TIDMKSPI
RNS Number : 4143G
JSC Kaspi.kz
26 July 2021
Kaspi.kz Announces Second Quarter 2021 Financial Results
Kazakhstan, 26 July 2021 - JSC Kaspi.kz ("Kaspi.kz", "we", or
the "Company") which operates the Kaspi.kz Super App, Kazakhstan's
leading mobile Super App, today publishes its unaudited
consolidated IFRS financial results for the quarter ending 30 June
2021.
Key highlights
-- Super App MAU up 30% year-over-year to 10.2 million, DAU up
67% to 6.0 million. Average monthly transactions per active
consumer up 2.0x to a record 39.3 transactions.
-- Continuing on from its hugely successful launch last year,
Kaspi Pay continues to scale at an incredible rate and has firmly
established itself as the digital payments platform of choice for
merchants of all sizes, across all segments of Kazakhstan's retail
market.
o Payments Platform merchants increased 448% year-over-year to
reach 134.8K.
o 179.6K active Kaspi Pay POS devices by June 2021, up 11x
year-over-year and equivalent to 51% share of the country's total
POS network.
o By number of transactions, Kaspi Pay POS Solutions accounted
for 68% of all Kaspi Gold in-store purchase transaction, up from
just 7% in June 2020.
o Consumers continue to embrace Kaspi Pay's contactless Kaspi QR
technology. Number of transactions using Kaspi Pay POS Solutions
increased 26x year-over-year, with Kaspi QR accounting for 80% of
transactions in the second quarter 2021.
o We expect a larger Payments Platform merchant base to in turn
drive another step-up in Marketplace merchant growth. Currently,
only 40% of total merchants are available on both Payments and
Marketplace Platforms.
o We expect a larger Kaspi.kz merchant base to in turn drive up
consumer penetration across all three of our platforms, from 38%
currently.
o In e-Commerce we continue to scale Kaspi Smart Logistics
Platform, with total deliveries up 205% year-over-year, 54% orders
delivered within <= 2 days and 98% of deliveries free for
consumers. Fast nationwide delivery is an important tool to attract
new merchants and free delivery is another key benefit for
consumers.
-- In just seven months since its launch, Kaspi Travel has taken
26% share of the flight bookings market and in June we added rail
ticketing.
-- GovTech is an important addition to the Kaspi.kz Super App,
with MAU up 3.9x year-over-year in June 2021.
-- Marketplace GMV growth accelerated to 253% year-over-year.
o e-Commerce GMV up by 171% year-over-year.
o m-Commerce GMV up by 457% year-over-year.
-- Fintech TFV growth accelerated to 456% year-over-year.
-- Payments TPV growth accelerated to 155% year-over-year.
-- Marketplace adj. net income[1] up 574% year-over-year and
record 67% adj. net income margin.
-- Fintech adj. net income up 37% year-over-year to 38% adj.net income margin.
-- Payments adj. net come up 128% year-over-year to record 60.3% adj. net income margin.
-- Upgrading Payments Platform KPI's to RTPV growth around 100%
year-over-year and growth in average balances on current accounts
to around 60% year-over-year.
-- Upgrading Fintech Platform KPI's to TFV growth above 110%
year-over-year, Cost of Risk around 2% and high-30% adj. net income
profitability.
-- Upgrading Kaspi.kz 2021 adj. net income guidance to around
KZT425 billion. This compares with guidance of above KZT410
billion, provided at our last results update in April.
-- Proposed second quarter dividend of 415KZT/share, equivalent
to around KZT80 billion, subject to shareholder approval.
-- Kaspi Pay has entered into an SPA to acquire 100% of Portmone
Group, payment company in Ukraine. With Portmone's payments
licenses and substantial merchant and bank relationships, we intend
to introduce our payment services across Ukraine's 42 million
population opportunity.
Mikhail Lomtadze, Kaspi.kz CEO and co-founder, commented:
"In the second quarter our team's execution was phenomenal, with
the end result being accelerating top and bottom-line growth.
We previously told investors that this year our no.1 goal is to
substantially scale our merchant base, primarily via the roll out
of Kaspi Pay and Kaspi QR. By June 2021, Kaspi POS devices
accounted for 51% of Kazakhstan's physical acquiring network, which
is an incredible achievement in less than 12 months. The runway
ahead is substantial and now we're also seeing a significant
acceleration in Marketplace merchant onboarding. We're also
increasingly focussed upon scaling our Kaspi Smart Logistics
Platform, which is yet another tool to deepen our relationship with
merchants. With only 40% of merchants available on both our
Payments and Marketplace Platforms, there is still a lot we can do
to help merchants accelerate their growth.
An expanded merchant base gives our consumers more reasons to
transact through the Kaspi.kz Ecosystem and ongoing strong user
momentum in the second quarter of 2021 is the best illustration of
this. Engagement levels once again hit record highs, with average
monthly transactions per consumer up by over 100% to just under 40.
This is best in class engagement by global standards but with only
38% of our consumers using all three of our platforms, here too we
can continue doing more to increase our relevance to consumers'
everyday lives.
In the second quarter, we worked hand in hand with various
government agencies prioritizing the addition of high frequency
GovTech services to the Kaspi.kz Super App and broadened Kaspi
Travel's proposition with the addition of rail ticketing. Going
into the second half of the year, the product pipeline is as
healthy as ever.
Strong user trends in turn drive rapid financial growth and in
the second quarter all three of our platforms delivered standout
performances. As a result, we're upgrading our 2021 Payments and
Fintech KPIs and financial guidance. We're also pleased to upgrade
our Kaspi.kz consolidated net income guidance for the second time
this year and now expect adj. 2021 net income of around KZT425
billion.
The combination of our scale with consumers and merchants,
reinforced by our Super App strategy, puts Kaspi.kz in a completely
unique playing field to capture the multi-year structural growth
opportunity offered by digitalisation in Kazakhstan. With today's
proposed acquisition of payments company Portmone in Ukraine, we're
also starting to put in place the foundations for Kaspi.kz to play
a leading role in the broader region's digital transformation. We
have many plans to continue building on our success and find it
difficult to be anything other than extremely optimistic about the
future."
10.2 million Kaspi.kz Super App users. Engagement at all-time
highs
MAU up 30% to 10.2 million, DAU up 67% to 6.0 million, avg. 39.3
transactions per consumer/month
Kaspi.kz's Super App serves as a single gateway to our Ecosystem
and gives our Payments, Marketplace and Fintech Platforms leading
market positions and unrivalled competitive advantages.
Super App user and engagement levels continue to reach all-time
highs. During the second quarter of 2021, Kaspi.kz Super App MAU
(Monthly Active Users) increased by 30% year-over-year to 10.2
million.
Highly discoverable digital transaction linked products and
services ensure the Kaspi.kz Super App is integral to consumers'
daily lives. DAU (Daily Active Users) increased 67% year-over-year,
a substantially faster rate than MAU. The ratio of DAU to MAU
reached 59%, which is amongst the highest levels of user engagement
of any Super App globally and another step-up, compared to 54%
during the first quarter of 2021.
Engagement is closely tied to one of our most important
strategic objectives, namely, to facilitate digital transactions
across all areas of the typical household budget. Average monthly
transactions per active consumer increased by over 100%
year-over-year to 39.3 from 19.3 during the second quarter of
2020.
To drive engagement and transaction levels even higher, our top
strategic priority is to onboard as many merchants, as rapidly as
possible. During the second quarter of 2021, total number of active
merchants increased by 340% year-over-year to reach 138K. Only 40%
of merchants are available on both our Payments and Marketplace
Platforms representing a substantial future growth opportunity. We
expect that a high proportion of Payments Platform merchants will
subsequently go on to become m-Commerce and e-Commerce merchants,
enhancing the breadth and depth of their relationship with the
Kaspi.kz Ecosystem.
A large and compelling merchant base, combined with high quality
and innovative digital products in turn drives consumer engagement
and transactions across all of our platforms. Consumers active on
all three Kaspi.kz platforms reached 38%, which is an increase from
35% in the first quarter of 2021 and 33% in the second quarter of
2020.
We will also continue to launch new products and services and
the success of Kaspi Travel, demonstrates that a large and highly
engaged Super App consumer and merchant base can be leveraged into
new sizeable and fast-growing markets.
Recently launched high frequency GovTech services, are already
used regularly by a third of our Super App user base, boosting our
reach and relevance even further.
Underpinned by the continued success of Kaspi Pay we continue to
see multiple opportunities across all aspects of our Ecosystem to
drive consumer, merchant, engagement and transaction growth well
into the future.
Kaspi.kz 2Q financial highlights
Payments and Marketplace adj. net income up 128% and 574% YoY.
Now 50% of cons net income
During the second quarter of 2021, total revenue growth
accelerated significantly to 54% year-over-year, reaching
KZT214,257 million. Every platform delivered a standout performance
with accelerating top-line growth and improving year-over-year
profitability.
Marketplace benefitted from accelerating e-Commerce GMV growth
and substantially faster m-Commerce GMV trends due the expansion of
our merchant base and the removal of COVID-19 restrictions for
physical retail. Our Payments Platform, despite a long track record
of consistently high growth, continues to surprise on the upside.
Fintech, is rapidly scaling origination, and revenue should
accelerate again in the second half of 2021.
Our net income mix continues to transform quickly and in the
first half of 2021 our faster growing Payments and Marketplace
Platforms accounted for 50% of net income, up from 30% in the same
period in 2020. We continue to expect Payments and Marketplace to
account for the majority of our full-year 2021 adj. net income.
During the second quarter of 2021, adj. net income increased 94%
year-over-year to KZT102,389 billion. Adj. net income margin
increased to 47.8% from 37.8% during the same quarter in 2020.
Our profitability has benefitted from the high operational
gearing inherent in our Marketplace Platform, despite the rollout
of free delivery for consumers. In our Payments Platform, as our
proprietary payments network scales, we continue to eliminate
third-party costs, as well as benefitting from the platforms
operational gearing. Fintech Platform's profitability also improved
as top-line growth returned at scale, combined with improving cost
of risk.
For the first half of 2021, total revenue reached KZT397,050
billion, equivalent to a 33% year-over-year increase. For the first
half of 2021, adj. net income increased 57% year-over-year to
KZT181,009 billion, equivalent to a 45.6% adj. net income margin,
up from 38.6% in the first half of 2020.
Our cash generation capacity remains as strong as ever. As has
been the case previously, we seek to maintain a 50bps buffer above
local NBK capital adequacy requirements but thereafter can consider
returning excess cash to shareholders or M&A that would allow
us to scale our addressable markets further.
For the second quarter of 2021, our Board of Directors has
proposed a 415KZT/share dividend equivalent to around KZT80
billion, subject to shareholder approval.
Payments Platform
RTPV up 135%, revenue up 92% & adj. net income up 128%
YoY
Our Payments Platform has always offered consumers a highly
convenient way to shop, pay bills and make peer-to-peer (P2P)
payments via the Kaspi.kz Super App. As has been the case globally,
in Kazakhstan there has been a massive shift to digital payments,
with consumers demanding a seamless and integrated digital
experience no matter where they shop. Kaspi Pay is our response to
help merchants adapt and exceed their customers' expectations.
Payments Platform is also amongst our most important tools to
attract new consumers and increase engagement, making it
illustrative of the health of the broader Kaspi.kz Ecosystem. With
this in mind, we continue adding new opportunities to spend and
pay, which is a function of new merchants.
In the second quarter of 2021, we accelerated merchant
onboarding again, up 448% year-over- year to 134.8K merchants. The
benefits of this will be seen in subsequent quarters as new
merchants shift more of their volumes to Kaspi Pay.
As we give our consumers new opportunities to pay, consumer
growth has remained robust. Payments Platform active consumers
increased 34% year-over-year, to reach 8.8 million, in the second
quarter of 2021.
By creating our own closed-loop proprietary payments network, we
have eliminated the need for 3rd party processors and our Payments
Platform offers merchants and consumers at scale, a complete
end-to-end experience. The result is that over the last 12 months
Kaspi Pay has firmly established itself as a major disruptive
force, becoming the digital payments platform of choice for all
types of merchants in Kazakhstan.
By June 2021, there were 179.6K active Kaspi Pay POS devices, up
11x year-over-year and equivalent to 51% share of the country's
total POS network.
This unique and disruptive proposition, led Kaspi Pay POS
Solutions to reach 68% of all Kaspi Gold POS in-store retail
transactions in June 2021, up from 52% just three months earlier
and 7% in June 2020.
Consumers continue to swiftly embrace Kaspi Pay's contactless QR
technology. Number of transactions using Kaspi Pay POS Solutions
increased 26x year-over-year, with QR accounting for 80% of
transactions in the second quarter 2021. In future quarters, we
expect further strong growth in the number of active Kaspi Pay POS
devices and even higher growth in engagement, as evidenced by the
number of transactions.
For us Kaspi Pay's initial success is just the start of a
multi-year strategy, as we set out to transform commerce for
merchants. With all consumer and merchant metrics showing rapid
momentum, we're in an incredibly strong position to lead the
digital transformation of payments and shopping in Kazakhstan and
over time across the wider region.
During the quarter ending 30 June 2021, Total Payment Value
(TPV) increased by 155% year- over-year to reach KZT11.9 trillion.
Revenue Generating TPV (RTPV) increased 135% to reach KZT2.9
trillion.
Average balances increased 58% year-over-year to KZT483 billion.
Consumers move funds to Kaspi.kz to facilitate future transactions
and rapid growth in account balances is an encouraging lead
indicator for future RTPV growth.
During the second quarter of 2021, Payments Platform revenue
grew by 92% year-over-year to reach KZT49,586 million. For the
first half of 2021, Payments Platform revenue increased 85%
year-over-year to reach KZT89,686 million. Take-rate in the second
quarter and first half of 2021 was 1.2% in line with our 2021
full-year guidance of around 1.2%.
Payments Platform adj. net income increased by 128%
year-over-year to KZT29,881 million, with net income profitability
of 60.3% up significantly from 50.7% in the second quarter of 2020.
Payments Platform profitability continues to benefit from cost
savings as we transition payment volumes away from third-party
network providers to our own proprietary payments network, combined
with the platforms inherent operational gearing. For the first half
of 2021, Payments Platform adj. net income increased 121%
year-over-year to KZT52,726 million, with net income profitability
of 58.8% up from 49.2% in the first half of 2020.
For the remainder of 2021 we will continue to aggressively
ramp-up our merchant base and expect this to 1) contribute to
ongoing strong growth in RTPV, 2) a more diverse mix of Payments
Platform revenue streams and 3) higher profitability as our
proprietary network disintermediates third party costs.
With Payments Platform KPIs and financials accelerating we are
upgrading our 2021 guidance and now expect RTPV growth of around
100% year-over-year and growth in average balances on current
accounts of around 60% year-over-year.
Kaspi Pay is less than a year into its journey and we remain
extremely positive about the outlook for our Payments Platform in
2021 and beyond.
Marketplace Platform
e-Commerce GMV up 171%, m-Commerce GMV up 457% & adj. net
income up 574% YoY
Our Marketplace Platform connects both online and offline
merchants with consumers, enabling merchants to increase their
sales using an omnichannel strategy and consumers to buy a broad
selection of products and services from a wide range of merchants.
COVID-19 related restrictions on the operation of physical retail
led to significant changes in the shopping behaviour of consumers,
and our Marketplace Platform with its 63% market share in
e-commerce[2] and free delivery for consumers is perfectly
positioned to meet shoppers and merchants rapidly evolving needs.
In a post-COVID world, our advantage is a single brand experience,
irrespective of online or offline.
Just as with our Payments Platform, the rapid expansion of our
Marketplace merchant base is an important strategic priority. We're
focussed on digitally onboarding Kaspi Pay merchants to Marketplace
and during the second quarter of 2021, Marketplace merchants
increased to 57.7K, up 130% year-over- year. Over the same period
Marketplace consumers increased 35% year-over-year to 3.7 million.
We expect merchant growth to remain at elevated levels over the
reminder of the year, with more merchants leading to fast growth in
consumers and GMV per consumer.
Our Marketplace platform continues to rapidly evolve in line
with our strategic plan, namely; e-Commerce accounted for 42% of
GMV, up from 37% in the second quarter of 2020.
During the second quarter of 2021 Marketplace GMV increased 253%
year-over-year to KZT396 billion, with growth momentum accelerating
throughout the period. e-Commerce GMV growth accelerated to 171%
year-over-year. m-Commerce, our solution to digitalize shopping at
offline merchants, delivered 457%year-over-year GMV growth due the
ongoing expansion of our merchant base and a favourable base effect
compared to the second quarter of 2020, when much of physical
retail was impacted by COVID-19 related opening restrictions.
A 220 bps year-over-year increase in take-rate to 8.5% in the
second quarter of 2021 resulted in Marketplace revenue growing
significantly faster than GMV, increasing 343% year-over-year to
KZT34,454 million. Higher take-rate is the result of ongoing mix
shift away from consumer electronics, the success of our
promotional activities and to a lesser extent Kaspi Logistics and
Kaspi Marketing Services, which are at very early stage of
monetization. For the first half of 2021, Marketplace Platform
revenue increased 202% year-over-year to reach KZT57,743 million.
Take-rate in the first half of 2021 was 8.3%, up 166 bps
year-over-year.
The expansion of Kaspi Smart Logistics Platform and introduction
of free delivery for consumers was an important contributor to
accelerating e-Commerce trends. In the second quarter of 2021
delivery volumes increased 205% year-over-year. Kaspi Delivery's
footprint has been expanded to 73 cities and Kaspi Smart Logistics
Platform coordinates over 1,500 routes across the country
connecting all the delivery chain participants via a single
technology platform. As we scale our logistics solution further, we
expect this to fuel growth of our Marketplace Platform GMV.
During the second quarter of 2021 Marketplace Platform adj. net
income reached KZT23,068million, representing a 574% increase
year-over-year. Net income profitability increased to 67.0% from
44.0% in the same period in 2020. Higher profitability resulted
from higher take-rate, Marketplace Platform's high operational
gearing and was achieved despite the ramp-up in free consumer
delivery, which at this stage is a negative drag on profitability.
For the first half of 2021, Marketplace adj. net income increased
267% year-over-year to reach KZT37,523 million. Net income
profitability increased to 65.0% from 53.3% in the same period in
2020.
For 2021 we continue to expect Marketplace GMV growth to be
around 100% year-over-year with adj. net income profitability
around high-60%.
Going forward, we believe the breadth and depth of our merchant
proposition is one of the most important drivers of GMV/consumer
growth and our long-term competitive advantage. In this regard, we
expect to continue merchant onboarding at elevated levels. With an
enhanced merchant offering, we expect to see strong Marketplace GMV
growth in the second half of 2021, with high growth and
profitability sustainable well into the mid-term.
Fintech Platform
TFV up 456% YoY, Buy-Now-Pay-Later reached 39% of origination,
FY21 CoR now guided around 2.0%
The short-term nature of all our financing and more specifically
BNPL products allow us to quickly ramp-up or scale back origination
as we observe changes in the consumer environment. During the
second quarter of 2021, Total Finance Value (TFV) accelerated 456%
year-over-year to an all-time high KZT995 billion. This is another
step-up compared with 40% growth in the first quarter of 2021 and
compares with a 62% decline in the second quarter of 2020.
Our average net loan portfolio increased by 29% year-over-year,
reaching KZT1.6 trillion during the second quarter of 2021. Overall
loan portfolio growth significantly below TFV growth illustrates
some of the benefits of our Super App origination strategy. Our
consumers can take exactly what they need, via seamlessly
integrated Fintech Platform products at the point of purchase and
also conveniently repay whenever they want commission and penalty
free. This results in growth in origination above average portfolio
growth, lower cost of risk and more transactions on our Marketplace
and Payments Platforms. For our consumers, in addition to
convenience they carry lower levels of total indebtedness. Higher
portfolio conversion of 2x in the second quarter of 2021, up from
1.6x and 1.5x in the first quarter of 2021 and second quarter of
2020 respectively, also reflects higher early repayments levels, as
a healthy consumer returns to behaviour comparable with
pre-pandemic trends. With the consumer backdrop continuing to
improve and our focus on low ticket origination we expect portfolio
conversion to remain rapid throughout the remainder of 2021.
Yield was 30.1% and 29.9% during the second quarter and first
half of 2021 respectively. We expect to deliver a full year 2021
Fintech yield of around 30%, which is consistent with our guidance
throughout 2021.
Our new Merchant and Micro Business Finance products continue to
gain traction quickly, accounting for 7% of TFV in the second
quarter of 2021.
Fintech Platform active lending consumers reached 4.1 million
during the second quarter of 2021, equivalent to an increase of 22%
year-on-year. Active deposit consumers however increased 32%
year-over-year to 2.4 million as consumers increasingly transfer
funds into the Kaspi.kz Ecosystem, fuelling growth in our Payments
and Marketplace Platforms and leaving us well positioned to fund
higher TFV origination in future periods. Our loan to deposit ratio
reached 69% in the second quarter of 2021.
During the second quarter of 2021 our underlying credit related
cost of risk improved to 1.5% from 1.9% in the first quarter of
2021 and 2.5% in the second quarter of 2020. Improving cost of risk
reflects the strength of our data driven real time risk management
capabilities, as well as our continuous efforts to constantly
improve the efficiency of our collection processes. With consumer
behaviour having largely normalised, we now target full-year 2021
CoR around 2.0%, which is an improvement on our previous guidance
of below 2.5% and initial guidance at the start of 2021 of below
3%.
Fintech Platform revenue increased by 23% year-over-year to
reaching KZT130,217million during the second quarter of 2021 and
increased by 8% year-over-year to reaching KZT249,621 million
during the first half of 2021. Lower yielding Buy-Now-Pay- Later
(BNPL) and Merchant Finance products muted Fintech revenue growth,
but these trends were in line with our internal goals and with
origination now on track to growth above 110% year-over-year in
2021, revenue growth will accelerate in subsequent quarters.
In the second quarter of 2021, Fintech Platform's adj. net
income increased by 37% year-over- year reaching net income of
KZT49,440 million, with adj. net income margin reaching 38.0% from
34.3% in the second quarter of 2020. For the first half of 2021
adj. net income increased by 11% year-over- year to reach KZT90,760
million, with adj. net income margin reaching 36.4% from 35.2% in
the same period in 2020.
Fintech Return on Equity 3 during the first half of 2021
remained extremely healthy at 58.7%.
Assuming the macro-backdrop continues to improve for the
remainder of 2021, we expect elevated TFV origination. Although we
will continue to prioritise our BNPL product, approximately 10% of
TFV growth will come from our recently launched merchant financing
and SME Fintech products. For 2021 we now expect TFV origination of
above 110% year-over-year, which is an increase compared to our
previous around 100% year over year growth guidance. We continue to
expect yield to be around 30%, which is in line with our previous
assumption but with CoR now around 2.0%. The end result will be net
income profitability in the high-30% range, which is above previous
guidance of mid-30%.
For all details and updated full year 2021 guidance please see
company press release available via Kaspi.kz IR website.
Stock based compensation
Following the introduction of our share-based LTIP program in
2020, amortisation of stock based compensation during the second
quarter of 2021 amounted to KZT4,271 million and for the first half
of 2021 KZT8,451 million.
In March 2021, share options in the quantity of 382,223 shares
were exercised from treasury shares under the share-based LTIP
plan. Total shares outstanding as at 30 June 2021 were
192,187,223.
Outstanding share options as at 30 June 2021 were 1,528,892.
Acquisition of Portmone Group in Ukraine
Kaspi Pay, a 100% owned subsidiary of JSC Kaspi.kz has signed a
Sale & Purchase Agreement to acquire 100% of Portmone
Group.
Portmone is an independent provider of payments and money
transfer services in Ukraine, with consumer products including
utility and household bill payments, P2P transfers, mobile top-ups
and repayment for financial services. B2B products include internet
acquiring for merchants, white label internet and mobile payment
solutions for banks and bill aggregation for service providers.
Upon successful closing the acquisition of Portmone also gives
Kaspi.kz a payments license and Visa and Mastercard accreditation
in Ukraine.
Ukraine is a 42 million population opportunity, characterised by
high cash penetration (44% cash withdrawals), low e-Commerce
penetration at 8% of retail, low unsecured consumer lending at less
than 4.5% of GDP and >70% smartphone penetration.
The acquisition of Portmone puts our Payments Platform in a
strong position to end into Ukraine.
Subject to anti-monopoly approval in Ukraine and Kazakhstan and
approval by the National Bank of Ukraine, we expect this
transaction to complete in the final quarter of 2021.
In the medium-term, Ukraine can also become an important source
of IT talent and a development hub for Kaspi.kz.
Moody's upgrade of Kaspi.kz's Kaspi Bank rating
On Friday 23 July 2021 Moody's Investors Service ("Moody's")
upgraded Kaspi Bank, a core component of Kaspi.kz's Fintech
Platform, rating to Ba1 from Ba2, with its outlook changed to
stable. Please click on this link
https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL451258
for the List of Affected Credit Ratings.
According to Moody's, the upgrade of Kaspi Bank's BCA and
ratings recognizes the bank's robust financial fundamentals and its
demonstrated resilience to the adverse operating environment in
2020, when Kazakhstan's economy was hit by the coronavirus pandemic
and the oil price plunge.
The bank's Ba1 deposit ratings are based on its BCA of ba3 and a
high probability of support from the Government of Kazakhstan (Baa3
positive) for the bank's deposit holders, which results in two
notches of uplift from the bank's BCA.
The stable outlook on the long-term deposit ratings reflects
Moody's assessment that the expected operating environment
improvements and potentially higher government support capacity
will unlikely lead to a further ratings upgrade in the next 12-18
months.
Conference call information
On 26 July 2021 Kaspi.kz will host a conference call and webcast
at 1.00pm (London) (8.00am U.S. Eastern Time, 6.00pm Nur-Sultan
time) to review and discuss the company's results for the second
quarter of 2021. To pre- register for this call, please go to the
link below. You will receive your access details via email.
https://www.incommglobalevents.com/registration/client/8088/kaspikz-q2-1h-2021-
webinar/
About Kaspi.kz
Kaspi.kz is the largest Payments, Marketplace and Fintech
Ecosystem in Kazakhstan with a leading market share in each of its
key services and products. At the core of the Kaspi.kz Ecosystem is
the Kaspi.kz Super App, the leading mobile app in the country.
The Kaspi.kz Super App serves as a single gateway to all
services and is an integral part of people ' s daily lives in
Kazakhstan. As people ' s daily lives become increasingly
digitalised, Super App usage is expected to grow supported by
accelerating consumer adoption of cashless payments, e-Commerce and
digital financial services.
Kaspi.kz ' s Ecosystem business model, where the growth and
development of one service contributes to the growth and
development of other services, creates a powerful virtuous cycle. A
growing number of services being used by consumers results in
synergies across all Platforms, structurally high profitability and
creates a powerful self- reinforcing network effect, giving
Kaspi.kz strong competitive advantages.
Kaspi.kz has been listed on the London Stock Exchange since
2020.
For further information
david.ferguson@kaspi.kz
+44 7427 751 275
Forward-looking statements
Some of the information in this announcement may contain
projections or other forward-looking statements regarding future
events or the future financial performance of Kaspi.kz. You can
identify forward looking statements by terms such as "expect",
"believe", "anticipate", "estimate", "intend", "will", "could,"
"may" or "might", the negative of such terms or other similar
expressions. Kaspi.kz wish to caution you that these statements are
only predictions and that actual events or results may differ
materially. Kaspi.kz does not intend to update these statements to
reflect events and circumstances occurring after the date hereof or
to reflect the occurrence of unanticipated events. Many factors
could cause the actual results to differ materially from those
contained in projections or forward-looking statements of Kaspi.kz,
including, among others, general economic conditions, the
competitive environment, risks associated with operating in
Kazakhstan, rapid technological and market change in the industries
the Company operates in, as well as many other risks specifically
related to Kaspi.kz and its respective operations.
Kaspi.kz Consolidated Income Statement
6M 2021
6M 2020, 6M 2021, ADJUSTED, 2Q 2021, 2Q 2021
KZT KZT MM KZT MM 2Q 2020, KZT ADJUSTED,
MM KZT MM MM KZT MM
----------------------------- ----------- ----------- ------------ --------- --------- -----------
Revenue 299,096 397,050 397,050 139,115 214,257 214,257
----------------------------- ----------- ----------- ------------ --------- --------- -----------
growth, % - - 32.8% - - 54.0%
----------------------------- ----------- ----------- ------------ --------- --------- -----------
Interest Revenue 156,684 185,602 185,602 79,882 97,010 97,010
----------------------------- ----------- ----------- ------------ --------- --------- -----------
Fees, Commissions &
Other 86,890 84,886 84,886 42,998 44,650 44,650
----------------------------- ----------- ----------- ------------ --------- --------- -----------
Transaction & Membership
Revenue 37,765 72,556 72,556 19,169 40,550 40,550
----------------------------- ----------- ----------- ------------ --------- --------- -----------
Seller fees 18,137 56,207 56,207 7,052 33,555 33,555
----------------------------- ----------- ----------- ------------ --------- --------- -----------
Other gains and losses (380) (2,201) (2,201) (9,986) (1,508) (1,508)
----------------------------- ----------- ----------- ------------ --------- --------- -----------
Cost of revenue (93,502) (114,674) (114,306) (47,971) (58,580) (58,389)
----------------------------- ----------- ----------- ------------ --------- --------- -----------
growth, % - - 22.2% - - 21.7%
----------------------------- ----------- ----------- ------------ --------- --------- -----------
% of revenue 31.3% 28.9% 28.8% 34.5% 27.3% 27.3%
----------------------------- ----------- ----------- ------------ --------- --------- -----------
Interest Expenses (64,380) (82,775) (82,775) (33,294) (41,893) (41,893)
----------------------------- ----------- ----------- ------------ --------- --------- -----------
Transaction Expenses (6,987) (6,802) (6,802) (3,546) (3,815) (3,815)
----------------------------- ----------- ----------- ------------ --------- --------- -----------
Operating Expenses (22,135) (25,097) (24,729) (11,131) (12,872) (12,681)
----------------------------- ----------- ----------- ------------ --------- --------- -----------
Total net revenue 205,594 282,376 282,744 91,144 155,677 155,868
----------------------------- ----------- ----------- ------------ --------- --------- -----------
growth, % - - 37.5% - - 71.0%
----------------------------- ----------- ----------- ------------ --------- --------- -----------
margin, % 68.7% 71.1% 71.2% 65.5% 72.7% 72.7%
----------------------------- ----------- ----------- ------------ --------- --------- -----------
Technology & product
development (12,095) (19,965) (16,272) (6,220) (10,425) (8,550)
----------------------------- ----------- ----------- ------------ --------- --------- -----------
Sales and marketing (17,813) (28,984) (28,984) (8,806) (13,640) (13,640)
----------------------------- ----------- ----------- ------------ --------- --------- -----------
General and administrative
expenses (6,722) (11,026) (6,636) (3,299) (5,497) (3,292)
----------------------------- ----------- ----------- ------------ --------- --------- -----------
Provision expense (30,095) (14,703) (14,703) (9,604) (7,294) (7,294)
----------------------------- ----------- ----------- ------------ --------- --------- -----------
Operating income 138,869 207,698 216,149 63,215 118,821 123,092
----------------------------- ----------- ----------- ------------ --------- --------- -----------
growth, % - - 55.6% - - 94.7%
----------------------------- ----------- ----------- ------------ --------- --------- -----------
margin, % 46.4% 52.3% 54.4% 45.4% 55.5% 57.5%
----------------------------- ----------- ----------- ------------ --------- --------- -----------
Income tax (23,290) (34,634) (35,140) (10,569) (20,440) (20,703)
----------------------------- ----------- ----------- ------------ --------- --------- -----------
Net income 115,579 173,064 181,009 52,646 98,381 102,389
----------------------------- ----------- ----------- ------------ --------- --------- -----------
growth, % - - 56.6% - - 94.5%
----------------------------- ----------- ----------- ------------ --------- --------- -----------
margin, % 38.6% 43.6% 45.6% 37.8% 45.9% 47.8%
----------------------------- ----------- ----------- ------------ --------- --------- -----------
Kaspi.kz Consolidated Balance Sheet
31-Dec-2020, 30-Jun-2021,
KZT MM KZT
MM
------------------------------------------ ------------- ------------
Cash and cash equivalents 330,409 202,623
------------------------------------------ ------------- ------------
Mandatory cash balances with NBK 27,659 31,287
------------------------------------------ ------------- ------------
Due from banks 44,259 48,972
------------------------------------------ ------------- ------------
Investment securities and derivatives 869,572 1,046,762
------------------------------------------ ------------- ------------
Loans to customers 1,404,554 1,743,461
------------------------------------------ ------------- ------------
Property, equipment and intangible
assets 70,016 73,483
------------------------------------------ ------------- ------------
Other assets 51,645 57,228
------------------------------------------ ------------- ------------
Assets classified as held for
sale 8,628 -
------------------------------------------ ------------- ------------
Total assets 2,806,742 3,203,816
------------------------------------------ ------------- ------------
Due to banks - 4,000
------------------------------------------ ------------- ------------
Customer accounts 2 , 150 , 581 2,526,729
------------------------------------------ ------------- ------------
Debt securities issued 13 9 , 111 139,403
------------------------------------------ ------------- ------------
Payables to shareholders 360 -
------------------------------------------ ------------- ------------
Other liabilities 40,983 51,812
------------------------------------------ ------------- ------------
Subordinated debt 7 8 , 009 78,041
------------------------------------------ ------------- ------------
Liabilities directly associated
with the assets classified as
held for sale 3,038 -
------------------------------------------ ------------- ------------
Total liabilities 2, 412 , 082 2,799,985
------------------------------------------ ------------- ------------
Share capital 95,825 97,530
------------------------------------------ ------------- ------------
Additional paid-in-capital 506 506
------------------------------------------ ------------- ------------
Revaluation reserve of financial
assets 5 , 171 6,917
------------------------------------------ ------------- ------------
Share-Based Compensation reserve 8,788 7,533
------------------------------------------ ------------- ------------
Retained earnings 280,828 287,360
------------------------------------------ ------------- ------------
Total equity attributable to Shareholders
of the Company 391,118 399,846
------------------------------------------ ------------- ------------
Non-controlling interests 3,542 3,985
------------------------------------------ ------------- ------------
Total equity 394,660 403,831
------------------------------------------ ------------- ------------
Total liabilities and equity 2,806,742 3,203,816
------------------------------------------ ------------- ------------
[1] Net income adjusted for stock-based compensation
[2] PwC, Kazakhstan retail e-commerce market analysis for 2020,
published March 2021
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END
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