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]
Joint Stock Company Kaspi.kz(KSPI) - 2024 Q4 - Annual Report