

17,987

191

18,178

Total comprehensive income

-

-

-

17,987

-

597,073

615,060

3,895

618,955

Acquisition of subsidiary with non-controlling interest

-

-

-

-

-

(2,080)

(2,080)

2,080

-

Dividends declared

-

-

-

-

-

(399,067)

(399,067)

-

(399,067)

Dividends declared by subsidiary to non-controlling interest

-

-

-

-

-

-

-

(2,548)

(2,548)

Share options accrued

-

-

-

-

11,651

-

11,651

-

11,651

Share options exercised

-

2,760

-

-

(15,323)

12,563

-

-

-

Share buy-back program

-

(45,234)

-

-

-

-

(45,234)

-

(45,234)

Balance at 30 September 2023

 130,144

  (136,532)

 506

8,786

  25,602

970,989

999,495

9,951

1,009,446

Balance at 31 December 2023

130,144

(152,001)

506

9,719

34,810

1,054,945

1,078,123

25,090

1,103,213

Net income

-

-

-

-

-

727,843

727,843

12,590

740,433

Other comprehensive income

-

-

-

9,870

-

 

9,870

105

9,975

Total comprehensive income

-

-

-

9,870

-

727,843

737,713

12,695

750,408

Dividends declared

-

-

-

-

-

(484,542)

(484,542)

-

(484,542)

Dividends declared by subsidiary to non-controlling interest

-

-

-

-

-

-

-

(2,345)

(2,345)

Share options accrued

-

-

-

-

11,666

 

11,666

-

11,666

Share options exercised

-

3,332

-

-

(19,999)

16,667

-

-

-

Share buyback program

-

(2,852)

-

-

-

-

(2,852)

-

(2,852)

Balance at 30 September 2024

130,144

(151,521)

506

19,589

26,477

1,314,913

1,340,108

35,440

1,375,548

 

6

Joint Stock Company Kaspi.kz

 

Interim Condensed Consolidated Statements of Cash Flows (continued)

For the nine months ended 30 September 2023 and 2024 (Unaudited)

(in millions of KZT)

 

 

 

Nine months

ended

30 September

 2023

 

Nine months

ended

30 September

 2024

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

Interest received from loans to customers

424,259

 

585,592

Other interest received

57,208

 

139,913

Interest paid

(330,833)

 

(439,598)

Expenses paid on obligatory insurance of individual deposits

(7,604)

 

(9,608)

Net fee revenue received

682,431

 

917,119

Retail revenue received

37,133

 

115,216

Sales & marketing expenses paid

(13,622)

 

(30,936)

Other income received

21,289

 

4,955

Transaction expenses paid

(20,078)

 

(21,418)

Cost of goods and services purchased

(106,714)

 

(211,041)

Technology & product development expenses paid

(50,907)

 

(54,504)

General & administrative expenses paid

(11,519)

 

(15,856)

Cash flows from operating activities before changes in operating assets and liabilities

681,043

 

979,834

 

 

 

 

Changes in operating assets and liabilities

 

 

 

Decrease/(increase) in operating assets:

 

 

 

Mandatory cash balances with NBRK

(4,014)

 

(5,569)

Due from banks

(3,425)

 

(5,977)

Financial assets at FVTPL

3,303

 

(889)

Loans to customers

(669,550)

 

(1,077,308)

Other assets

(31,311)

 

(4,605)

Increase/(decrease) in operating liabilities:

 

 

 

Due to banks

(11,368)

 

50,679

Customer accounts

813,091

 

495,210

Financial liabilities at FVTPL

881

 

438

Other liabilities

1,847

 

(5,634)

Cash inflow from operating activities before income tax

780,497

 

426,179

Income tax paid

(110,435)

 

(130,634)

Net cash inflow from operating activities

670,062

 

295,545

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

Purchase of property, equipment and intangible assets

(43,301)

 

(64,716)

Proceeds on sale of property and equipment

155

 

273

Proceeds on disposal of investment securities at FVTOCI

1,751,639

 

513,137

Purchase of investment securities at FVTOCI

(1,976,849)

 

(527,586)

Acquisitions of subsidiaries, net of cash and cash equivalent acquired

(4,820)

 

-

 

 

 

 

Net cash outflow from investing activities

(273,176)

 

(78,892)

 

7

Joint Stock Company Kaspi.kz

 

Interim Condensed Consolidated Statements of Cash Flows (continued)

For the nine months ended 30 September 2023 and 2024 (Unaudited)

(in millions of KZT)

 

 

 

 

Nine months

ended

30 September

 2023

 

Nine months

ended

30 September

 2024

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

Dividends paid

(399,067)

 

(484,542)

Dividends paid by subsidiary to non-controlling interest

(2,548)

 

(2,345)

Purchase of treasury shares

(45,234)

 

(2,852)

Repayment of debt securities issued

(41,261)

 

(51,195)

Repayment of subordinated debt

(5,300)

 

-

Net cash outflow from financing activities

(493,410)

 

(540,934)

 

 

 

 

Effect of changes in foreign exchange rate on cash and cash equivalents

9,679

 

10,449

 

 

 

 

NET DECREASE IN CASH AND CASH EQUIVALENTS

(86,845)

 

(313,832)

 

 

 

 

CASH AND CASH EQUIVALENTS, beginning of period

615,360

 

820,466

 

 

 

 

CASH AND CASH EQUIVALENTS, end of period

528,515

 

506,634

 

8

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

1.
Corporate information

 

Overview

 

Joint Stock Company “Kaspi.kz” operates a two-sided Super App business model: the Kaspi.kz Super App for consumers and the Kaspi Pay Super App for merchants and entrepreneurs. Our offerings include payments, marketplace and fintech solutions for both consumers and merchants. Our business model, reinforced by our highly recognizable brand and continuing product innovation, generates powerful network effects, which has resulted in growth across all our platforms and strong financial performance.

 

Kaspi.kz Segments

 

Our segment reporting is based on our three business platforms:

 

•
Payments: Our Payments Platform facilitates transactions between and among merchants and consumers. For consumers, our Payments Platform is a highly convenient way to pay for shopping transactions, regular household bills and make peer-to-peer payments. For merchants, our Payments Platform enables them to accept payments online and in-store, issue and instantly settle invoices, pay suppliers and monitor merchants’ turnover. Our Payments Platform is our main customer acquisition tool and we consider it to be fundamental for high levels of customer engagement. Having achieved scale with consumers and merchants, our Payments Platform brings more value to consumers and merchants. Payments Platform proprietary data facilitates informed decision-making across multiple areas of our business.

 

•
Marketplace: Our Marketplace Platform connects both online and offline merchants with consumers, enabling merchants to increase their sales through an omnichannel strategy and allowing consumers to purchase a broad selection of products and services from a wide range of merchants. Marketplace has three main propositions—m-Commerce, e-Commerce and Kaspi Travel. m-Commerce is our mobile solution for shopping in person, while consumers can use e-Commerce to shop anywhere, anytime and typically with free delivery. Kaspi Travel allows consumers to book domestic and international flights, domestic rail tickets and international package holidays. We help merchants increase their sales by connecting them to our Payments and Fintech products, Kaspi Advertising and our delivery services. Other than in e-Grocery and car e-commerce, our Marketplace Platform is a “3P” model, enabling third-party merchants to sell their products directly to consumers. Following the completion of our investment in Kolesa JSC, we have access to widely recognized classifieds platforms in Kazakhstan and Autoelon.uz, an Uzbekistan car marketplace and member of the Kolesa Group.

 

•
Fintech: Our Fintech Platform provides consumers with BNPL, finance and savings products, and merchants with merchant finance services. All Fintech services can be accessed through our Super Apps, fully digitally, with users identified using Kaspi ID biometrics technology. We incentivize consumers and merchants to prepay any finance products prior to contractual maturity without penalty, which helps to drive frequency of transactions. We lend only in local currency and we fund our financing products mainly using Kaspi Deposits, which are primarily local currency savings accounts. As we add more opportunities to transact with the Kaspi.kz Super App, we anticipate that consumers will keep more of their deposits with us.

9

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

Information about the group of companies

 

Joint Stock Company Kaspi.kz (“the Company” or “the Group”) was incorporated in the Republic of Kazakhstan in 2008. The Company is regulated by the National Bank of the Republic of Kazakhstan (“NBRK”) and the Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market. The registered address of the Company is 154A, Nauryzbai Batyr street, Almaty, 050013, the Republic of Kazakhstan.

 

The Group structure did not significantly change since 31 December 2023.

 

The shareholders are as follows:

 

31 December

2023

%

 

30 September

2024

%

Baring Funds*

27.53

 

24.97

Mikheil Lomtadze

24.67

 

22.60

Vyacheslav Kim

23.47

 

21.40

Public Investors

20.92

 

27.38

Management

3.41

 

3.65

 

 

 

 

Total

100.00

 

100.00

 

*As at 31 December 2023 and 30 September 2024, Asia Equity Partners Limited held 21.06% and 9.02% of total shares respectively, Fintech Partners Limited held 0% and 9.5% of total shares respectively, and Baring Fintech Nexus Limited held 6.47% and 6.45% of total shares respectively, on behalf of Baring Funds.

 

This interim condensed consolidated financial information was approved on 29 October 2024.

 

 

2.
Basis of presentation

 

This interim condensed consolidated financial information has been prepared in accordance with International Accounting Standard (“IAS”) 34, Interim Financial Reporting. This interim condensed consolidated financial information has been prepared on the assumption that the Group is a going concern, as the Group has the resources to continue in operation for at least the next twelve months. In making this assessment, management has considered a wide range of information in relation to present and future economic conditions, including projections of cash flows, profit and capital resources.

 

This interim condensed consolidated financial information does not include all the information and disclosures required in the annual consolidated financial statements. The Group omitted disclosures, which would substantially duplicate the information contained in its audited annual consolidated financial statements for 2023 prepared in accordance with International Financial Reporting Standards (“IFRS”), such as accounting policies and details of accounts, which have not changed significantly in amount or composition.

 

10

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

The exchange rates at the period-end used by the Group in the preparation of the interim condensed consolidated financial information are as follows:

 

 

31 December

2023

 

30 September

2024

 

 

 

 

KZT/USD

454.56

 

481.19

KZT/EUR

502.24

 

538.45

 

 

3.
Material accounting policies

 

This interim condensed consolidated financial information has been prepared under the historical cost convention, except for the revaluation of certain properties and financial instruments.

 

The same accounting policies, presentation and methods of computation have been followed in this interim condensed consolidated financial information as were applied in the preparation of the Group’s consolidated financial statements for the year ended 31 December 2023.

 

Adoption of new and revised Standards

 

New and revised IFRS Standards that are effective for the current year

 

The following amendments and interpretations are effective for the Group beginning
1 January 2024:

 

IFRS S2 Climate-related Disclosures

1 January 2024

IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information

1 January 2024

Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)

1 January 2024

Classification of Liabilities as Current or Non-current — Deferral of Effective Date (Amendment to IAS 1)

1 January 2024

 

The above standards and interpretations were reviewed by the Group's management and determined to not have a significant effect on the consolidated financial information of the Group.

 

New and revised IFRS Standards in issue but not yet effective

 

At the date of authorisation of this financial information, the Group has not applied the following new and revised IFRS Standards that have been issued but are not yet effective:

 

New or revised standard or interpretation

Applicable to annual reporting periods

beginning on or after

Amendment to IFRS 16 – Lease Liability in a Sale and Leaseback

1 January 2024

Amendments to IAS 1 – Non-current Liabilities with Covenants

1 January 2024

 

The management does not expect that the adoption of the Standards listed above to have a material impact on the condensed consolidated financial information of the Group in future periods.

 

11

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

4.
Revenue

 

Revenue includes fee revenue, interest revenue, retail revenue, rewards and other gains. Rewards earned by retail customers of the Group are deducted from revenue.

 

 

Nine months

ended

30 September

2023

Nine months

ended

30 September

2024

Three months

ended

30 September

2023

Three months

ended

30 September

2024

 

 

 

 

 

REVENUE

1,342,697

1,801,805

508,436

649,754

Fee revenue

710,162

946,900

276,318

342,212

Interest revenue

602,604

773,757

217,166

283,620

Retail revenue

37,133

115,216

16,027

39,542

Rewards

(27,875)

(39,405)

(9,485)

(12,782)

Other gains/(losses)

20,673

5,337

8,410

(2,838)

 

Revenue by segments is presented below:

 

Nine months

ended

30 September

2023

Nine months

ended

30 September

2024

Three months

ended

30 September

2023

Three months

ended

30 September

2024

Payments

339,014

421,293

124,873

155,980

Payments fee revenue

260,788

328,450

97,009

121,027

Interest revenue

78,226

92,843

27,864

34,953

 

 

 

 

 

Marketplace

283,566

497,996

125,250

178,940

Marketplace fee revenue

243,479

379,858

108,158

137,377

Retail revenue

37,133

115,216

16,027

39,542

Other gains

2,954

1,040

1,065

139

Interest revenue

-

1,882

-

1,882

 

 

 

 

 

Fintech

747,992

929,691

267,798

331,605

Interest revenue

524,378

680,757

189,302

248,510

Fintech fee revenue

205,895

244,637

71,151

86,072

Other gains/(losses)

17,719

4,297

7,345

(2,977)

Intergroup

-

(7,770)

-

(3,989)

Segment Revenue

1,370,572

1,841,210

517,921

662,536

Rewards

(27,875)

(39,405)

(9,485)

(12,782)

REVENUE

1,342,697

1,801,805

508,436

649,754

 

For the nine months ended 30 September 2024, intergroup represents Marketplace fee revenue that was offset by Marketing expense, for activities to attract customers of Fintech car loans. In addition, intergroup includes interest revenue generated by Marketplace and Payments platforms due to placement of free cash flow to term deposits in the Bank that is offset by interest expenses of Fintech.

 

Other gains/(losses) are mainly net gains on foreign exchange operations and net gains on financial assets and liabilities. For the nine months ended 30 September 2023 and 2024, the net gains on foreign exchange operations were KZT 10,817 million and KZT 1,844 million, respectively. For the three months ended 30 September 2023 and 2024, net gains on foreign exchange operations were KZT 6,251 million and KZT 399 million, respectively.

 

12

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

For the nine months ended 30 September 2023 and 2024, the net gains on financial assets and liabilities were KZT 6,535 million and KZT 1,781 million, respectively. For the three months ended 30 September 2023 and 2024, net gains/(losses) on financial assets and liabilities at FVTPL were KZT 1,000 million and KZT (3,555) million, respectively.

 

Fee revenue and retail revenue are presented by timing of revenue recognition in the table below:

 

 

Nine months

ended

30 September

2023

Nine months

ended

30 September

2024

Three months

ended

30 September

2023

Three months

ended

30 September

2024

Goods and services transferred at point in time

521,912

799,552

214,435

289,500

Payments fee revenue - Transaction Revenue

241,300

304,478

90,250

112,581

Marketplace fee revenue - Seller Fees

243,479

379,858

108,158

137,377

Retail revenue

37,133

115,216

16,027

39,542

Goods and services transferred over time

 225,383

268,609

77,910

94,518

Payments fee revenue - Membership Revenue

19,488

23,972

6,759

8,446

Fintech fee revenue - Membership Revenue

2,375

2,589

847

869

Fintech fee revenue - Fintech banking service fees

203,520

242,048

70,304

85,203

TOTAL FEE AND RETAIL REVENUE

 747,295

1,068,161

 292,345

384,018

 

 

5.
Segment Reporting

 

The Group reports its business in three operating segments.

 

The following tables present the summary of each segments’ revenue and net income:

 

 

Nine months

ended

30 September

2023

Nine months

ended

30 September

2024

Three months

ended

30 September

2023

Three months

ended

30 September

2024

 

 

 

 

 

SEGMENT REVENUE

1,370,572

1,841,210

517,921

662,536

Payments

339,014

421,293

124,873

155,980

Marketplace

283,566

497,996

125,250

178,940

Fintech

747,992

929,691

267,798

331,605

Intergroup

-

(7,770)

-

(3,989)

 

 

 

 

 

NET INCOME

600,777

740,433

232,492

274,376

Payments

219,531

272,195

81,939

102,551

Marketplace

160,474

232,761

73,862

83,873

Fintech

220,772

235,477

76,691

87,952

 

Operating segments are identified based on how the Group manages the business on a day-to-day basis and the types of products and services provided. Operating segments are reported in a manner consistent with internal reports, which are reviewed and used by the management board (who are identified as Chief Operating Decision Makers, “CODM”). The operating performance measure of each operating segment is revenue and net income.

 

13

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

For the nine months ended 30 September 2023 and 2024, costs and operating expenses that are deducted from revenue, include interest expenses of KZT 344,431 million and KZT 451,521 million, respectively, provision expenses were KZT 57,165 million and KZT 84,294 million, respectively, both attributable to Fintech Segment, share-based compensation expenses and other expenses recognised across the segments.

 

Management believes that other segment expenses are not material for analysis of our ongoing operations.

 

The following table presents the summary of share-based compensation expense by segments:

 

 

Nine months

ended

30 September

2023

Nine months

ended

30 September

2024

Three months

ended

30 September

2023

Three months

ended

30 September

2024

 

 

 

 

 

SHARE-BASED COMPENSATION

(11,651)

(11,666)

(3,952)

(3,888)

Payments

(3,775)

(4,405)

(1,262)

(1,470)

Marketplace

(1,194)

(1,506)

(398)

(510)

Fintech

(6,682)

(5,755)

(2,292)

(1,908)

 

 

 

 

 

 

6.
Costs and operating expenses

 

 

Nine months

ended

30 September

2023

Nine months

ended

30 September

2024

Three months

ended

30 September

2023

Three months

ended

30 September

2024

 

 

 

 

 

COSTS AND OPERATING EXPENSES

(621,834)

(903,108)

(228,873)

(316,441)

Interest expenses

(344,431)

(451,521)

(123,957)

(158,937)

Transaction expenses

(20,078)

(21,418)

(7,238)

(8,009)

Cost of goods and services

(108,085)

(212,147)

(40,749)

(76,449)

Technology & product development

(60,079)

(80,212)

(22,138)

(27,538)

Sales & marketing

(13,802)

(31,058)

(5,073)

(10,651)

General & administrative expenses

(18,194)

(22,458)

(6,515)

(7,293)

Provision expenses (Note 7)

(57,165)

(84,294)

(23,203)

(27,564)

 

Interest expenses include interest expenses on customer accounts, mandatory insurance of retail deposits and interest expenses on debt securities, including subordinated debt and due to banks.

 

Transaction expenses are mainly composed of the costs associated with accepting, processing and otherwise enabling payment transactions. Those costs include fees paid to payment processors, payment networks and various service providers.

 

Cost of goods and services include costs incurred to operate retail network, 24-hour call support and communication with customers, product packaging and delivery, and other expenses which can be attributed to the Group’s operating activities related to the provision of the products and services. It also includes the price paid by us for consumer products, the subsequent sale of which generates Retail revenue.

 

Technology & product development consist of staff and contractor costs that are incurred in connection with the research and development of new and maintenance of existing products and services, development, design, data science and maintenance of our products and services, and infrastructure costs. Infrastructure costs include depreciation of servers, networking equipment, data center, kartomats, postomats and payment equipment, rent, utilities, and other expenses

14

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

necessary to support our technologies and platforms. Collectively, these costs reflect the investments we make in order to offer a wide variety of products and services to our customers.

 

Sales & marketing consist primarily of online and offline advertising expenses, promotion expenses, staff costs and other expenses that are incurred directly to attract or retain consumers and merchants. It also includes our charity and sponsorship activities.

 

General & administrative expenses consist primarily of costs incurred to provide support to our business, including legal, human resources, finance, risk, compliance, executive, professional services fees, office facilities and other support functions.

 

Employee benefits, depreciation and amortization expenses and operating lease expenses are presented as follows:

 

 

Nine months ended

30 September 2023

Nine months ended

30 September 2024

 

Employee benefits

Depreciation & amortisation

Operating
lease

 

Employee benefits

Depreciation & amortisation

Operating lease

Cost of goods and services

(16,665)

(237)

(939)

 

    (21,233)

   -

         (955)

Technology & product development

(28,011)

(15,854)

(2,426)

 

     (40,292)

 (18,374)

     (4,050)

Sales & marketing

(1,254)

-

(85)

 

      (2,126)

    -

        (114)

General & administrative expenses

(11,755)

(2,630)

(257)

 

      (12,713)

   (2,953)

      (736)

Total

(57,685)

(18,721)

(3,707)

 

   (76,364)

         (21,327)

   (5,855)

 

 

 

Three months ended

30 September 2023

Three months ended

30 September 2024

 

Employee benefits

Depreciation & amortisation

Operating
lease

 

Employee benefits

Depreciation & amortisation

Operating lease

Cost of goods and services

(5,682)

-

(290)

 

    (7,364)

-

    (329)

Technology & product development

(9,872)

(6,249)

(896)

 

   (13,846)

           (6,217)

    (1,503)

Sales & marketing

(438)

-

(26)

 

      (733)

-

         (45)

General & administrative expenses

(4,049)

(891)

(132)

 

    (4,195)

             (1,031)

       (220)

Total

(20,041)

(7,140)

(1,344)

 

  (26,138)

         (7,248)

   (2,097)

 

Expenses associated with share-based compensation are recognised across the functions in which the compensation recipients are employed. The following table sets forth an analysis of share-based compensation expense by function for the periods indicated:

 

 

Nine months

ended

30 September

2023

Nine months

ended

30

September

2024

Three months

ended

30

September

2023

Three months

ended

30

September

2024

 

 

 

 

 

SHARE-BASED COMPENSATION

(11,651)

          (11,666)

(3,952)

              (3,888)

Cost of goods and services

(988)

                (988)

(330)

                  (330)

Technology & product development

(5,192)

             (6,705)

(1,696)

               (2,235)

Sales & marketing

(377)

                 (406)

(125)

                  (136)

General & administrative expenses

(5,094)

              (3,567)

(1,801)

                (1,187)

 

15

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

7.
Provision expenses

 

The movements in loss allowance for the nine months ended 30 September 2023 were as follows:

 

 

Loans to customers

Due from banks

 

Financial assets at fair value through other comprehensive income

 

Cash and cash equiva-lents

 

Other
assets

 

Contin-gencies

 

Total

 

Stage 1

Stage 2

Stage 3

POCI

Stage 1

 

Stage 1

Stage 2

Stage 3

 

Stage 1

 

Stage 3

 

Stage 1

 

 

Loss allowance for ECL as at
31 December 2022

67,604

11,785

135,313

-

6

 

82

656

-

 

3

 

7,794

 

39

 

223,282

Changes in provisions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-Transfer to Stage 1

14,411

(1,737)

(12,674)

-

-

 

-

-

-

 

-

 

-

 

-

 

-

-Transfer to Stage 2

(8,382)

13,579

(5,197)

-

-

 

(1)

1

 

 

-

 

-

 

-

 

-

-Transfer to Stage 3

(13,518)

(8,204)

21,722

-

-

 

 

(530)

530

 

-

 

-

 

-

 

-

Net changes, resulting from changes in credit risk parameters

(26,163)

1,385

46,641

70

7

 

(3)

39

656

 

3

 

1,322

 

(5)

 

23,952

New assets issued or acquired

57,322

-

-

-

-

 

28

 

 

 

-

 

-

 

-

 

57,350

Repaid assets (except for write-off)

(27,703)

(1,473)

(9,518)

-

-

 

-

-

-

 

-

 

-

 

-

 

(38,694)

Modification effect

-

-

14,557

-

-

 

-

-

-

 

-

 

-

 

-

 

14,557

Total effect on Consolidated Statements of Profit or Loss

3,456

(88)

51,680

70

7

 

25

39

656

 

3

 

1,322

 

(5)

 

57,165

Write-off, net of recoveries

-

-

(43,134)

-

-

 

-

-

-

 

-

 

(3,737)

 

-

 

(46,871)

Foreign exchange difference

-

-

(1)

-

-

 

-

-

-

 

-

 

(48)

 

-

 

(49)

As at 30 September 2023

63,571

15,335

147,709

70

13

 

106

166

1,186

 

6

 

5,331

 

34

 

233,527

 

16

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

The movements in loss allowance for the nine months ended 30 September 2024 were as follows:

 

 

Loans to customers

Due from

banks

 

Financial assets at fair value through other comprehensive income

 

Cash and cash

equivalents

 

Other
assets

 

Contin-gencies

 

Total

Stage 1

Stage 2

Stage 3

POCI

Stage 1

 

Stage 1

Stage 2

Stage 3

 

Stage 1

 

Stage 3

 

Stage 1

 

 

Loss allowance for ECL as at 31 December 2023

59,939

16,290

166,042

261

6

 

114

158

1,136

 

23

 

5,640

 

35

 

249,644

Changes in provisions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-Transfer to Stage 1

25,849

 (4,343)

 (21,506)

-

-

 

-

-

-

 

-

 

-

 

-

 

-

-Transfer to Stage 2

 (9,409)

17,655

 (8,246)

-

-

 

-

-

-

 

-

 

-

 

-

 

-

-Transfer to Stage 3

 (21,498)

 (8,158)

29,656

-

-

 

-

-

-

 

-

 

-

 

-

 

-

Net changes, resulting from changes in credit risk parameters

(29,401)

2,882

50,637

1,152

1

 

167

(18)

(548)

 

39

 

1,468

 

(11)

 

26,368

New assets issued or acquired

69,082

-

-

-

-

 

120

-

-

 

-

 

-

 

-

 

69,202

Repaid assets (except for write-off)

(24,238)

(1,300)

(8,208)

-

-

 

-

-

-

 

-

 

-

 

-

 

(33,746)

Modification effect

-

-

22,470

-

-

 

-

-

-

 

-

 

-

 

-

 

22,470

Total effect on Consolidated Statements of Profit or Loss

15,443

1,582

64,899

1,152

1

 

287

(18)

(548)

 

39

 

1,468

 

(11)

 

84,294

Write-off, net of recoveries

 

 

(44,175)

-

-

 

-

-

-

 

-

 

565

 

-

 

(43,610)

Foreign exchange difference

 

 

(3)

-

-

 

-

-

-

 

-

 

-

 

-

 

(3)

As at 30 September 2024

70,324

23,026

186,667

1,413

7

 

401

140

588

 

62

 

7,673

 

24

 

290,325

 

Net changes, resulting from changes in credit risk parameters include decrease of provisions due to partial repayment of loans.

 

As at 31 December 2023 and 30 September 2024, the allowance for impairment losses on financial assets at FVTOCI of KZT 1,408 million and

KZT 1,129 million, respectively, is included in the ‘Revaluation reserve of financial assets and other reserves’ within equity.

 

During the nine months ended 30 September 2024, the Group implemented amendments to its provision methodology, according to which, after 1080 days past due there is no reasonable expectations of recovery of collateralized defaulted car loans. As such the car loans are fully written off when past due by more than 1080 days. The effect of change of the policy for prior periods is not material.

17

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

8.
Income tax

 

The Group provides for taxes for the current period based on the tax accounts maintained and prepared in accordance with the respective tax regulations of the Republic of Kazakhstan, the Republic of Azerbaijan, Ukraine and Uzbekistan, where the Company and its subsidiaries operate and which may differ from IFRS.

 

The Group is subject to certain permanent tax differences due to non-tax deductibility of certain expenses and a tax-free regime for certain income.

 

Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. Temporary differences relate mostly to different methods of income and expense recognition as well as to recorded values of certain assets.

 

Deferred income tax liabilities comprise:

 

 

31 December 2023

30 September

2024

 

 

 

Vacation reserve, accrued bonuses and share-based compensation

1,242

975

Property, equipment and intangible assets

(4,012)

(3,729)

Other

527

(843)

Net deferred tax liability

(2,243)

(3,597)

 

Relationships between net income before tax and income tax expenses are explained as follows:

 

 

Nine months

ended

30 September

 2023

Nine months

ended

30 September

2024

Three months

ended

30 September

2023

Three months

ended

30 September

2024

Net income before tax

720,863

898,697

279,563

333,313

Tax at the statutory tax rate of 20%

(144,173)

(179,739)

(55,913)

(66,662)

Non-taxable income

29,120

25,017

10,511

8,578

Non-deductible expense

(5,033)

(3,542)

(1,669)

(853)

 

 

 

 

 

Income tax expense

(120,086)

(158,264)

(47,071)

(58,937)

 

 

 

 

 

Current income tax expense

(121,373)

(156,910)

(47,153)

(58,661)

Deferred income tax benefit/(expense)

1,287

(1,354)

82

(276)

Income tax expense

(120,086)

(158,264)

(47,071)

(58,937)

 

Non-taxable income was represented by interest income on governmental and other qualified securities in accordance with the tax legislation. Statutory income tax rate is 20% in Kazakhstan and Azerbaijan, 18% in Ukraine and 15% in Uzbekistan.

 

 

30 September

2023

30 September

2024

Net deferred tax liability:

 

 

Balance at 31 December

(3,205)

(2,243)

Change in deferred income tax balances recognised in profit or loss

1,287

(1,354)

At the end of the period

(1,918)

(3,597)

 

18

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

9.
Earnings per share

 

Earnings per share are determined by dividing the net income attributable to shareholders

of the Company by the weighted average number of common shares outstanding during the nine months ended 30 September 2024. For the purpose of diluted earnings per share calculation, the Group considers dilutive effects of share-based compensation.

 

 

30 September

2023

30 September

2024

Net income attributable to the shareholders of the Company

597,073

727,843

Weighted average number of common shares for basic earnings per share

189,976,406

189,770,380

Weighted average number of common shares for diluted earnings per share

191,624,662

191,225,640

Earnings per share – basic (KZT)

3,143

3,835

Earnings per share – diluted (KZT)

3,116

3,806

 

Reconciliation of the number of shares used for basic and diluted earnings per share:

 

 

30 September

30 September

 

2023

2024

Weighted average number of common shares for basic earnings per share

189,976,406

189,770,380

Number of potential common shares attributable to share-based compensation

1,648,256

1,455,260

Weighted average number of common shares for diluted earnings per share

191,624,662

191,225,640

 

 

10.
Cash and cash equivalents

 

 

 

31 December
2023

30 September

2024

 

 

 

Cash on hand

259,639

165,548

Current accounts with other banks

274,534

86,573

Short-term deposits with other banks

216,217

254,513

Reverse repurchase agreements

70,076

-

 

 

 

Total cash and cash equivalents

820,466

506,634

 

Cash on hand includes cash balances with ATMs and cash in transit.

 

As at 31 December 2023 and 30 September 2024, current accounts and short-term deposits with NBRK are KZT 90,098 million and KZT 191,301 million, respectively.

 

As at 31 December 2023 and 30 September 2024, the fair value of collateral of reverse repurchase agreements classified as cash and cash equivalents, are KZT 70,160 million and KZT Nil, respectively.

 

As at 31 December 2023 and 30 September 2024, restricted deposits included in due from banks with investment credit ratings (higher than ‘BBB-‘) in favor of international payments systems were KZT 27,357 million and KZT 31,905 million, respectively.

 

19

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

11.
Investment securities and derivatives

 

Investment securities and derivatives comprise:

 

 

31 December
2023

30 September

2024

 

 

 

Total financial assets at FVTOCI

1,377,130

1,429,940

Total financial assets at FVTPL

642

1,350

 

 

 

Total investment securities and derivatives

1,377,772

1,431,290

 

 

 

 

 

 

 

Financial assets at FVTOCI comprise:

31 December
2023

30 September

2024

 

 

 

Debt securities

1,376,728

1,429,502

Equity investments

402

438

 

 

 

Total financial assets at FVTOCI

1,377,130

1,429,940

 

 

 

Interest
rate, %

31 December
2023

Interest
rate, %

30 September

2024

Debt securities

 

 

 

 

Bonds of the Ministry of Finance of the Republic of Kazakhstan

0.60-16.70

930,726

0.60-16.70

1,151,317

Corporate bonds

2.00-15.88

252,946

2.00-15.88

275,400

Sovereign bonds of foreign countries

0.63-3.50

1,687

0.63-4.00

2,785

Discount notes of the NBRK

14.44

191,369

-

-

 

 

 

 

 

Total debt securities

 

1,376,728

 

1,429,502

 

 

 

A- and higher

 

BBB+ to BBB-

 

BB+

to B-

 

Not

rated

 

Total

Debt securities as at 31 December 2023

33,681

 

1,335,500

 

4,037

 

3,510

 

1,376,728

Debt securities as at 30 September 2024

37,053

 

1,314,508

 

4,615

 

73,326

 

1,429,502

 

Financial assets at FVTPL comprise:

 

 

31 December
2023

 

30 September

2024

 

 

 

 

Derivative financial instruments

642

 

1,350

Total financial assets at FVTPL

642

 

1,350

 

As at 30 September 2024, financial assets at FVTPL included swap and spot instruments of
KZT 43 million (2023: KZT 642 million) with a notional amount of KZT 235,707 million
(2023: KZT 165,555 million) and forwards of KZT 1,307 (2023: KZT Nil) with a notional amount of KZT 187,603 (2023: KZT Nil).

 

As at 30 September 2024, financial liabilities at FVTPL included swap and spot instruments of
KZT 217 million (2023: KZT 187 million) with a notional amount of KZT 240,083 million
(2023: KZT 164,686 million) and forwards of KZT 1,387 million (2023: KZT 978 million) with a notional amount of KZT 192,874 million (2023: KZT 14,739 million).

 

 

20

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

As at 31 December 2023 and 30 September 2024, investment securities were not pledged or somehow restricted, except for bonds of the Ministry of Finance of the Republic of Kazakhstan, notes of NBRK and corporate bonds pledged under repurchase agreements with other banks totaling KZT 154 million and KZT 22,384 million, respectively (Note 13).

 

 

12.
Loans to customers

 

 

 

31 December 2023

30 September

2024

 

 

 

Gross loans to customers

4,478,489

5,526,146

Allowance for impairment losses (Note 7)

(242,532)

(281,430)

 

 

 

Total loans to customers

4,235,957

5,244,716

 

All loans to customers issued by the Group were allocated to the Fintech segment for internal segment reporting purposes.

 

Movements in allowances for impairment losses on loans to customers for the nine months ended 30 September 2023 and 2024 are disclosed in Note 7.

 

As at 31 December 2023 and 30 September 2024, accrued interest of KZT 46,207 million and
KZT 59,134 million, respectively, was included in loans to customers.

 

Loans with principal or accrued interest in arrears for more than 90 days are classified as

non-performing loans (“NPL”). These loans were classified in Stage 3. Allowance for impairment losses to NPLs reflects the Group’s total provision as a percentage of NPL’s. Considering the ratio represents allowance for impairment losses for all loans as a percentage of NPLs, the ratio can be more than 100%.

 

The following table sets forth the Group’s outstanding NPLs as compared to the total allowance for impairment losses on total loans to customers:

 

 

 

Gross NPLs

Total allowance for impairment

Total allowance for impairment losses to

Gross NPLs

 

 

 

 

As at 31 December 2023

244,161

242,532

99%

As at 30 September 2024

310,958

281,430

91%

 

21

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

Provision expenses on loans to customers:

 

 

Nine months

ended

30 September

2023

Nine months

ended

30 September

2024

Three months

ended

30 September

2023

Three months

ended

30 September

2024

Provision expenses on loans to customers:

 

 

 

 

Loans to customers

(55,118)

(83,076)

(22,569)

(27,036)

Total provision expenses on loans to customers

(55,118)

(83,076)

(22,569)

(27,036)

 

The Group did not provide loans, which individually exceeded 10% of the Group’s equity.

 

The gross carrying amount and related allowance for impairment losses on loans to customers by stage were as follows:

 

 

Stage 1

Stage 2

Stage 3

 

 

 

12-month ECL

Lifetime
ECL

Lifetime
ECL

POCI

Total

 

 

 

 

 

 

Gross loans to customers

4,048,478

55,804

363,703

10,504

4,478,489

Allowance for impairment losses

(59,939)

(16,290)

(166,042)

(261)

(242,532)

Carrying amount

as at 31 December 2023

3,988,539

39,514

197,661

10,243

4,235,957

 

 

 

Stage 1

Stage 2

Stage 3

 

 

 

12-month ECL

Lifetime
ECL

Lifetime
ECL

POCI

Total

 

 

 

 

 

 

Gross loans to customers

4,983,639

87,431

439,183

15,893

5,526,146

Allowance for impairment losses

(70,324)

(23,026)

(186,667)

(1,413)

(281,430)

Carrying amount as at 30 September 2024

4,910,731

(67,420)

252,572

13,994

5,244,716

 

During the nine months ended 30 September 2023 and 2024, the Group has restructured loans to customers, which were classified as NPL, in the amount of KZT 71,877 million and
KZT 93,601 million, respectively, by providing an interest free extended repayment schedule. During the nine months ended 30 September 2023 and 2024, KZT 24,024 million and
KZT 41,577 million, respectively, of restructured loans were collected.

 

As at 31 December 2023 and 30 September 2024, the Group’s restructured loans in

Stage 3 amounted to the gross carrying amount of KZT 57,571 million and KZT 81,024 million, respectively.

 

As at 31 December 2023 and 30 September 2024, the Group’s restructured loans in Stage 2 amounted to the gross carrying amount of KZT 8,821 million and KZT 13,921 million, respectively.

 

As at 31 December 2023 and 30 September 2024, the Group’s restructured loans in Stage 1 amounted to the gross carrying amount of KZT 1,568 million and KZT 12,818 million, respectively.

 

As at 31 December 2023 and 30 September 2024, the Group’s restructured loans recognized as POCI amounted to the gross carrying amount of KZT 10,504 million and KZT 15,893 million, respectively.

22

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

13.
Due to banks

 

 

31 December

2023

30 September

2024

Recorded at amortised cost:

 

 

Time deposits of banks and other financial institutions

-

28,056

Repurchase agreements

154

22,871

 

 

 

Total due to banks

154

50,927

 

As at 31 December 2023 and 30 September 2024, accrued interest of KZT 1 million and KZT 94 million, respectively, was included in due to banks.

 

Fair value of securities pledged as collateral of repurchase agreements, which were classified as due to banks as at 31 December 2023 and 30 September 2024, amounted to KZT 154 million and KZT 22,384 million, respectively.

 

 

14.
Customer accounts

 

 

31 December

2023

30 September

2024

 

 

 

 

 

Individuals

 

 

 

Term deposits

4,316,825

4,880,422

 

Current accounts

826,328

790,503

 

Total due to individuals

5,143,153

5,670,925

 

 

 

 

 

Corporate customers

 

 

 

Term deposits

44,233

79,628

 

Current accounts

254,070

208,585

 

Total due to corporate customers

298,303

288,213

 

 

 

 

 

Total customer accounts

5,441,456

5,959,138

 

 

As at 31 December 2023 and 30 September 2024, accrued interest of KZT 44,044 million and
KZT 51,008 million, respectively, was included in term deposits within customer accounts.

 

As at 31 December 2023 and 30 September 2024, customer accounts of KZT 60,260 million and
KZT 53,195 million, respectively, were held as security against loans to customers.

 

As at 31 December 2023 and 30 September 2024, customer accounts of KZT 97,806 million (1.80% of total customer accounts) and KZT 90,192 million (1.51% of total customer accounts), respectively, were due to the top twenty customers.

 

As at 31 December 2023 and 30 September 2024, customer accounts were predominately denominated in KZT, comprising 91% and 92%, respectively.

 

23

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

15.
Share capital

 

The table below provides a reconciliation of the change in the number of authorised shares, issued and fully paid shares, treasury shares and shares outstanding:

 

 

Authorised shares

Issued and fully paid shares

Treasury shares

Shares outstanding

 

 

 

 

 

Common shares

 

 

 

 

 

 

 

 

 

1 January 2023

216,742,000

199,500,000

(9,190,030)

190,309,970

GDR options exercised (Note 16)

-

-

618,788

618,788

GDR buyback program

-

-

(1,595,293)

(1,595,293)

 

 

 

 

 

31 December 2023

216,742,000

199,500,000

(10,166,535)

189,333,465

 

 

 

 

 

GDR options exercised (Note 16)

-

-

747,178

747,178

GDR buyback program

-

-

(64,914)

(64,914)

30 September 2024

216,742,000

199,500,000

(9,484,271)

190,015,729

 

During the years ended 31 December 2022, 2023 and nine months ended 30 September 2024, the Board of Directors approved nine separate GDR buyback programs.

 

The Group accounts for GDRs repurchased in Treasury Shares component of Share Capital.

One GDR represents one share.

 

The following table summarizes the details of the GDR buyback programs:

 

 

Start date

 

Termination
date

 

Number of GDRs acquired

 

Total

amount paid

1st buy-back program

22 April 2022

 

21 July 2022

 

 998,429

 

22,841

2nd buy-back program

22 July 2022

 

21 October 2022

 

 788,153

 

21,325

3rd buy-back program

22 October 2022

 

24 February 2023

 

1,131,380

 

38,474

4th buy-back program

22 March 2023

 

21 July 2023

 

 531,995

 

18,740

5th buy-back program

22 July 2023

 

21 October 2023

 

 283,689

 

12,614

6th buy-back program

22 October 2023

 

16 January 2024

 

303,286

 

13,233

30 September 2024

 

 

 

 

4,036,932

 

127,227

 

The Group accounts for GDRs repurchased as treasury shares.

 

The table below provides a reconciliation of the change in outstanding share capital fully paid:

 

 

 

Issued and

fully paid shares

Treasury
shares

 

Total

Balance at 1 January 2023

 

130,144

(94,058)

36,086

GDR options exercised

 

-

2,760

2,760

GDR buyback program

 

-

(60,703)

(60,703)

Balance at 31 December 2023

 

130,144

(152,001)

(21,857)

GDR options exercised

 

-

3,332

3,332

GDR buyback program

 

-

(2,852)

(2,852)

Balance at 30 September 2024

 

130,144

(151,521)

(21,377)

 

24

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

The following tables represent dividends declared:

 

 

Dividends

declared

Dividend

per share

 

 

 

March 2023

269,365

KZT 1,350

September 2023

129,702

    KZT 750

Total for the period ended 30 September 2023

399,067

 

 

 

 

Dividends

declared

Dividend

per share

 

 

 

February 2024

161,514

    KZT 850

April 2024

161,514

    KZT 850

August 2024

161,514

    KZT 850

Total for the period ended 30 September 2024

484,542

 

 

 

16.
Share-based compensation

 

In 2023, the share option program was expanded to include more senior executives and other core Group personnel. The share-based awards are used to attract, incentivize and retain employees over the long-term by the management of the Group.

 

Share-based compensation expense

 

According to IFRS 2, this accelerates the recognition of compensation expenses resulting in a higher proportion of expenses being recognized in the early years of overall plan.

 

 

 

 30 September
2023

30 September

 2024

 

 

 

 

Share-based compensation expense

 

(11,651)

(11,666)

Share options

 

(11,651)

(11,666)

 

GDR Options

 

The fair value of GDR options at the date of grant is determined using the Black-Scholes model. The fair value determined at the grant date is expensed over the five-year vesting period, based on the Group’s estimate of the number of GDR options that will eventually vest. Recipients of GDR options are entitled to receive dividends once GDR options vested and exercised.

 

The inputs into the Black-Scholes model are as follows:

 

 

31 December

2023

 30 September

2024

 

 

 

Black-Scholes model inputs:

 

 

Weighted average share price in USD

67.3

67.3

Expected volatility

42.4%

42.4%

Risk-free rate

4.2%

4.2%

Dividend yield

7.0%

7.0%

 

Expected volatility is based on the historical share price volatility over the past 3 years.

25

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

The following table summarizes the details of the GDR options outstanding:

 

 

31 December 2023

(GDRs)

30 September

 2024

(GDRs)

Outstanding at the beginning of the period

2,266,166

2,202,438

Granted

564,800

-

Forfeited

(9,740)

-

Exercised

(618,788)

(747,178)

Expired

-

-

Outstanding at the end of the period

2,202,438

1,455,260

 

In the period ended 31 December 2023 and 30 September 2024, 618,788 GDR options and
747,178 GDR options, respectively, were exercised and GDRs were issued from treasury shares.

 

The following table represents Share-based compensation reserve outstanding:

 

 

 

Share-Based

Compensation reserve

1 January 2023

 

29,274

GDR options accrued

 

20,859

GDR options exercised

 

(15,323)

31 December 2023

 

34,810

GDR options accrued

 

11,666

GDR options exercised

 

(19,999)

30 September 2024

 

26,477

 

 

17.
Fair value of financial instruments

 

a.
Fair value of financial instruments

 

IFRS defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

 

b.
Fair value of the Group's financial assets and financial liabilities measured at fair value on a recurring basis

 

Some of the Group's financial assets and financial liabilities are measured at fair value at the end of each reporting period. The following table gives information about how the fair values of these financial assets and financial liabilities are determined (in particular, the valuation technique(s) and inputs used).

26

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

Financial assets/financial liabilities

Fair value as at

31 December

 2023

Fair value as at

30 September

 2024

Fair value hierarchy

Valuation technique(s) and key input(s)

 

 

 

 

 

 

 

 

 

 

Non-derivative financial assets at FVTOCI (Note 11)

3,968

7,886

Level 1

Quoted prices in an active market.

 

Non-derivative financial assets at FVTOCI (Note 11)

1,370,806

1,419,124

Level 2

Quoted prices in markets that are not active.

 

Non-derivative financial assets at FVTOCI (Note 11)

2,322

2,871

Level 3

DCF method with weighted average discount ratio 7.3%

Unlisted Equity investments classified as financial assets at FVTOCI (Note 11)

34

59

Level 3

Adjusted net assets based on most recent published financial statements of unlisted companies with discount for marketability and liquidity. Discount ratios varies from 10% to 30%.

Derivative financial assets (Note 11)

642

1,350

Level 2

DCF method. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.

Derivative financial liabilities (Note 11)

1,165

1,604

Level 2

DCF method. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.

 

As at 31 December 2023, the fair value of the investment securities in Level 2 includes short-term and long-term sovereign debt securities of KZT 407,086 million and KZT 713,131 million, respectively. As at 30 September 2024, the fair value of the investment securities in Level 2 includes short-term and long-term sovereign debt securities of KZT 372,037 million and KZT 777,226 million, respectively. Those investment securities are by nature and for regulatory purposes treated as high quality liquid assets, but are classified as Level 2 due to insufficient trading on regulated market.

 

There were no transfers between Level 1 and Level 2 in the period.

 

27

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

The reconciliation of Level 3 fair value measurements of financial assets is presented as follows:

 

 

 

 

Fair value through other comprehensive

income

 

 

Unquoted debt securities

 

 

Total

1 January 2024

 

2,322

 

 

2,322

 

 

 

 

 

 

Total gains or losses:

 

 

 

 

 

- in profit or loss

 

-

 

 

-

- in other comprehensive income

 

549

 

 

549

Purchases

 

-

 

 

-

Issues

 

-

 

 

-

Disposals/settlements

 

-

 

 

-

Transfer into level 3

 

-

 

 

-

Transfers out of level 3

 

-

 

 

-

 

 

 

 

 

 

30 September 2024

 

2,871

 

 

2,871

 

During the nine months ended 30 September 2023 and 2024, there were no transfers between Level 1, Level 2 and Level 3.

 

c.
Fair value of financial assets and financial liabilities that are not measured at fair value on a recurring basis (but fair value disclosures are required).

 

Except as detailed in the following table, management of the Group considers that the carrying amount of financial assets and financial liabilities recognised in the consolidated financial statements approximate their fair values.

 

 

31 December 2023

 

 

Carrying

amount

 

Fair

value

 

Fair value

hierarchy

 

 

 

 

 

 

Due from banks

30,683

 

30,048

 

Level 2

Loans to customers

4,235,957

 

4,230,722

 

Level 3

Due to banks

154

 

154

 

Level 2

Customer accounts

5,441,456

 

5,382,189

 

Level 2

Debt securities issued

99,468

 

96,666

 

Level 2

Subordinated debt

62,369

 

60,895

 

Level 2

 

 

 

30 September 2024

 

 

Carrying

amount

 

Fair

value

 

Fair value

hierarchy

 

 

 

 

 

 

Due from banks

35,050

 

34,644

 

Level 2

Loans to customers

5,244,716

 

4,952,192

 

Level 3

Due to banks

50,927

 

50,275

 

Level 2

Customer accounts

5,959,138

 

5,907,540

 

Level 2

Debt securities issued

49,831

 

48,625

 

Level 2

Subordinated debt

60,910

 

59,160

 

Level 2

 

28

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

Assets and liabilities for which fair value approximates carrying value

 

For financial assets and liabilities that have a short-term maturity (less than 3 months), it is assumed that the carrying amounts approximate to their fair value. This assumption is also applied to demand deposits and savings accounts without a maturity.

 

Due from banks

 

The estimated fair value of term due from banks is determined by discounting the contractual cash flows using interest rates currently offered for due from banks with similar terms.

 

Loans to customers

 

Loans to individual customers are made at fixed rates. The fair value of fixed rate loans has been estimated by reference to the market rates available at the reporting date for loans with similar maturity profile.

 

Due to banks

 

The estimated fair value of due to banks is determined by discounting the contractual cash flows using interest rates currently offered for due to banks with similar terms.

 

Customer accounts

 

The estimated fair value of term deposits is determined by discounting contractual cash flows using interest rates currently offered for deposits with similar terms. For current accounts which are non-interest bearing, the Group considers fair value to equal carrying value, which is equivalent to the amount payable on the balance sheet date.

 

Debt securities issued, subordinated debt

 

Debt securities issued and subordinated debt are valued using quoted prices.

 

29

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

18.
Transactions with related parties

 

In considering each possible related party relationship, attention is directed to the substance of the relationship, and not merely the legal form. The Group had the following transactions outstanding with related parties:

 

 

31 December 2023

30 September 2024

 

Transactions with related parties

Total

category

as per

financial statements captions

Transactions with related parties

Total

category

as per

financial statements captions

 

 

 

 

 

Consolidated statements of financial position

 

 

 

 

Gross loans to customers

2,435

4,478,489

1,283

5,526,146

- entities controlled by the key management personnel of the Group

2,435

 

1,283

 

 

 

 

 

 

Allowance for impairment losses on loans to customers

(2)

(242,532)

-

(281,430)

- entities controlled by the key management personnel of the Group

(2)

 

-

 

 

 

 

 

 

Other assets

1,196

135,598

1,267

145,018

- entities controlled by the key management personnel of the Group

1,196

 

1,267

 

 

 

 

 

 

Customer accounts

15,259

5,441,456

6,959

5,959,138

- entities controlled by the key management personnel of the Group

9,526

 

1,643

 

- key management personnel of the Group

5,662

 

5,297

 

- other related parties

71

 

19

 

 

 

 

 

 

Other liabilities

5,050

115,272

724

124,257

- entities controlled by the key management personnel of the Group

5,004

 

724

 

- key management personnel of the Group

46

 

-

 

 

30

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

 

 

 

30 September 2023

30 September 2024

 

 

 

Transactions with related parties

Total
category
as per financial statements caption

Transactions with related parties

Total
category
as per
financial statements caption

Consolidated Statements of Profit or Loss

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUE

 

 

 

 

 

 

Net fee revenue

 

 

3,107

682,287

3,199

907,495

- entities controlled by the key management personnel of the Group

 

 

2,994

 

3,075

 

- key management personnel
of the Group

 

 

113

 

124

 

 

 

 

 

 

 

 

Interest revenue

 

 

199

602,604

157

773,757

- entities controlled by the key management personnel of the Group

 

 

199

 

157

 

 

 

 

 

 

 

 

Other gains/(losses)

 

 

2

20,673

-

5,337

- entities controlled by the key management personnel of the Group

 

 

2

 

-

-

 

 

 

 

 

 

 

COSTS AND OPERATING EXPENSES

 

 

 

 

 

 

Interest expense

 

 

(427)

(344,431)

(490)

(451,521)

- entities controlled by the key management personnel of the Group

 

 

(409)

 

(5)

 

- key management personnel of the Group

 

 

(16)

 

(484)

 

- other related parties

 

 

(2)

 

(1)

 

 

Transaction expenses

 

 

(113)

(20,078)

(134)

(21,418)

- entities controlled by the key management personnel of the Group

 

 

(113)

 

(134)

 

 

 

 

 

 

 

 

Cost of goods and services

 

 

(3,065)

(108,085)

(4,856)

(212,147)

- entities controlled by the key management personnel of the Group

 

 

(3,065)

 

(4,856)

 

 

 

 

 

 

 

 

 

Up until its acquisition in October 2023, Kolesa Group was an entity controlled by the key management personnel of the Group and was a party to an agreement, under which we were paying fees to Kolesa Group for car loans generated on Kolesa’s car classifieds platform. During the nine months ended 30 September 2023 and 2024, transaction costs attributable to origination of loans to customers and paid to entities controlled by the key management personnel of the Group, were KZT 3,061 million and KZT Nil, respectively.

 

During the nine months 30 September 2023 and 2024, the total value of goods purchased from entities controlled by the key management personnel was KZT 2,507 million and KZT 4,312 million, respectively, from which KZT 2,600 million and KZT 4,356 million, respectively, recognised in cost of goods and services.

 

During the nine months 30 September 2023 and 2024, the total value of equipment and other assets purchased from entities controlled by the key management personnel was KZT Nil and KZT 1,026 million, respectively.

 

 

31

Joint Stock Company Kaspi.kz

 

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the nine months ended 30 September 2024 (Unaudited)

(in millions of KZT)

 

Compensation to directors and other members of key management is presented as follows:

 

 

 

Nine months ended

30 September 2023

Nine months ended

30 September 2024

 

 

Transactions with related parties

Total category as per financial statements captions

 

Transactions with related parties

Total category as per financial statements captions

Compensation to key management personnel:

 

 

 

 

 

 

Employee benefits

 

(402)

(57,685)

 

(322)

(76,364)

Share-based compensation

 

(3,157)

(11,651)

 

(1,362)

(11,666)

 

 

19.
Regulatory matters

 

The management of Kaspi Bank JSC (“the Bank”-subsidiary of the Company) monitors capital adequacy ratio based on requirements of standardised approach of Basel Committee of Banking Supervision “Basel III: A global regulatory framework for more resilient banks and banking systems” (December 2010, updated in June 2011).

 

The capital adequacy ratios calculated on the basis of the Bank’s consolidated financial statements under Basel III with updated RWA methodology are presented in the following table:

 

 

31 December

2023

 

30 September

2024

 

 

 

 

Tier 1 capital (k1.2)

17.4%

 

17.5%

Total capital (k.2)

18.1%

 

18.0%

 

The Bank complies with NBRK’s capital requirements. The minimum regulatory capital adequacy requirements are 6.5% for k1.2 and 8% for k.2, excluding a conservation buffer of 3% and systemic buffer of 1% for each.

 

The following table presents the Bank’s capital adequacy ratios in accordance with the NBRK requirements:

 

 

31 December

2023

 

30 September

2024

 

 

 

 

Tier 1 capital (k1.2)

12.6%

 

12.5%

Total capital (k.2)

13.0%

 

12.7%

 

 

20.
Subsequent events

 

On 17 October 2024 Kaspi.kz signed a stock purchase agreement to purchase Class A and Class B shares representing 65.41% of the total outstanding share capital of Hepsiburada. The aggregate consideration for the transaction is approximately USD 1,127 million, payable in cash in two tranches: USD 600 million at closing, and USD 527 million no later than in six months post-closing. Subject to customary closing conditions and receipt of regulatory approval by certain Turkish government agencies.

 

On 18 October 2024, the Board of Directors of the Company proposed a dividend of
KZT 850 per share, subject to Shareholder approval.

32