EX-99.1

Joint Stock Company Kaspi.kz

Interim Condensed Consolidated Statements of Other Comprehensive Income

For the three and six months ended 30 June 2023 and 2024 (Unaudited)

(in millions of KZT)


	Notes	Six Months Ended		Three Months Ended
		30 June 2023	30 June 2024	30 June 2023	30 June 2024

REVENUE	4,5,18	834,261	1,152,051	439,257	599,237
Net fee revenue		415,454	578,065	218,906	302,913
Interest revenue		385,438	490,137	200,118	249,836
Retail revenue		21,106	75,674	13,092	40,104
Other gains		12,263	8,175	7,141	6,384

COSTS AND OPERATING EXPENSES	6,18	(392,961)	(586,667)	(205,563)	(302,950)
Interest expenses		(220,474)	(292,584)	(113,510)	(147,085)
Transaction expenses		(12,840)	(13,409)	(6,881)	(7,078)
Cost of goods and services		(67,336)	(135,698)	(35,988)	(72,620)
Technology & product development		(37,941)	(52,674)	(19,937)	(26,244)
Sales & marketing		(8,729)	(20,407)	(4,575)	(10,473)
General & administrative expenses		(11,679)	(15,165)	(5,901)	(7,773)
Provision expenses	7	(33,962)	(56,730)	(18,771)	(31,677)

NET INCOME BEFORE TAX		441,300	565,384	233,694	296,287

Income tax	8	(73,015)	(99,327)	(39,618)	(53,670)

NET INCOME		368,285	466,057	194,076	242,617

Attributable to:
Shareholders of the Company		365,917	458,150	192,814	238,551
Non-controlling interest		2,368	7,907	1,262	4,066
NET INCOME		368,285	466,057	194,076	242,617

Earnings per share
Basic (KZT)	9	1,925	2,416	1,014	1,256
Diluted (KZT)	9	1,909	2,397	1,005	1,246

Joint Stock Company Kaspi.kz

Interim Condensed Consolidated Statements of Other Comprehensive Income

For the three and six months ended 30 June 2023 and 2024 (Unaudited)

(in millions of KZT)


	Six Months Ended		Three Months Ended
	30 June 2023	30 June 2024	30 June 2023	30 June 2024
NET INCOME	368,285	466,057	194,076	242,617

OTHER COMPREHENSIVE INCOME
Items that will not be reclassified subsequently to profit or loss:
Movement in investment revaluation reserve for equity instruments at FVTOCI	19	38	6	15
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	16,792	(20,021)	3,439	(52,386)
Expected credit losses/(recoveries) recognised in profit or loss	184	(259)	19	35
Reclassification of losses included in profit or loss, net of tax KZT Nil	1,101	1,578	1,097	2,002
Foreign exchange differences on translation of foreign operations	188	(391)	50	(393)

Other comprehensive gain/(loss) for the period	18,284	(19,055)	4,611	(50,727)

TOTAL COMPREHENSIVE INCOME	386,569	447,002	198,687	191,890
Attributable to:
Shareholders of the Company	384,009	439,295	197,377	188,357
Non-controlling interest	2,560	7,707	1,310	3,533
TOTAL COMPREHENSIVE INCOME	386,569	447,002	198,687	191,890

Joint Stock Company Kaspi.kz

Interim Condensed Consolidated Statements of Financial Position

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

(in millions of KZT)


	Notes	31 December 2023	30 June 2024
ASSETS:
Cash and cash equivalents	10	820,466	594,862
Mandatory cash balances with National Bank of the Republic of Kazakhstan		47,110	48,422
Due from banks	17	30,683	33,697
Investment securities and derivatives	11,17	1,377,772	1,294,151
Loans to customers	12,17,18	4,235,957	4,857,315
Property, equipment and intangible assets		174,346	186,984
Other assets	18	135,598	152,458

TOTAL ASSETS		6,821,932	7,167,889

LIABILITIES AND EQUITY

LIABILITIES:
Due to banks	13,17	154	27,020
Customer accounts	14,17,18	5,441,456	5,697,335
Debt securities issued	17	99,468	51,049
Subordinated debt	17	62,369	62,348
Other liabilities	18	115,272	99,158

TOTAL LIABILITIES		5,718,719	5,936,910

EQUITY:
Issued capital	15	130,144	130,144
Treasury shares	15	(152,001)	(151,521)
Additional paid-in-capital		506	506
Revaluation reserve/(deficit) of financial assets and other reserves		9,719	(9,136)
Share-based compensation reserve	16	34,810	22,589
Retained earnings		1,054,945	1,206,734
Total equity attributable to Shareholders of the Company		1,078,123	1,199,316
Non-controlling interest		25,090	31,663
TOTAL EQUITY		1,103,213	1,230,979

TOTAL LIABILITIES AND EQUITY		6,821,932	7,167,889

Joint Stock Company Kaspi.kz

Interim Condensed Consolidated Statements of Changes in Equity

For the six months ended 30 June 2023 and 2024 (Unaudited)

(in millions of KZT)


	Issued capital	Treasury shares	Additional paid- in capital	Revaluation reserve/(deficit) 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	-	-	-	-	-	365,917	365,917	2,368	368,285
Other comprehensive income	-	-	-	18,092	-	-	18,092	192	18,284
Total comprehensive income	-	-	-	18,092	-	365,917	384,009	2,560	386,569
Acquisition of subsidiary with non-controlling interest	-	-	-	-	-	(2,080)	(2,080)	2,080	-
Dividends declared	-	-	-	-	-	(256,726)	(256,726)	-	(256,726)
Dividends declared by subsidiary to non-controlling interest	-	-	-	-	-	-	-	(1,958)	(1,958)
Share options accrued	-	-	-	-	7,699	-	7,699	-	7,699
Share options exercised	-	2,760	-	-	(15,323)	12,563	-	-	-
Share buy-back program	-	(35,625)	-	-	-	-	(35,625)	-	(35,625)
Balance at 30 June 2023	130,144	(126,923)	506	8,891	21,650	882,174	916,442	9,206	925,648
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	-	-	-		-	458,150	458,150	7,907	466,057
Other comprehensive loss	-	-	-	(18,855)	-	-	(18,855)	(200)	(19,055)
Total comprehensive income	-	-	-	(18,855)	-	458,150	439,295	7,707	447,002
Dividends declared	-	-	-	-	-	(323,028)	(323,028)	-	(323,028)
Dividends declared by subsidiary to non-controlling interest	-	-	-	-	-	-	-	(1,134)	(1,134)
Share options accrued	-	-	-	-	7,778	-	7,778	-	7,778
Share options exercised	-	3,332	-	-	(19,999)	16,667	-	-	-
Share buyback program	-	(2,852)	-	-	-	-	(2,852)	-	(2,852)
Balance at 30 June 2024	130,144	(151,521)	506	(9,136)	22,589	1,206,734	1,199,316	31,663	1,230,979

Joint Stock Company Kaspi.kz

Interim Condensed Consolidated Statements of Cash Flows

For the six months ended 30 June 2023 and 2024 (Unaudited)

(in millions of KZT)


	Six months ended 30 June 2023		Six months ended 30 June 2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Interest received from loans to customers	275,138		368,736
Other interest received	37,611		99,145
Interest paid	(209,453	)	(284,414	)
Expenses paid on obligatory insurance of individual deposits	(4,903	)	(6,073	)
Net fee revenue received	414,912		584,267
Retail revenue received	21,099		75,674
Sales & marketing expenses paid	(8,523	)	(20,260	)
Other income received	12,232		7,693
Transaction expenses paid	(12,840	)	(13,409	)
Cost of goods and services purchased	(64,209	)	(134,938	)
Technology & product development expenses paid	(23,118	)	(35,749	)
General & administrative expenses paid	(6,522	)	(10,758	)
Cash flows from operating activities before changes in operating assets and liabilities	431,424		629,914

Changes in operating assets and liabilities
Decrease/(increase) in operating assets:
Mandatory cash balances with NBRK	(1,542	)	(1,312	)
Due from banks	(735	)	(4,070	)
Financial assets at FVTPL	4,066		(7,260	)
Loans to customers	(197,243	)	(666,379	)
Other assets	(33,906	)	(18,246	)
Increase/(decrease) in operating liabilities:
Due to banks	122,783		26,860
Customer accounts	525,381		244,847
Financial liabilities at FVTPL	458		(547	)
Other liabilities	2,912		(21,861	)

Cash inflow from operating activities before income tax	853,598		181,946

Income tax paid	(71,210	)	(82,153	)

Net cash inflow from operating activities	782,388		99,793


CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property, equipment and intangible assets	(29,037	)	(32,394	)
Proceeds on sale of property and equipment	142		148
Proceeds on disposal of investment securities at FVTOCI	997,852		470,011
Purchase of investment securities at FVTOCI	(1,484,513	)	(394,144	)
Acquisitions of subsidiaries, net of cash and cash equivalent acquired	(4,820	)	-

Net cash inflow/(outflow) from investing activities	(520,376	)	43,621

Joint Stock Company Kaspi.kz

Interim Condensed Consolidated Statements of Cash Flows (continued)

For the six months ended 30 June 2023 and 2024 (Unaudited)

(in millions of KZT)


	Six months ended 30 June 2023	Six months ended 30 June 2024

CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid	(256,726)	(323,028)
Dividends paid by subsidiary to non-controlling interest	(1,958)	(1,134)
Purchase of treasury shares	(35,625)	(2,852)
Repayment of debt securities issued	(41,261)	(51,195)
Repayment of subordinated debt	(5,300)	-
Net cash outflow from financing activities	(340,870)	(340,870)

Effect of changes in foreign exchange rate on cash and cash equivalents	(9,222)	9,191

NET DECREASE IN CASH AND CASH EQUIVALENTS	(88,080)	(225,604)

CASH AND CASH EQUIVALENTS, beginning of period	615,360	820,466

CASH AND CASH EQUIVALENTS, end of period	527,280	594,862

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information

For the six months ended 30 June 2024 (Unaudited)

(in millions of KZT)

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.

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 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 June 2024 %
Baring Funds*	27.53	25.45
Mikheil Lomtadze	24.67	22.60
Vyacheslav Kim	23.47	21.40
Public Investors	20.92	26.88
Management	3.41	3.67

Total	100.00	100.00

*As at 31 December 2023 and 30 June 2024, Asia Equity Partners Limited held 21.06% and 19.00% 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 26 July 2024.

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.

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 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 June 2024

KZT/USD	454.56	471.46
KZT/EUR	502.24	504.79

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.

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2024 (Unaudited)

(in millions of KZT)

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.


	Six months ended 30 June 2023	Six months ended 30 June 2024	Three months ended 30 June 2023	Three months ended 30 June 2024

REVENUE	834,261	1,152,051	439,257	599,237
Fee revenue	433,844	604,688	228,042	316,568
Interest revenue	385,438	490,137	200,118	249,836
Retail revenue	21,106	75,674	13,092	40,104
Rewards	(18,390)	(26,623)	(9,136)	(13,655)
Other gains	12,263	8,175	7,141	6,384

Revenue by segments is presented below:


	Six months ended 30 June 2023	Six months ended 30 June 2024	Three months ended 30 June 2023	Three months ended 30 June 2024
Payments	214,141	265,313	112,936	138,716
Payments fee revenue	163,779	207,423	86,983	109,613
Interest revenue	50,362	57,890	25,953	29,103

Marketplace	158,316	319,056	85,985	168,606
Marketplace fee revenue	135,321	242,481	71,885	127,883
Retail revenue	21,106	75,674	13,092	40,104
Other gains	1,889	901	1,008	619

Fintech	480,194	598,086	249,472	307,485
Interest revenue	335,076	432,247	174,165	220,733
Fintech fee revenue	134,744	158,565	69,174	80,987
Other gains	10,374	7,274	6,133	5,765
Intergroup	-	(3,781)	-	(1,915)
Segment Revenue	852,651	1,178,674	448,393	612,892
Rewards	(18,390)	(26,623)	(9,136)	(13,655)
REVENUE	834,261	1,152,051	439,257	599,237

For the six months ended 30 June 2024, intergroup represents Marketplace fee revenue that was offset by Marketing expense, for activities to attract consumers of Fintech loans.

Other gains are mainly net gains on foreign exchange operations and net gains on financial assets and liabilities. For the six months ended 30 June 2023 and 2024, the net gains on foreign exchange operations were KZT 4,566 million and KZT 1,445 million, respectively. For the three months ended 30 June 2023 and 2024, net gains on foreign exchange operations were
KZT 2,657 million and KZT 522 million, respectively.

For the six months ended 30 June 2023 and 2024, the net gains on financial assets and liabilities were KZT 5,536 million and KZT 5,336 million, respectively. For the three months ended
30 June 2023 and 2024, net gains on financial assets and liabilities at FVTPL were
KZT 3,399 million and KZT 4,950 million, respectively.

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2024 (Unaudited)

(in millions of KZT)

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


	Six months ended 30 June 2023	Six months ended 30 June 2024	Three months ended 30 June 2023	Three months ended 30 June 2024
Goods and services transferred at point in time	307,477	510,052	165,391	269,614
Payments fee revenue - Transaction Revenue	151,050	191,897	80,414	101,627
Marketplace fee revenue - Seller Fees	135,321	242,481	71,885	127,883
Retail revenue	21,106	75,674	13,092	40,104
Goods and services transferred over time	147,473	174,091	75,743	88,973
Payments fee revenue - Membership Revenue	12,729	15,526	6,569	7,986
Fintech fee revenue - Membership Revenue	1,528	1,720	796	895
Fintech fee revenue - Fintech banking service fees	133,216	156,845	68,378	80,092
TOTAL FEE AND RETAIL REVENUE	454,950	684,143	241,134	358,587

Segment Reporting

The Group reports its business in three operating segments.

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


	Six months ended 30 June 2023	Six months ended 30 June 2024	Three months ended 30 June 2023	Three months ended 30 June 2024

SEGMENT REVENUE	852,651	1,178,674	448,393	612,892
Payments	214,141	265,313	112,936	138,716
Marketplace	158,316	319,056	85,985	168,606
Fintech	480,194	598,086	249,472	307,485
Intergroup	-	(3,781)	-	(1,915)

NET INCOME	368,285	466,057	194,076	242,617
Payments	137,592	169,644	72,902	88,636
Marketplace	86,612	148,888	46,160	77,546
Fintech	144,081	147,525	75,014	76,435

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.

For the six months ended 30 June 2023 and 2024, costs and operating expenses that are deducted from revenue, include interest expenses of KZT 220,474 million and
KZT 292,584 million, respectively, provision expenses were KZT 33,962 million and
KZT 56,730 million, respectively, both attributable to Fintech Segment, share-based compensation expenses and other expenses recognised across the segments.

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2024 (Unaudited)

(in millions of KZT)

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:


	Six months ended 30 June 2023	Six months ended 30 June 2024	Three months ended 30 June 2023	Three months ended 30 June 2024

SHARE-BASED COMPENSATION	(7,699)	(7,778)	(3,949)	(3,889)
Payments	(2,513)	(2,935)	(1,279)	(1,467)
Marketplace	(796)	(996)	(405)	(501)
Fintech	(4,390)	(3,847)	(2,265)	(1,921)

Costs and operating expenses


	Six months ended 30 June 2023	Six months ended 30 June 2024	Three months ended 30 June 2023	Three months ended 30 June 2024

COSTS AND OPERATING EXPENSES	(392,961)	(586,667)	(205,563)	(302,950)
Interest expenses	(220,474)	(292,584)	(113,510)	(147,085)
Transaction expenses	(12,840)	(13,409)	(6,881)	(7,078)
Cost of goods and services	(67,336)	(135,698)	(35,988)	(72,620)
Technology & product development	(37,941)	(52,674)	(19,937)	(26,244)
Sales & marketing	(8,729)	(20,407)	(4,575)	(10,473)
General & administrative expenses	(11,679)	(15,165)	(5,901)	(7,773)
Provision expenses (Note 7)	(33,962)	(56,730)	(18,771)	(31,677)

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 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.

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2024 (Unaudited)

(in millions of KZT)

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:


	Six months ended 30 June 2023			Six months ended 30 June 2024
	Employee benefits	Depreciation & amortisation	Operating lease		Employee benefits	Depreciation & amortisation	Operating lease
Cost of goods and services	(10,983)	(237)	(649)		(13,869)	-	(626)
Technology & product development	(18,139)	(9,605)	(1,530)		(26,446)	(12,157)	(2,547)
Sales & marketing	(816)	-	(59)		(1,393)	-	(69)
General & administrative expenses	(7,706)	(1,739)	(125)		(8,518)	(1,922)	(516)
Total	(37,644)	(11,581)	(2,363)		(50,226)	(14,079)	(3,758)


	Three months ended 30 June 2023			Three months ended 30 June 2024
	Employee benefits	Depreciation & amortisation	Operating lease		Employee benefits	Depreciation & amortisation	Operating lease
Cost of goods and services	(5,654)	-	(325)		(7,083)	-	(316)
Technology & product development	(9,224)	(5,092)	(735)		(13,165)	(5,967)	(1,374)
Sales & marketing	(422)	-	(47)		(702)	-	(32)
General & administrative expenses	(4,032)	(871)	(27)		(4,480)	(942)	(272)
Total	(19,332)	(5,963)	(1,134)		(25,430)	(6,909)	(1,994)

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:


	Six months ended 30 June 2023	Six months ended 30 June 2024	Three months ended 30 June 2023	Three months ended 30 June 2024

SHARE-BASED COMPENSATION	(7,699)	(7,778)	(3,949)	(3,889)
Cost of goods and services	(658)	(658)	(329)	(329)
Technology & product development	(3,496)	(4,470)	(1,755)	(2,235)
Sales & marketing	(252)	(270)	(126)	(135)
General & administrative expenses	(3,293)	(2,380)	(1,739)	(1,190)

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2024 (Unaudited)

(in millions of KZT)

Provision expenses

The movements in loss allowance for the six months ended 30 June 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		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	11,304		(988	)	(10,316	)	-	-		-	-	-	-		-	-
-Transfer to Stage 2	(5,248	)	7,724		(2,476	)	-	(1	)	1	-	-	-		-	-
-Transfer to Stage 3	(5,958	)	(9,248	)	15,206		-	-		-	-	-	-		-	-
Net changes, resulting from changes in credit risk parameters	(23,525	)	7,907		28,432		(1)	(19	)	180	-	4	1,207		18	14,203
New assets issued or acquired	36,710		-		-		-	24		-	-	-	-		-	36,734
Repaid assets (except for write-off)	(18,442	)	(1,183	)	(6,413	)	-	-		-	-	-	-		-	(26,038	)
Modification effect	-		-		9,063		-	-		-	-	-	-		-	9,063
Total effect on Consolidated Statements of Profit or Loss	(5,257	)	6,724		31,082		(1)	5		180	-	4	1,207		18	33,962
Write-off, net of recoveries	-		-		(32,973	)	-	-		-	-	-	(3,737	)	-	(36,710	)
Foreign exchange difference	-		-		(3	)	-	-		-	-	-	(31	)	-	(34	)
As at 30 June 2023	62,445		15,997		135,833		5	86		837	-	7	5,233		57	220,500

The movements in loss allowance for the six months ended 30 June 2024 were as follows:

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2024 (Unaudited)

(in millions of KZT)


	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	20,791		(2,974	)	(17,817	)	-	-		-	-		-		-	-	-		-
-Transfer to Stage 2	(6,488	)	13,094		(6,606	)	-	-		-	-		-		-	-	-		-
-Transfer to Stage 3	(8,693	)	(10,981	)	19,674		-	-		-	-		-		-	-	-		-
Net changes, resulting from changes in credit risk parameters	(27,400	)	10,319		37,905		1,438	(1	)	182	(14	)	(549	)	8	954	(11	)	22,831
New assets issued or acquired	43,837		-		-		-	-		121	-		-		-	-	-		43,958
Repaid assets (except for write-off)	(16,563	)	(1,508	)	(5,629	)	-	-		-	-		-		-	-	-		(23,700	)
Modification effect	-		-		13,641		-	-		-	-		-		-	-	-		13,641
Total effect on Consolidated Statements of Profit or Loss	(125	)	8,811		45,917		1,438	(1	)	303	(14	)	(549	)	8	954	(11	)	56,730
Write-off, net of recoveries	-		-		(28,593	)	-	-		-	-		-		-	668	-		(27,925	)
Foreign exchange difference	-		-		(2	)	-	-		-	-		-		-	-	-		(2	)
As at 30 June 2024	65,423		24,240		178,615		1,699	5		417	144		587		31	7,262	24		278,447

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 June 2024, the allowance for impairment losses on financial assets at FVTOCI of KZT 1,408 million and

KZT 1,148 million, respectively, is included in the ‘Revaluation reserve of financial assets and other reserves’ within equity.

During the six months ended 30 June 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.

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2024 (Unaudited)

(in millions of KZT)

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 June 2024

Vacation reserve, accrued bonuses and share-based compensation	1,242	822
Property, equipment and intangible assets	(4,012)	(3,597)
Other	527	(546)
Net deferred tax liability	(2,243)	(3,321)

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


	Six months ended 30 June 2023	Six months ended 30 June 2024	Three months ended 30 June 2023	Three months ended 30 June 2024
Net income before tax	441,300	565,384	233,694	296,287
Tax at the statutory tax rate of 20%	(88,260)	(113,077)	(46,739)	(59,258)
Non-taxable income	18,609	16,438	9,818	7,458
Non-deductible expense	(3,364)	(2,688)	(2,697)	(1,870)

Income tax expense	(73,015)	(99,327)	(39,618)	(53,670)

Current income tax expense	(74,220)	(98,249)	(39,331)	(52,351)
Deferred income tax (expense)/benefit	1,205	(1,078)	(287)	(1,319)
Income tax expense	(73,015)	(99,327)	(39,618)	(53,670)

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 June 2023	30 June 2024
Net deferred tax liability:
At the beginning of the period	(3,205)	(2,243)
Change in deferred income tax balances recognised in profit or loss	1,205	(1,078)
At the end of the period	(2,000)	(3,321)

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2024 (Unaudited)

(in millions of KZT)

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 reporting period. For the purpose of diluted earnings per share calculation, the Group considers dilutive effects of share-based compensation.


	30 June 2023	30 June 2024
Net income attributable to the shareholders of the Company	365,917	458,150
Weighted average number of common shares for basic earnings per share	190,058,759	189,646,358
Weighted average number of common shares for diluted earnings per share	191,714,789	191,101,618
Earnings per share – basic (KZT)	1,925	2,416
Earnings per share – diluted (KZT)	1,909	2,397

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


	30 June	30 June
	2023	2024
Weighted average number of common shares for basic earnings per share	190,058,759	189,646,358
Number of potential common shares attributable to share-based compensation	1,656,030	1,455,260
Weighted average number of common shares for diluted earnings per share	191,714,789	191,101,618

10.

Cash and cash equivalents


	31 December 2023	30 June 2024

Cash on hand	259,639	181,005
Current accounts with other banks	274,534	134,345
Short-term deposits with other banks	216,217	279,195
Reverse repurchase agreements	70,076	317

Total cash and cash equivalents	820,466	594,862

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

As at 31 December 2023 and 30 June 2024, current accounts and short-term deposits with NBRK are KZT 90,098 million and KZT 182,174 million, respectively.

As at 31 December 2023 and 30 June 2024, the fair value of collateral of reverse repurchase agreements classified as cash and cash equivalents, are KZT 70,160 million and KZT 319 million, respectively.

As at 31 December 2023 and 30 June 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 30,551 million, respectively.

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2024 (Unaudited)

(in millions of KZT)

11.

Investment securities and derivatives

Investment securities and derivatives comprise:


	31 December 2023	30 June 2024

Total financial assets at FVTOCI	1,377,130	1,290,008
Total financial assets at FVTPL	642	4,143

Total investment securities and derivatives	1,377,772	1,294,151
Financial assets at FVTOCI comprise:	31 December 2023	30 June 2024

Debt securities	1,376,728	1,289,582
Equity investments	402	426

Total financial assets at FVTOCI	1,377,130	1,290,008


	Interest rate, %	31 December 2023	Interest rate, %	30 June 2024
Debt securities
Bonds of the Ministry of Finance of the Republic of Kazakhstan	0.60-16.70	930,726	0.60-16.70	1,010,976
Corporate bonds	2.00-15.88	252,946	2.00-15.88	273,703
Sovereign bonds of foreign countries	0.63-3.50	1,687	0.63-3.50	1,929
Discount notes of the NBRK	14.44	191,369	12.53	2,974

Total debt securities		1,376,728		1,289,582


	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 June 2024	34,497	1,173,344	4,383	77,358	1,289,582

Financial assets at FVTPL comprise:


	31 December 2023	30 June 2024

Derivative financial instruments	642	4,143
Total financial assets at FVTPL	642	4,143

As at 30 June 2024, financial assets at FVTPL included swap and spot instruments of
KZT 1,825 million (2023: KZT 642 million) with a notional amount of KZT 196,129 million
(2023: KZT 165,555 million) and forwards of KZT 2,318 (2023: KZT Nil) with a notional amount of KZT 82,506 (2023: KZT Nil).

As at 30 June 2024, financial liabilities at FVTPL included swap and spot instruments of
KZT 10 million (2023: KZT 187 million) with a notional amount of KZT 200,998 million

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2024 (Unaudited)

(in millions of KZT)

(2023: KZT 164,686 million) and forwards of KZT 609 million (2023: KZT 978 million) with a notional amount of KZT 86,845 million (2023: KZT 14,739 million).

As at 31 December 2023 and 30 June 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 10,010 million, respectively (Note 13).

During the six months ended 30 June 2024, the Group has recognised the loss in revaluation of FVTOCI, which mainly relates to revaluation of some government securities. Those losses have been reversed in the subsequent period.

12.

Loans to customers


	31 December 2023	30 June 2024

Gross loans to customers	4,478,489	5,127,292
Allowance for impairment losses (Note 7)	(242,532)	(269,977)

Total loans to customers	4,235,957	4,857,315

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 six months ended 30 June 2023 and 2024 are disclosed in Note 7.

As at 31 December 2023 and 30 June 2024, accrued interest of KZT 46,207 million and
KZT 57,441 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”). 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%. These loans were classified in Stage 3.

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 June 2024	286,316	269,977	94%

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2024 (Unaudited)

(in millions of KZT)

Provision expenses on loans to customers:


	Six months ended 30 June 2023	Six months ended 30 June 2024	Three months ended 30 June 2023	Three months ended 30 June 2024
Provision expenses on loans to customers:
Loans to customers	(32,549)	(56,040)	(17,917)	(31,118)
Total provision expenses on loans to customers	(32,549)	(56,040)	(17,917)	(31,118)

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	4,618,186	83,296	411,512	14,298	5,127,292
Allowance for impairment losses	(65,423)	(24,240)	(178,615)	(1,699)	(269,977)
Carrying amount as at 30 June 2024	4,552,763	59,056	232,897	12,599	4,857,315

During the six months ended 30 June 2023 and 2024, the Group has restructured loans to customers, which were classified as NPL, in the amount of KZT 45,473 million and
KZT 57,678 million, respectively, by providing an interest free extended repayment schedule. During the six months ended 30 June 2023 and 2024, KZT 14,499 million and
KZT 26,398 million, respectively, of restructured loans were collected.

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

Stage 3 amounted to the gross carrying amount of KZT 57,571 million and KZT 72,928 million, respectively.

As at 31 December 2023 and 30 June 2024, the Group’s restructured loans in Stage 2 amounted to the gross carrying amount of KZT 8,821 million and KZT 11,229 million, respectively.

As at 31 December 2023 and 30 June 2024, the Group’s restructured loans in Stage 1 amounted to the gross carrying amount of KZT 1,568 million and KZT 7,963 million, respectively.

As at 31 December 2023 and 30 June 2024, the Group’s restructured loans recognized as POCI amounted to the gross carrying amount of KZT 10,504 million and KZT 14,298 million, respectively.

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2024 (Unaudited)

(in millions of KZT)

13.

Due to banks


	31 December 2023	30 June 2024
Recorded at amortised cost:
Time deposits of banks and other financial institutions	-	17,013
Repurchase agreements	154	10,007

Total due to banks	154	27,020

As at 31 December 2023 and 30 June 2024, accrued interest of KZT 1 million and KZT 20 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 June 2024, amounted to

KZT 154 million and KZT 10,010 million, respectively.

14.

Customer accounts


	31 December 2023	30 June 2024

Individuals
Term deposits	4,316,825	4,618,578
Current accounts	826,328	827,295
Total due to individuals	5,143,153	5,445,873

Corporate customers
Term deposits	44,233	40,735
Current accounts	254,070	210,727
Total due to corporate customers	298,303	251,462

Total customer accounts	5,441,456	5,697,335

As at 31 December 2023 and 30 June 2024, accrued interest of KZT 44,044 million and
KZT 48,077 million, respectively, was included in term deposits within customer accounts.

As at 31 December 2023 and 30 June 2024, customer accounts of KZT 60,260 million and
KZT 58,105 million, respectively, were held as security against loans to customers.

As at 31 December 2023 and 30 June 2024, customer accounts of KZT 97,806 million (1.80% of total customer accounts) and KZT 90,192 million (1.58% of total customer accounts), respectively, were due to the top twenty customers.

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

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 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 June 2024	216,742,000	199,500,000	(9,484,271	)	190,015,729

During the years ended 31 December 2022, 2023 and six months ended 30 June 2024, the Board of Directors approved six 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 June 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 2022	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 June 2024	130,144	(151,521)	(21,377)

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2024 (Unaudited)

(in millions of KZT)

The following tables represent dividends declared:


	Dividends declared	Dividend per share

February 2023	119,700	KZT 600
April 2023	149,625	KZT 750
Total for the period ended 30 June 2023	269,325


	Dividends declared	Dividend per share

February 2024	161,514	KZT 850
April 2024	161,514	KZT 850
Total for the period ended 30 June 2024	323,028

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 June 2023	30 June 2024

Share-based compensation expense	(7,699)	(7,778)
Share options	(7,699)	(7,778)

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 June 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.

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2024 (Unaudited)

(in millions of KZT)

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


	31 December 2023 (GDRs)	30 June 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 June 2024, 618,788 GDR options and
747,178 GDR options, respectively, were exercised and GDRs were issued from treasury shares.

he 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		7,778
GDR options exercised		(19,999)
30 June 2024		22,589

17.

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.

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).

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2024 (Unaudited)

(in millions of KZT)


Financial assets/financial liabilities	Fair value as at 31 December 2023	Fair value as at 30 June 2024	Fair value hierarchy	Valuation technique(s) and key input(s)


Non-derivative financial assets at FVTOCI (Note 11)	3,968	2,826	Level 1	Quoted prices in an active market.
Non-derivative financial assets at FVTOCI (Note 11)	1,370,806	1,274,778	Level 2	Quoted prices in markets that are not active.
Non-derivative financial assets at FVTOCI (Note 11)	2,322	12,347	Level 3	DCF method with weighted average discount ratio 7.3%
Unlisted Equity investments classified as financial assets at FVTOCI (Note 11)	34	57	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	4,143	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	619	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 June 2024, the fair value of the investment securities in Level 2 includes short-term and long-term sovereign debt securities of KZT 371,464 million and KZT 642,485 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.

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 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	458		458
Purchases	9,567		9,567
Issues	-		-
Disposals/settlements	-		-
Transfer into level 3	-		-
Transfers out of level 3	-		-

30 June 2024	12,347		12,347

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

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 June 2024
	Carrying amount	Fair value	Fair value hierarchy

Due from banks	33,697	33,475	Level 2
Loans to customers	4,857,315	4,805,818	Level 3
Due to banks	27,020	26,981	Level 2
Customer accounts	5,697,335	5,645,991	Level 2
Debt securities issued	51,049	49,838	Level 2
Subordinated debt	62,348	60,579	Level 2

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 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.

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 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 June 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	2,124	5,127,292
- entities controlled by the key management personnel of the Group	2,435		2,124

Allowance for impairment losses on loans to customers	(2)	(242,532)	-	(269,977)
- entities controlled by the key management personnel of the Group	(2)		-

Other assets	1,196	135,598	1,563	152,458
- entities controlled by the key management personnel of the Group	1,196		1,563

Customer accounts	15,259	5,441,456	14,342	5,697,335
- entities controlled by the key management personnel of the Group	9,526		1,700
- key management personnel of the Group	5,662		12,626
- other related parties	71		16

Other liabilities	5,050	115,272	1,407	99,158
- entities controlled by the key management personnel of the Group	5,004		1,363
- key management personnel of the Group	46		44

Joint Stock Company Kaspi.kz

Notes to the Interim Condensed Consolidated Financial Information (Continued)

For the six months ended 30 June 2024 (Unaudited)

(in millions of KZT)


	30 June 2023			30 June 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		2,204	415,454	1,930	578,065
- entities controlled by the key management personnel of the Group		2,130		1,846
- key management personnel of the Group		74		84

Interest revenue		136	385,438	108	490,137
- entities controlled by the key management personnel of the Group		136		108

Other gains		2	12,263	-	8,175
- entities controlled by the key management personnel of the Group		2		-

COSTS AND OPERATING EXPENSES
Interest expense		(164)	(220,474)	(403)	(292,584)
- entities controlled by the key management personnel of the Group		(158)		-
- key management personnel of the Group		(5)		(402)
- other related parties		(1)		(1)
Transaction expenses		(90)	(12,840)	(40)	(13,409)
- entities controlled by the key management personnel of the Group		(90)		(40)

Cost of goods and services		(1,923)	(67,336)	(3,549)	(135,698)
- entities controlled by the key management personnel of the Group		(1,923)		(3,549)

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 six months ended 30 June 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 six months 30 June 2023 and 2024, the total value of goods purchased from entities controlled by the key management personnel was KZT 1,626 and KZT 3,248 million, respectively, from which KZT 1,595 and KZT 3,194 million, respectively, recognised in cost of goods and services and remaining in inventory.

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


	31 December 2023	30 June 2024

Tier 1 capital (k1.2)	17.4%	18.0%
Total capital (k.2)	18.1%	18.1%