Financial Statements
Kaspi.kz Joint Stock Company
Consolidated Financial Statements
For the year ended
Table
of
Contents
Page
STATEMENT OF MANAGEMENT’S RESPONSIBILITIES
FOR THE PREPARATION AND APPROVAL
Of the CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
82
INDEPENDENT AUDITORS’ REPORT
84
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022:
•
Consolidated statement of profit or loss
89
•
Consolidated statement of other comprehensive income
90
•
Consolidated statement of financial position
91
•
Consolidated statement of changes in equity
92
•
Consolidated statement of cash flows
94
•
Notes to the Consolidated financial statements
96-158
Kaspi.kz Joint Stock Company
Statement of Management’s Responsibilities
For the Preparation and Approval of the Consolidated Financial Statements
For the Year Ended 31 December 2022
Management of Kaspi.kz Joint Stock Company is responsible for the preparation and presentation of the
consolidated financial statements that presents fairly the financial position of Kaspi.kz Joint Stock Company
and its subsidiaries (“the Group”) as at 31 December 2022 and the related consolidated statements of profit
or loss, comprehensive income for the year then ended, changes in equity and cash flows for the year then
ended, and of significant accounting policies and notes to the consolidated financial statements (the
“consolidated financial statements”) in compliance with International Financial Reporting Standards (“IFRS”).
In
preparing
the
consolidated
financial
statements,
management
is
responsible
for:
•
Properly selecting and applying accounting policies;
•
Presenting information, including accounting policies, in a manner that provides relevant, reliable,
comparable and understandable information;
•
Providing additional disclosures when compliance with the specific requirements in IFRS are
insufficient to enable users to understand the impact of particular transactions, other events and
conditions on the Group's consolidated financial position and financial performance; and
•
Making an assessment of the Group's ability to continue as a going concern.
Management
is
also
responsible
for:
•
Designing, implementing and maintaining an effective and sound system of internal controls,
throughout the Group;
•
Maintaining adequate accounting records that are sufficient to show and explain the Group's
transactions and disclose with reasonable accuracy at any time the consolidated financial position of
the Group, and which enable them to ensure that the consolidated financial statements of the Group
comply with IFRS;
•
Maintaining accounting records in compliance with the legislation of the Republic of Kazakhstan;
•
Taking such steps as are reasonably available to them to safeguard the assets of the Group; and
•
Preventing and detecting fraud and other irregularities.
These consolidated financial statements for the year ended 31 December 2022 were approved by the
Chairman of the Management Board, the Chief Financial Officer and the Chief Accountant on 24 February
2023 and will be provided to the shareholders for approval in accordance with the requirements of the
legislation of the Republic of Kazakhstan.
On
behalf
of
the
Management:
Mikheil
Lomtadze
Tengiz
Mosidze
Nailya
Ualibekova
Chairman
of
the
Management
Board
Chief
Financial
Officer
Chief
Accountant
24
February
2023
Almaty,
Kazakhstan
Kaspi.kz 2022 Annual Report
82
83
Deloitte LLP
36 Al Farabi Avenue
Almaty, 050059
Republic of Kazakhstan
Tel.: +7 (727) 258 13 40
Fax: +7 (727) 258 13 41
deloitte.kz
INDEPENDENT AUDITORS’ REPORT
To the Shareholders of Kaspi.kz Joint Stock Company
Opinion
We have audited the consolidated financial statements of Kaspi.kz Joint Stock Company and its subsidiaries
(“the Group
”), which comprise the consolidated statement of financial position as at 31 December 2022
and the consolidated statement of profit or loss, consolidated statement of other compr
ehensive income,
consolidated statement of changes in equity and consolidated statement of cash flows for the year then
ended, and notes to the consolidated financial statements, including a summary of significant accounting
policies.
In
our
opinion,
the
accompanying
consolidated
financial
statements
present
fairly,
in
all
material
respects,
the
consolidated
financial
position
of
the
Group
as
at
31
December
2022
and
its
consolidated
financial
performance
and
its
consolidated
cash
flows
for
the
year
then
ended
in
accordance
with
International
Financial
Reporting
Standards
(“IFRSs”).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (“ISAs”). Our responsibilities
under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated
Financial Statements section of our report. We are independent of the Group in accordance with the
International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (the
“IESBA Code”) together with the ethical requirements that are relevant to our audit of the consolidated
financial statements in the Republic of Kazakhstan, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the IESBA Code. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matter
Key audit matter is the matter that, in our professional judgment, was of most significance in our audit of the
consolidated financial statements of the current period. This matter was addressed in the context of our
audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on this matter.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related
entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related
entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and
each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not
provide services to clients. Please see www.deloitte.com/about to learn more.
© 2023 Deloitte LLP. All rights reserved.
Why the matter was determined to be a key audit
matter
Impairment of loans to customers under IFRS 9
Financial instruments (“IFRS 9”)
As disclosed in Note 12
as at 31 December 2022, loans to cust
omers
amounted to KZT 3,154,810 million, net of the
related allowance for impairment losses of
KZT 214,702 million.
The assessment of the measurement of expected
credit losses require considerable judgment in
analyzing all reasonable and supportable
information at the reporting date. Key area of
judgement included measuring the amount of
expected credit losses by assessing the
probability of a loan falling into default and the
amount of recoveries expected from defaulted
loans.
Due to the significance of the loans’ balances,
magnitude of estimation uncertainties, and the
complexity of judgements applied by
management in measuring expected credit losses,
we identified impairment of loans to customers as
a key audit matter.
How the matter was addressed in the audit
The audit procedures performed in this area,
included:
•
Obtaining an understanding of the loan loss
provisioning process, particularly over
measurement and recognition of
allowances for expected credit losses. It
included an assessment of the design and
implementation of relevant controls over the
expected credit loss model, including model
governance and mathematical accuracy;
•
Assessment of the changes made to the
provisioning methodology developed for
calculation of impairment losses in
accordance with the requirements outlined
in IFRS 9;
•
With the involvement of our internal
specialists, assessment of the
reasonableness of management’s
assumptions and input data used in the
model, the probability of a loan falling into
default, assessment of any recoveries
expected from defaulted loans and
forecasted macroeconomic variables
against requirements of the accounting
standards. We tested the underlying
statistical data, represented by the principal
balances, including the overdue principal
and interest and allocation of loans by days
in arrears, on a sample basis;
•
Testing of operating effectiveness of certain
IT controls over data transfer, information
capture and processing in the generation of
the statistical data, represented by the
principal balances, including overdue
principal and allocation of loans by days in
arrears; and
•
Consideration of the adequacy and
completeness of the Group’s disclosures in
respect of credit risk, structure and quality
of loan portfolio and impairment allowance
in accordance with IFRS 9 on expected
credit loss.
Kaspi.kz 2022 Annual Report
84
85
Other Information – Annual Report
Management is responsible for the other information. The other information comprises the information
included in the Annual Report, but does not include the consolidated financial statements and our auditors’
report thereon. The Annual Report is expected to be made available to us after the date of this auditors’
report.
Our opinion on the consolidated financial statements does not cover the other information and we will not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information identified above when it becomes available and, in doing so, consider whether the other
information is materially inconsistent with the consolidated financial statements or our knowledge obtained
in the audit, or otherwise appears to be materially misstated.
When we read the Annual Report, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial
Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with IFRSs, and for such internal control as management determines is necessary
to enable the preparation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group's internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
•
Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to
the related disclosures in the consolidated financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors’ report. However, future events or conditions may cause the Group to cease to continue as a
going concern.
•
Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
•
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
Kaspi.kz 2022 Annual Report
87
86
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated to those charged with governance, we determine those matters that were
of most significance in the audit of the consolidated financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Deloitte LLP
State license on auditing in the
Republic of Kazakhstan
No. 0000015, type MFU-2, issued by the
Ministry of Finance of the
Republic of Kazakhstan
dated 13 September 2006
Zhangir Zhilysbayev
Engagement Partner
Qualified Auditor
of the Republic of Kazakhstan
Qualification certificate
No.MF-0000116
dated 22 November 2012
General Director
Deloitte LLP
24
February
2023
Almaty,
Kazakhstan
Kaspi.kz Joint Stock Company
Consolidated Statement of Profit or Loss
For the Year Ended 31 December 2022
(in millions of KZT, except for earnings per share which are in KZT)
Notes
Year ended
31 December
2022
Year ended
31 December
2021
REVENUE
4,5
Interest
revenue
Fees
&
commissions
Seller
fees
Transaction
&
membership
revenue
Rewards
(44,960 )
(51,981 )
Other
gains
(losses)
(4,746 )
COST
OF
REVENUE
6
(383,611 )
(244,862 )
Interest
expenses
(278,676 )
(171,491 )
Transaction
expenses
(22,188 )
(16,542 )
Operating
expenses
(82,747 )
(56,829 )
TOTAL
NET
REVENUE
Technology
&
product
development
(60,807 )
(44,388 )
Sales
&
marketing
(25,618 )
(8,702 )
General
&
administrative
expenses
(24,772 )
(23,685 )
Provision
expenses
7
(55,210 )
(34,383 )
OPERATING
INCOME
Income
tax
8
(131,730 )
(93,588 )
NET
INCOME
Attributable
to:
Shareholders
of
the
Company
Non-controlling
Interests
NET
INCOME
Earnings
per
share
Basic
(KZT)
9
Diluted
(KZT)
9
On
behalf
of
the
Management:
Mikheil
Lomtadze
Tengiz
Mosidze
Nailya
Ualibekova
Chairman
of
the
Management
Board
Chief
Financial
Officer
Chief
Accountant
The
notes
on
pages
96-158
form
an
integral
part
of
these
consolidated
financial
statements.
Kaspi.kz 2022 Annual Report
88
89
Kaspi.kz Joint Stock Company
Consolidated Statement of Other Comprehensive Income
For the Year Ended 31 December 2022
(in millions of KZT, except for earnings per share which are in KZT)
Year ended
31 December
2022
Year ended
31 December
2021
NET
INCOME
OTHER
COMPREHENSIVE
INCOME
Items
that
will
not
be
reclassified
subsequently
to
profit
or
loss:
Movement
in
investment
revaluation
reserve
for
equity
instruments
at
FVTOCI
(68 )
Items
that
may
be
reclassified
subsequently
to
profit
or
loss:
Movement
in
investment
revaluation
reserve
for
debt
instruments
at
FVTOCI:
Losses
arising
during
the
period,
net
of
tax
KZT
Nil
(9,623 )
(2,201 )
Foreign
exchange
differences
on
translation
of
foreign
operations
(161 )
(18 )
(Recoveries)/expected
credit
losses
recognised
in
profit
or
loss
(2,053 )
Reclassification
of
losses
included
in
profit
or
loss,
net
of
tax
KZT
Nil
(18 )
(511 )
Other
comprehensive
loss
for
the
year
(11,923 )
(2,601 )
TOTAL
COMPREHENSIVE
INCOME
Attributable
to:
Shareholders
of
the
Company
Non-controlling
Interests
TOTAL
COMPREHENSIVE
INCOME
On
behalf
of
the
Management:
Mikheil
Lomtadze
Tengiz
Mosidze
Nailya
Ualibekova
Chairman
of
the
Management
Board
Chief
Financial
Officer
Chief
Accountant
The
notes
on
pages
96-158
form
an
integral
part
of
these
consolidated
financial
statements.
Kaspi.kz Joint Stock Company
Consolidated Statement of Financial Position
As at 31 December 2022
(in millions of KZT, except for earnings per share which are in KZT)
Notes
31 December
2022
31 December
2021
ASSETS:
Cash
and
cash
equivalents
10
Mandatory
cash
balances
with
National
Bank
of
the
Republic
of
Kazakhstan
Due
from
banks
Investment
securities
and
derivatives
11
Loans
to
customers
12,23
Property,
equipment
and
intangible
assets
Other
assets
1
3
TOTAL
ASSETS
LIABILITIES
AND
EQUITY
LIABILITIES:
Due
to
banks
15
Customer
accounts
16,23
Debt
securities
issued
17
Subordinated
debt
19
Other
liabilities
18
TOTAL
LIABILITIES
EQUITY
Issued
capital
20
Treasury
shares
20
(94,058 )
(32,614 )
Additional
paid-in-capital
Revaluation
(deficit)/reserve
of
financial
assets
and
other
reserves
(9,201 )
Share-based
compensation
reserve
21
Retained
earnings
Total
equity
attributable
to
Shareholders
of
the
Company
Non-controlling
interests
TOTAL
EQUITY
TOTAL
LIABILITIES
AND
EQUITY
On
behalf
of
the
Management:
Mikheil
Lomtadze
Tengiz
Mosidze
Nailya
Ualibekova
Chairman
of
the
Management
Board
Chief
Financial
Officer
Chief
Accountant
The
notes
on
pages
96-158
form
an
integral
part
of
these
consolidated
financial
statements.
Kaspi.kz 2022 Annual Report
90
91
14
Consolidated Statement Of Changes in Equity
For the Year Ended 31 December 2022
(in millions of KZT, except for earnings per share which are in KZT)
Issued capital
Treasury shares
Additional paid-
in-capital
Revaluation
(deficit)/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
2020
(34,319 )
Net
Income
Other
comprehensive
loss
(2,574 )
(2,574 )
(27 )
(2,601 )
Total
comprehensive
income
(2,574 )
Dividends
declared
(340,362 )
(340,362 )
(340,362 )
Dividends
declared
by
subsidiary
to
non-controlling
interest
(1,847 )
(1,847 )
Share
options
accured
Share
options
exercised
(7,177 )
Balance
at
31
December
2021
(32,614 )
Net
Income
Other
comprehensive
loss
(11,798 )
(11,798 )
(125 )
(11,923 )
Total
comprehensive
income
(11,798 )
Dividends
declared
(210,102 )
(210,102 )
(210,102 )
Dividends
declared
by
subsidiary
to
non-controlling
interest
(2,137 )
(2,137 )
Share
options
accured
Share
options
exercised
(11,952 )
Share
buy-back
(63,672 )
(63,672 )
(63,672 )
Balance
at
31
December
2022
(94,058 )
(9,201 )
On
behalf
of
the
Management:
Mikheil
Lomtadze
Tengiz
Mosidze
Nailya
Ualibekova
Chairman
of
the
Management
Board
Chief
Financial
Officer
Chief
Accountant
The
notes
on
pages
96-158
form
an
integral
part
of
these
consolidated
financial
statements.
Kaspi.kz 2022 Annual Report
92
93
Kaspi.kz Joint Stock Company
Consolidated Statement of Cash Flows
For the Year Ended 31 December 2022
(in millions of KZT, except for earnings per share which are in KZT)
Year ended
31 December
2022
Year ended
31 December
2021
CASH
FLOWS
FROM
OPERATING
ACTIVITIES:
Interest
received
from
loans
to
customers
Other
interest
received
Interest
paid
(257,030 )
(161,369 )
Expenses
paid
on
obligatory
insurance
of
individual
deposits
(7,251 )
(6,688 )
Fees
&
commissions
received
Seller
fees
received
Transaction
&
membership
revenue
received
Fees
&
commissions
paid
(24,954 )
(21,726 )
Other
income
received
Operating
and
other
expenses
paid
(196,481 )
(153,421 )
Cash
flows
from
operating
activities
before
changes
in
operating
assets
and
liabilities
Changes
in
operating
assets
and
liabilities
(Increase)/decrease
in
operating
assets:
Mandatory
cash
balances
with
NBRK
(10,183 )
(5,075 )
Due
from
banks
(5,520 )
Financial
assets
at
FVTPL
(4,296 )
Loans
to
customers
(760,660 )
(1,057,590 )
Other
assets
(24,788 )
(11,663 )
Increase/(decrease)
in
operating
liabilities:
Due
to
banks
(60,057 )
Customer
accounts
Financial
liabilities
at
FVTPL
(2,261 )
(585 )
Other
liabilities
Cash
inflow
from
operating
activities
before
income
tax
Income
tax
paid
(133,422 )
(85,121 )
Net
cash
inflow
from
operating
activities
Kaspi.kz Joint Stock Company
Consolidated Statement of Cash Flows
For the Year Ended 31 December 2022
(in millions of KZT, except for earnings per share which are in KZT)
Year ended
31 December
2022
Year ended
31 December
2021
CASH
FLOWS
FROM
INVESTING
ACTIVITIES:
Purchase
of
property,
equipment
and
intangible
assets
(59,468 )
(24,901 )
Proceeds
on
sale
of
property
and
equipment
Proceeds
on
sale
of
financial
assets
at
FVTOCI
Purchase
of
financial
assets
at
FVTOCI
(1,520,139 )
(1,047,426 )
Acquisition
of
subsidiary,
net
of
cash
acquired
(5,110 )
Proceeds
on
sale
of
subsidiary
Net
cash
(outflow)/inflow
from
investing
activities
(487,161 )
CASH
FLOWS
FROM
FINANCING
ACTIVITIES:
Dividends
paid
(210,102 )
(340,362 )
Dividends
paid
by
subsidiary
to
non-controlling
interest
(2,137 )
(1,847 )
Purchase
of
treasury
shares
(63,672 )
Repayment
of
subordinated
debt
(10,371 )
Net
cash
outflow
from
financing
activities
(275,911 )
(352,580 )
Effect
of
changes
in
foreign
exchange
rate
on
cash
and
cash
equivalents
NET
INCREASE
IN
CASH
AND
CASH
EQUIVALENTS
CASH
AND
CASH
EQUIVALENTS,
beginning
of
period
CASH
AND
CASH
EQUIVALENTS,
end
of
period
On
behalf
of
the
Management:
Mikheil
Lomtadze
Tengiz
Mosidze
Nailya
Ualibekova
Chairman
of
the
Management
Board
Chief
Financial
Officer
Chief
Accountant
The
notes
on
pages
96-158
form
an
integral
part
of
these
consolidated
financial
statements.
Kaspi.kz 2022 Annual Report
94
95
Kaspi.kz Joint Stock Company
Notes to Consolidated Financial Statements
For the Year Ended 31 December 2022
(in millions of KZT, except for earnings per share which are in KZT)
Overview
Kaspi Pay Super App for merchants. Our Super App’s are the gateway to all Kaspi.kz’s digital products and
Through our Super App’s users can access Kaspi.kz’s Payments, Marketplace and Fintech Platforms. The
popularity of the Kaspi.kz Super App has helped each platform achieve market leadership.
Platform products are highly relevant to the daily lives of users and the growth and development of one
service is designed to contribute to the growth and development of other services, creating powerful network
effects. Our integrated proprietary payments network allows consumers and merchants to transact fully
between themselves.
Our mission is to improve people’s lives by developing innovative products and services.
Going forward our strategy is to maintain a singular focus on the development of innovative digital products
around regular needs of our consumers and merchants. Our technologically advanced products transform
the way consumers pay, shop and manage their personal finances, help merchants manage and grow their
businesses and allow us to make a significant contribution to the digital transformation of daily life in
Kazakhstan.
Kaspi.kz Segments
Kaspi.kz is comprised of the following three market leading platforms centered around our customers’
everyday needs:
•
Payments Platform
connects our customers, which consist of both consumers and merchants, to
facilitate cashless, digital transactions. We offer our customers a proprietary technology platform to
both pay and receive payments for goods and services, as well as to transfer and withdraw money.
Consumers can transact with merchants and amongst themselves using services including the
Kaspi.kz Super App, Kaspi QR Scan to Pay, Kaspi Gold debit and virtual card, or any bank card.
Merchants can accept payments from consumers using the Kaspi Pay Super App, POS Solutions,
Kaspi QR Checkout, Kaspi Bill Payments and Kaspi B2B, amongst a wide suite of other products.
In Ukraine, we operate Portmone Group which facilitates online payments between consumers and
merchants.
•
Marketplace Platform
connects merchants and consumers enabling merchants to increase their sales
and consumers to buy a broad selection of products and services offered by a variety of merchants.
We help merchants increase their sales by linking them to our technology, Payments Platform, Buy
Now Pay Later consumer finance products, marketing and Kaspi Smart Logistics. Fulfilment options
include in-store pick up, delivery by merchants, Kaspi Postomat and delivery powered by Kaspi.kz.
In 2020 we launched Kaspi Travel LLC, offering domestic, international flight tickets and domestic rail
bookings through our Super App.
In 2021 we launched Kaspi e-Grocery, in conjunction with Magnum, Kazakhstan’s largest food retail chain.
In Azerbaijan, we operate a marketplace platform encompassing the country’s leading real estate, new and
used cars, new and used goods mobile classified apps.
•
Fintech Platform
enables customers to manage their personal finances online and access consumer
finance and deposit products primarily through the Kaspi.kz Super App. Our Buy Now Pay Later
consumer finance products are also strategically integrated around the product and merchant
selection on our Marketplace Platform. This allows customers to shop and access financing
seamlessly and then pay over time in affordable monthly installments. In the second half of 2020 we
broadened our Fintech proposition to include working capital and micro finance products for
merchants and these products continue to scale rapidly.
Information about the group of companies
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 FMRDA”). The registered
address of the Company is 154A, Nauryzbai Batyr street, Almaty, 050013, the Republic of Kazakhstan .
On 8 October 2021, the Company acquired 100% of Portmone Group. This transaction was accounted as an
asset acquisition as the Group did not acquire any substantive processes or activities that would constitute a
“business”. Substantially all of the consideration paid has been allocated to the cost of intangible assets
acquired, which is mainly represented by its customer base and software.
On 21 January 2022, Kaspi Cloud LLC, a separate legal entity fully owned by Kaspi Office LLC, was
established. Kaspi Cloud LLC is providing data center services to other companies of the Group, that support
the storage, maintenance and processing of information using server software and equipment.
On 12 December 2022, the Company acquired 100% of Kaspi Office 2 LLC. This transaction was accounted
as an asset acquisition, as the concentration test applied in accordance with IFRS 3
indicated that substantially all of the gross assets’ fair value acquired are concentrated in a single identifiable
asset, represented by one of the Group’s office buildings in Almaty. As such, the acquired assets are
determined not to be a business. Substantially all of the consideration paid has been allocated to the cost of
real estate acquired and liabilities assumed.
“Business Combinations”
Subsidiary
Type of operation
Country of
operation
Ownership as at
31 December 2022
Ownership as at
31 December 2021
Kaspi Pay LLC
Payment
processing services
Kazakhstan
Directly (100%)
Directly (100%)
Kaspi Shop LLC
E-commerce
Kazakhstan
Directly (100%)
Directly (100%)
Kaspi Travel LLC
Online travel
Kazakhstan
Directly (100%)
Directly (100%)
Kaspi Bank JSC
Banking
Kazakhstan
Indirectly (98.95%)
Indirectly (98.95%)
ARK Balance LLC
Distressed asset
management
Kazakhstan
Indirectly (100%)
Indirectly (100%)
Kaspi Office LLC
Real estate
Kazakhstan
Directly (100%)
Directly (100%)
Kaspi Group JSC
Holding Company
Kazakhstan
Directly (100%)
Directly (100%)
Digital Classifieds
LLC
E-commerce
Azerbaijan
Indirectly (100%)
Indirectly (100%)
Portmone Group
Payment
processing services
Ukraine
Indirectly (100%)
Indirectly (100%)
Kaspi Cloud LLC
Storage and
processing of
information
Kazakhstan
Indirectly (100%)
-
Kaspi Office 2 LLC
Real estate
Kazakhstan
Indirectly (100%)
The shareholders’ structure was as follows:
31 December
2022
%
31 December
2021
%
Ultimate
shareholders:
Baring
Vostok
Funds
28.80
28.71
Mikheil
Lomtadze
24.55
23.30
Vyacheslav
Kim
23.35
24.13
Public
Investors
20.18
21.01
Management
3.12
2.85
Total
100.00
100.00
Operating environment
Emerging markets such as Kazakhstan are subject to different risks than more developed markets, including
economic, political and social, legal and legislative risks. Laws and regulations affecting businesses in
Kazakhstan continue to change rapidly, tax and regulatory frameworks are subject to varying interpretations.
The future economic direction of Kazakhstan is heavily influenced by the fiscal and monetary policies
adopted by the government, together with developments in the legal, regulatory, and political environment.
Because Kazakhstan produces and exports large volumes of oil and gas, its economy is particularly sensitive
to the price of oil and gas on the world market.
During January 2022 in Kazakhstan a number of facilities were looted and damaged, including facilities of
the Group. To respond to these events, the Government imposed a two-week state of emergency throughout
the territory of Kazakhstan and introduced certain restrictions on movement of the population and activities
of entities in certain locations. Although our Mobile App continued to operate, there were significant
limitations on internet access throughout Kazakhstan, which led to disruption of online transactions.
Financial organisations limited their operations for the period of the state of emergency. Due to these events,
losses of the Company were around KZT 690 million, recognised in technology & product development
expenses.
In response to the economic implications of January events, the Government launched several initiatives. A
special charitable fund “For the People of Kazakhstan”, which is funded from private and public sources, was
established to support citizens of Kazakhstan in the field of healthcare, education and provide other social
support. The Group contributed KZT 10 billion to the fund, recognised in sales & marketing expenses.
On 24 February 2022, due to external geopolitical situation, the NBRK has set the base rate at 13.5% p.a. with
a corridor of +/-1p.p. As at 31 December 2022, the NBRK’s base rate was set at 16.75 % p.a. with a corridor
of +/- 1p.p. In order to maintain the stability of the financial market and support the attractiveness of tenge
deposits, the Government has announced the protection program for tenge deposits, under which tenge
deposits of individuals will be provided with compensation from Government budget resources equal to 10%
of savings as at 23 February 2022.
The changes in the operating environment caused by the geopolitical situation have had insignificant and
limited impact on the Group’s operations. The Group has limited exposure to Ukraine mostly via its subsidiary
– Portmone Group, which represents around 0.1% of the Group’s total assets as at 31 December 2022 and
0.06% of the Group’s net income for the year ended 31 December 2022. Portmone Group continues to
operate in the normal course of its business.
The anti-Russian sanctions have had insignificant and limited impact on the Group's currency and credit risks
due to insignificant amounts of balances on current accounts in banks of Russian Federation and securities
of issuers of Russian Federation. Management of the Group is monitoring developments in the economic
and political situation, including for publicly available sanctions risks and takes measures it considers
necessary to support the sustainability and development of the Group’s business for the foreseeable future.
The Management’s analysis of the Group’s liquidity and capital position as at 31 December 2022
demonstrates that the Group has sufficient liquidity buffer and will continue to comply with regulatory
requirements, including liquidity risk and capital adequacy ratios, for the foreseeable future. The Group has
reflected the most recent macroeconomic outlooks, as well as actual customers’ loan repayment statistics in
its ECL estimates.
Chief Financial Officer and the Chief Accountant on 24 February 2023 and will be provided to the
shareholders for approval at the annual general meeting of shareholders in accordance with the
Basis of presentation
company are expressed in Kazakhstani tenge which is the functional currency of the Group, and the
presentation currency for the consolidated financial statements.
The individual financial statements of each group company are presented in the currency of the primary
economic environment in which it operates (its functional currency). In preparing the financial statements of
each individual entity, monetary assets and liabilities denominated in currencies other than the entity’s
functional currency (foreign currencies) are translated at the appropriate spot rates or exchange rates
prevailing at the reporting date. Transactions in foreign currencies are initially recorded at their spot rates at
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using
the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a
The exchange rates at the period-end used by the Group in the preparation of the consolidated financial
statements are as follows:
31 December
2022
31 December
2021
KZT/USD
462.65
431.80
KZT/EUR
492.86
These consolidated financial statements have been prepared on the assumption that the Group is a going
concern, as the Group has the resources to continue in operation for the foreseeable future. In making this
assessment, the management has considered a wide range of information in relation to present and future
Basis of accounting
The Group and its subsidiaries maintain their accounting records in accordance with IFRS. The consolidated
financial statements have been prepared on the historical cost basis, except for the revaluation of certain
properties and financial instruments that are measured at revalued amounts or fair values at the end of each
reporting period, as explained in the accounting policies below. The Group presents its statement of financial
position in order of liquidity.
Financial assets and financial liabilities are offset and the net amount reported in the consolidated statement
of financial position only when there is a legally enforceable right to offset the recognised amounts and there
is an intention to settle on a net basis, or to realise the assets and settle the liability simultaneously. Income
and expense is not offset in the consolidated statement of profit or loss unless required or permitted by any
The principal accounting policies adopted are set out below.
The consolidated financial statements incorporate the financial statements of the Company and entities
controlled by the Company (its subsidiaries). Control is achieved when the Company has power over the
investee; is exposed, or has rights, to variable returns from its involvement with the investee; and has the
ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that
there are changes to one or more of the three elements of control listed above.
When the Company has less than a majority of the voting rights of an investee, it has power over the investee
when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the
investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or
not the Company’s voting rights in an investee are sufficient to give it power. Consolidation of a subsidiary
begins when the Company obtains control over the subsidiary and ceases when the Company loses control
Non-controlling interests represent the portion of profit or loss and net assets of subsidiaries not owned,
directly or indirectly, by the Company. Non-controlling interests are presented separately in the consolidated
statement of profit or loss and within equity in the consolidated statement of financial position, separately
The Group as lessee
The Group as lessee recognises a right-of-use asset and a corresponding liability to pay future rentals on the
consolidated statement of financial position. The asset will be amortised over the shorter of the length of the
lease and the useful economic life, subject to review for impairment, and the liability is measured at the
present value of future lease payments discounted at the applicable incremental borrowing rate.
The Group recognises lease payments for short-term leases or leases in which the base asset has a low
value as an expense during the lease period. In a long-term lease, assets are recognised at the lease start
date as right-of-use and a lease liability.
A right-of-use asset is recognised in accounting at initial value inclusive of value added
tax – the initial measurement of lease liabilities and lease payments as at the lease start date or before that
Cash and cash equivalents include cash on hand, cash balances with NBRK, reverse repurchase agreements
and unrestricted balances on correspondent accounts and deposits with other banks with original maturities
within three months and are free from contractual encumbrances. Cash and cash equivalents are measured
Mandatory cash balances with NBRK
Mandatory cash balances with NBRK represent funds in correspondent accounts with the NBRK and cash
which are not available to finance the Group’s day to day operations and, hence, are not considered as part of
cash and cash equivalents for the purpose of the consolidated statement of cash flows.
Due from banks
In the normal course of business, the Group maintains advances and deposits for various periods of time
with other banks. Due from banks initially are recognised at fair value. Due from banks are subsequently
measured at amortised cost using the effective interest method, and are carried net of allowance for
impairment losses.
Property, equipment and intangible assets, except land and buildings, are carried at historical cost less
accumulated depreciation and any recognised impairment loss, if any. Depreciation on assets under
construction and those not placed in service commences from the date the assets are ready for their
intended use.
Depreciation of property, equipment and amortisation of intangible assets is charged on the carrying value of
property, equipment and intangible assets and is designed to write off assets over their useful economic
lives. Depreciation has been calculated on a straight-line basis at 2% per annum for buildings and
construction and 10%-33.3% for furniture and computers and intangible assets.
Leasehold improvements are amortised over the shorter of the life of the related leased asset or the lease
term. Expenses related to repairs and renewals are charged when incurred and included in operating
expenses in the consolidated statement of profit or loss, unless they qualify for capitalisation.
Buildings and constructions held for use in the supply of services, or for administrative purposes, are stated
in the consolidated statement of financial position at their revalued amounts, being the fair value at the date
of revaluation defined on the basis of market data by qualified independent appraisers, less any subsequent
accumulated depreciation and subsequent accumulated impairment losses. Revaluations are performed
with sufficient regularity such that the carrying amounts do not differ materially from those that would be
determined using fair values at the end of the reporting period.
Any revaluation increase arising on the revaluation of property is recognised and accumulated in equity,
except to the extent that it reverses a revaluation decrease for the same asset previously recognised in profit
or loss, in which case the increase is credited to the consolidated profit or loss to the extent of the decrease
previously expensed. A decrease in the carrying amount arising on the revaluation of such land and buildings
is recognised in the consolidated profit or loss to the extent that it exceeds the balance, if any, held in the
property revaluation reserve relating to a previous revaluation of that asset.
Depreciation on revalued buildings is recognised in profit or loss. Depreciation of property revaluation reserve
is transferred from property revaluation reserve to retained earnings on an annual basis. On the subsequent
sale or retirement of a revalued property, the attributable revaluation surplus remaining in the property
revaluation reserve is transferred directly to retained earnings.
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. The gain or loss arising on the disposal or
retirement of an asset is determined as the difference between the sales proceeds and the carrying amount
Investment properties are properties held to earn rentals and/or for capital appreciation (including property
under construction for such purposes). Investment properties are measured initially at cost, including
transaction costs. Subsequent to initial recognition, investment property is carried at historical cost net of
accumulated depreciation and recognised impairment loss. Depreciation is calculated on a straight-line basis
over the useful life of the assets.
The expenses associated with the registration of ownership, maintenance and valuation of investment
property are included in the cost of sales.
The depreciation expense and payment of taxes associated with ownership of investment property are
included in general and administrative expenses. Investment property is disclosed within other non-financial
Non-current assets and disposal groups are classified as held for sale if their carrying amount will be
recovered principally through a sale transaction rather than through continuing use. This condition is
regarded as met only when the asset (or disposal group) is available for immediate sale in its present
condition subject only to terms that are usual and customary for sales of such asset (or disposal group) and
its sale is highly probable. Management must be committed to the sale, which should be expected to qualify
for recognition as a completed sale within one year from the date of classification.
When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and
liabilities of that subsidiary are classified as held for sale when the criteria described above are met,
At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If
any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent
of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual
asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated
to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as
reported in the consolidated statement of profit or loss because it excludes items of income or expense that
are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted
by the end of the reporting period.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in
the consolidated statements of financial position and the corresponding tax bases used in the computation
of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences and
deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is
probable that taxable profits will be available against which those deductible temporary differences can be
utilized. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the
initial recognition of other assets and liabilities in a transaction that affects neither the taxable profit nor the
accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in
subsidiaries, except where the Group is able to control the reversal of the temporary difference and it is
probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising
from deductible temporary differences associated with such investments and interests are only recognised
to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits
of the temporary differences and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and
assets reflects the tax consequences that would follow from the manner in which the Group expects, at the
end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred income tax assets and deferred income tax liabilities are offset and reported net on the
consolidated statement of financial position if:
•
The Group has a legally enforceable right to set off current income tax assets against current income
tax liabilities; and
•
Deferred income tax assets and the deferred income tax liabilities relate to income taxes levied by the
same taxation authority on the same taxable entity.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised
in other comprehensive income or directly in equity, in which case, the current and deferred tax are also
recognised in other comprehensive income or directly in equity, respectively.
The Group records a provision for uncertain tax positions if it is probable that the Group will have to make a
payment to tax authorities upon their examination of a tax position. This provision is measured at the Group’s
best estimate of the amount expected to be paid. Provisions are reversed to income in provision for (recovery
of) income taxes in the period in which management determines they are no longer required or as
The Republic of Kazakhstan also has various other taxes, which are assessed on the Group’s activities.
These taxes are included as a component of operating expenses in the consolidated statement of profit or
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past
events, it is probable that the Group will be required to settle the obligation and a reliable estimate can be
made of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows (where the effect of the time value of money is
material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received
and the amount of the receivable can be measured reliably. The expense relating to a provision is presented
Equity-settled share-based payments (“share options”) are measured at the fair value of the equity
instruments at the grant date. The fair value excludes the effect of non-market-based vesting conditions.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a
straightline basis over the vesting period, based on the Group’s estimate of the number of equity instruments
that will eventually vest. At each reporting date, the Group revises its estimate of the number of equity
instruments expected to vest as a result of the effect of non-market-based vesting conditions. The impact of
the revision of the original estimates, if any, is recognised in profit or loss such that the cumulative expense
reflects the revised estimate, with a corresponding adjustment to reserves.
For cash-settled share-based payments (“phantom shares”), a liability is recognised for services acquired,
measured initially at the fair value of the liability. At each reporting date until the liability is settled, and at the
date of settlement, the fair value of the liability is remeasured, with any changes in fair value recognised in
Contingent liabilities are not recognised in the consolidated statement of the financial position but are
disclosed unless the possibility of any outflow in settlement is remote. A contingent asset is not recognised
in the consolidated statement of financial position but disclosed when an inflow of economic benefits is
The Group recognises financial assets and liabilities on its consolidated statement of financial position when
it becomes a party to the contractual obligation of the instrument. Regular way purchases and sales of
financial assets and liabilities are recognised using settlement date accounting.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets
and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the
financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are
All recognised financial assets that are within the scope of IFRS 9 are required to be measured subsequently
at amortised cost or fair value on the basis of the entity’s business model for managing the financial assets
and the contractual cash flow characteristics of the financial assets.
Under IFRS 9, all debt financial assets that do not meet a “solely payment of principal and interest” (“SPPI”)
criterion, are classified at initial recognition as fair value through profit or loss (“FVTPL”). Under this criterion,
debt instruments that do not correspond to a “basic lending arrangement”, are measured at FVTPL. For debt
financial assets that meet the SPPI criterion, classification at initial recognition is determined based on the
business model under which these instruments are managed:
•
Financial assets, other than equity investments, that are managed on a “hold to collect” basis are
measured at amortised cost;
•
Financial assets, other than equity investments, that are managed on a “hold to collect and for sale”
basis are measured at fair value through other comprehensive income (“FVTOCI”);
•
Financial assets, including equity investments, that are managed on another basis, including trading
financial assets, will be measured at FVTPL.
Equity financial assets are required to be classified at initial recognition as FVTPL unless an irrevocable
designation is made to classify an instrument as FVTOCI. For equity investments classified as FVTOCI, all
realised and unrealised gains and losses, except for dividend income, are recognised in other comprehensive
income with no subsequent reclassification to profit or loss.
Financial assets, other than equity investments, that are measured subsequently at amortised cost or at
FVTOCI are subject to impairment.
After initial measurement, amortised cost financial assets are measured using the effective interest rate
method, less any impairment losses. The fair value of FVTPL and FVTOCI financial assets is determined
under IFRS 13
(“IFRS 13”). The fair value gains or losses for FVTPL are recognised
in the statement of profit or loss and for FVTOCI are recognised in the other comprehensive income, until
these instruments are disposed.
“Fair Value Measurement”
Equity investments that do not have a quoted market price in an active market and whose fair value cannot
be reliably measured are measured at cost less any identified impairment losses at the end of each reporting
period. These instruments are accounted for at fair value under IFRS 9. The Group has designated these
investments in equity instruments at FVTOCI as the Group plans to hold them in the long term for strategic
reasons.
foreign exchange rate risk, including foreign exchange forward contracts, interest rate swaps and cross
currency swaps. All derivative financial instruments are classified as held for trading and measured at fair
ECL is a probability-weighted measurement of the present value of future cash shortfalls (i.e., the weighted
average of credit losses, with the respective risks of default occurring in a given time period used as
weights). An ECL measurement is unbiased and should be determined by evaluating a range of possible
outcomes.
An ECL measurement is based on four components used by the Group:
•
Exposure at Default (“EAD”)
– an estimate of exposure at a future default date, taking into account
expected changes in exposure after the reporting date, including repayments of principal and interest,
and expected drawdowns on committed facilities.
•
Probability of Default (“PD”)
– an estimate of the likelihood of default to occur over a given time period.
– an estimate of a loss arising on default. It is based on the difference
between contractual cash flows due and those that the lender would expect to receive, including from
any collateral. It usually expressed as a percentage of EAD.
•
Loss Given Default (“LGD”)
•
Discount Rate
– a tool to discount an expected loss from the present value at the reporting date. The
discount rate represents the effective interest rate (“EIR”) for the financial instrument or an
approximation thereof.
Default and credit-impaired assets
The financial asset is considered to be in default, or credit impaired, when it meets one or more of the
following criteria:
For individually significant loans (except interbank exposures):
•
The borrower is more than 60 days past due on its contractual payments (regulatory definition of
default for individually significant loans);
•
Significant deterioration of the borrower’s operating results;
•
The bank has sold the borrower’s debt with losses;
•
The loan has experienced a forced restructuring due to deterioration in the borrower’s creditworthiness;
•
The misuse of borrowed funds;
•
The borrower is deceased (retail loans);
•
The borrower is insolvent (bankruptcy) for corporate customers;
•
The borrower’s debt was partially or fully written off due to a significant increase in credit risk.
For homogeneous loans:
•
The borrower is more than 90 days past due on its contractual payments;
•
The bank has sold the borrower’s debt with losses;
•
The loan had experienced a forced restructuring due to a deterioration in borrower creditworthiness;
•
The borrower is deceased (retail loans);
•
The borrower’s debt was partially or fully written off due to a significant increase in credit risk.
For other financial assets, debt securities and due from banks:
•
The counterparty or issuer rated at C or less;
•
The counterparty or issuer is more than 30 days past due;
•
The counterparty or issuer has significant deterioration of operating results.
Significant increase in credit risk (“SICR”)
The SICR assessment is performed on an individual basis and on a portfolio basis. SICR for individually
significant loans is assessed on an individual basis by monitoring the triggers stated below. The criteria used
to identify a SICR are monitored and reviewed periodically for appropriateness by the Group’s risk
department.
The Group considers a financial instrument to have experienced a SICR when one or more of the following
quantitative, qualitative or subsidiary criteria have been met:
For individually significant loans:
•
Increase in lifetime probability of default over defined thresholds;
•
The number of days past due is higher than 30 but lower than 60;
•
The increase in credit risk, expressed in the relative threshold based on internal ratings is significant.
SICR is determined based on the comparison date and credit risk rating as of the reporting date for
each financial asset individually.
For homogeneous loans:
•
Increase in lifetime probability of default over defined thresholds;
•
The number of days past due is more than 30 but less than 90;
•
External factors affect the solvency of individual groups of individuals (such as natural disasters,
closure of the city-forming enterprise in the region, etc.).
For other financial assets, debt securities and due from banks:
•
Deterioration of the counterparty’s or issuer’s rating by 4 notches;
•
Deterioration of the counterparty’s or issuer’s rating up to CCC+;
•
Deterioration of operating results of the counterparty or issuer.
ECL measurement – description of estimation techniques
General principle
For financial assets that are not purchased or originated credit impaired (“POCI”) assets ECLs are generally
measured based on the risk of default over one of two different time periods, depending on whether the
borrower’s credit risk has increased significantly in a three-stage model for ECL measurement:
Stage 1: a group of financial instruments for which no significant increase in the credit risk level has been
recorded since initial recognition and provisions for this group are created as 12-month ECL, and interest
income is calculated based on the gross carrying amount of the financial asset.
Stage 2: a group of financial instruments for which a significant increase in the credit risk level has been
recorded since the initial recognition and provisions for which equal ECL for the instrument’s lifetime, and
interest income is calculated based on the gross carrying amount of the financial asset.
Stage 3: a group of credit-impaired financial instruments, for which provisions equal the ECL amount for the
instrument’s lifetime, and interest income is accrued based on the carrying amount of the asset, net of the
loss allowance.
ECL for POCI financial assets is always measured on a lifetime basis (Stage 3), and at the reporting date, the
Group only recognises the cumulative changes in lifetime expected credit losses since initial recognition.
The Group performs individual assessments for credit-impaired loans.
The Group performs assessments on a portfolio basis for retail loans and loans issued to small and medium
entities (“SMEs”). This approach incorporates aggregating the portfolio into homogeneous segments based
on borrower-specific information, such as delinquency, historical data on losses and forward-looking
macroeconomic information.
Macroeconomic overlay and macroeconomic scenarios
The Group incorporates forward looking information in its impairment calculations via macroeconomic
models, which leads to a direct adjustment of default probabilities. Since the Group cannot predict the future
realisation of these macroeconomic parameters, it uses three scenarios - a base scenario, an optimistic
scenario and a pessimistic scenario. The latter two scenarios are linked to a weight of 17% and 33% (31
December 2021: 12% and 23%). The base scenario has an attached weight of 50% (31 December 2021: 65%)
in the calculation. For each scenario a set of values for the relevant macroeconomic variables is used as an
input for the macroeconomic model, which subsequently is applied to adjust the relevant input parameter.
The List of Macroeconomic Indicators
•
Change of nominal exchange rate USD/KZT;
•
Unemployment.
Based on the results of annual ECL model validation results, conducted during 4th quarter 2022, the Group
introduced a number of changes based on behavour of our portfolios. The main changes were associated
with portfolio segmentation and the replacement of a key macroeconomic indicator. Merchant and micro
business finance loans were launched in late 2020 and as the statistical data has become available, we have
created a new portfolio segment to reflect this. Real GDP growth was replaced by nominal USD/KZT
exchange rate, due to the loss of descriptive power of the former and increase in descriptive power of the
latter. The weights of forecasted scenarios were reassessed accordingly. Changes to the model in aggregate
led to a change in the probability of default values. The effect on ECL was equivalent to a KZT 5,405 million
decrease in loss allowance as at 31 December 2022.
ECL measurement – description of estimation techniques
– ECL assessments on an individual basis are done by weighting the
estimates of credit losses for different possible outcomes against the probabilities of each outcome. The
Group defines three possible outcomes for each loan.
Principles of individual assessment
– to assess the staging of exposure and to measure a loss allowance on
a collective basis, the Group combines its exposures into segments on the basis of shared credit risk
characteristics, so that exposure to risk within a group are homogeneous.
Principles of portfolio assessments
Examples of shared characteristics include product type and the amount of debt.
Two types of PDs are used to calculate ECLs: 12-month and lifetime PD:
•
12-month PDs – the estimated probability of a default occurring within the next 12 months (or over the
remaining life of a financial instrument if less than 12 months). This parameter is used to calculate 12-
month ECLs. An assessment of a 12-month PD is based on the latest available historical default data
and adjusted for forward-looking information;
•
Lifetime PDs – the estimated probability of a default occurring over the remaining life of a financial
instrument. This parameter is used to calculate lifetime ECLs. An assessment of a lifetime PD is based
on the latest available historic default data and adjusted for forward looking information.
To calculate Lifetime PD, the Group uses different statistical approaches depending on the segment and
product type, such as the extrapolation of 12-month PDs based on migration matrixes, developing lifetime
PD curves based on the historical default data, hazard rate approach or other.
LGD represents the Group’s expectation of the extent of loss on a defaulted exposure and assessed on a
collective basis based on the latest available recovery statistics.
For unsecured loans Group calculates LGD based on historical NPL collection statistics. For loans secured by
cars, real estate, cash and liquid securities, the Group calculates LGD based on specific collateral
Modification of loans to customers
The Group modifies loans to customers in temporary financial difficulty in order to allow a borrower to
recover solvency. Modification of loans is provided in the form of short-term revision of loan terms and may
include the reduction of interest rate, reduction of monthly payment amount, extension of the loan term, or a
combination of these measures that do not lead to derecognition of the financial asset. After the recovery
period, ordinary contractual terms are to be applied. The recovery period is agreed in the modification terms,
but in most cases is set for 6 months.
Modification of loan is provided only once and to the borrowers with overdue less than 90 days on a
modification date, where sufficient grounds exist to support its recoverability.
During the recovery period, such modified loans are classified to Stage 3, with corresponding increase in loss
allowance. After the recovery period, such modified loans are allocated to the relevant impairment category,
based on its days past due and impairment methodology.
Restructuring of loans to customers
The Group restructures loans of the defaulted borrowers by providing interest free extended schedule. New
schedule of a loan have an annuity structure with no grace period. The Group derecognises loan to a
customer, when the terms of such loan have been substantially renegotiated (difference between the
adjusted discounted present value and the original carrying amount of the loan is greater than 25 percent).
Such newly recognised restructured loans are deemed to be POCI (purchased or originated credit impaired).
The difference recognised as a derecognition gain or loss, to the extent that an impairment loss has not
already been recorded. The Group classifies restructured loans to Stage 3 for at least 1 year, when the terms
of such loan have been renegotiated not substantially.
Write off of loans to customers
Loans are written off against the allowance for impairment losses. The decision to write off is taken by the
Credit Committee for loans overdue more than 1,080 days, which is in line with the Group’s collection
procedures and statistics. However write off of loans does not indicate that no other actions will be
undertaken to collect the loans. As at 31 December 2021 loans that were overdue more than 761 days were
written off. To reflect improved collection results and higher cash flow expectations, as at 31 December 2022
the Group has recovered on balance sheet previously written-off loans that were overdue up to 1,080 days.
Recoveries of amounts previously written off are reflected as an offset to the charge for impairment of
financial assets in the consolidated statement of profit or loss in the period of recovery.
Derecognition of financial assets
The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the
asset to another entity. On derecognition of a financial asset in its entirety, the difference between the asset’s
carrying amount and the sum of the consideration received and the cumulative gain or loss that had been
recognised in other comprehensive income and accumulated in equity is recognised in profit or loss. On
derecognition of a financial asset other than in its entirety, the Group allocates the previous carrying amount
of the financial asset between the part it continues to recognise under continuing involvement, and the part it
no longer recognises on the basis of the relative fair values of those parts on the date of the transfer.
Financial liabilities, such as due to banks, customer accounts, debt securities issued, subordinated debt and
other financial liabilities are initially recognised at fair value. Subsequently amounts due are stated at
amortised cost and any difference between carrying and redemption value is recognised in the consolidated
statement of profit or loss over the period of the borrowings using the effective interest method as a
Derecognition of financial liabilities
The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged,
cancelled, or expired. Where an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an exchange
or modification is treated as a derecognition of the original liability and the recognition of a new liability, and
the difference between the carrying amount of the financial liability derecognised and the consideration paid
and payable is recognised in the consolidated statement of profit or loss.
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow
to the Group and the amount of income can be measured reliably. Interest income and expense are
recognised on an accrual basis using the effective interest method. The effective interest method is a
method of calculating the amortised cost of a financial asset or a financial liability (or group of financial
assets or financial liabilities) and of allocating the interest income or interest expense over the relevant
period.
The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts
(including all fees paid or received that form an integral part of the effective interest rate, transaction costs
and other premiums or discounts) through the expected life of the financial instrument or, (where
appropriate) a shorter period to the gross carrying amount.
Interest earned on assets at fair value is classified within interest income.
Fees and commissions that are included in the effective interest rate are recognised in accordance with IFRS
The Group recognised revenue from the following major sources:
and commissions are recognised over a period in which the related service is provided, typically monthly, and
include the following services of Kaspi.kz, such as access to wide network of Kaspi ATMs with free cash
withdrawals up to certain limits, 24-hour service line support, charge-free transfers between Kaspi clients’
accounts and bill payments for services via kaspi.kz website and mobile application, SMS and mobile push
Seller fees includes fees paid by merchants from shopping transaction originated during both online and in
store shopping. The Group earns seller fees when transactions are completed on the Marketplace Platform
and are generally determined as a percentage based on the value of merchandise and services being sold by
merchants. Seller fees are recognised when the services are rendered, which generally occurs upon delivery
of the related products and services to the customer.
The Group earns transaction and membership revenues when processing payments/transactions and
engaging customers in Kaspi.kz Super App. This includes transaction fees paid by merchants when the
Group enables various payment and purchase transactions. Transaction fees charged to customers for
processing services such as cash withdrawals over certain limits and P2P (peer-to-peer) money transfers to
other banks’ cards and worldwide. Such fees are recognised when the associated service is satisfied, which
normally occurs at the point in time the service is requested by client and provided by the Group.
Membership fee revenue is deferred and recognised over the terms of the applicable memberships, typically
for one year, on a straight-line basis. Membership fees are paid on a monthly/quarterly basis or paid up front
at the beginning of the applicable membership period by customers and merchants for accessing various
Kaspi.kz services. Memberships are cancellable and non-refundable.
Rewards are designed to change customer behavior and promote daily use of our Super App and ensure
growth in customer engagement across all our platforms. Retail customers of the Group accumulate
bonuses for purchases/transactions made with merchants that are also customers of the Group. Retail
customers can then use bonuses earned for future purchases/transactions. Future financial costs due to the
bonuses granted are considered paid to customers, and according to IFRS 15
“Revenue from contracts with
customers”
Contributions to share capital are recognised at cost. Non-cash contributions are not included into the share
capital until realized in cash.
Costs directly attributable to the issue of new shares, other than on a business combination, are deducted
from equity net of any related income taxes.
repurchased treasury shares are further sold, any difference between their selling price and the cost of
acquisition is charged to share capital (if positive) or to retained earnings (if negative). Where repurchased
treasury shares are retired, the carrying value thereof is reduced by the amount paid by the Group at
repurchase thereof, with the share capital respectively reduced by the par value of such retired shares
Dividends that are declared after the reporting date are treated as a subsequent event under IAS 10
“Events
after the Reporting Period”
The reserves recorded in equity (other comprehensive income) on the Group’s consolidated statement of
financial position include revaluation reserve of financial assets and other reserves, which comprise changes
in fair value of financial assets at FVTOCI and allowance for impairment losses for debt instruments
measured at FVTOCI, and foreign currency translation reserve, which is used to record exchange differences
In accordance with the requirements of the Republic of Kazakhstan in which the Group operates, certain
percentages of pension payments are withheld from total disbursements to staff to be transferred to pension
fund, such that a portion of salary expense is withheld from the employee and instead paid to a pension fund
on behalf of the employee. This expense is charged to the consolidated statement of profit or loss in the
period in which the related salaries are earned. Upon retirement, all retirement benefit payments are made by
the pension fund. The Group does not have any pension arrangements separate from the pension system of
the Republic of Kazakhstan. In addition, the Group has no post-retirement benefits or other significant
The preparation of the Group’s consolidated financial statements requires management to make estimates,
judgments and assumptions about the carrying amounts of assets and liabilities that are not readily
apparent from other sources. The estimates and associated assumptions are based on historical experience
and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that period,
Critical judgments in applying accounting policies
The critical judgments, apart from those involving estimations (see below), that the Group management has
made in the process of applying the Group’s accounting policies and that have the most significant effect on
the amounts recognised in the consolidated financial statements. Significant judgments have been made in
the business model assessment, significant increase in credit risk, models and assumptions used which are
discussed in Note 3 below.
Key sources of estimation uncertainty
The following are the key assumptions concerning the future, and other key sources of estimation
uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next financial year.
As explained in Note 3, ECL are measured as an allowance equal to 12-month ECL for Stage 1 assets, or
lifetime ECL assets for Stage 2 or Stage 3 assets. An asset moves to Stage 2 when its credit risk has
increased significantly since initial recognition. IFRS 9 does not define what constitutes a significant increase
in credit risk. In assessing whether the credit risk of an asset has significantly increased the Group takes into
Incorporation of forward looking information
When measuring ECL the Group uses reasonable and supportable forward looking information, which is
based on assumptions for the future movement of different economic drivers and how these drivers will
affect credit risk. Refer to Note 26 for more details, including analysis of the sensitivity of the reported ECL to
changes in estimated forward looking information.
Models and assumptions used
The Group uses various models and assumptions in measuring fair value of financial assets as well as in
estimating ECL. Judgement is applied in identifying the most appropriate model for each type of asset, as
well as for determining the assumptions used in these models, including assumptions that relate to key
drivers of credit risk. See Note 26 for more details on ECL and Note 24 for more details on fair value
measurement.
In estimating the fair value of a financial asset or a liability, the Group uses market-observable data to the
extent it is available. Where such Level 1 inputs are not available, the Group uses valuation models to
determine the fair value of its financial instruments. Refer to Note 24 for more details on fair value
measurement.
The Group considers that the accounting estimate related to valuation of financial instruments where quoted
markets prices are not available is a key source of estimation uncertainty because: (i) it is highly susceptible
to change from period to period because it requires management to make assumptions about interest rates,
volatility, exchange rates, the credit rating of the counterparty, valuation adjustments and specific feature of
the transactions and (ii) the impact that recognising a change in the valuations would have on the assets
reported on its consolidated statement of financial position as well as its profit or loss could be material.
Had the management used different assumptions regarding the interest rates, volatility, exchange rates, the
credit rating of the counterparty and valuation adjustments, a larger or smaller change in the valuation of
financial instruments where quoted market prices are not available, would have resulted that could have had
New and revised IFRS Standards that are effective for the current year
The following amendments and interpretations are effective for the Group effective 1 January 2022:
Amendments to IAS 16
Annual Improvements to IFRS Standards 2018–
2020 (May 2020)
Amendments to IFRS 3 (May 2020)
Amendments to IAS 37 (May 2020)
Property, Plant and Equipment —
Proceeds before Intended Use
Annual Improvements to IFRS Standards
2018–2020 (May 2020)
Reference to the Conceptual Framework
Onerous Contracts - Cost of Fulfilling a
Contract
The above standards and interpretations were reviewed by the Group's management, and determined to not
have a significant effect on the consolidated financial statements of the Group.
New and revised IFRS Standards in issue but not yet effective
At the date of authorisation of these financial statements, 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
Amendments to IAS 1 – Classification of liabilities as current or
non-current
1 January 2023
Amendments to IAS 1 – Classification of Liabilities as Current or
Non-current — Deferral of Effective Date
1 January 2023
Amendments to IAS 1 and IFRS Practice Statement 2 –
"Disclosure of Accounting Policies”
1 January 2023
Amendments to IAS 12 Deferred Tax Relating to Assets and
Liabilities Arising from a Single Transaction
1 January 2023
Amendments to IAS 8 – "Definition of Accounting Estimates”
1 January 2023
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
Revenue includes interest revenue, fees & commissions, seller fees, transaction & membership revenue,
rewards and other gains (losses). Rewards earned by retail customers of the Group are deducted from
revenue.
Year ended
31 December
2022
Year ended
31 December
2021
REVENUE
1,270,592
884,822
Interest
revenue
574,426
422,075
Fees
&
commissions
226,540
191,831
Seller
fees
236,884
151,742
Transaction
&
membership
revenue
261,318
175,901
Rewards
(44,960)
(51,981)
Other
gains
(losses)
16,384
(4,746)
Revenue by segments for the years ended 31 December 2022 and 2021 is presented below:
Year ended
31 December
2022
Year ended
31 December
2021
Marketplace
239,609
153,604
Seller
fees
236,884
151,742
Other
gains
(losses)
2,725
1,862
Payments
333,343
217,085
Transaction
&
membership
revenue
256,750
166,449
Interest
revenue
76,593
50,636
Fintech
745,023
566,114
Interest
revenue
500,256
371,439
Fees
&
commissions
226,540
191,831
Transaction
&
membership
revenue
4,568
9,452
Other
gains
(losses)
13,659
(6,608)
Intergroup
(2,423)
-
Segment
Revenue
1,315,552
936,803
Rewards
(44,960)
(51,981)
REVENUE
1,270,592
884,822
Interest revenue includes interest originated from financing of customers through the Kaspi.kz Super App or
from financing purchases on the Marketplace Platform, third party merchant sites and third-party mobile
apps. It also includes interest revenue from securities and deposits placed with banks. Intergroup represents
Payments interest revenue that was offset by Fintech interest expenses (part of the Fintech Cost of Revenue)
due to Fintech loans being partially funded from Payments’ interest free balances.
Fees & commissions revenue mainly includes banking service fees and commissions, which are paid by
customers on a monthly basis.
Seller fees includes fees paid by merchants from shopping transactions originated on the Marketplace
Platform. The Group earns seller fees when transactions are completed and are generally determined as a
percentage based on the value of merchandise and services being sold by merchants. Seller fees also
include Kaspi Travel revenue, revenue from delivery and marketing services paid by Marketplace merchants.
The Group earns Transaction revenue at point in time when processing payments for regular household
needs, payments for purchases both online and in-store, other debit card transactions, online money wire
transfers both inside the country and globally, and transactions by SME and corporate customers. Since the
4th quarter of 2021 Payment Platform also includes transaction revenue from our payments business in
Ukraine. For the years ended 31 December 2022 and 2021, the Transaction revenue was KZT 243,630 million
and KZT 156,738 million, respectively.
Membership revenue is earned over time and includes annual fees earned during the years ended 31
December 2022 and 2021 of KZT 17,688 million and KZT 19,163 million, respectively, paid by individual
customers, SME and corporate customers for use of Kaspi.kz products and services.
Other gains (losses) are mainly due to net gains (losses) on foreign exchange operations and financial assets
and liabilities at FVTPL. For the years ended 31 December 2022 and 2021, the net gain (loss) on foreign
exchange operations were KZT 1,377 million and KZT (656) million, respectively. For the years ended 31
December 2022 and 2021, the net gain (loss) on financial assets and liabilities at FVTPL were KZT 11,471
million and KZT (7,066) million, respectively. It also includes revenue from Digital Classifieds LLC in the
The Group reports its business in three operating segments. The following tables present the summary of
each segment’s revenue, net revenue and net income:
Year ended
31 December
2022
Year ended
31 December
2021
SEGMENT
REVENUE
1,315,552
936,803
Marketplace
239,609
153,604
Payments
333,343
217,085
Fintech
745,023
566,114
Intergroup
(2,423)
-
SEGMENT
NET
REVENUE
931,941
691,941
Marketplace
213,835
142,354
Payments
303,407
195,205
Fintech
414,699
354,382
NET
INCOME
588,844
435,214
Marketplace
152,248
99,716
Payments
199,489
126,653
Fintech
237,107
208,845
We have designed Kaspi Bonus as a tool to increase cross-platform customer engagement and promote
daily use of our Super App. As a result, for management reporting and for segment reporting purposes we
continue to account for rewards as selling and marketing expenses and allocate accordingly.
Expenses associated with share-based compensation are recognised across the segments. The following
table presents the summary of share-based compensation expense by segments:
Year ended
31 December
2022
Year ended
31 December
2021
SHARE-BASED
COMPENSATION
(19,984)
(20,057)
Marketplace
(2,009)
(1,934)
Payments
(5,946)
(4,620)
Fintech
(12,029)
(13,503)
Operating segments are reported in a manner consistent with internal reports, which are reviewed and used
Cost of revenue includes interest expenses, transaction expenses and operating expenses which are directly
attributable to the Group’s everyday operating activities.
Year ended
31 December
2022
Year ended
31 December
2021
COST
OF
REVENUE
(383,611)
(244,862)
Interest
expenses
(278,676)
(171,491)
Transaction
expenses
(22,188)
(16,542)
Operating
expenses
(82,747)
(56,829)
Interest expenses include interest expenses on customer accounts, mandatory insurance of retail deposits
and interest expenses on debt securities, including subordinated debt.
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.
Operating expenses include costs incurred to operate retail network, 24-hour call support and
communication with customers, product packaging and delivery, risk assessment, customer deposit
acquisition and other expenses which can be attributed to the Group’s operating activities related to the
provision of the products and services.
Employee benefits, depreciation and amortisation expenses and operating lease expenses are presented
as follows:
Year ended
31 December 2022
Year ended
31 December 2021
Employee
benefits
Depreciation &
amortisation
Operating
lease
Employee
benefits
Depreciation &
amortisation
Operating
lease
Cost
of
revenue
(20,408)
(1,085)
(1,040)
(17,361)
(831)
(1,084)
Technology
&
product
development
(31,585)
(12,860)
(2,558)
(24,478)
(9,359)
(1,641)
Sales
&
marketing
(1,176)
-
(51)
(403)
-
-
General &
administrative
expenses
(15,340)
(2,849)
(2,112)
(16,043)
(1,876)
(2,097)
Total
(68,509)
(16,794)
(5,761)
(58,285)
(12,066)
(4,822)
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:
Year ended
31 December
2022
Year ended
31 December
2021
SHARE-BASED
COMPENSATION
(19,984)
(20,057)
Cost
of
revenue
(1,673)
(1,148)
Technology
&
product
development
(9,137)
(9,020)
Sales
&
marketing
(653)
(27)
General
&
administrative
expenses
(8,521)
The movements in loss allowance were as follows:
Loans to customers
Due from
banks
Financial assets at FVTOCI
Cash and
cash equivalents
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 2021
64,043
10,582
67,791
19
130
-
2,662
1
3,846
18
149,092
Changes in provisions
-Transfer to Stage 1
3,544
(1,138)
(2,406)
-
-
-
-
-
-
-
-
-Transfer to Stage 2
(6,970)
7,208
(238)
-
(3)
3
-
-
-
-
-
-Transfer to Stage 3
(13,854)
(7,014)
20,868
-
-
-
-
-
-
-
-
Net changes, resulting from changes in credit
risk parameters
(14,545)
4,429
33,307
(14)
3
653
-
2
1,348
21
25,204
New assets issued or acquired
65,888
-
-
-
10
-
-
-
-
-
65,898
Repaid assets (except for write off)
(30,502)
(2,282)
(11,485)
-
(58)
-
-
-
-
-
(44,327)
Modification effect
-
-
8,435
-
-
-
-
-
-
-
8,435
Write-off, net of recoveries
-
-
19,029
-
-
-
-
-
(80)
-
18,949
Reclassification of financial assets
-
-
-
-
-
-
(2,662)
-
2,662
-
-
Foreign exchange difference
-
-
12
1
-
-
-
-
18
-
31
As at 31 December 2022
67,604
11,785
135,313
6
82
656
-
3
7,794
39
223,282
Loans to customers
Due from
banks
Financial assets at FVTOCI
Cash and
cash equivalents
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 2020
40,062
7,674
74,153
26
374
-
2,564
3
2,058
28
126,942
Changes in provisions
-Transfer to Stage 1
5,556
(1,145)
(4,411)
-
-
-
-
-
-
-
-
-Transfer to Stage 2
(335)
832
(497)
-
-
-
-
-
-
-
-
-Transfer to Stage 3
(2,033)
(4,723)
6,756
-
-
-
-
-
-
-
-
Net changes, resulting from changes in credit
risk parameters
(8,490)
9,608
16,509
(8)
(54)
-
278
(2)
2,392
(14)
20,219
New assets issued or acquired
54,379
-
-
-
8
-
-
-
-
-
54,387
Repaid assets (except for write off)
(25,096)
(1,664)
(13,265)
-
(198)
-
-
-
-
-
(40,223)
Write-off, net of recoveries
-
-
(11,458)
-
-
-
(180)
-
(605)
4
(12,239)
Foreign exchange difference
-
-
4
1
-
-
-
-
1
-
6
As at 31 December 2021
64,043
10,582
67,791
19
130
-
2,662
1
3,846
18
149,092
Net changes, resulting from changes in credit risk parameters include decrease of provisions due to partial repayment of loans.
As at 31 December 2022 and 2021, the allowance for expected credit losses on financial assets at FVTOCI of KZT 738 million and KZT 2,792 million, respectively, is included in the ‘Revaluation reserve of financial assets’ within equity.
The Group provides for taxes for the current period based on the tax accounts maintained and prepared in
accordance with the tax regulations of the Republic of Kazakhstan, the Republic of Azerbaijan and Ukraine,
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.
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
2022
31 December
2021
Vacation
reserve,
accrued
bonuses
and
share-based
compensation
873
779
Property,
equipment
and
intangible
assets
(4,078)
(3,263)
Other
-
17
Net
deferred
tax
liability
(3,205)
(2,467)
Relationships between tax expenses and accounting profit are explained as follows:
Year ended
31 December
2022
Year ended
31 December
2021
Net
income
before
income
tax
720,574
528,802
Tax
at
the
statutory
tax
rate
of
20%
(144,115)
(105,760)
Non-taxable
income
12,892
12,303
Adjustment
recognised
in
the
period
for
current
tax
of
prior
periods
315
1,626
Non-deductible
expense
(822)
(1,757)
Income
tax
expense
(131,730)
(93,588)
Current
income
tax
expense
(131,307)
(95,066)
Adjustment
recognised
in
the
period
for
current
tax
of
prior
periods
315
1,626
Deferred
income
tax
expense
(738)
(148)
Income
tax
expense
(131,730)
(93,588)
Non-taxable income was represented by interest income on governmental and other qualified securities in
accordance with the tax legislation. Corporate income tax rate is 20% in Kazakhstan and Azerbaijan, and 18%
in Ukraine.
31 December
2022
31 December
2021
Net
deferred
tax
liability:
At
the
beginning
of
the
period
(2,467)
(2,319)
Change
in
deferred
income
tax
balances
recognised
in
profit
or
loss
(738)
(148)
At
the
end
of
the
period
(3,205)
Earnings per share are determined by dividing the profit or loss attributable to owners of the Company by the
weighted average number of participating shares outstanding during the reporting year, excluding treasury
shares. For the purpose of diluted earnings per share calculation the Group considers dilutive effects of
shares granted under share-based compensation plan.
31 December
2022
31 December
2021
Net
income
attributable
to
the
shareholders
of
the
Company
585,026
431,914
Weighted
average
number
of
ordinary
shares
for
basic
earnings
per
share
191,725,280
192,187,223
Weighted
average
number
of
ordinary
shares
for
diluted
earnings
per
share
193,991,446
194,341,305
Earnings
per
share
–
basic
(KZT)
3,051
2,247
Earnings
per
share
–
diluted
(KZT)
3,016
2,222
Reconciliation of the number of shares used for basic and diluted EPS:
31 December
2022
31 December
2021
Weighted
average
number
of
ordinary
shares
for
basic
earnings
per
share
191,725,280
192,187,223
Number
of
potential
ordinary
shares
attributable
to
share-based
compensation
2,266,166
2,154,082
Weighted
average
number
of
ordinary
shares
for
diluted
earnings
per
share
193,991,446
31 December
2022
31 December
2021
Cash
on
hand
179,766
151,668
Current
accounts
with
other
banks
196,194
161,524
Short-term
deposits
with
other
banks
229,389
28,909
Reverse
repurchase
agreements
10,011
-
Total
cash
and
cash
equivalents
615,360
342,101
Cash on hand includes cash balances with ATMs and cash in transit. As at 31 December 2022 and 2021,
current accounts and short-term deposits with National Bank of the Republic of Kazakhstan are KZT 220,109
million and KZT 84,053, respectively.
As at 31 December 2022 and 2021, the fair value of collateral of reverse repurchase agreements classified as
Investment securities and derivatives comprise:
31 December
2022
31 December
2021
Total
financial
assets
at
FVTOCI
1,076,242
606,462
Total
financial
assets
at
FVTPL
30
955
Total
investment
securities
and
derivatives
1,076,272
607,417
Financial assets at FVTOCI comprise:
31 December
2022
31 December
2021
Debt
securities
1,075,955
606,107
Equity
investments
287
355
Total
financial
assets
at
FVTOCI
1,076,242
606,462
As at 31 December 2022 and 2021, sovereign debt securities of KZT 889,136 million and KZT 347,569
million, respectively, were included in debt securities.
Financial assets at FVTPL comprise:
31 December
2022
31 December
2021
Derivative
financial
instruments
30
955
Total
financial
assets
at
FVTPL
30
955
As at 31 December 2022, financial assets at FVTPL included swap and spot instruments of KZT 30 million
(2021: KZT 98 million) with a notional amount of KZT 102,563 million (2021: KZT 60,914 million) and
forwards of KZT Nil (2021: KZT 857 million) with a notional amount of KZT Nil (2021: KZT 126,348 million).
As at 31 December 2022, financial liabilities at FVTPL included swap and spot instruments of KZT 3 million
(2021: KZT 67 million) with a notional amount of KZT 102,498 million (2021: KZT 60,986 million) and
forwards of KZT 144 million (2021: KZT 2,341 million) with a notional amount of KZT 8,598 million (2021:
31 December
2022
31 December
2021
Gross
loans
to
customers
3,369,512
2,573,153
Less:
allowance
for
impairment
losses
(Note
7)
(214,702)
(142,416)
Total
loans
to
customers
3,154,810
2,430,737
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 periods ended 31 December
2022 and 2021 are disclosed in Note 7.
As at 31 December 2022 and 2021, accrued interest of KZT 35,924 million and KZT 27,648 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 to gross NPLs reflects the Group’s ability to absorb potential losses
from non-performing loans. Considering the ratio represents impairment loan loss allowances for all loans as
a percentage of NPLs, the ratio can be more than 100%. With the adoption of IFRS 9, these loans were
classified in Stage 3.
The following tables 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
to gross NPLs
As
at
31
December
2022
211,581
214,702
101%
As
at
31
December
2021
120,652
142,416
118%
During the year ended 31 December 2022, due to an increase in cash flow expectations, the Group has
recovered previously written-off loans with overdue up to 1,080 days. Loans to customers that were
recovered on balance sheet were KZT 26,810 million, which led to a respective increase in both gross NPL
and the total allowance for impairment.
Provision expense on loans to customers:
Year ended
31 December
2022
Year ended
31 December
2021
Provision
expense
on
loans
to
customers:
Loans
to
customers
(53,245)
(31,981)
Total
provision
expenses
on
loans
to
customers
(53,245)
(31,981)
The Group did not provide loans which individually exceeded 10% of the Group’s equity.
The gross carrying amount and related loss allowance on loans to customers by stage were as follows:
Stage 1
Stage 2
Stage 3
12-month
ECL
Lifetime
ECL
Lifetime
ECL
POCI
Total
Loans
to
customers
Gross
carrying
amount
3,058,897
40,934
264,927
4,754
3,369,512
Loss
allowance
(67,604)
(11,785)
(135,313)
-
(214,702)
Carrying amount
as at 31 December 2022
2,991,293
29,149
129,614
4,754
3,154,810
Stage 1
Stage 2
Stage 3
12-month
ECL
Lifetime
ECL
Lifetime
ECL
POCI
Total
Loans
to
customers
Gross
carrying
amount
2,407,687
29,831
135,635
-
2,573,153
Loss
allowance
(64,043)
(10,582)
(67,791)
-
(142,416)
Carrying amount
as at 31 December 2021
2,343,644
19,249
67,844
-
2,430,737
During the year ended 31 December 2022, the Group has restructured loans to customers, which were
classified as NPL in the amount of KZT 55,190 million (KZT 25,250 million were recovered from off-balance,
with subsequent recognition of carrying amount of KZT 17,233 million), by providing an interest free
extended repayment schedule. During the year ended 31 December 2022, KZT 5,951 million of restructured
loans were repaid. As at 31 December 2022, remaining outstanding gross debt of restructured loans were
KZT 49,239 million.
As at 31 December 2022, loans to customers of KZT 30,969 million that were restructured during the year
ended 31 December 2022 were classified to Stage 3 for at least 1 year from restructuring date with
respective reduction of gross carrying amount to KZT 22,534 million as a result of change in present value.
As at 31 December 2022, loans to customers of KZT 18,270 million that were restructured during the year
ended 31 December 2022 were derecognised and recognised as POCI loans with gross carrying amount of
KZT 4,754 million.
As at 31 December 2022 and 31 December 2021, commitments on loans and unused credit lines
Buildings
and
construction
Furniture
and equipment
Intangible
assets
Construction
in progress
Total
At
initial/revalued
cost
31
December
2020
36,886
52,944
19,268
3,002
112,100
Additions
1,158
16,270
8,578
1,528
27,534
Disposals
(282)
(3,947)
(694)
-
(4,923)
Transfers
4,504
-
-
(4,504)
-
31
December
2021
42,266
65,267
27,152
26
134,711
Additions
23,084
36,117
5,446
55
64,702
Disposals
(836)
(2,387)
(1,079)
-
(4,302)
Transfers
3
(3)
-
-
-
31 December 2022
64,517
98,994
31,519
81
195,111
Accumulated depreciation
and impairment
31
December
2020
7,853
24,792
9,439
-
42,084
Charge
for
the
year
785
7,286
4,265
-
12,336
Disposals
(281)
(3,835)
(694)
-
(4,810)
31
December
2021
8,357
28,243
13,010
-
49,610
Charge
for
the
year
2,258
10,752
4,191
-
17,201
Disposals
(815)
(1,740)
(985)
-
(3,540)
31 December 2022
9,800
37,255
16,216
-
63,271
Net book value
31 December 2022
54,717
61,739
15,303
81
131,840
31 December 2021
33,909
37,024
14,142
26
85,101
As at 31 December 2022 and 2021, property and equipment included fully depreciated property and
equipment of KZT 13,322 million and KZT 9,922 million, respectively.
The Group’s revaluation policy requires the entire class of buildings and construction to be revalued every five
years. In 2021, the Group had its buildings and properties revalued by independent appraisers, and the
valuation amounts approximate their carrying value.
The fair value of buildings and construction was determined based on the market comparable approach that
reflects recent transaction prices for similar properties and was carried out by independent appraisers not
related to the Group. In measuring fair value of the Group’s buildings and construction, the measurements
were categorized into Level 3. During the years 2022 and 2021, there were no movements between Level 3
31 December
2022
31 December
2021
Other
financial
assets:
Settlement
with
brokers
31,243
8,733
Prepayments
for
customers
online
transactions
5,166
5,014
Receivables
from
VISA
and
Master
Card
3,498
9,594
Other
10,277
2,031
Total
other
financial
assets
50,184
25,372
Less:
allowance
for
impairment
losses
(Note
7)
(7,068)
(3,433)
Total
net
other
financial
assets
43,116
21,939
Other
non-financial
assets:
Investment
property
16,829
18,574
Other
15,561
18,831
Total
other
non-financial
assets
32,390
37,405
Less:
allowance
for
impairment
losses
(Note
7)
(726)
(413)
Total
net
other
non-financial
assets
31,664
36,992
Total
other
assets
74,780
Movements in allowances for impairment of other assets are disclosed in Note 7.
2022
2021
Cost
As
at
1
January
19,556
24,643
Additions
-
1,440
Disposals
(1,602)
(6,527)
As
at
31
December
17,954
19,556
Accumulated
depreciation
As
at
1
January
(982)
(855)
Depreciation
charge
(244)
(342)
Disposals
101
215
As
at
31
December
(1,125)
(982)
Net
book
value
16,829
18,574
During the years ended 31 December 2022 and 2021, the Group foreclosed collateral it held as security for
loans. As a result, the Group received investment property of
KZT Nil and KZT 1,440 million, respectively.
As at 31 December 2022 and 2021, the fair value of investment property was KZT 20,869 million and
KZT 22,718 million, respectively. In measuring fair value of the Group’s investment property, the
31 December
2022
31 December
2021
Recorded
at
amortised
cost:
Repurchase
agreements
16,119
75,524
Time
deposits
of
banks
and
other
financial
institutions
313
968
Total
due
to
banks
16,432
76,492
As at 31 December 2022 and 2021, accrued interest of KZT 58 million and KZT 62 million, respectively, was
included in due to banks.
Fair value of collateral of repurchase agreements, which were classified as due to banks as at 31 December
31 December
2022
31 December
2021
Individuals
Term
deposits
3,057,870
2,070,822
Current
accounts
700,957
534,190
Total
due
to
individuals
3,758,827
2,605,012
Corporate
customers
Term
deposits
59,638
43,131
Current
accounts
182,225
114,900
Total
due
to
corporate
customers
241,863
158,031
Total
customer
accounts
4,000,690
2,763,043
As at 31 December 2022 and 2021, accrued interest of KZT 29,214 million and KZT 15,423 million,
respectively, was included in customer accounts.
As at 31 December 2022 and 2021, customer accounts of KZT 42,733 million and KZT 26,679 million,
respectively, were held as security against loans.
As at 31 December 2022 and 2021, customer accounts of KZT 108,665 million (2.72%) and KZT
Currency
Maturity date
month/
year
Nominal interest
rate
%
31
December
2022
31
December
2021
Third
bond
program
–
first
issue
KZT
January 2025
9.90
51,045
51,045
Third
bond
program
–
second
issue
KZT
January 2024
9.80
48,418
48,414
Third
bond
program
–
third
issue
KZT
January 2023
9.70
40,915
40,252
Total debt securities issued
140,378
139,711
As at 31 December 2022 and 2021, accrued interest of KZT 5,620 million and KZT 5,620 million, respectively,
was included in debt securities issued. All debt securities issued are recorded at amortised cost
as at 31 December 2022 and 2021. The Group did not have any defaults or other breaches with respect to its
debt securities issued as at 31 December 2022 and 2021.
31 December
2022
31 December
2021
Other
financial
liabilities:
Payables
for
customers’
online
transactions
23,542
12,080
Accrued
expenses
3,080
2,281
Accrued
dividends
payable
to
non-controlling
interest
1,235
1,003
Derivative
financial
liabilities
147
2,408
Other
238
1,177
Total
financial
liabilities
28,242
18,949
Other
non-financial
liabilities:
Prepayments
10,950
10,653
Other
taxes
payable
10,520
6,936
Current
income
tax
payable
5,957
8,609
Accumulated
employee
benefits,
vacation
reserves
4,521
3,938
Deferred
tax
liabilities
3,245
2,512
Other
7,415
4,721
Total
non-financial
liabilities
42,608
37,369
Total
other
liabilities
70,850
Currency
Maturity date
month/
year
Nominal
interest
rate, %
31 December
2022
31 December
2021
Second
bond
program
–
third
issue
KZT
February
2023
2% plus
inflation rate
5,249
5,317
Third
bond
program
–
fourth
issue
KZT
June 2025
10.7%
62,269
62,266
Debt component of preference
shares
KZT
n/a
n/a
90
82
Total subordinated debt
67,608
67,665
The debt component of preference shares relates to subsidiary Kaspi Bank JSC (“the Bank” - subsidiary of
the Company), and is held by the non-controlling interest. As at 31 December 2022 and 2021, accrued
interest of KZT 3,508 million and KZT 3,457 million, respectively, was included in subordinated debt.
All subordinated debt are recorded at amortised cost as at 31 December 2022 and 2021. The above liabilities
are subordinated to the claims of depositors and other creditors of the issuer in the event of liquidation. The
Group did not have any defaults or other breaches with respect to its subordinated debt as at 31 December
2022 and 2021.
In February 2023 the Bank fully repaid its outstanding debt under the third issue of second bond program.
Reconciliation of liabilities arising from financing activities
The table below details changes in the Group’s liabilities arising from financing activities, including both cash
and non-cash changes. Liabilities arising from financing activities are those for which cash flows were, or
future cash flows will be, classified in the Group’s consolidated statement of cash flows as cash flows from
financing activities.
Non-cash changes
1 January
2022
Financing
cash flows
Foreign
exchange
movement
Changes in
amortised cost
31 December
2022
Debt
securities
issued
139,711
-
-
667
140,378
Subordinated
debt
67,665
-
-
(57)
67,608
Non-cash changes
1 January
2021
Financing
cash flows
Foreign
exchange
movement
Changes in
amortised cost
31 December
2021
Debt
securities
issued
139,111
-
-
600
139,711
Subordinated
debt
78,009
(10,371)
-
27
The table below provides a reconciliation of the change in the number of authorised shares, shares issued
and fully paid, treasury shares and shares outstanding:
Authorised
shares
Issued and fully
paid shares
Treasury
shares
Shares
outstanding
Ordinary shares
1
January
2021
216,742,000
199,500,000
(7,695,000)
191,805,000
Share
options
exercised
(Note
21)
-
-
382,223
382,223
31 December 2021
216,742,000
199,500,000
(7,312,777)
192,187,223
Share
options
exercised
(Note
21)
-
-
499,472
499,472
Share
buy-back
program
-
-
(2,376,725)
(2,376,725)
31 December 2022
216,742,000
199,500,000
(9,190,030)
190,309,970
During the year ended 31 December 2022, the Board of Directors approved three separate share buy-back
programs.
As at 22 July 2022, the first 3-month GDR buyback program was completed, totalling 998,429 GDRs
equivalent to KZT 22,841 million.
The second 3-month share buyback program was in force until 22 October 2022. As at the end of the
program, the Group has acquired a total of 788,153 GDRs on the market for an aggregate consideration of
KZT 21,324 million.
On 22 October 2022, the Board of Directors approved another 4-month share buyback program for up to
USD 100 million, which will be in force until 24 February 2023. As at 31 December 2022, the Group has
acquired 590,143 GDRs equivalent to KZT 19,506 million within the third GDR buyback program.
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 2021
130,144
(34,319)
95,825
Share
options
exercised
-
1,705
1,705
31 December 2021
130,144
(32,614)
97,530
Share
options
exercised
-
2,228
2,228
Share
buy-back
program
-
(63,672)
(63,672)
31 December 2022
130,144
(94,058)
36,086
All shares are KZT denominated. The Group has one class of ordinary shares which carry no right to fixed
income. Share premium represents an excess of contributions received over the nominal value of shares
issued and amounts received as a result of the resale of shares over their purchase price.
Dividends
declared
Dividend
per share
September
2022
95,787
KZT 500
December
2022
114,315
KZT 600
Total
for
2022
210,102
Dividends
declared
Dividend
per share
March
2021
170,662
KZT 888
September
2021
79,758
KZT 415
December
2021
89,942
KZT 468
Total
for
2021
In the third quarter of 2021, the Group replaced its phantom shares program with share options to better
align the interest of the participants with the long-term interests of the Company and its Shareholders. As a
result of such modification, a liability for phantom shares as at the date of replacement was derecognised
and share options measured at their fair value at the date of the replacement were recognised. Awards are
payable in annual installments over a five-year vesting schedule. The previous phantom share program had a
two-year vesting schedule. Now all Share-based programs of the group are equity settled with no phantom
shares involved.
In addition, in the third quarter 2021 and fourth quarter 2022, the program was expanded to include more
senior executives and other core Group personnel, who will all receive share options of the Group. Share
options were measured at fair value of the shares at the date of grant. Awards are payable in annual
installments over a five-year vesting schedule.
The management of the Group believes that share-based awards are vital to attract, incentivize and retain
employees over the long-term.
Share-based compensation expense
The Group applies the graded vesting method, under which granted equity instruments are vested in
instalments over the vesting period. Each installment is separately measured and attributed to expense over
the vesting period. According to IFRS 2, this accelerates the recognition of compensation expenses resulting
in a higher proportion of expenses being recognised in the early years of overall plan.
Year ended
31 December
2022
Year ended
31 December
2021
Share-based
compensation
expense
(19,984)
(20,057)
Share
options
(19,984)
(19,631)
Phantom
shares
-
(426)
Phantom share expenses of KZT 426 million refer to revaluation of the 1st year of the previous Phantom
share program vested in the 1st quarter of 2021.
Share Options
Share options are measured at fair value of the shares at the date of grant 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 shares that will eventually vest. Recipients of Share Options are entitled to
the dividends once shares vested and exercised.
The following table summarizes the details of the share options outstanding:
Year ended
31 December
2022
(shares)
Year ended
31 December
2021
(shares)
Outstanding
at
the
beginning
of
the
year
2,154,082
1,911,115
Granted
611,556
625,190
Forfeited
-
-
Exercised
(499,472)
(382,223)
Expired
-
-
Outstanding
at
the
end
of
the
year
2,266,166
2,154,082
In 2022 and 2021, share options in the quantity of 499,472 shares and 382,223 shares, respectively, were
exercised from treasury shares under the share-based compensation plan.
The following table represents Share-based Compensation reserve outstanding:
Share-Based
Compensation
reserve
1 January 2021
8,788
Share
options
accrued
19,631
Share
options
exercised
(7,177)
31 December 2021
21,242
Share
options
accrued
19,984
Share
options
exercised
(11,952)
31 December 2022
In the normal course of business the Group is a party to financial instruments with off-balance sheet risk in
order to meet the needs of its customers. Guarantees issued included below represent financial guarantees,
where payment is not probable as at the respective reporting date, and therefore have not been recorded in
the consolidated statement of financial position.
The Group’s maximum exposure to credit loss under contingent liabilities and commitments to extend credit,
in the event of non-performance by the other party where all counterclaims, collateral or security prove
valueless, is represented by the contractual amounts of those instruments.
The Group uses the same credit policy in undertaking contingent commitments as it does for on-balance
operations.
As at 31 December 2022 and 2021, provision for losses on contingent liabilities were KZT 39 million and
KZT 18 million, respectively.
The Group’s contingent liabilities and credit commitments comprised the following:
31 December
2022
31 December
2021
Nominal
amount
Nominal
amount
Commitments
on
loans
and
unused
credit
lines:
Revocable
loans
157,478
131,804
Guarantees
issued
and
similar
commitments
564
1,904
Total
contingent
liabilities
and
credit
commitments
158,042
133,708
Commitments on loans and unused credit lines represent the Group’s revocable and irrevocable
commitments to extend loans within unused credit line limits. Those commitments where the borrower has
to apply each time it wants to draw the credit facility from unused credit lines and the Group may approve or
deny the extension of the credit facility based on the borrower’s financial performance, debt service and other
credit risk characteristics are considered revocable. Those commitments where the Group is contractually
obliged with no conditions to extend the loan are considered to be irrevocable.
Legal proceedings
From time to time and in the normal course of business, claims against the Group are received from
customers and counterparties. Management is of the opinion that no material losses will be incurred and
respectively no provision has been made in these consolidated financial statements.
Employees of the Group receive pension benefits from pension funds in accordance with the laws and
regulations of the Republic of Kazakhstan. As at 31 December 2022 and 2021, the Group was not liable for
any supplementary pensions, post-retirement health care, insurance benefits, or retirement indemnities to its
Due to the presence in Kazakhstani commercial legislation and tax legislation in particular, of provisions
allowing more than one interpretation, and also due to the practice developed in a generally unstable
environment by the tax authorities of making arbitrary judgment of business activities, if a particular
treatment based on Management’s judgment of the Group’s business activities was to be challenged by the
tax authorities, the Group may be assessed additional taxes, penalties and interest. Such uncertainty may
relate to valuation of financial instruments, loss and impairment provisions and market level for deals’
pricing. The Group believes that it has already made all tax payments, and therefore no allowance has been
made in the consolidated financial statements. Tax years remain open to review by the tax authorities for five
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 with related parties:
Year ended
31 December 2022
Year ended
31 December 2021
Transactions with
related parties
Total category
as per financial
statements
captions
Transactions with
related parties
Total category
as per financial
statements
captions
Consolidated statement of
financial position
Loans
to
customers
3,057
3,369,512
3,568
2,573,153
-
other
related
parties
3,057
3,568
Allowance for impairment losses on
loans to customers
(7)
(214,702)
(13)
(142,416)
-
other
related
parties
(7)
(13)
Other
assets
20
74,780
6
58,931
- entities controlled by the key
management personnel of the Group
3
2
-
other
related
parties
17
4
Customer
accounts
16,442
4,000,690
17,077
2,763,043
-
entities
controlled
by
the
key
management
personnel
of
the
Group
5,462
6,414
-
key
management
personnel
of
the
Group
478
2,421
-
other
related
parties
10,502
8,242
Other
liabilities
1,339
70,850
1,487
56,318
- entities controlled by the key
management personnel of the Group
198
930
-
other
related
parties
1,141
557
Compensation to directors and other members of key management is presented as follows:
Year ended
31 December 2022
Year ended
31 December 2021
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
(800)
(68,509)
(782)
(58,285)
Share-based
compensation
(7,298)
(19,984)
(11,381)
(20,057)
During the years ended 31 December 2022 and 2021, interest income from other related parties were
KZT 314 million and KZT 362 million, respectively.
During the years ended 31 December 2022 and 2021, interest expense from transactions with entities
controlled by the key management personnel of the Group were KZT 176 million and KZT 6 million,
respectively, interest expense from transactions with key management personnel were KZT 19 million and
KZT 22 million, respectively and other related parties were KZT 208 million and KZT 138 million, respectively.
During the years ended 31 December 2022 and 2021, transaction costs attributable to loans to customers
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).
Financial
assets/
financial
liabilities
Fair value as at
31 December
2022
Fair value as at
31 December
2021
Fair value
hierarchy
Valuation technique(s) and key input(s)
Non-derivative
financial
assets
at
FVTOCI
(Note
11)
838,260
230,847
Level 1
Quoted prices in an active market.
Non-derivative
financial
assets
at
FVTOCI
(Note
11)
237,948
375,581
Level 2
Quoted prices in markets that are not active.
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%.
Unlisted Equity investments classified as
financial assets at FVTOCI
34
34
Level 3
Derivative
financial
assets
(Note
11)
30
955
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
18)
147
2,408
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 2022, the fair value of the investment securities in Level 2 includes short-term and long-term sovereign debt securities of KZT 99,350 million
and KZT 47,304 million, respectively. As at 31 December 2021, the fair value of the investment securities in Level 2 includes short-term and long-term sovereign
debt securities of KZT 81,672 million and KZT 160,527 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 during the years ended 31 December 2022 and 2021.
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 2022
Carrying
amount
Fair
value
Fair value hierarchy
Due
from
banks
25,668
25,234
Level 2
Loans
to
customers
3,154,810
3,192,581
Level 3
Due
to
banks
16,432
15,324
Level 2
Customer
accounts
4,000,690
3,899,302
Level 2
Debt
securities
issued
140,378
133,825
Level 2
Subordinated
debt
67,608
63,500
Level 2
31 December 2021
Carrying
amount
Fair
value
Fair value hierarchy
Due
from
banks
50,903
50,783
Level 2
Loans
to
customers
2,430,737
2,465,700
Level 3
Due
to
banks
76,492
75,870
Level 2
Customer
accounts
2,763,043
2,751,213
Level 2
Debt
securities
issued
139,711
137,649
Level 2
Subordinated
debt
67,655
67,272
Level 2
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, 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
25. Regulatory matters
The management of Kaspi Bank JSC 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
2022
31 December
2021
Capital
adequacy
ratios:
Tier
1
capital
17.0%
15.9%
Total
capital
18.0%
18.0%
The Bank complies with NBRK’s capital requirements. The following table presents Bank’s capital adequacy
ratios in accordance with the NBRK requirements:
31 December
2022
31 December
2021
Capital
adequacy
ratios:
Tier
1
capital
(k1.2)
12.2%
11.5%
Total
capital
(k.2)
13.1%
12.9%
The Group permanently advances it’s risk management environment, to fit up-to-date challenges and risks
the Group is exposed to. The Group is exposed to the following types of risks: credit risk, liquidity risk and
market risk.
The Group is exposed to credit risk, which is the risk that a customer will be unable to pay amounts in full
when due. The Group’s credit risk exposure arises primarily from our consumer finance business through the
Fintech Platform. To manage credit risk during loan origination the Group centralized all processes related to
decision making, verification and accounting through it’s headquarters. The Group has developed an
automated, centralised and big data-driven proprietary loan approval process that enables it to make instant
credit decisions. The risk management block is responsible for maintaining scoring models and decision-
making process. The quality of approved loans are monitored by risk management block on day-to-day basis
with periodical validation of the models.
During the credit decision process, the Group uses proprietary risk algorithms and predictive scoring models
for the evaluation of the risks of potential borrowers using statistical modelling based on (i) a wealth of
proprietary internal data such as application, transactional, behavioural, shopping and payment history
information, which is supplemented by (ii) external data such as data received from credit bureaus (First
Credit Bureau LLP and State Credit Bureau JSC) and pension centre (the State Pension Payment Centre) with
regard to each customer.
The additional proprietary data constantly accumulated around the Group’s customers’ activity that enables
it to continuously deepen its credit decision process.
The risk management block, in terms of credit risk, consists of independent modelling, anti-fraud, monitoring
and provisioning division.
Maximum Exposure
The Group’s maximum exposure to credit risk varies significantly and is dependent on both individual risks
and general market economy risks. For financial assets recorded on statement of financial position, the
maximum exposure equals to a carrying value of those assets prior to any offset or collateral. For financial
guarantees and other contingent liabilities the maximum exposure to credit risk is the maximum amount the
Group would have to pay if the guarantee was called on or in the case of commitments, if the loan amount
was called on.
As at 31 December 2022 and 2021, the maximum exposure to credit risk after offset and collateral was equal
to its carrying value of all financial assets except for loans to customers.
As at 31 December 2022 and 2021, the maximum exposure to credit risk after offset and collateral of loans
to customers were KZT 2,750,424 million and KZT 1,875,603 million, respectively.
The Group holds collateral or other credit enhancements to mitigate credit risk associated with financial
assets. The main types of collateral obtained are as follows:
•
For reverse repurchase transactions – securities;
•
For commercial lending – charges over real estate properties and vehicles..
Although, the Group uses collateral as credit enhancement to mitigate its exposure to credit risk, major part
of its loan portfolio is represented by unsecured loans. Thus, as at 31 December 2022 and 2021, unsecured
gross carrying amount of loans to customers were KZT 2,942,812 million and KZT 1,989,342 million,
respectively.
As at 31 December 2022 and 2021, credit impaired loans with a net carrying value of KZT 29,174 million and
KZT 16,084 million, respectively were either fully or partially collateralized, reflecting the extent to which
Credit quality of financial assets
The tables below present information about the significant changes in the gross carrying amount of loans
during the period that contributed to changes in the loss allowance during the year ended
31 December 2022 and 2021:
Stage 1
Stage 2
Stage 3
12-month
ECL
Lifetime
ECL
Lifetime
ECL
POCI
Total
Loans
at
amortised
cost
Gross carrying amount as
at 1 January 2022
2,407,687
29,831
135,635
-
2,573,153
Changes in the gross
carrying amount
-
Transfer
to
Stage
1
8,927
(3,094)
(5,833)
-
-
-
Transfer
to
Stage
2
(46,924)
47,497
(573)
-
-
-
Transfer
to
Stage
3
(157,484)
(19,421)
176,905
-
-
New financial assets
originated or purchased
2,422,809
-
-
4,754
2,427,563
Financial assets that have been
repaid or derecognised
(1,576,118)
(13,879)
(29,049)
-
(1,619,046)
Write-offs
-
-
(64,231)
-
(64,231)
Recovery
from
off-balance
-
-
52,060
-
52,060
Other
changes
-
-
13
-
13
Gross carrying amount as at 31
December 2022
3,058,897
40,934
264,927
4,754
3,369,512
Stage 1
Stage 2
Stage 3
12-month
ECL
Lifetime
ECL
Lifetime
ECL
POCI
Total
Loans
at
amortised
cost
Gross carrying amount as
at 1 January 2021
1,351,855
20,500
154,088
-
1,526,443
Changes in the gross
carrying amount
-
Transfer
to
Stage
1
13,221
(3,124)
(10,097)
-
-
-
Transfer
to
Stage
2
(30,543)
31,690
(1,147)
-
-
-
Transfer
to
Stage
3
(58,892)
(12,232)
71,124
-
-
New financial assets
originated or purchased
2,113,372
-
-
-
2,113,372
Financial assets that have been
repaid
(981,326)
(7,003)
(32,014)
-
(1,020,343)
Write-offs
-
-
(46,324)
-
(46,324)
Other
changes
-
-
5
-
5
Gross carrying amount as at 31
December 2021
2,407,687
29,831
135,635
-
2,573,153
The Group uses an internal rating model to classify individually significant loans to customers in different risk
categories:
Stage 1
Stage 2
Stage 3
12-month
ECL
Lifetime
ECL
Lifetime
ECL
POCI
Total
Loans to customers that
individually assessed for
impairment
Grades:
Low
to
fair
risk
8,119
-
-
-
8,119
Grade:
Impaired
-
-
6,636
-
6,636
Loans to customers that
collectively assessed for
impairment
3,050,778
40,934
258,291
4,754
3,354,757
Total gross carrying amount
3,058,897
40,934
264,927
4,754
3,369,512
Loss allowance
(67,604)
(11,785)
(135,313)
-
(214,702)
Carrying amount as at
31 December 2022
2,991,293
29,149
129,614
4,754
3,154,810
Stage 1
Stage 2
Stage 3
12-month
ECL
Lifetime
ECL
Lifetime
ECL
POCI
Total
Loans to customers that
individually assessed for
impairment
Grades:
Low
to
fair
risk
22,526
-
-
-
22,526
Grade:
Impaired
-
-
6,391
-
6,391
Loans to customers that
collectively assessed for
impairment
2,385,161
29,831
129,244
-
2,544,236
Total gross carrying amount
2,407,687
29,831
135,635
-
2,573,153
Loss allowance
(64,043)
(10,582)
(67,791)
-
(142,416)
Carrying amount as at
31 December 2021
2,343,644
19,249
67,844
-
2,430,737
Stage 1
Stage 2
Stage 3
12-month
ECL
Lifetime
ECL
Lifetime
ECL
Total
Due from banks
High
grade
(A-
and
higher)
17,052
-
-
17,052
Investment
grade
(BBB+
-
BBB-)
7,799
-
-
7,799
Not
rated
823
-
-
823
Total gross carrying amount
25,674
-
-
25,674
Loss allowance
(6)
-
-
(6)
Carrying amount as at 31 December 2022
25,668
-
-
25,668
Stage 1
Stage 2
Stage 3
12-month
ECL
Lifetime
ECL
Lifetime
ECL
Total
Due from banks
High
grade
(A-
and
higher)
20,504
-
-
20,504
Investment
grade
(BBB+
-
BBB-)
29,710
-
-
29,710
Non-Investment
grade
(BB+
-
B-)
708
-
-
708
Total gross carrying amount
50,922
-
-
50,922
Loss allowance
(19)
-
-
(19)
Carrying amount as at 31 December 2021
50,903
-
-
50,903
Stage 1
Stage 2
Stage 3
12-month
ECL
Lifetime
ECL
Lifetime
ECL
Total
Investment debt securities
High
grade
(A-
and
higher)
558
-
-
558
Investment
grade
(BBB+
-
BBB-)
1,070,752
-
-
1,070,752
Non-Investment
grade
(BB+
-
B-)
2,393
-
-
2,393
Not
rated
-
2,252
-
2,252
Сarrying amount as at 31 December 2022
1,073,703
2,252
-
1,075,955
Stage 1
Stage 2
Stage 3
12-month
ECL
Lifetime
ECL
Lifetime
ECL
Total
Investment debt securities
High
grade
(A-
and
higher)
840
-
-
840
Investment
grade
(BBB+
-
BBB-)
595,969
-
-
595,969
Non-Investment
grade
(BB+
-
B-)
7,460
-
-
7,460
Low
grade
(CCC+
and
lower)
-
-
1,838
1,838
Сarrying amount as at 31 December 2021
604,269
-
1,838
606,107
Financial assets, other than loans to customers and other financial assets, are graded according to their
external credit ratings issued by an international rating agencies, such as Standard and Poor’s, Fitch and
Moody’s Investors Services. The highest possible rating is AAA.
A- and
higher
BBB+
to BBB-
BB+ to B-
CCC+ and
lower
Not rated
Total
Gross carrying value:
31 December 2022
Cash and cash equivalents,
net of cash on hand
197,445
234,998
-
-
3,151
435,594
Mandatory cash balances
with NBRK
-
42,917
-
-
-
42,917
Due from banks
17,052
7,799
-
-
823
25,674
Investment securities
and derivatives
558
1,071,110
2,401
-
2,942
1,077,011
31 December 2021
Cash and cash equivalents, net
of cash on hand
102,514
86,884
41
-
994
190,433
Mandatory cash balances
with NBRK
-
32,734
-
-
-
32,734
Due from banks
20,504
29,710
708
-
-
50,922
Investment securities
and derivatives
1,217
596,643
7,848
4,501
-
610,209
As at 31 December 2022 and 31 December 2021, all loan commitments and financial guarantee contracts of
the Group are classified in Stage 1 (12-month ECL) and have “low to fair” risk grade.
Modified financial assets
As a result of the Group’s forbearance activities financial assets might be modified. Modification doesn't lead
to a material change in the net present value (“NPV”), therefore the Group doesn't recognise a modification
gain/loss. The following tables refer to modified financial assets where modification does not result in
derecognition. Financial assets (with loss allowance based on lifetime ECL) modified during the years ended
31 December 2022 and 2021:
2022
2021
Gross
carrying
amount
of
financial
assets
that
are
impaired
after
modification
but
not
in
NPL
as
at
1
January
12,021
17,923
Gross
carrying
amount
of
modified
loans
within
period
54,035
20,222
Loans
transferred
to
Non
impaired
category
(Cured
loans)
(21,043)
(16,425)
Loans
transferred
to
NPL
(12,789)
(6,875)
Repaid
loans
(4,325)
(2,824)
Gross
carrying
amount
of
financial
assets
that
are
impaired
after
modification
but
not
in
NPL
as
at
31
December
27,899
12,021
The net carrying amount of loans at time of modification, that are modified during the years ended
31 December 2022 and 2021 were KZT 37,221 million and KZT 13,079 million, respectively. The gross
carrying amount of modified loans for which the loss allowance changed from lifetime to 12-month ECL in
the years ended 31 December 2022 and 2021 were KZT 12,656 million and KZT 9,020 million, respectively.
Macro sensitivity
The Group has performed ECL sensitivity analysis on its main portfolios, in the event that key assumptions
used to calculate ECL change by 1 percentage point. For the purpose of ECL estimation, the Group uses a
change of the nominal USD/KZT exchange rate of:
•
3.90% and 1.40% for 2023 and 2024, respectively, as a baseline scenario,
•
1.35% and 0.50% for 2023 and 2024, respectively, as an upside scenario and
•
6.45% and 3.95% for 2023 and 2024, respectively, as a downside scenario.
A change in the baseline nominal USD/KZT exchange rate by +/- 1 percentage point, with respective
correction of the upside and downside scenarios, leads to a change in the loss allowance by KZT -2,220/
The liquidity management framework of the Group mainly consists of following instruments:
- Assessment of sufficient level of high quality liquid assets;
- Cash flow forecasting;
- Diversification of funding;
- Social media marketing;
- Up-to-date contingent funding plan;
The liquidity risk is managed considering specific aspects of Kazakhstan economy, in particular limited
funding instruments and possible dollarization due to currency devaluation expectations.
The Group devotes great significance to social media marketing, to support the brand of the Group and
mitigate various risks such as liquidity and reputational risks. The division of social media marketing covers
mass media, social networks, blogs and other sources of information, available to current or potential
customers.
A major part of the Group’s obligations consists of customer accounts of individuals, with nominal maturity
under 2 years. However 95% of deposits in 2021 were rolled over, which ensures the Group maintains a
reliable and long-term funding base. The average amount of individuals’ customer accounts balance is
KZT 940 thousand as at 31 December 2022, which is another indicator of diversification and stability of the
funding base.
The Group retains a significant amount of high quality liquid assets, which consists mainly of cash, deposits
within NBRK, short-term and mid-term notes of NBRK and bonds of the Ministry of Finance of the Republic
Price Risk
The Group's market risk arises from fluctuations in the value of financial instruments because of changes in
market prices whether those changes are caused by factors specific to the individual instrument or factors
affecting all instruments traded in the market. The Group has established various limits on operations with
securities, including instrument specific limits, in order to balance profit and risk in the securities portfolio.
The Group's portfolio is predominantly comprised of Kazakhstan government debt securities.
Interest rate risk
The contractual maturities of assets and liabilities of the Group has modest gaps, which provides
possibilities of instant reactions on changes of market interest rates. The Group has significant amounts of
high quality liquid assets with a short maturity which helps to minimize the sensitivity to a sharp increase of
interest rates in case of a liquidity shortfall on the market.
An analysis of the liquidity and interest rate risks is presented in the following table.
Up to
1 month
1 month
to 3 months
3 months
to 1 year
1 year
to 5 years
Over
5 years
31 December
2022
Total
Total interest bearing
financial assets
1,119,187
563,500
1,480,302
1,279,244
146,239
4,588,472
Total interest bearing
financial liabilities
310,852
506,345
2,038,776
486,289
6,147
3,348,409
Interest sensitivity gap
808,335
57,155
(558,474)
792,955
140,092
Cumulative interest
sensitivity gap
808,335
865,490
307,016
1,099,971
1,240,063
Up to
1 month
1 month
to 3 months
3 months
to 1 year
1 year
to 5 years
Over
5 years
31 December
2022
Total
Total financial assets
2,027,780
529,133
1,327,852
955,362
132,651
4,972,778
Total financial liabilities
1,222,851
506,632
2,038,776
486,289
6,147
4,260,695
Guarantees issued and
similar commitments
170
349
45
4,627
-
5,191
Total financial liabilities
and commitments
1,223,021
506,981
2,038,821
490,916
6,147
4,265,886
Liquidity gap
804,759
22,152
(710,969)
464,446
126,504
Cumulative liquidity gap
804,759
826,911
115,942
580,388
706,892
Up to
1 month
1 month
to 3 months
3 months
to 1 year
1 year
to 5 years
Over
5 years
31 December
2021
Total
Total interest bearing
financial assets
429,046
466,439
1,342,621
818,762
106,545
3,163,413
Total interest bearing
financial liabilities
255,838
454,882
1,387,054
299,036
5,526
2,402,336
Interest sensitivity gap
173,208
11,557
(44,433)
519,726
101,019
Cumulative interest
sensitivity gap
173,208
184,765
140,332
660,058
761,077
Up to
1 month
1 month
to 3 months
3 months
to 1 year
1 year
to 5 years
Over
5 years
31 December
2021
Total
Total financial assets
1,308,515
428,337
1,155,879
498,702
94,398
3,485,831
Total financial liabilities
920,656
455,573
1,387,477
299,036
5,526
3,068,268
Guarantees issued and
similar commitments
317
110
-
4,500
-
4,927
Total financial liabilities
and commitments
920,973
455,683
1,387,477
303,536
5,526
3,073,195
Liquidity gap
387,542
(27,346)
(231,598)
195,166
88,872
Cumulative liquidity gap
387,542
360,196
128,598
323,764
412,636
For more relevant representation of the liquidity risk, in 2021 the Group has introduced in these consolidated
financial statements an additional table, where investment securities are presented in the category up to one
month, as they can be traded in open market if needed.
As at 31 December 2022 and 2021, guarantee deposits in favour of international payments systems included
in due from banks were KZT 24,823 million and KZT 50,214 million, respectively.
Based on prior experience, the Group considers it highly unlikely that all customer accounts seek repayment
on maturity. Historically the majority of such deposits are rolled over.
Interest rate sensitivity analysis
The Group manages fair value interest rate risk through periodic estimation of potential losses that could
arise from adverse changes in market conditions. The Risk Management Department conducts monitoring
of the Group’s current financial performance, estimates the Group’s sensitivity to changes in fair value
interest rates and its influence on the Group’s profitability.
The sensitivity analysis includes interest rate risk, which has been determined based on “reasonably possible
changes in the risk variable”. The level of these changes is determined by management and is contained
within the risk reports provided to key management personnel.
As at 31 December 2022, the impact on profit before income tax due to a +/-3 p.p. change in interest rate
amounted -/+ KZT 150 million (2021: -/+ KZT 150 million).
As at 31 December 2022, the impact on equity due to a +/-3 p.p. change in interest rate amounted KZT
Currency risk
The Group manages its currency risk by keeping modest open currency position. The Group only issues
loans to customers in tenge, which protects the Group from hidden currency risk in case of a currency
devaluation.
The Group’s exposure to foreign currency exchange rate risk is presented in the table below:
Tenge
USD
1 USD =
KZT 462.65
EUR
EUR 1 =
KZT 492.86
Other
currency
31 December
2022
Total
Non-derivative financial assets
Total non-derivative financial assets
4,411,208
514,781
25,753
6,371
4,958,113
Non-derivative financial liabilities
Total non-derivative financial liabilities
3,743,473
499,768
7,403
2,706
4,253,350
NET POSITION ON NON-DERIVATIVE
FINANCIAL INSTRUMENTS
667,735
15,013
18,350
3,665
Derivative financial instruments
Accounts payable on spot
and derivative contracts
(33,894)
(55,518)
(17,250)
(4,581)
(111,243)
Accounts receivable on spot
and derivative contracts
50,898
55,419
-
4,604
110,921
NET POSITION ON DERIVATIVE
FINANCIAL INSTRUMENTS
17,004
(99)
(17,250)
23
(322)
NET POSITION
684,739
14,914
1,100
3,688
Tenge
USD
1 USD =
KZT 431.80
EUR
EUR 1 =
KZT 489.10
Other
currency
31 December
2021
Total
Non-derivative financial assets
Total non-derivative financial assets
3,140,201
334,006
6,748
3,922
3,484,877
Non-derivative financial liabilities
Total non-derivative financial liabilities
2,550,500
506,102
5,574
1,272
3,063,448
NET POSITION ON NON-DERIVATIVE
FINANCIAL INSTRUMENTS
589,701
(172,096)
1,174
2,650
Derivative financial instruments
Accounts payable on spot
and derivative contracts
(184,863)
(5,035)
(3,913)
(4,287)
(198,098)
Accounts receivable on spot
and derivative contracts
857
182,328
2,446
2,587
188,218
NET POSITION ON DERIVATIVE
FINANCIAL INSTRUMENTS
(184,006)
177,293
(1,467)
(1,700)
(9,880)
NET POSITION
405,695
5,197
(293)
950
Currency risk sensitivity analysis
The Group analysed sensitivity to an increase and decrease in the USD and EUR against the KZT. 25% is the
sensitivity rate used when reporting foreign currency risk internally to key management personnel and
represents management’s assessment of the possible change in foreign currency exchange rates. The
sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts
their translation as at 31 December 2022 and 2021 for a 25% change in foreign currency rates. The sensitivity
analysis includes external loans as well as loans to foreign operations within the Group where the
denomination of the loan is in a currency other than the currency of the lender or the borrower.
As at 31 December 2022, the impact on profit or loss and on equity due to +/-25% change in USD rate were
KZT +/-3,729 million (2021: KZT +/-1,299 million).
As at 31 December 2022, the impact on profit or loss and on equity due to +/-25% change in EUR rate were
On 24 February 2023, the Board of Directors of the Company proposed a dividend of
KZT 600 per share, subject to Shareholder approval.
The third share buyback program, which was approved on 22 October 2022, was in force until
24 February 2023. As at the end of the program, the Group has acquired a total of 1,131,380 GDRs on the
market for an aggregate consideration of USD 84 million.
In February 2023, the Group acquired a 51% share in “Magnum E-commerce Kazakhstan” LLC with an
investment of KZT 5 billion in its share capital, followed by an increase of the share of the Group in “Magnum
E-commerce Kazakhstan” LLC to 90% with an additional commitment to invest KZT 65 billion during the next
3 years. The remaining 10% is owned by “Magnum Cash&Carry” LLС, the largest retail food chain in
Kazakhstan. At the time the financial statements were authorised for issue, the Group had not yet completed
Kaspi.kz 2022 Annual Report
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