Financial Performance - Net cash inflow from operating activities decreased by 47% to ₸581,892 million in 2024 from ₸1,106,128 million in 2023[627] - Net cash outflow from investing activities decreased by 50% to ₸108,364 million in 2024 from ₸218,360 million in 2023[629] - Net cash outflow from financing activities increased by 5% to ₸709,771 million in 2024 from ₸675,970 million in 2023[630] - Net interest income rose to ₸466,552 million in 2024, up from ₸355,848 million in 2023, representing a year-over-year increase of 31.1%[686] - The net interest margin for 2024 was reported at 7.0%, compared to 6.8% in 2023[686] Assets and Liabilities - Total assets increased by 23% to ₸8,377,101 million as of December 31, 2024, from ₸6,821,932 million as of December 31, 2023[632] - Total interest-bearing liabilities rose from ₸3,868,161 million in 2023 to ₸4,928,531 million in 2024, an increase of 27.5%[681] - The total loans to customers accounted for 69% of total assets as of December 31, 2024[635] - Total investment securities and derivatives rose by 9% to ₸1,506,831 million as of December 31, 2024, compared to ₸1,377,772 million as of December 31, 2023[646] Loans and Customer Accounts - Loans to customers increased by 36% to ₸5,746,600 million as of December 31, 2024, from ₸4,235,957 million as of December 31, 2023[637] - The total loan portfolio's net of loss allowance increased to ₸5,746,600 million in 2024, compared to ₸4,235,957 million in 2023, an increase of 35.7%[694] - Customer accounts, including term deposits and current accounts, reached ₸6,561,950 million as of December 31, 2024, representing 98% of total funding[651] - Customer accounts increased by 21% to ₸6,561,950 million as of December 31, 2024, up from ₸5,441,456 million in 2023 and ₸4,000,690 million in 2022[652] Impairment and Loss Allowance - The allowance for impairment losses to gross non-performing loans (NPLs) was 90% as of December 31, 2024[639] - The total loss allowance for loans increased to ₸295,843 million in 2024, up from ₸242,532 million in 2023, reflecting a rise of 22.0%[694] - The ratio of net charge-offs to total average loans to customers was 2.1% in 2024, up from 2.0% in 2023, indicating a slight increase in charge-offs[697] Deposits and Funding - Term deposits increased to ₸5,434,135 million as of December 31, 2024, accounting for 81% of total funding[651] - The average balance of term deposits increased from ₸2,449,614 million in 2022 to ₸3,622,544 million in 2023, with a projected average of ₸4,714,162 million in 2024, reflecting a growth rate of 12.5%[699] - Approximately 94% of term deposits are rolled over on a yearly basis, indicating a stable deposit base[700] Capital and Ratios - Tier 1 capital adequacy ratio improved to 17.6% as of December 31, 2024, from 17.4% in 2023, with Tier 1 capital increasing to ₸983 million[671] - The average interest rate paid on customer term deposits increased from 10.2% in 2022 to 12.5% in 2023 and 2024, reflecting higher prevailing interest rates[653] Risk Management - The company is exposed to various risks, including credit risk, liquidity risk, and market risk, which are regularly assessed to minimize adverse effects[856] - The deposit insurance scheme in Kazakhstan protects deposits up to ₸10 million per depositor for tenge deposits and ₸5 million for foreign currency deposits[699] Intellectual Property - The company actively protects its intellectual property, including significant brand names and trademarks related to "Kaspi.kz"[701] - The company owns or has rights to all material intellectual property used in its operations, ensuring compliance with licensing terms[701] Financial Reporting - The financial statements are prepared in accordance with IFRS, with critical accounting estimates disclosed in the financial statements[703] - For detailed discussions on trends affecting net sales, revenues, and profitability, refer to the operating and financial review sections of the annual report[702]

Core Insights - Kaspi.kz has received its second international credit rating, with Moody's rating it Baa3 and Fitch rating it BBB- [1][2] - The ratings reflect Kaspi.kz's diverse business profile, strong market position, and solid financials, including profitability and liquidity [2][7] - The company is expanding into Türkiye through the acquisition of a 65.41% stake in Hepsiburada, a leading e-commerce platform [5] Company Overview - Kaspi.kz operates a unique two-sided Super App model, catering to both consumers and merchants [3][4] - The Super Apps provide access to Payments, Marketplace, and Fintech Platforms, designed to meet everyday user needs [4] - The company emphasizes strong top-line growth and profitability, with a business model characterized by low capital expenditure [5][7] Financial Performance - Kaspi.kz boasts a stellar profitability rate exceeding 40%, attributed to effective cost control and minimal loan loss risks [7] - The company maintains low leverage, primarily holding debt in the form of deposit liabilities from Kaspi Bank [7] Academic Recognition - Harvard Business School has developed two case studies on Kaspi.kz, which are used in its MBA curriculum [6]

Core Insights - Kaspi.kz has received its second international credit rating, with Moody's rating it Baa3 and Fitch rating it BBB- [1][2] - The ratings reflect Kaspi.kz's diverse business profile, strong market position, and solid financials, including profitability and liquidity [2][7] - The company is expanding into Türkiye through the acquisition of a 65.41% stake in Hepsiburada, a leading e-commerce platform [5] Company Overview - Kaspi.kz operates a unique two-sided Super App model, catering to both consumers and merchants [3][4] - The Super Apps provide access to Payments, Marketplace, and Fintech Platforms, designed to meet everyday user needs [4] - The company emphasizes strong top-line growth and profitability, with a business model characterized by low capital expenditure [5][7] Financial Performance - Kaspi.kz boasts a stellar profitability rate exceeding 40%, attributed to effective cost control and minimal loan loss risks [7] - The company maintains low leverage, primarily holding debt in the form of deposit liabilities from Kaspi Bank [7] Academic Recognition - Harvard Business School has developed two case studies on Kaspi.kz, which are used in its MBA curriculum [6]

Financial Data and Key Metrics Changes - In Q4 2024, total revenue grew by 28% year-over-year, with net income also increasing by 28% [12][13] - For the full year 2024, net income grew by 25% and revenue increased by 32% [13][14] - Payments total payment volume (TPV) grew by 30% in Q4 and 40% for the full year [9][64] - Marketplace GMV grew by 39% in Q4 and 44% for the full year [68][78] - Fintech financing volumes increased by 21% in Q4 and 30% for the full year [10][80] Business Line Data and Key Metrics Changes - Payments: Revenue grew by 23% for the year, with a net income growth of 24% [66][67] - Marketplace: Revenue increased by 43% in Q4 and 64% for the full year, with net income growth of 41% [78][79] - Fintech: Revenue grew by 26% in Q4 and 25% for the full year, with net income growth of 28% in Q4 [87][89] Market Data and Key Metrics Changes - Consumer balances in wallets increased by 22% year-over-year [64] - E-commerce penetration among merchants is only 11%, indicating significant growth potential [19] - E-Grocery GMV grew by 97% and transactions increased by 84% [25][26] Company Strategy and Development Direction - The company aims to enhance its Super App model, focusing on consumer and merchant services [5][6] - Plans to expand e-Grocery services into two new cities in 2025 [28] - The acquisition of Hepsiburada is seen as a strategic move to enter the Turkish market, with expectations of leveraging its platform for growth [55][58] Management's Comments on Operating Environment and Future Outlook - The management noted a stable and predictable macro environment in Kazakhstan, with consumer trends remaining consistent [118] - There are expectations of challenges in consumer sentiment due to macroeconomic transitions, but medium-term opportunities are viewed positively [108][121] - The company anticipates that interest rates may remain high for longer, impacting fintech growth in 2025 [90] Other Important Information - The company has launched several innovative products, including gift cards and a business deposit service, which have seen strong adoption [34][44] - The delivery service has grown significantly, with 128% growth in delivered orders [36] - The company processed 1.2 trillion in payments through its POS register, with 35% of merchants using this service [40] Q&A Session Summary Question: Can you elaborate on the guidance for 2025 and the underlying growth assumptions? - The guidance for 2025 is conservative, reflecting the scale of the business and the impact of changing interest rates on fintech [100][102] Question: What are the expectations for the integration and opportunities in Turkey with Hepsiburada? - The company sees significant opportunities in Turkey, with plans to launch services and leverage Hepsiburada's existing consumer and merchant base [109][110] Question: What is the current macroeconomic outlook in Kazakhstan? - The macro environment is stable, with consistent consumer trends, although there are concerns about inflation and interest rates impacting the fintech business [118][120]

Group 1 - The Annual General Meeting of Shareholders for JSC Kaspi.kz is scheduled for March 28, 2025, with a backup date of March 31, 2025, if a quorum is not met [1][2] - The shareholder register will be determined as of February 21, 2025, to identify participants in the meeting [2] - The agenda includes the approval of the 2024 annual audited financial statements, with a recommendation not to pay dividends on common shares for 2024 [3] Group 2 - The Board of Directors recommends renewing the appointment of Deloitte LLP as the external auditor for another 12 months [3] - There were no shareholder appeals regarding the actions of JSC Kaspi.kz or its officers in 2024 [3]

Core Insights - Kaspi.kz reported a 25% year-over-year increase in net income for FY 2024, with revenue rising by 32% YoY, aligning with initial guidance [2][3] - The company experienced significant growth in its Marketplace and Payments platforms, which contributed to 69% of FY 2024 consolidated net income, up from 66% in FY 2023 [2][3] Financial Performance - In 4Q 2024, revenue and net income both increased by 28% YoY, with Marketplace GMV growth accelerating [2] - e-Commerce GMV surged by 67% and 85% YoY in 4Q and FY 2024, respectively, indicating strong demand [2] - Payments transactions rose by 33% and 40% YoY in 4Q and FY 2024, respectively, reflecting robust growth in this segment [2][11] Marketplace Growth - Marketplace purchases increased by 48% and 42% YoY in 4Q and FY 2024, respectively, showcasing the platform's rapid expansion [2] - Kaspi Delivery orders reached 99 million in FY 2024, up 128% YoY, with Kaspi Postomats accounting for over 50% of e-Commerce deliveries [2] Product Innovation - The launch of Digital Gift Cards in 4Q 2024 aims to enhance Super App engagement and drive Marketplace transactions [2] - New services such as Buy-Inventory-Now-Pay-Later (BINPL) for merchants were introduced, providing additional incentives for merchants to engage with the platform [2][9] Strategic Initiatives - The acquisition of a 65.41% stake in Hepsiburada is expected to significantly expand Kaspi.kz's addressable market and growth potential in Türkiye [11] - The company aims to leverage its Super App expertise to develop digital products in Türkiye, despite current economic challenges [6] Outlook - For 2025, Kaspi.kz anticipates a net income growth of around 20% YoY, excluding the impact from its business in Türkiye [10][11] - The company remains optimistic about its growth trajectory, particularly in the e-Commerce sector, which is viewed as a major opportunity for the future [8]

Core Viewpoint - A class action has been initiated against Kaspi.kz, alleging undisclosed risks and misleading statements regarding the company's operations during the specified class period [3]. Group 1: Class Action Details - The class action represents investors who purchased securities between January 19, 2024, and September 19, 2024, with a deadline of February 18, 2025, to file a lead plaintiff motion [1]. - Investors are encouraged to contact the Portnoy Law Firm for a complimentary case evaluation and to discuss their legal rights [2]. Group 2: Allegations Against Kaspi.kz - The complaint alleges that Kaspi continued business with Russian entities and provided services to Russian citizens post the 2022 invasion of Ukraine, exposing the company to undisclosed sanction risks [3]. - It is claimed that the company engaged in undisclosed related party transactions and that certain executives had ties to reputed criminals [3]. - The positive statements made by the defendants regarding the company's business and prospects were allegedly materially misleading and lacked a reasonable basis [3].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased securities of Joint Stock Company Kaspi.kz during the specified Class Period of the upcoming lead plaintiff deadline for a securities class action lawsuit [1]. Group 1: Class Action Details - Investors who purchased Kaspi.kz securities between January 19, 2024, and September 19, 2024, may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by February 18, 2025 [3]. - The lawsuit claims that Kaspi.kz made materially false and misleading statements regarding its business operations, including undisclosed risks related to sanctions due to its dealings with Russian entities post-Ukraine invasion [5]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time and being ranked No. 1 for the number of settlements in 2017 [4]. - The firm has recovered hundreds of millions of dollars for investors, securing over $438 million in 2019 alone [4]. - The founding partner, Laurence Rosen, was recognized as a Titan of Plaintiffs' Bar by Law360 in 2020, highlighting the firm's expertise in this area [4].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased securities of Joint Stock Company Kaspi.kz during the specified Class Period of the upcoming lead plaintiff deadline for a securities class action lawsuit [1][2]. Group 1: Class Action Details - Investors who purchased Kaspi.kz securities between January 19, 2024, and September 19, 2024, may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by February 18, 2025 [3][5]. - The lawsuit alleges that Kaspi.kz made materially false and misleading statements regarding its business operations, including undisclosed risks related to sanctions due to its dealings with Russian entities post-Ukraine invasion [5]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest settlement against a Chinese company at the time and being ranked No. 1 for securities class action settlements in 2017 [4]. - The firm has recovered hundreds of millions of dollars for investors, securing over $438 million in 2019 alone [4]. - Founding partner Laurence Rosen was recognized as a Titan of Plaintiffs' Bar by Law360 in 2020, highlighting the firm's expertise and recognition in the field [4].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased securities of Joint Stock Company Kaspi.kz during the specified Class Period of the upcoming lead plaintiff deadline for a securities class action lawsuit [1][5]. Group 1: Class Action Details - Investors who purchased Kaspi.kz securities between January 19, 2024, and September 19, 2024, may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and those wishing to serve as lead plaintiff must act by February 18, 2025 [3][5]. - The lawsuit alleges that Kaspi.kz made materially false and misleading statements regarding its business operations, including undisclosed risks related to sanctions due to its dealings with Russian entities post-Ukraine invasion [5]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time and being ranked No. 1 for the number of settlements in 2017 [4]. - The firm has recovered hundreds of millions of dollars for investors, securing over $438 million in 2019 alone [4]. - Founding partner Laurence Rosen has been recognized as a Titan of Plaintiffs' Bar by Law360, and many attorneys at the firm have received accolades from Lawdragon and Super Lawyers [4].