1

Halyk BankCapital Markets Day

May 2019

2

Disclaimer

THIS DOCUMENT IS NOT AN OFFER OR INVITATION TO BUY, SELL OR SUBSCRIBE FOR SECURITIES IN ANY JURISDICTION.

For the purposes of this notice, this presentation “Presentation” means this document, its contents or any part of it, any oral presentation, any question and answer session and any

written or oral material discussed or distributed before, during or after the Presentation meeting. The information contained in this Presentation does not purport to be full or complete. No

reliance may be placed for any purpose whatsoever on the Presentation or its accuracy, fairness or completeness. The information and opinions contained in this Presentation are

provided as at the date of this document and are subject to change without notice. This document is the sole responsibility of JSC Halyk Bank (the “Bank”).

This Presentation has been prepared for information purposes only and does not constitute an offer or invitation for the sale or purchase of securities or any businesses or assets

described in it, nor should any recipients construe the Presentation as legal, tax, regulatory, or financial or accounting advice and are urged to consult with their own advisers in relation to

such matters.

This Presentation includes statements that are, or may be deemed to be, “forward looking statements” which are based on current expectations and projections about future events.

These forward-looking statements, as well as those included in any other material discussed at the analyst presentation, involve known and unknown risks and uncertainties because they

relate to events and depend on circumstances that may or may not occur in the future, many of which are beyond the Bank’s control. “Forward-looking statements” are sometimes

identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “aims” “anticipates”, “expects”, “intends”, “plans”, “predicts”, “may”, “will”, “could”, “shall”,

“risk”, “targets”, forecasts”, “should”, “guidance”, “continues”, “assumes” or “positioned” or, in each case, their negative or other variations or comparable terminology. These forward-

looking statements include all matters that are not historical facts. They appear in a number of places and include, but are not limited to, statements regarding the Bank’s intentions,

beliefs or current expectations concerning, amongst other things, results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which the Bank

operates.

These statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Bank, are inherently subject to significant business,

economic and competitive uncertainties and contingencies. As such, no assurance can be given that such future results, including guidance provided by the Bank, will be achieved.

Forward-looking statements are not guarantees of future performance and the actual events or results of operations, financial condition and liquidity, and the development of the industry

in which the Bank operates, may differ materially from those made in or suggested by the forward-looking statements set out in this Presentation as a result of risks and uncertainties

facing the Bank. No representation or warranty is made that any forward-looking statement will come to pass. Forward-looking statements speak only as at the date of this Presentation

and the Bank, each of its affiliates, directors, officers, employees, agents and advisers expressly disclaim any obligations or undertaking to release any update of, or revisions to, any

forward-looking statements in this Presentation.

To the extent available, the industry, market and competitive position data contained in this Presentation has come from official or third party sources. Third party industry publications,

studies and surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or

completeness of such data. While the Bank reasonably believes that each of these publications, studies and surveys has been prepared by a reputable source, none of the Bank, it

affiliates, directors, officers, employees, advisers or agents have independently verified the data contained therein. In addition, certain of the industry, market and competitive position data

contained in this Presentation come from the Bank's own internal research and estimates based on the knowledge and experience of the Bank's management in the market in which the

Bank operates. While the Bank believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by

any independent source for accuracy or completeness and are subject to change without notice. Accordingly, undue reliance should not be placed on any of the industry, market or

competitive position data contained in this Presentation.

This document has not been reviewed or approved by any regulatory or supervisory authority.

This document is being used in connection with proposed meetings of the Bank. By attending such meetings, or by accepting delivery of, or by accessing, this Presentation you will be

deemed to have represented, warranted and undertaken that: (i) you are a person to whom the Presentation may lawfully be communicated; and (ii) you have read and agree to comply

with the terms contained herein and to be bound by the foregoing limitations in this notice.

For comparison purposes, all financial ratios for 2017 & 2016 are shown in this presentation without Altyn Bank based on the latest annual IFRS financial statement .

3

82Wrap-up

4Introduction

8Investment Highlights

53Update on Merger with KKB

25Kazakhstan: Economic and Banking Sector Update

37Overview of Halyk Bank

59Halyk Strategy

64Financial Performance

Table of Contents

4

One

Introduction

5

Today’s presenters

Umut Shayakhmetova

CEO

Murat Koshenov, CFA, FRM

Deputy CEO, Corporate Banking

Viktor Skryl

Head of Strategy Office

Mira Kasenova

Head of FI and IR

6

Kazakhstan

Moody'sBa1

stable

Baa3

stable

S&PBB

stable

BBB-

stable

FitchBB

positive

BBB

stable

#1 market share by loans, deposits and assets

Strongest credit rating among Kazakhstan banks(1)

Retail

3.6mm users

Corporate

165.8k users

#1 digital franchise

Source: National Bank of Kazakhstan, as of 31-Mar-20109

40.6%44.7%

39.1% 37.3%34.7%

30.2%

Corporatecurrent

accounts

Retail currentaccounts

Corporatedeposits

Retaildeposits

Total assets Gross Loans

#1 #1 #1 #1 #1 #1

(1) Considering only locally-owned banks

As of the 15th May 2019

As of 31-Mar-2019

Halyk Bank is an integral part of Kazakhstan’s financial system

# of sales outlets 645

# of payment card holders 8.1mm

# of SME clients 282.4k

# of POS terminals 70.5k

A leading customer reach

As of 31-Mar-2019

7

Key milestones

Selected awards

Halyk opened

representative

office in

Beijing

1923 1998 2006 2008 2017 2018

GDRs listed

on London

Stock

Exchange

Acquisition of

c.97%

interest in

Kazkommerts-

bank (“KKB”)

KKB merger

and

integration

complete

Foundation of

Halyk Bank

Georgia

Halyk acquired

subsidiary banks in

Russia and

Kyrgyzstan

2004

Halyk

Bank

founded(1)

Listing

on KASE

First issued

EuroBond

Halyk Bank acquired

HSBC Kazakhstan

and renamed it into

Altyn

Opening a

subsidiary

in

Uzbekistan

(ongoing)

Halyk Bank

sold its 60%

stake in Altyn

Bank to China

CITIC Bank

201920141999

“Best Bank in Kazakhstan”

“Best M&A Deal in 2018”

EMEA Finance Achievement Awards, 2018

Halyk Bank

1 As Kazakh branch of Soviet Savings Bank

Kazkommerts Securities Halyk Finance Halyk Bank Kyrgyzstan

“Forex Trading Leader”

“For Development of the Forex Market”

“For Development of the Stock Market”

“Market Leader”

“For Pursuit of Transparency”

“Government Securities Market Leader”

Kase, 2018

“Best Investment Bank in Kazakhstan”

Global Finance, 2018

“Best Investment Bank in Kazakhstan 2017”

“Best Bond House in CEE 2017”

“Best Ruble Bond 2017”

EMEA Finance Achievement Awards, 2017

“Best Contributor 2018”

Thomson Reuters, 2018

“No 1 in the Ranking of

Investment Banks in Kazakhstan”Forbes Kazakhstan, 2018

“For Development of the Stock Market”

“Best Underwriter on the Stock and Bond Markets”

Kase, 2018

“Best Research”

“Best Underwriter in Kazakhstan”

“Underwriter of the Year on the Corporate Bond Market 2018”

Cbonds, 2018

“Best Investment Bank in Kazakhstan 2018”

Cbonds, 2018

“Best Investment Bank of the Year – Kazakhstan 2018”

“Best Bond House – Kazakhstan 2018”

Global Business Outlook, 2018

8

Two

Investment Highlights

9

1

2

3

4

5

6

Operating in a large, fast growing economy with underpenetrated banking sector

Domestic market champion with leading market shares

across all key segments with regional leadership position

The largest client base in the country serviced by the broadest distribution

network and rapidly advancing digital offering

Solid asset quality with ample liquidity

Attractive mix of profitability underpinned by

efficient operations and track record of growth

Robust capital position supporting shareholder returns

Corporate governance modelled on international standards and

experienced and stable management team with proven track record7

Strong strategic underpin creating compelling investment case

10

Largest CIS economy not under sanctions Accelerating real GDP growth

Young and growing population Strong FDI inflowsHighly attractive population

income trajectory

1,631

173

6045 41

16 12 11 8 8

GDP 2018E, US$bn Real GDP growth, %

Gross inflow of FDI in Kazakhstan, US$bnPopulation, mm

10% 9%

5% 4%

3% 1%

(1%)

(5%)

Average annual real wages growth, local currency

2016A-2023E CAGR

Source: IMF, Ministry of National Economy of Republic of Kazakhstan, National Bank of Kazakhstan, IHS, BMI. Note: Georgia is not a CIS member state1 Forecast based on Ministry of National Economy of Republic of Kazakhstan

1.2%

1.1%

4.1% 4.1%

3.8%

4.0% 4.2%

4.1%

4.5%

2015A

2016A

2017A

2018A

2019E

2020E

2021E

2022E

2023E

12.0 12.4 12.7

4.2 4.5 5.0

18.5 19.3 20.2

16.2 16.9 17.7

2009A 2012A 2015A 2018A 2021E 2024E

Russia

Kazakhsta

n

Bela

rus

Azerb

aija

n

Georg

ia

Arm

enia

Mold

ova

Ta

jikis

tan

Population

aged 16+

Kyrg

yzsta

n

Uzbekis

tan

Kazakhsta

n

Azerb

aija

n

Bela

rus

Ta

jikis

tan

Mold

ova

Georg

ia

Russia

Arm

enia

Other

populationTotal

population

Second highest GDP per capita in CIS

11,327

9,237

6,306

4,569 4,400 4,149

3,218

1,268 1,263 826

GDP per capita 2018E, US$

Russia

Kazakhsta

n

Bela

rus

Azerb

aija

n

Georg

ia

Arm

enia

Mold

ova

Kyrg

yzsta

n

Uzbekis

tan

Ta

jikis

tan

15.4

21.4 21.0

24.3

2015 2016 2017 2018

4.1% 4.0% 2.3% 1.8%

Real GDP 2018-23E CAGR, %

KAZ(1) BEL RUSGEO

Operating in a large, fast growing economy…

11

0%

20%

40%

60%

80%

100%

120%

140%

160%

0.0 10.0 20.0 30.0 40.0 50.0 60.0

Lo

an

s t

o G

DP

, 2018 (

%)

GDP per capita, 2018 (US$ ‘000)

Healthy underlying market growth… … on the back of underpenetrated sector

Banking sector penetration vs GDP per capita

Western Europe³

KAZ

Kazakhstan Central and Eastern Europe4

RU

GE

Sector deposit growth dynamics

6.8 7.8

8.5 9.8

11.4

15.6 17.3 16.7 17.0

2010 2011 2012 2013 2014 2015 2016 2017 2018

₸trn

Source: National Bank of Kazakhstan, European Central Bank, Central Bank of Russia, National Bank of Georgia, IMF 1 Problem Loans Fund of Kazakhstan; ² CAGR of gross loans of the banking system without adjustment for removed loans; ³ Austria, Belgium, Finland, France, Germany, Italy, Malta, Netherlands, Portugal,

Spain, Sweden; 4 Bulgaria, Croatia, Czech Republic, Estonia, Georgia, Greece, Hungary, Latvia, Lithuania, Poland, Romania, Russia, Slovakia, Slovenia

Sector gross loan growth dynamics ₸trn

9.1 10.5

11.7 13.3

14.2 15.6

15.5

13.6 13.8

2010 2011 2012 2013 2014 2015 2016 2017 2018

…with underpenetrated banking sector

in 2016 – 1Q 2019, ₸4.9 trn of troubled

assets were removed from the banking

sector (purchase by the PLF¹, transfer to

SPV, liquidation of the banks)

Gross loans of the banking system

Cumulative gross loans removed from the banking system

12

Market positions by total assets1

Market positions by net income1

Metric Position Market share

Market share

lead vs. next

competitor

Total assets #1 34.7% 26.9%

Total deposits #1 38.0% 29.7%

Retail deposits #1 37.3% 23.2%

Corporate deposits #1 38.7% 30.1%

Net loans #1 31.4% 20.8%

Net income #1 38.3% 18.8%

Net interest income #1 54.5% 45.5%

Insurance premiums2 #1 28.4% 1.6%

34.7%

7.8% 7.3% 7.3% 6.1%

4.4x

38.3%

19.5%

8.8% 5.2% 5.0%

2.0x

Market positions of Halyk Bank1

Source: National Bank of Kazakhstan1 All market shares as at 31.03.2019 based on National Bank of Kazakhstan data; 2 Insurance premiums based on Group data

Domestic market champion with leading market shares across all key segments…

13

Halyk Group ranks #4 in terms of net profit in the CIS among all banks (incl. state-owned) 1

Halyk Group ranks #9 in terms of assets in the CIS among all banks (incl. state-owned) 1

Halyk Group ranks #6 in terms of total deposits in the CIS among all banks (incl. state-owned) 1

#2 in terms of net income in the CIS

among private commercial banks

#3 in terms of total assets in the CIS

among private commercial banks

Source: Company information, www.banki.ru, National Bank of Kazakhstan

Note: For total assets and total deposits a KZT/USD exchange rate of 384.2 and RUB/USD exchange rate of 69.5 as of 31.12.2018 was used and for Net profit a KZT/USD average for 2018 exchange rate of

344.7 and RUB/USD average 2018 exchange rate of 62.9

¹ Excl. National Clearing Centre, Promsvyazbank

46.7

30.4

23.320.9

15.2

Total assets (Dec-18), US$bnNet income (FY’18), US$bn

1.8

0.7

0.40.3 0.3

#2 in terms of customer deposits in the

CIS among private commercial banks

30.0

17.015.9

13.211.3

Customer deposits (Dec-18), US$bn

… with regional leadership position

14

645

220

141 132 124

Largest client base in Kazakhstan… …supported by the largest branch and sales outlets network…

Total number of branches

higher than that of 4

nearest competitors

combined

Retail clients

# of payment card holders (mm) 8.1

# of term deposits (‘000) 755.8

# of pensions and social payments recipients (mm) 2.5

Corporate clients

# of corporate clients ('000) 2.8

# of SME clients (‘000) 282.4

# of payroll projects (‘000) 41.2

Source: National Bank of Kazakhstan, as at 31-Mar-2019As at 31-Mar-2019

Total population of Kazakhstan: 18.5mm

Economically active population: 8.7mm

= Market position as at 31-Mar-2019

…while also offering comprehensive access solutions

166k

corporate internet

banking clients

4.4k

ATMs(c.50% of ATMs in Kazakhstan

are Halyk Bank’s)

HALYK

3.6mm

retail internet

banking clients

₸

70.5k

POS terminals

…with coverage across all regions of the country…

Branch network covers all 14 regions of Kazakhstan

#1

#1

Taraz

Semey

Aktau

Almaty

Aktobe

Atyrau

Uralsk

Shymkent

Pavlodar

Kostanay

Kyzylorda

Karagandy

Petropavl

Nur-Sultan

(Astana)Ust'-Kamenogorsk

Regional cities

Capital

Branches

As at 31-Mar-2019

More than 1mm

mobile app downloads

617

Source: National Bank of Kazakhstan, SCPP

¹ Halyk Bank’s estimate

The largest client base in the country serviced by the broadest distribution network…

#1¹

#1¹

#1

15

1,579 1,756 1,902 2,057

3,286 3,483 3,599

Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19

22% 24% 35% 41%61% 68% 69%

Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19

20% 25% 30% 35%

51% 56% 61%

Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19

…and continuously improving digital proposition

Halyk Bank has prepared to benefit from sector digitalization

Apple Pay

• Launched in November 2018

• 71k clients as of 31 March 2019

• US$ 1.2 mm monthly payments in 1Q2019

QR code payments

• Launched in September 2018 (only bank in Kazakhstan)

• Homebank ScanPay app, which allows contactless

payments for public transport using Halyk card

• 140k payments in December 2018

P2P payments

• Card2Card allows seamless money transfer between

Kazakh banks

• Visa Direct and MasterCard MoneySend allows transfer

payments to Visa and MasterCard to any bank in the world

Virtual card Homebank

• Secure way to pay for goods and services online

• Card can be used for any online payment, a.o. Yandex

Taxi, Netflix, app stores

Online lending

• To be launched in May 2019

High growth potential provided by, improving utilisation of

digital channels

Number of retail internet banking users (‘000)

Non cash transactions as % of total transactions

+44% in less than 1.5 years

Mobile banking customers as % of retail internet banking users

₸

Advanced online banking proposition

3.6mm users as of 31 March 2019

8 – 9mm online customer visits monthly

Touch and face ID for mobile version

Communication with the bank via online chat bot

166k users as of 31 March 2019

24/7 payments in the system of the Bank

Online consultant and communication with the

bank

Retail banking

Corporate banking

16

3.6% 2.8% 2.5% 2.5%

1.1%

Risk-adjusted NIM² (%)

Healthy margins…

…combined with outstanding operating efficiency… …resulting in consistent and strong profitability

133 150 172 249

348

5.8%6.2%

5.4%5.0% 5.1%

2014 2015 2016 2017 2018

NII NIM¹

+

29.6% 29.2% 28.1% 29.5% 31.7%

31.8%

41.9%

48.9%

37.4% 35.6%

2014 2015 2016 2017 2018

Halyk Bank cost-income ratio (%) Peers' cost-income ratio (%)

Source: Company information, Kazakhstan National Bank, SNL; Note: For comparison purposes, all financial ratios for 2017 & 2016 are shown in this presentation without Altyn Bank based on the latest annual

IFRS financial statement; ¹ Net interest income / average interest earning assets (monthly average balances of cash and cash equivalents (less cash on hand and correspondent accounts with the National Bank

of Kazakhstan), financial assets at fair value through profit or loss (less derivative financial instruments), amounts due from credit institutions, available-for-sale investment securities, net loans to customers), on

consolidated IFRS basis; ² Risk-adjusted NIM is defined as (Net interest income before credit loss expense - credit loss expense)/Average total assets based on 2018 data; ³ Gross loan split based on 2018 data; 4

Peers’ cost-income ratio based on median data for Sberbank Kazakhstan, Kaspi Bank, Forte Bank and CenterCredit; 5 RoAE defined as net income / average shareholders’ equity over the period; 6 Sector RoE

including Halyk Bank and Kazkommertsbank; 7 Cost-income ratio adjusted for impairments on non-financial assets for KZT 27.3bn

27.1% 24.4%

22.3% 22.7%

27.9%

13.2%

7.0%10.5%

17.4%21.2%

2014 2015 2016 2017 2018

RoAE (Halyk Bank) RoE (Kazakhstan sector)

₸bn

…with leading risk-adjusted returns…

35% 7% 8% 7% 6%

% Market share of assets (31-Mar-2019)

• Mortgages³ • Other consumer loans³ • Corporate loans³

16%

24% 61%

4

Note: Peer set based on 5 largest banks by assets in Kazakhstan

5 6

Adjusted:

26.4%7

+ +

100%

7%

18%

75%

11%

21% 68%

10%

42% 48%

Attractive mix of profitability…

17

Source: Company information; SNL Financials

Note: Based on the sample set of largest universal banks in respective countries (by assets)

¹ Average Halyk Bank RoAE and cost-income ratio over 2014-2018; ² Average RoAE and cost-income ratio over 2014-2018 based on SNL data

Sberbank KZ

BGEOSberbank

TBC

OTP

VTB

Forte

Erste

Raiffeisen

PKO BP

Center Credit

SEB SwedBank

KBC Handelsbanken

BBVADNB

Nordea

ING

DanskeLloyds

SantanderUBS

AIBCASA

HSBC

BNP

IntesaUniCreditSocGen BCP

CS

Barclays

DB

Halyk Bank (2018)

Halyk Bank (5Y average¹)

0%

5%

10%

15%

20%

25%

30%

20%30%40%50%60%70%80%90%100%

RoA

E 2

01

8

Cost-income ratio 2018

5 year average² Average (2018)

Region RoAE C/I RoAE C/I

Western Europe 7.3% 61.5% 8.9% 60.0%

CEE & CIS 12.0% 50.7% 16.6% 47.9%

Kazakhstan 10.0% 42.0% 15.9% 40.6%

Halyk Bank 24.9% 29.6% 27.9% 31.7%

Western European banks

Central and Eastern European and CIS banks (excl. Kazakhstan)

Kazakh banks

…underpinned by efficient operations…

18Source: Company information1 Based on consolidated IFRS statements of Halyk Bank; 2 Based on data from National Bank of Kazakhstan

Strong track record of growth

36 40

70 72

114 120 131

173

254

2010 2011 2012 2013 2014 2015 2016 2017 2018

Jul-17: Acquisition of 96.8%

of the common shares of

KKB, accelerating growth

and increasing market share

Metric Net loans2 Total deposits2 Total assets2

CAGR, 2010-2018 17% 21% 20%

Increase in market share, 2010-2018 13 p.p. 18 p.p. 18 p.p.

Absolute increase, 2010-2018 (₸bn) 2,437 5,122 6,861

Growth over 2010-2018: 7.0x

Dec-14: Acquisition of

HSBC Kazakhstan

Net income, ₸bn1

Apr-18: Sale of 60% of Altyn

Bank to CITIC Bank and China

Shuangwei Investment Co.

2,098 2,274 2,8102,506 4,455 5,348 8,858 8,9592,408

Total assets, ₸bn1

…and track record of growth

19

12.9% 10.3% 10.2%

12.1%

8.5%

2014 2015 2016 2017 2018

NPL Ratio 90 days + (%)¹

Improved asset quality Prudent coverage of NPLs Stable and low cost of risk

Diversified deposit-led funding Relatively low loan leverage Ample liquidity

¹ Total NPLs 90 days+ (principal amount of loans and accrued interest with principal and/or interest overdue by +90 days (Bank only) / gross loans portfolio, unconsolidated, (Bank only), IFRS). In 2017 and 2018,

NPLs are the aggregate of Halyk Bank and KKB, NPLs +90 and total loans of KKB are accounted for at fair value, i.e. net of provisions created before 4 July 2017; ² Coverage of NPLs 90 days+ by provisions

(NPLs – Bank only, provisions – on consolidated basis); ³ Credit loss expense on loans to customers / monthly average balances of gross loans to customers; 4 Cash and equivalents, National Bank of Kazakhstan

notes, Treasury bills of the MoF of Kazakhstan, Treasury bills of governments of other countries, Notes of national banks of other countries, Bonds of quasi-sovereign banks / total assets, on consolidated IFRS

basis

1,848 3,044

3,821

6,132 6,527

79.2% 77.5%81.6% 77.4% 82.7%

2014 2015 2016 2017 2018

Total deposits (₸bn)

Deposits as % of non-equity funding

1

89.2%

71.5%60.7%

53.0%

53.3%

2014 2015 2016 2017 2018

Net loans / deposits (%)

26.2% 36.1%

46.8% 45.3% 48.3%

2014 2015 2016 2017 2018

Liquid assets / total assets

1

0.4% 0.4%

1.0%

2.2%

0.5%

2014 2015 2016 2017 2018

Cost of risk (%)³

Elevated cost of risk

partially due to KKB

acquisition

115% 119% 111% 74%

129%

2014 2015 2016 2017 2018

Provision coverage²

Post-merger coverage ratio

drop since NPLs of KKB were

accounted on net basis in

accordance with IFRS 3

+ + +

+ + +

Solid asset quality with ample liquidity

4

20Source: Company information; SNL Financials

Note: Based on the sample set of largest universal banks in respective countries (by assets)

SEBSwedBank

KBC

HandelsbankenBBVA

DNBNordeaING

DanskeLloyds

Santander UBS

AIBCASAHSBCBNP

Intesa

UniCredit

SocGen

BCP

CS Barclays

DB

Sberbank KZ

BGEOSberbank

TBC

OTP

VTB

Forte

Erste

RaiffeisenPKO BP

Center Credit

Halyk Bank

0%

5%

10%

15%

20%

25%

30%

8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23%

RoA

E 2

01

8A

CET1 2018A

Average (2018A)

Region RoAE CET1

Western Europe 8.9% 14.2%

CEE & CIS 16.6% 13.5%

Kazakhstan 15.9% 12.2%

Halyk Bank 27.9% 18.5%

Western European banks

Central and Eastern European and CIS banks (excl. Kazakhstan)

Kazakh banks

Robust capital position…

21

Significant capital buffer

Solid organic capital generation Strong capital position

Focused dividend distribution policy

20.7% 18.0%

19.4% 16.9%

18.5%

21.0%18.2%

19.4% 18.9% 19.9%

2014 2015 2016 2017 2018

CET1 (%)¹ TCR (%)

¹ CET1 requirement for 2014 and 2015 based on Basel II Tier 1 capital of 4.0%; CET1 requirement for 2016 based on Basel III CET1 of 7.5% and since 2017 of 9.5%; ² Net income attributable to common

shareholders

91 117 248

513 527 379 408

394

397 501

470 525

641

910

1,029

2014 2015 2016 2017 2018

• CET1 capital buffer over CET1 requirement¹

• CET1 capital requirement¹

₸bn

2,272 2,922 3,303

5,396 5,550

5.1%4.7%

4.4% 4.2%

4.8%

2014 2015 2016 2017 2018

RWAs Return on average RWAs (%)₸bn

₸bn 2011 2012 2013 2014 2015 2016 2017 2018

Net income² 30 68 71 112 119 131 173 254

Dividend 5 12 19 37 0 0 69 126

Dividend payout (%) 17% 18% 27% 33% 0% 0% 40% 50%

Economic slowdown led to Halyk Bank choosing to retain its net income;

even though capital buffers would have allowed for capital distribution it

was deemed more prudent to further strengthen the capital position

For 2016 the dividend was retained within Halyk Bank as the possible

takeover of KKB was being considered

1 2

1

2

+ +

+

…supporting shareholder returns

22

Board of Directors led by Independent Chairman Constantly developing corporate governance structure

Alexander Pavlov

Chairman of the Board of Directors, INED, 40+ years of financial experience

• Chairman of the Board of Directors since 2004

• Held various government positions including First Deputy Prime Minister

of Kazakhstan in 2002-2003

Arman Dunayev

INED, 15+ years of financial experience

• Member of the Board of Directors of Halyk Bank since 2013

• Acted as an advisor to the Chairman of the Board of JSC Sovereign Wealth

Fund «Samruk-Kazyna»

Christof Ruehl

INED, 20+ years of banking experience

• Member of the Board of Directors of Halyk Bank since 2007

• Served as a Chief Economist and Vice president of BP plc in 2007-2014

• First global Head of Research of Abu Dhabi Investment Authority since 2014

Franciscus Cornelis Wilhelmus Kuijlaars

INED, 20+ years of banking experience

• Member of the Board of Directors of Halyk Bank since 2009

• Served as a head of corporate and investment banking in Belgium,

regional and country manager in Brazil, Russia and Argentina in 1990-2007

Mazhit Yessenbayev

Director, 45+ years of economic experience

• Representative of JSC Holding Company ALMEX

• Held numerous important positions in Kazakhstan's government, including

Minister of Finance position in 1999-2002

Umut Shayakhmetova

CEO, 20+ years of banking experience

• Appointed chairperson of the Management Board of Halyk Bank in 2009

• Worked at ABN AMRO in 1998-2004

• UK Corporate Governance Code as a guidance

for development of its internal regulation

documents

• Corporate governance based on Kazakh

legislative requirements and the best corporate

governance standards observed in OECD and

G20 countries

• According to World Bank, Kazakhstan has the

highest Protecting Minority Investors score

among all countries1

Compliance with

high

international and

local standards

of corporate

governance

• Board led by Independent Chairman

• Board of Directors is supported by the following

committees:

• Audit Committee

• Nomination and Remuneration Committee

• Strategic Planning Committee

• Social Responsibility Committee

• Each of the Committees is chaired by INED

and consists of at least 2 INEDs

• Strong internal audit procedures in line with

best practices according to independent review

done by PwC

Halyk Bank has

all required

Board

Committees in

place

• Leading by example and setting corporate

governance best practices in Kazakhstan

• Training course for new members of the Board

of Directors and training seminars for corporate

secretaries

• Regular updates of register of INED candidates

and corporate secretary candidates

Best-in-class

corporate

governance

practices

Anton Musin

Director, 10+ years of economic experience

• Member of the Board of Directors of Halyk Bank since April 2019

• Senior manager / managing director of Accenture Ltd in Dubai since 2010.

Worked on the integration of Halyk Bank with KKB

¹ Measured by the World Bank as of May 2018 for a sample of 212 countries; this category measures the strength of minority shareholder protections against misuse of corporate assets by directors for their

personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse

Ind

ep

en

de

nt

Cha

irm

an

Ind

ep

en

de

nt D

ire

cto

rsS

ha

reh

old

er

rep

.C

EO

Corporate governance modelled on international standards…

23

Management

Board

NameUmut

Shayakhmetova

Aliya

Karpykova

Aivar

Bodanov

Murat

Koshenov, CFA,

FRM

Yertai

Salimov

Askar

Smagulov

Mikhail

Kablashev

Zhannat

Satubaldina

Dauren

Sartaev

Position CEO Deputy CEO

Finance,

Accounting and

Subsidiaries

Deputy CEO

Security and

Problem Loans

Deputy CEO

Corporate

Banking

Deputy CEO

Retail Banking,

Contact Center

Deputy CEO

Fast IT,

Transactional

business

Deputy CEO

Information

Technologies

Deputy CEO

Operations,

Resources and

Administration

Deputy CEO

SME1 banking,

PR

Banking

experience20+ years 25+ years 5 years 15+ years 20+ years 20+ years 15+ years 25+ years 15+ years

With Halyk

Bank since2004 2004 2014 2010 1995 2005 2012 2014 2018

Relevant

previous

experience

1998-2004

CJSC ABN

AMRO Bank

(Kazakhstan)

2001-2004

JSC Nauryz-

bank

1998-2001

CJSC

Citibank

Kazakhstan

1990-2014

Internal Affairs

authorities,

State

Investigation

Committee,

Tax Police and

Financial

Police

2000-2010

JSC ABN

AMRO Bank

(Kazakhstan),

JSC SB RBS

(Kazakhstan)

1995-2018

various

positions in

Halyk Bank

2014 – 2018

JSC Altyn

Bank

1998-2005

JSC ABN

AMRO Bank

(Kazakhstan)

2007-2012

ATFbank

2017-2018

JSC

Kazkom-

mertsbank

2016-2018

JSC

Kazkom-

mertsbank

¹ Small and medium enterprises

…and experienced and stable management team…

24

2.3%

5.9%

1.2%

4.1%

Kazakhstan's average real GDP growth

7.1%

19.2% 23.3%

25.3% >22.0%

Global financial crisisaftermath

(2008-2009)

Economic recovery(2010-2014)

Economic slowdown(2015-2016)

Economic recovery(2017-2018)

Medium termtarget

Halyk Bank’s strong profitability track record (2008 - 2018) Business model resilient to macro risks

Impressive profitability track record over the

years despite macroeconomic headwinds

Conservative credit policy limits losses during

crisis

High cost efficiency provides additional cushion

for profitability

Halyk is the largest and the only systemically

important bank in Kazakhstan and has a proven

track record of debt servicing and deposit stability

over the years

Despite the acquisition of a weaker KKB, the bank’s

financial stability has strengthened, as

demonstrated by credit ratings of the bank

Average RoAE1 18.9%

No. of years of losses 0

Lowest RoAE reported(Year)

6.7%(2009)

Highest RoAE reported (Year)

27.9%(2018)

1 2

Ratings uplift post KKB acquisition

Credit ratings

Pre

acquisition 3Current4

S&PBB

Negative

BB

Stable

Moody’s Ba2

Negative

Ba1

Stable

Fitch BB

Negative

BB

Positive

Source: Halyk Group on a consolidated basis, International Monetary Fund, World Economic Outlook Database, April 20191 Based on simple average of annual RoAE of Halyk Bank in 2008 – 2018; 2 Based on simple average of annual real GDP growth of Kazakhstan in 2008 – 2018; 3 Acquisition of KKB announced on the 19th

June 2017; 4 As of the 15th May 2019

…with proven track record

RoAE

25

Three

Kazakhstan: Economic and

Banking Sector Update

26

2015 2016 2017 2018

Gross domestic product

(₸ trillion)40.9 47.0 53.1 59.6

Gross domestic product

(US$ billion¹)184.4 137.3 162.9 172.9

Real GDP growth (%) 1.2% 1.1% 4.1% 4.1%

Inflation (%) 13.6% 8.5% 7.1% 5.3%

Unemployment (%) 5.1% 5.0% 4.9% 4.9%

Exports (US$bn) 44.8 35.5 47.3 59.6

Imports (US$bn) 33.2 26.2 30.6 33.3

FDI (US$bn) 15.4 21.4 21.0 24.3

Country overview Selected economic data

Source: Statistics Agency of the Republic of Kazakhstan, National Bank of Kazakhstan

¹ Average USDKZT rate: 2015 – 221.7, 2016 – 342.2, 2017 – 326.0, 2018 – 344.7 based on Statistics Agency of the Republic of Kazakhstan data

Population

18.5 mm

Territory:

2.7 mm km²

Economically active

population:

8.7 mm

Real GDP growth:

4.1% (2018)

Unemployment:

4.9% (2018)

Total GDP (2018):

₸59.6tr / US$172.9bn

Sovereign credit ratings of Kazakhstan

Moody'sBaa3Stable

S&PBBB-Stable

FitchBBB

Stable

Kazakhstan – Overview and key facts

27

221

184

137

163173

40 41 47 53 60

4.2%

1.2%

1.1%

4.1% 4.1%

2014 2015 2016 2017 2018

Nominal GDP (US$bn) Nominal GDP (₸tr) Real GDP YoY

2014 2015 2016 2017 2018

Private consumption 3.3% 6.8% 8.8% 4.1% 5.7%

Government consumption2 1.8% 1.4% 1.9% 0.7% (0.9%)

Gross fixed investments 3.9% 3.0% 4.1% 2.2% 1.2%

Net exports 3.3% (9.6%) (0.1%) 5.8% 6.2%

Nominal GDP growth (%) 10.2% 3.0% 14.9% 13.1% 12.3%

Industrial production is a large part of Kazakhstan's GDP…

…on the back of private consumption and recovering exportsEconomy is on a steady growth trajectory…

…showing healthy levels of through-the-cycle growth

Source: Statistics Agency of the Republic of Kazakhstan1 Components exclude contribution resulted from statistical discrepancy; 2 Government consumption includes non-profit organisation spending; 3 Excluding contribution from net taxes on products and imports;4 Mining and Oil sector contribution to GDP include both industrial production and service components

Contribution to nominal GDP growth by final use1

Agriculture5%

Industrial production

37% Services

59%

Split of GDP³ by production (2018)

10.2%

3.0%

14.9%

13.1% 12.3%

2014 2015 2016 2017 2018

Agriculture Industrial production Services

Contribution to nominal GDP growth

% Nominal GDP growth

Oil sector4

contribution: 21%

Mining sector4

contribution: 15%

Overview of Kazakhstan’s economy

28

…which are mainly driven by natural resources...

…on the back of increasing exports...

87

53

44

56 60

57

45 39

43

33

2014 2015 2016 2017 2018

Exports Imports

Principal export products (2018)

Source: National Bank of Kazakhstan

US$bn

Current account balance recovered in 2018…

0.8%

2.8%

(3.3%)

(5.9%)

(3.1%)

(0.0%)

(8.0%)

(6.0%)

(4.0%)

(2.0%)

0.0%

2.0%

4.0%

0

20

40

60

80

100

120

140

2013 2014 2015 2016 2017 2018

US$ per barrel of crude oil (Brent) (lhs)

Current account balance as % of GDP (rhs)

Mineral products

75%

Metals14%

Chemicals4%

Food products

5%

Others2%

…traded with Europe, China and Russia

Export by region (2018)

Europe21%

China17%

Russia38%

Others24%

Import by region (2018)

75% of total export 76% of total import

Europe56%

China10%

Russia9%

Others25%

Kazakhstan’s trade balance has improved…

29

1,748 1,695

1,877

1,956

2015 2016 2017 2018

Kazakhstan's oil production (1,000 bbl/d)¹

Oil production is expected to continue to grow

…and is rich in other natural resources…Kazakhstan has significant oil reserves…

Source: EIA, Kazakhstan Committee on Statistics, U.S. Geological Survey, BGR; ¹ Oil production based on production of crude oil, NGPL and other liquids as defined by EIA

52.8 43.9 54.2 71.0

Average price per barrel of crude oil (Brent) (US$)

303

266

167 156 147

102 98 80

48 36 30

Ve

nezuela

Sa

udi A

rabia

Canada

Iran

Iraq

Ku

wait

United A

rab

Em

irate

s

Russia

Lib

ya

Nig

eria

Ka

zakhsta

n

Proven oil reserves (Q1’19; billion barrels)

41.1%

26.6%

20.9%

8.9% 7.9% 5.7%

Chromium Barite Uranium Titanium Rhenium Zinc

Kazakhstan's share of world reserves (2018) Kazakhstan’s rank in the world

#1 #1 #1 #4 #4 #6

…which support Kazakh economy by boosting exports

31.1 22.3

30.7 42.7

6.0

6.2

8.8

8.3 37.1

28.5

39.5

51.0

2015 2016 2017 2018

Export of metals and metal products (US$bn)

Export of oil and oil-related products (US$bn)

1.8x

…on the back of a recovering oil price and production

30

Oil price / Tenge correlation has recently come down

…decreasing interest rate volatility Inflation targets have been recently achieved...

Sizeable and stable FX reserves

63 6158 58

28 30 31 31

91.3 90.9 89.3 88.6

49%66%

55% 52%

2015 2016 2017 2018

NBK FX reserves (US$bn) National Oil Fund FX reserves (US$bn)

Total FX reserves Total FX reserves/GDP

7.4%

13.6%

8.5%

7.1%5.3%

6.0% 6.0% 6.0% 5.0%

8.0% 8.0%

8.0% 7.0%

2014 2015 2016 2017 2018

Inflation (%) Lower target Upper target

Source: National Bank of Kazakhstan, IMF, FactSet

17.0%

15.0%

13.0%

12.5% 12.0% 11.0%

10.5% 10.25%9.75%

9.5%

9.25% 9.0%

9.25%

9.0%

Feb-16 Aug-16 Feb-17 Sep-17 Mar-18 Oct-18 Apr-19

National Bank of Kazakhstan base rate (%)

Aug-15: Kazakhstan switches

from pegged to free floating

exchange rate regime

In 2015, the NBK adopted an inflation targeting regime

National Bank of Kazakhstan targets

0

50

100

150

200

250

300

350

400

450

0

20

40

60

80

100

120

140

Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

US$ per barrel of crude oil (Brent) (lhs) USD/KZT (rhs)

Kazakhstan’s monetary policy

31Source: Strategic development plan of the Republic of Kazakhstan by 2025 affirmed by the President of the Republic of Kazakhstan in February 2018, Committee of Statistics of Ministry of National Economy of

Republic of Kazakhstan, IMF; 1 Astana International Financial Centre

Administrative

reforms

Judicial system

reforms

Economic

reforms

Social

reforms

GDP per capita (PPP, $)

$27,550 $46,100

2018 2025

R&D expenses (% of GDP)

0.12% 1.00%

2018 2025

Unemployment level (%)

4.9% <5%

2018 2025

Selected economic development targets for 2025

SME contribution (% of GDP)

27% 35%

2017 2025

Sector loans (% of GDP )

23% 30-50%

2018 2025

₸

Increase of efficiency

and transparency of

public authorities

Implementation of best

international justice

practices

Support of private and

priority sectors and

attraction of foreign

investments

Increase of living

standards of population

• Centralisation of candidates selection process for positions in public bodies

• Trainings for public servants once per 3 year

• Attraction of foreign managers and members of international organisations

• Development of new anti-corruption laws

• Law on access to information aimed to enhance the transparency of the government

• Introduction of Investment Committee as part of the Supreme Court for investigation investors’ disputes

• International Arbitration Centre based on English law in AIFC1

• Simplification of judicial system with transition from five-level to three-level system

• New Ethical Code for judges

• Audio and video recording of all judicial processes

• Privatisation plan in progress: 473 of 898 objects of privatisation plan are sold, 170 objects are reorganised and liquidated

• Government support of bank financing to private companies through provision of government loans to banks on favorable terms or

subsidizing interest rates

• Law on Commercialisation of Scientific and Technical Investigation Results with the mechanisms for financing of innovations

• Research centers and laboratories based on Astana Business Campus

• Special status of AIFC¹ in the Constitution based on English law

• Government mortgage program “7-20-25”: Affordable terms with max 7% interest rate, 20% initial payment and 25 years maturity

• Government support on microcredits for development of business of ₸ 62 bn in 2018

• Subsidies for top priority education areas, including engineering, information technologies, nanotechnologies

• Implementation of OECD standards in educational system

Government has introduced a number of structural reforms…

32

77place

2015

28place

2019

#28 Worldwide

Azerbaijan

Kazakhstan

Russia

Belarus

Armenia

Moldova

Kyrgyzstan

Ukraine1

Uzbekistan

Tajikistan

25

28

31

37

41

47

70

71

76

126

Kazakhstan

Azerbaijan

Moldova

Kyrgyzstan

Tajikistan

Belarus

Armenia

Russia

Uzbekistan

Ukraine1

1

2

33

38

38

51

51

57

64

72

Kazakhstan’s Doing Business ranking

Doing Business ranking, 2019 Protecting Minority Investors ranking, 2019

Source: World Bank Doing Business reports for 2015 and 2019

¹ Georgia and Ukraine are not CIS members

#2CIS

#1 Worldwide

Georgia1 6

Georgia1 2

…resulting in an investor and business friendly environment

33

Gross loan growth dynamics

Gross loan breakdown

Deposit growth dynamics

Deposit breakdown

₸trn,

11.5 11.6 8.9 8.5

3.9 3.8

4.3 5.0

0.1 0.2

0.5 0.3

15.6 15.5

13.6 13.8

2015 2016 2017 2018

8.7 9.4 8.5 8.3

6.9 7.9

8.2 8.8

15.6

17.3 16.7 17.0

99.7% 89.8%

81.5% 80.8%

2015 2016 2017 2018

₸trnCorporate Gross loan to Deposit ratio (%)Corporate1 Retail Other2 Retail

33%

29%

26%

10%

2%

% of total gross loans, 31-Dec-2018

Loans to SMEs Corporate loans

Consumer and other retail loans Residential mortgage loans

Other2

49%51%

66%

31%

2% 1%

Corporate deposits

Retail deposits

Time

deposits

Current

accounts

Demand

deposits

Conditional

deposits

Source: National Bank of Kazakhstan1 Including loans to SMEs (small and medium-sized enterprises) and corporate loans; 2 Including loans to banks and institutions performing certain types of banking operations and «Reverse REPO» operations

% of total deposits, 31-Dec-2018

Retail banking continues to exhibit healthy growth trends

in 2016 – 1Q 2019, ₸4.9trn of

troubled assets were removed

from the banking sector (purchase

by the PLF, transfer to SPV,

liquidation of the banks)

34

Share of Tenge-denominated deposits has increased by 22 p.p. since 2015 despite tenge depreciation

Since 2015, the NBK has introduced various measures aimed at stimulating demand for Tenge deposits

31%

69%

31-Dec-2013 31-Dec-2015 31-Dec-2018

Banking sector deposits, ₸trn

₸/USD

as of 31-Dec-2013:

154.3

₸/USD

as of 31-Dec-2015:

339.5

₸/USD

as of 31-Dec-2018:

384.2

Aug-2015: Transition from

pegged to free floating exchange

rate regime

Source: National Bank of Kazakhstan

¹ Kazakhstan Deposit Insurance Fund (KDIF)

Tenge-denominated deposits Foreign currency-denominated deposits

Guarantees per individual Pre 2015 Dec-18

Value of Tenge-denominated retail savings deposits guaranteed by KDIF¹ ₸ 5 mm ₸ 15 mm

Value of other Tenge-denominated retail deposits guaranteed by KDIF¹ ₸ 5 mm ₸ 10 mm

Value of foreign currency-denominated retail deposits guaranteed by KDIF¹ ₸ 5 mm ₸ 5 mm

Maximum interest rate on foreign currency deposits recommended by KDIF¹ 4% 1%

₸ 9.8trn ₸ 15.6trn ₸ 17.0trn

63%

37%

53%47%

Declining share of foreign currency deposits

35

• In January 2018, Kazakh banks implemented IFRS 9

• In April 2018, the NBK introduced a new liquidity tool – a one-day FX swap – aiming to limit volatility of the interest rate in the swap market

• In June 2018, the NBK’s regulatory power was strengthened by parliament, particularly on use of supervisory judgment

• The NBK new regulatory supervision based on “motivated” judgement in relation to the early identification of problem banks and taking measures

in respect of such banks came into force from January 2019

• Asset Quality Review (AQR) to be conducted by the NBK is scheduled for 2019

• In June 2018, the NBK set up Baspana Mortgage Organisation to support mortgage programme

‘7-20-25’ by injecting ₸ 204bn (US$ 550mm) of capital at outset

• The NBK new banking supervision regime based on risk based approach – SREP (supervisory review and evaluation process)

• The NBK has continuously revoked licences of struggling financial institutions

Recent regulatory developments

Sector has undergone significant consolidation and clean-up

48

38 38 38 38 35 33 32 28

2000 2011 2012 2013 2014 2015 2016 2017 2018

# of banks operating in Kazakhstan

Source: National Bank of Kazakhstan

National Bank of Kazakhstan has further supported sector recovery

36

3,770 3,799 3,6673,875

2015 2016 2017 2018

Regulatory Capital (₸bn)

Consistent deleveraging

Gradual build-up of equity base

Improving quality of the loan portfolio

Growing returns

Source: National Bank of Kazakhstan

¹ RoE ratio based on aggregated financials for banking sector, post tax

7.0%

10.5%

17.4%

21.2%

2015 2016 2017 2018

Banking sector RoE¹

15.6 15.5 13.6 13.815.6 17.3 16.7 17.0

99.7%89.8%

81.5% 80.8%

2015 2016 2017 2018

Gross Loans (₸trn) Customer Deposits (₸trn) Loans/Deposits

1,237 1,042 1,265 1,0161,158

1,3731,155

752

8.0%

6.7%

9.3%

7.4%

2015 2016 2017 2018

NPLs (90 days+) (₸bn) Accrued interest (₸bn)

NPL Ratio (90 days+)

Strengthening capital and funding base and improving asset quality

37

Four

Overview of Halyk Bank

38

Group structure

JSC

Kazkommerts Securities

(brokerage and asset

management)

100%

Halyk-Life

(life insurance)

100%CB

Moskommertsbank

(Russia)

100%

IC Halyk

(insurance)

99.9%

% share of ownership of HalykHalyk Bank

Kazakhstan

CJSC

Kazkommertsbank Tajikistan

(Tajikistan)

100%

Halyk Bank Georgia

(Georgia)

100%

Halyk-leasing

(leasing)

100%

Kazteleport

(telecommunications)

100%

Halyk Collection

(cash collection services)

100%

Halyk Bank Kyrgyzstan

(Kyrgyzstan)

100%

QPayments

(telecommunications)

100%

JSC Altyn Bank

(bank, associated company)

40%

Tenge Bank

Uzbekistan (1)

Halyk Finance

(brokerage and asset

management)

Bad loans

management(2)

(management of doubtful

and bad assets)

100%

100%

Foreign markets

(1) Expected to commence operations in May 2019

(2) Comprises Halyk Project, LLP KUSA KKB-1, LLP Halyk Aktiv, LLP Halyk Aktiv 1

As of 19-Mar-2019

39

Banking, insurance and asset management subsidiaries

(1) Formerly Kazakhinstrakh

(2) Source: National Bank of Kazakhstan as of 31-Mar-2019

(3) Source: Central Bank of Russia, banki.ru; as of 31-Mar-2019

(4) Source: The National Bank Of Georgia; as of 31-Mar-2019

(5) Source: The National Bank of the Kyrgyz Republic; as of 31-Mar-2019

(6) Source: The National Bank of Tajikistan; as of 31-Dec-2018

Commercial banking

Strategic presence in neighboring countriesInvestment banking and asset management

Altyn Bank(associate company)

In Apr-2018 Halyk Bank completed 60% stake

sale in Altyn Bank to China CITIC Bank and

China Shuangwei Investments

BBB- (Fitch)

Halyk

Finance

Provides full range of investment banking and

asset management services

#2 by assets among asset management

organisations(2)

BB/positive (Fitch)

Kazkommerts

Securities

Provides full range of investment banking and

asset management services

#4 by assets among asset management

organisations in Kazakhstan(2)

Moskommertsbank #151 by assets out of c.500 banks in Russia(3)

2 branches, 5 representative offices

ruB (RAEX Rating Agency)

Halyk Bank

Georgia #10 bank by assets out of 15 banks in Georgia(4)

BB-/positive (Fitch)

VR b+ (Fitch)

Halyk Bank

Kyrgyzstan #11 bank by assets out of 25 banks in

Kyrgyzstan(5)

10 branches, 8 cash settlement offices

Kazkommertsbank

Tajikistan #6 bank by assets out of 17 banks in Tajikistan

as of 31.12.2018(6)

1 branch, 8 outlets

Insurance subsidiaries

IC Halyk(1)

Halyk-Life

Life insurance

18 branches, 7 representative offices

B+ (financial strength) and bbb- (issuer rating)

confirmed by AM Best

General insurance

18 branches, 224 points of sale

B++ (financial strength) and bbb (issuer rating)

confirmed by AM Best

40

Halyk Bank is a leader in the Kazakh corporate banking

Market position has strengthened recently with an acquisition of KKB by Halyk Bank in 2017

Corporate Banking – competitive landscape

Corporate deposits(1) (%)

39%

9%7% 6% 6%

#1

Share of top 5

players (as of 31-Mar-2019)

Share of top 5

players (as of 31-Dec-2015)

67%

58%

(1) All legal entities, including SME

Source: National Bank of Kazakhstan as of 31-Mar-2019

41

Corporate Banking – key highlights

As of 31-Mar-2019

(1) Halyk estimates

(2) Group financials

(3) Bank only

Data as of 31-Mar-2019

Larg

e c

orp

ora

teS

ME

Loan book size (gross)

# of clients

Loan book size (gross)

# of clients

₸2,268bn(2)

2,729(3)

₸591bn(2)

282,390(3)

Oth

er

75 out of top 100 Kazakhstan corporates are clients of Halyk Bank(1)

More than 75% of largest Kazakh taxpayers are clients of Halyk Bank(1)

# of internet banking users (legal entities incl. SME) 165,858

# of borrowers 7,427(3)

# of borrowers 430(3)

42

Corporate Banking loans and deposits

Data as of 31-Mar-2019 / first quarter

(1) Bank only

Note: consolidated basis

Industry breakdown (gross loans) Currency breakdown (gross loans)

Industry breakdown (deposits) Currency breakdown (deposits)

Key parameters

Key parameters

Gross interest

income Q1 2019₸76,680mm

Gross yield(1) 10%

NPL ratio 7.9%

Provision

coverage145.0%

Interest expense

Q1 2019₸21,522mm

Cost of current

accounts(1) 0.8%

Cost of term

deposits(1) 5.1%

KZT50.3%

FX49.7%

Services23%

Wholesale Trade15%

Real Estate11%

Construction8%

Retail Trade8%

Agriculture4%

Transportation5%

Mining3%

Other24%

KZT61.2%

FX38.8%

Oil and gas19%

Financial sector14%

Other consumer services

12%

Construction 9%

Healthcare and social services

8%

Other40%

43

Corporate Banking – other products

CASH

MANAGEMENT

ACQUIRING

GUARANTEES/

LETTER OF

CREDIT

645 outlets, of which 303 cash settlement units

₸24.5bn fee income in 2018

70,527 POS terminals

45% of all card payments in Kazakhstan processed

75% of e-pay payments in Kazakhstan

₸7bn fee income in 2018

73% market share in letters of credit(1)

47% share of portfolio of guarantees(1)

Payroll

products

41k corporate and SME payroll clients

4.4mm payroll cards

(1) Halyk estimate

As of 31-Mar-2019

44

Retail Banking – competitive landscape

Retail deposits (%)

37%

14%

8% 8%7%

#1

Share of top 5

players (as of 31-Mar-2019)74%

Source: National Bank of Kazakhstan

Share of top 5

players (as of 31-Dec-2015)66%

45

Len

din

gD

ep

osit

sO

ther

Loan book size (gross)

# of retail loans

# of mortgage loans

Deposit book size

# of retail accounts (active)

# of payment cards

# of ATMs in Kazakhstan

Only issuer of American Express cards in Kazakhstan

₸937bn(1)

836k

39k

₸3.2trn

6.6mm

9.2mm

4.4k

As of 31-Mar-2019

# of other unsecured consumer loans 798k

# of internet banking users 3.6mm

As of 31-Mar-2019

(1) Bank only

Retail Banking – key highlights

46

Retail Banking – product overview

As of 31-Mar-2019

(1) Bank only

Unsercured loans67%

Mortgage24%

Retail secured

loans6%

Credit cards3%

Auto1%

Consumer unsecured loans for various purposes

Majority are covered by cash to be received from

the employees within the framework of the salary

project

Unsecured loans

Retail loans secured by real estate assets

Retail secured loans

New targeted product based on KKB’s lending

product; various types available, depending on

customer segment

Credit cards

Size (gross loans) ₸25.2bn

# of credit cards 155k Size (gross loans) ₸623.7bn

# of loans 779k

Size (gross loans) ₸54.9bn

# of loans 14k

Total gross loans:

₸937bn(1)

₸ denominated mortgages only currently issued

Mortgages

Size (gross loans) ₸222.3bn

# of loans 39k

47

Description

A leading combined Internet banking platform in

Kazakhstan

Top 5 among free applications in the category "Finance“

(Google Play and App Store)

Strong internet banking platform for legal entities

Statistics 3.6mm users as of 31.03.2019

8 – 9mm online customer visits monthly 166k users as of 31-Mar-2019

Key functions

Payments to suppliers and transfers

Debit and virtual card issuance

Opening of current and deposit accounts

Card2Card via mobile phone number

Loan and credit card applications

Analytics and promotion campaigns

Cash by code

Touch and face ID and for mobile version

Communication with the bank via on-line chat bot

₸ payments, FX conversions and transfers

Deposits

Issuance of guarantees

On-line consultant, communication with the bank

Mobile application, “Push-notification” service

Information service (statements)

24/7 payments in the system of the Bank

Currency control

Account management for large corporates

Online and mobile banking Corporate

Overview of online banking services

48

P2P payments

Booking.com

(7% cash back to Halyk

Bank card holders)

Apple Pay

Launched in November 2018 (among

35 countries, ahead of Germany and

Belgium)

71,000 clients as of 31 March 2019

US$1.2mm payments in Q1 2019

Launched in September 2018

(the only bank in Kazakhstan)

The transport system of Astana has

been integrated

140k payments in Q1 2019

Traffic finesQR code

payments

Selected digital service partners

Agoda.com

(multicurrency payments 12%

cash back on Visa Infinite and

Visa Signature)

Rentalcars.com

(multicurrency payments)

2mm money transfers monthly totaling

US$220mm in Q1 2019

Kazakhstan is #2 in CEEMEA after

Russia in terms of development of

P2P payments

A joint project with Egov.kz Services

Digital banking key services and partnerships

49

Digital banking in Kazakhstan has high potential

% of population with internet access (2017)

Issued cards in Kazakhstan (in k)(1)

% smartphone penetration (2017)

75%

53%

40%

79%73%

95%

81%

Kazakhstan China India Malaysia Russia UK Singapore

39%

51%

32%

64%

55%

68%73%

Kazakhstan China India Malaysia Russia UK Singapore

Middle-income markets Middle-income marketsHigh-income markets High-income markets

16,544 17,276 17,16215,703

19,411

23,390

31-Dec-13 31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 31-Dec-18

Card transaction volume in Kazakhstan (₸trn)

6.57.7 8.3

10.4

13.8

20.0

2013 2014 2015 2016 2017 2018

(1) Total amount of cards in circulation distributed by banks of Kazakhstan

(2) Transaction volume using cards issued by the banks of Kazakhstan

Source: NBRK, GMSA database

50

26 28

55

67

15 16

2015 2016 2017 2018 Q1 2018 Q1 2019

CAGR 2015 – 2018

Market position

Market share by

gross written

premiums(1)

#1 37.1%

#2 25.2%

Structure of the business

Gross written premiums

(₸ bn)

32%

(₸ bn)

Underwriting result

5%

47

59

76

109

29 32

2015 2016 2017 2018 Q1 2018 Q1 2019

3%

38%

(1) Source: NBRK as of 31-Mar-2019

Insurance Business

51

Du

plicati

ng

fu

ncti

on

s

bein

g a

ssessed

Au

M

₸193bn as of 31 March 2019 All AuM transferred to Halyk Finance as of 31 March 2019

Net

inco

me

₸1.0bn for the three months ended 31 March 2019 ₸0.5bn for the three months ended 31 March 2019

BB (positive) rating from Fitch

Best Investment Bank in Kazakhstan (2009-2018) – EMEA Finance

Best Investment Bank in Kazakhstan (2015, 2017, 2018) - Cbonds

Best Investment Bank of the Year – Kazakhstan and Best Bond

House – Kazakhstan (2018) - Global Business Outlook

Best Bond House in CEE (2017) - EMEA Finance

Best Equity Bank in CEE (2018) – Global Finance

Best Investment Bank in Kazakhstan (2011, 2012, 2014, 2015,

2018) – Global Finance

Best in Frontier Markets (2018) – Global Finance

Best Investment Bank in Kazakhstan (2016) – Cbonds

“For Development of the Stock Market” and “Best Underwriter on the

Stock and Bond Markets” – KASE

Best Research and Best Underwriter in Kazakhstan (2018) –

Cbonds

Underwriter of the Year on the Corporate Bond Market (2018) –

Cbonds

Brokerage

Asset management

Investment Banking

Research

Aw

ard

sInvestment banking and asset management

52

Country Georgia Russia Tajikistan Kyrgyzstan Uzbekistan

Description

Commercial bank

with a focus on

corporate, SME and

retail banking

Universal commercial

bank with a focus on

SME

Universal

commercial bank

Universal

commercial bank

Agreement

between NBRK

and Central bank

of Uzbekistan

Banking license

is expected in

May 2019

Total assets

(as of 31

March 2019)

GEL 494.4mm/

USD 183.7mm

RUR 18,235mm/

USD 281.7mm

TJS 689.5mm/

USD 73.05mm

SOM 7,365mm/

USD 105.6mm

Credit rating «BB –» positive

(Fitch)– – –

Tenge bank

Uzbekistan

International operations

53

Five

Update on Merger with KKB

54

Key milestones of successful merger

(1) Signing of the Technical Readiness Report for the integration JSC Halyk Bank’s and JSC Qazkom’s information systems

Beginning 2017

Merger discussions

initiated

Feb-2017 Jul-2017 Dec-2017 Apr-2018 Jul-2018

05.07

Halyk Bank

acquired KKB shares

15.12

Merger decision

20.04

Joint General Shareholders’

Meeting (“JGSM”) approval

of KKB merger

into Halyk

28.07

Legal and

technological

merger(1)

26.07

JGSM approval of

deed of merger of

KKB into Halyk

02.03

Memorandum of

Understanding with respect to

a potential acquisition of KKB

is signed

Mar-2017

55

KKB acquisition – transaction snapshot

Key highlights Balance sheet clean up illustration (₸ trn)

Transaction was substantially de-risked

Due diligence conducted by

international financial, accounting

and legal advisors and

independently by NBRK

BTA loan (₸2.4trn) was removed

from KKB balance sheet before the

transaction and transferred to bad

loan fund, thus, cleaning up the

banking system

Additional provisions created in

sufficient amount

Strategic rationale clearly assessed before

the transaction to ensure value creation to

the shareholders

Additional equity of ₸185bn was provided

by Halyk as part of the transaction

4.2

(0.6)

3.7

(2.4)

(0.5)

0.8

KKB gross loansbefore transaction

Existing provisions KKB net loansbefore transaction

BTA loan removalbefore transaction

Additionalprovisions and

write-offs beforetransaction

Net loanstransferred to Halyk

56

Stated rationale Evidence

De-risked transaction1

Creation of the largest player in Kazakhstan 2

Increased presence in retail, SME and payments3

Strengthened position in insurance4

Strong synergy potential5

Profitable deployment of excess capital6

Digital expertise7

Strong acquiring business8

NPL 2016: 10.2% NPL 2018: 8.5%

#1 bank in Kazakhstan(1)

#3 privately owned bank in CIS(1)

#1 in retail deposits and current accounts

#1 in issued cards and POS terminals

85% growth in GWP 2016 vs 2018

140% growth in underwriting result 2016 vs 2018

103 branches closed (of 721 before merger)

4.2k staff reduction (of 20.4k before merger)

Expensive KKB bonds repaid

RoAE 2016: 22.3% RoAE 2018: 27.9%

85k corporate internet banking clients acquired

31k merchant acquiring clients acquired, resulting in 49%

POS market share

Card-related F&C income ₸31bn in 2018 vs ₸11bn in 2016

(1) By total assets

Delivered on announced strategic transaction rationale

57

Co

st

syn

erg

ies

Bra

nc

he

s a

nd

Ou

tle

tsF

TE

s

504

727

223

01.07.2017

11,209

20,394

9,185

647

01.01.2019

16,131

Synergy effect

Security type Date redeemed Amount repaid Coupon

Fu

nd

s s

yn

erg

ies

KKB

perpetual

Eurobonds

9-Feb-18 US$100mm LIBOR 3M + 6.1905%

KKB

Eurobonds11-May-18 US$300mm 8.50%

KKB

Eurobonds1-Mar-19 US$200mm 5.50%

58

Integration program – key numbers

Project effort Key numbers

Man-days

Management time 13K

o/w external 1.7K

Development(1) 45K

o/w external 2.6K

Business testing 19.K

Data migration 17.4K

o/w external 1.4K

Total 95K

General

7Months – project duration

150Systems participated

in integration

Development

500GAPs realised during

the project

45,000m/d spent

on development

Testing

1,600Test cases completed

(1) Time and effort spent on IT system developments to support migration and integration

59

Halyk Strategy

Six

60

Strategic objectives for 2019 - 2021

Mission

The Bank’s strategic mission is to provide services in all segments of the financial market in Kazakhstan and a number of other

countries, in accordance with sound international banking practice, having regard to the best interests of its customers and

shareholders

Client-orientation and

focus on quality of the service

Selective international

expansion

Focus on further development of digital

offering

Leading positions

in all key customer segments1 2

3 5

Main transactional bank of the country

4

Halyk Bank’s mission and strategic objectives

61

Key strategic objectives for 2019 - 2021

Client-orientation and

focus on quality of the service

Selective international

expansion

Focus on further development of

digital offering

Undisputed leader at the forefront of

our client needs

1 2

3 5

Placing Halyk as a key partner for all customer

groups across various products

• Further explore cross selling opportunities with

existing clients and increase product penetration

levels

• Penetrate new client groups where Halyk is not the

primary banking relationship

Further strengthening of competitive advantages

• Continue developing agile business and

operational model to improve customer experience

in long-term

• Encourage culture of innovation, improve

approaches to decision making, feedback from

clients, motivation system

• Develop services and solutions in line with the best

market practices

Create value from wide client outreach

• Utilise wide client outreach to create leading

provider of transactional services for all payment

flows

• Ensure availability of banking services for all

segments of the population

• Application of advanced infrastructure and a

number of specialised digital services and

payment solutions

Utilise existing expertise

• Apply the first mover advantages to seize the

leading position in Uzbekistan banking sector

• Focus on Kazakhstani clients and government

projects in other international markets

Main transactional bank of the country

4

Development of digital services and solutions in

accordance with the best market practices with a

focus on high quality of service

• Enhancement of customer experience through

digitalisation of Halyk Bank’s services

• KKB acquisition creates an opportunity to improve

the quality of services and improve digital services

62

Key priorities for each business segment

Business

segment

Growth of

segment

profitability

Development

of existing

platform

Accelerated

growth Key initiatives

Corporate

banking

Growth of fee and commission income per customer

New and innovative products (factoring, structured credit products, cash

management)

Increase client coverage by dedicated teams of product specialists and relationship

managers

Focus of transactional services managers on new clients acquisition

Small and

medium

enterprises

Active acquisition of new clients, including individual entrepreneurs and medium-

sized businesses

Improvement of client relationship management

New and innovative products (factoring, loans secured by acquiring turnover)

Increase client coverage of medium-sized businesses by dedicated teams of

product specialists and relationship managers

Improving client service quality

Retail

banking

Development of business model based on segmentation of customers and services

Focus on the development of customer relationship management (CRM)

− Client activation, cross-sell/up-sell, retention, service quality control

Development of an "open" retail

− Improved focus on unsecured lending and refinancing, simplified product

proposition of debit cards (“easy entry”)

Transactional

banking

Development and sale of innovative and technological services

Development of remote channels of sales and services

Active cross-selling

Innovative IT team developing transactional services with authority to quickly launch

pilot tests to the market before scaling to the bank

International

banking

Support for corporate and SME customers in the countries where Bank operates

Optimisation and development of payment operations

Regional expansion in Uzbek market in the medium term

63

Medium term strategic financial targets

2018 Medium-term target\\

Growth Loan growth 7% In line with the market

Profitability

NIM 5.1% >5%

Cost / Income 32% c.30%

RoAE 28% >22%

Asset quality Cost of risk 0.5% c.1%

Capital CET1 ratio 18.5% >17%

64

Seven

Financial Performance Balance sheet

65

Total assets

Total net loans by currencies

Significant portfolio increase in 2017 as a result of KKB acquisition

Prudent portfolio growth thereafter

Portfolio broadly stable in Q1 2019 with slight seasonal reduction of SME

and retail portfolios, which is expected

Gross loans by customer type(1)

Comments

(₸ bn) (₸ bn)

2,320 3,251 3,481 3,421

3,028

5,607 5,478 5,444 5,348

8,858 8,959 8,865

2016 2017 2018 31-Mar-19

Net loans Other assets

1,640 2,099 2,272 2,268

343

524 630 591

621

945 989 976

2,604

3,568 3,891 3,834

2016 2017 2018 31-Mar-19

Corporate SME Retail

67.8% 70.3% 67.2% 68.1%

32.2% 29.7% 32.8% 31.9%

2016 2017 2018 31-Mar-19

KZT FX

(1) Due to IFRS requirements, KKB loans were consolidated on net basis (i.e. net of provisions created before 4-July-2017)

Loan portfolio

66

138

1,411 1,465 1,460

449

468 761 928

92

265

249 328

141

260

297 294

104

301

234 219

924

2,705 3,006

3,228

2016 2017 2018 31-Mar-19

Treasury bills of the Ministry of Finance of

Kazakhstan8.2%

NBRK notes 8.8%

USA T-bills 2.4%

Other government loans and securities 7.1%

Corporate bonds 8.4%

Prudent financial asset portfolio, mostly consisting of NBRK bills and notes

Attractive gross yields and zero risk weight of NBRK securities provide high

return on capital

Interest income on government securities is tax free

Majority of other securities investment grade

Other financial assets

Weighted average yields

Detailed financial asset composition

Comments

Treasury bills of the Ministry of Finance

of Kazakhstan45%

NBRK notes29%

USA T-bills10%

Other government loans and securities

9%

Corporate bonds7%

As of 31-Mar-2019

As of 31-Mar-2019

Treasury bills of the Ministry of Finance of Kazakhstan

USA T-bills Other government loans and securities

Corporate bonds

NBRK notes

Other assets

67

Stable and diversified funding base

2,738

4,398 4,293 4,133

1,083

1,734 2,234 2,252

3,821

6,132 6,527 6,385

2016 2017 2018 31-Mar-19

Term Deposits Current Accounts

Liabilities structure

Current accounts vs term deposits

Deposits by client type

Deposits by currency

Retail customers deposits

43%

Corporate clients deposits

40%Amounts due to credit

institutions2%

Debt securities issued11%

Other4%

(₸ bn)

1,7153,104 3,396 3,282

2,105

3,028 3,131 3,103

60.7%

53.0% 53.3% 53.6%

2016 2017 2018 31-Mar-19

Corporate deposits

Retail deposits

Loan to deposit ratio (net loans to customers / amounts due to customers)

(₸ bn)

(₸ bn)+30.7%

% CAGR 2016 – 2018

64.7%

35.3%

71.7%

28.3%

71.7%

28.3%

65.8%

34.2%

As of 31-Mar-2019

1,323

2,729 2,908 2,958

2,497

3,403 3,619 3,427 3,821

6,132 6,527 6,385

2016 2017 2018 31-Mar-19

KZT FX

(₸ bn)

44.6%

55.4%

44.5%

55.5%

34.6%

65.4%

46.3%

53.7%

68

Maturity profile covered by sufficient liquidity

Maturity profile of existing securities(3)

0

50

100

150

200

250

300

350

2019 2020 2021 2022 2023 2024 2025

(in ₸ bn(1)) Total liquid assets: ₸4.3trn (3)

(1) Converted using USD/₸ spot FX rate of 379.33

(2) Taking into account early repayment of US$200m on 1-Mar-2019

(3) As of 31-Mar-2019 (unaudited), Liquid assets comprise cash and cash equivalents, NBRK notes, Treasury Bills of the Ministry of Finance of Kazakhstan, Treasury Bills of the governments of other countries,

notes of national banks of other countries and bonds of quasi-sovereign banks such as the Development Bank of Kazakhstan

(4) Repaid in April 2019

SecurityNominal amount

(issued currency)Balance sheet amount (₸) Interest rate Maturity Date

Eurobond USD 479mm ₸ 183bn 7.25% Jan-21

Eurobond(2) USD 548mm ₸ 174bn 5.50% Dec-22

Local bonds ₸ 100bn ₸ 99bn 7.50% Nov-24

Local bonds ₸ 132bn ₸ 128bn 7.50% Feb-25

Local bonds ₸ 94bn ₸ 95bn 8.75% Jan-22

Local bonds ₸ 60bn ₸ 62bn 8.40% Nov-19

Subordinated coupon bonds ₸ 101bn ₸ 82bn 9.50% Oct-25

Subordinated coupon bonds(4) ₸ 4bn ₸ 4bn Inflation indexed Apr-19

Total ₸ 828bn

69

Capital adequacy ratios, consolidated(1)

Capital structure, consolidated(2)

Capital adequacy ratios of Halyk Bank, only(1)

Capital structure, Halyk Bank, only(2)

910 933 877 952 1,029 1,113

105 105

114 83

86 1,019 1,038982

1,065 1,1111,199

31-Dec-17 31-Mar-18 30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19

Tier 1 Tier 2

109

769 807 796942 1,015 1,087

109 98

99

769 807 796

1,051(3)1,113 (3)

1,186(3)

31-Dec-17 31-Mar-18 30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19

Tier 1 Tier 2

(₸ bn)

(1) Starting from 1January 2016, the Bank calculates its capital (both consolidated and unconsolidated) taking into an account the principals, methods and coefficients employed by Basel III Committee.

(2) Almost the entire capital is a high quality core capital as a result of limited use of Tier 2 instruments.

(3) As a result of merger of KKB into Halyk Bank, Tier 2 capital from KKB was transferred to Halyk Bank. Therefore, as of 1 October 2018 and 1 January 2019, capital structure of Halyk Bank includes Tier 2

capital.

16.9%18.1% 17.2% 17.8% 18.5%

19.5%

18.9%20.0% 19.1%

19.9% 19.9%20.9%

31-Dec-17 31-Mar-18 30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19

CET Tier 1 Tier 2

(₸ bn)

21.5% 21.7%20.6%

19.4% 19.7% 20.4%21.4% 21.6%20.6%

21.6% 21.6% 22.3%

31-Dec-17 31-Mar-18 30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19

k1 - Halyk k1-2 - Halyk k2 - Halyk

k2 minimum = 12%

k1-2 minimum = 10.5%

k1 minimum = 9.5%

Solid capital position

70

Seven

Financial Performance Asset quality

71

111.3%

73.7%

129.2% 120.7%

2016 2017 2018 Mar-19

NPL coverage ratio²

Halyk has adopted active approach to managing NPLs

NPLs are fully covered

NPL ratio has reached lower level than pre-KKB acquisition

256

430 317 343

10.2%12.1%

8.5%

9.1%

2016 2017 2018 Mar-19

NPLs (₸bn) NPL ratio¹

Key strategies adopted to reduce NPLs

Write-offs

Enforcement and further realisation of collateral

Transfer to doubtful and bad asset management subsidiary companies

Recoveries (refinancing, attracting investors)

Doubtful and bad asset management subsidiary companies (SPV:

Halyk Project, KUSA KKB-1, Halyk Aktiv, Halyk Aktiv-1)

As of the Dec-18, the total amount of the asset portfolio of SPVs was

₸194 billion

During 2018, the total amount of the asset portfolio transferred by the

Bank to SPVs was ₸152 billion

+

+

1Total NPLs 90 days+ (principal amount of loans and accrued interest with principal and/or interest overdue by +90 days (Bank only) / gross loans portfolio, unconsolidated,

(Banks only), IFRS). In 2017 and 2018, NPLs are the aggregate of Halyk Bank and KKB, NPLs +90 and total loans of KKB are accounted for at fair value, i.e. net of provisions

created before 4 July 2017; ² Coverage of NPLs 90 days+ by provisions (NPLs – Bank only, provisions – on consolidated basis)

Halyk has delivered consistent improvement in its asset quality…

72

73% 92%

2016 Mar-19

77% 61%

2016 Mar-19

SM

ER

eta

il

NPL provision coverage by segmentNPL ratios by segmentShare of Bank’s NPLs

Co

rpo

rate

40%

25%

35%

40%

25%

35%

40%

25%

35%

7.1% 5.9%

2016 Mar-19

20.9% 17.4%

2016 Mar-19

14.3% 13.1%

2016 Mar-19

145% 148%

2016 Mar-19

(1.2%)

(3.5%)

(1.2%)

Data as of 31-Mar-19; based on Bank’s data only

…across all segments

73

Large portion of current NPLs come as legacy from KKB Significant clean-up of NPLs of both banks back-books

KKB did not materially change Halyk Bank’s risk profile

186 146

244

171

2017 2018 2017 2018

NPLs (₸bn)

legacy loan portfolio loan portfolio (ex. KKB)

Halyk NPLs54%

Legacy KKB NPLs46%

% of Bank’s NPLs (Dec-18)

63% 58%

13% 16%

24% 25%

Gross loan split ¹ Cost of risk² Gross loan split ¹ Cost of risk²

Corporate SME Retail

2016 2018

0.95%

1.70%

0.82%

2.08%

0.96%

(0.53%)

¹ Based on Group’s financials; ² Segmental cost of risk data based on standalone financials

KKB’s impact on Bank’s asset quality

74

Significant NPL clean-up in 2018 driven by organic repayments and write-offs

Consistently narrow cash gap

Active NPL management and organic repayments of existing NPLs

helped Halyk to reduce NPLs by 26.3% to ₸317bn

Consistent <10% cash gap

89.5% 91.7% 95.8%

89.9%

2016 2017 2018 Q1'19

Interest received from loans to customers / Interest income on loans¹

430

317 +54

(112) (55)

Beginning balance(Dec-17)

Write-offs New NPLs Repaymentsand restructuring

Ending balance(Dec-18)

₸ bn, standalone financials

(26.3%)

+

Continuous improvement in Bank’s asset quality

1 Based on consolidated financials

75

Stage 2 Stage 3 1, 2

Stage 2 + Stage 31, 2

Note: Group level data1 Including POCI; 2 Stage 3 loans include NPL 90+, restructured loans and other loans with signs of impairment

₸ bn

180

143 143

119

5.0%

4.0% 3.7%3.1%

Jun-18 Sep-18 Dec-18 Mar-19

01123345567788910101112121314141516161718181920202121222323242525262727282929303131323333343435363637383839404041424243444445464647474849495051515253535455555657575859596060616262636464656666676868697070717272737374757576777778797980818182838384858586868788888990909192929394949596969798989999100101101102103103104105105106107107108109109110111111112112113114114115116116117118118119120120121122122123124124125125126127127128129129130131131132133133134135135136137137138138139140140141142142143144144145146146147148148149150150151151152153153154155155156157157158159159160161161162163163164164165166166167168168169170170171172172173174174175176176177177178179179180181181182183183184185185186187187188189189190190191192192193194194195196196197198198199200200201202202203203204205205206207207208209209210211211212213213214215215216216217218218219220220221222222223224224225226226227228228229229230231231232233233234235235236237237238239239240241241242242243244244245246246247248248249250250251252252253254254255255256257257258259259260261261262263263264265265266267267268268269270270271272272273274274275276276277278278279280280281281282283283284285285286287287288289289290291291292293293294294295296296297298298299300300301302302303304304305306306307307308309309310311311312313313314315315316317317318319319320320321322322323324324325

Stage 2

Ratio (Stage 2 / Gross Loans )

706751 763 782

19.7%20.8% 19.6% 20.4%

Jun-18 Sep-18 Dec-18 Mar-19

025710121417192224262931343638414346485053555860626567707274777982848689919496981011031061081101131151181201221251271301321341371391421441461491511541561581611631661681701731751781801821851871901921941971992022042062092112142162182212232262282302332352382402422452472502522542572592622642662692712742762782812832862882902932952983003023053073103123143173193223243263293313343363383413433463483503533553583603623653673703723743773793823843863893913943963984014034064084104134154184204224254274304324344374394424444464494514544564584614634664684704734754784804824854874904924944974995025045065095115145165185215235265285305335355385405425455475505525545575595625645665695715745765785815835865885905935955986006026056076106126146176196226246266296316346366386416436466486506536556586606626656676706726746776796826846866896916946966987017037067087107137157187207227257277307327347377397427447467497517547567587617637667687707737757787807827857877907927947977998028048068098118148168188218238268288308338358388408428458478508528548578598628648668698718748768788818838868888908938958989009029059079109129149179199229249269299319349369389419439469489509539559589609629659679709729749779799829849869899919949969981,0011,0031,0061,0081,0101,0131,0151,0181,0201,0221,0251,0271,0301,0321,0341,0371,0391,0421,0441,0461,0491,0511,0541,0561,0581,0611,0631,0661,0681,0701,0731,0751,0781,0801,0821,0851,0871,0901,0921,0941,0971,0991,1021,1041,1061,1091,1111,1141,1161,1181,1211,1231,1261,1281,1301,1331,1351,1381,1401,1421,1451,1471,1501,1521,1541,1571,1591,1621,1641,1661,1691,1711,1741,1761,1781,1811,1831,1861,1881,1901,1931,1951,1981,200

Stage 3

Ratio (Stage 3 / Gross Loans )

885 894 906 901

24.7% 24.7%23.3% 23.5%

Jun-18 Sep-18 Dec-18 Mar-19

Stage 2 + Stage 3

Ratio (Stage 2 + Stage 3 / Gross Loans)

₸ bn

₸ bn

Net Stage 2 + Stage 31, 2

₸ bn

145100 114 92

412 460 426 436

557 560 540 529

Jun-18 Sep-18 Dec-18 Mar-19

Net Stage 2 Net Stage 3

IFRS 9 asset quality indicators

76

Cost of risk stabilising Increasing provisioning rate

25.9

65.2

18.0 (4.6)

6.2

1.0% 2.2%

0.5% (0.5%)

0.6%

2016 2017 2018 Q1'18 Q1'19

Credit loss expenses on loans to customers (₸bn)

Cost of risk (annualised)¹

Provisioning rate increased to 10.5% as at Dec-18 from 8.9% as at Dec-17 mainly due to restructuring of KKB loans which previously were consolidated on net basis

(i.e. net of provisions created before 4 July 2017)

10.9%

8.9%

10.5% 9.5%

10.8%

2016 2017 2018 Q1'18 Q1'19

Provisioning rate²

¹ Credit loss expense on loans to customers / monthly average balances of gross loans to customers, annualised, on consolidated IFRS basis

² IFRS provisions / gross loans, on consolidated IFRS basis

Elevated cost of risk

partially due to KKB

acquisition

+ +

Normalisation of Bank’s cost of risk

77

Seven

Financial PerformanceProfitability

78

172

249

348

76 93

2016 2017 2018 Q1 2018 Q1 2019

5.4%5.0% 5.1%

4.4% 4.7%5.0%

5.4%

6.1%

5.5%5.2%

4.6% 4.8%5.1%

5.5%

2016 2017 2018 Q1 2018 AdjustedQ1 2018

Q1 2019 Adjusted Q1 2019

Net interest margin Net interest spread

51 138

204 52 57

1224

45

9 10

269

344

433

103 110

333

506

164 176

2016 2017 2018 Q1 2018 Q1 2019Income on loans and other financial assetsIncome on amounts due to credit institutionsIncome on securities

(1) Before credit loss expense; previously in consolidated reports recoveries of provisions on KKB loans created before the acquisition of KKB by Halyk (5 July 2017) were reflected in other non-interest income.

As per paragraph 5.5.14 of IFRS 9, starting from 3Q 2018 these recoveries of provisions are being reclassified as an impairment gain and recognized as reduction of credit loss expenses. Therefore, net

interest income for 1Q 2018 were recalculated taking into account such recoveries of provisions

(2) Net interest income / average interest earning assets (monthly average balances of cash and cash equivalents (less cash on hand and correspondent accounts with the NBRK), financial assets at fair value

through profit or loss (less derivative financial instruments), amounts due from credit institutions, available-for-sale investment securities, net loans to customers), on consolidated basis

(3) Average interest rate on interest earning assets, less average interest rate on average interest bearing liabilities, on consolidated basis

(4) One-off interest expenses on debt securities issued (amortisation of discount on KKB’s perpetual bonds for US$100mm fully redeemed on 9 February 2018) for Q1 2018 equaled to ₸3.9bn, total interest

expenses excluding one-off expenses were ₸83.7bn

(5) One-off interest expenses from early US$200m bond repayment on 1 March 2019 of ₸7.4bn, total interest expenses excluding one-off expenses were ₸76.2bn

Note: For comparison purposes, all financial ratios for 2017 & 2016 are shown in this presentation without Altyn Bank based on the latest annual IFRS financial statement

Interest income

Net interest income(1)

Interest expense

Net interest margin(2) and net interest spread(3)

(₸ bn)

43.1%

52 66 88 25 28

109

192 246

63 56

161

258

334

88 84

2016 2017 2018 Q1 2018 Q1 2019

(₸ bn)

44.0%

(₸ bn) 42.2%

CAGR 2016 – 2018

682

(4)

(5)

(5)

34.8%

29.5%

(4)

Consistent growth in net interest income

Amounts to customers

Other (debt securities issued, amounts due to credit institutions,

other financial liabilities)

(5) (5)(4) (4)

79

11,116

23,332

31,010

12,830 13,457

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2016 2017 2018 Q1 2018 Q1 2019

Payment cards maintenance

(₸ m)

Fee and commission income

Breakdown of selected fee and commission income

Fee and commission expense(₸ m)

(1) Portion of fees relating to payment card operations which was previously accounted within cash operations and bank transfers recalculated as fees derived from payment card operations

Note: For comparison purposes, all financial ratios for 2017 & 2016 are shown in this presentation without Altyn Bank based on the latest annual IFRS financial statement

57,697

87,640

26,374 26,973

2016 2017 2018 Q1 2018 Q1 2019

5,968

16,003

26,713

5,632 8,528

5,327

10,729

12,293

4,0482,992

11,295

26,732

9,680 11,520

2016 2017 2018 Q1 2018 Q1 2019Other fees and commissions expense Deposit insurance fees

113,241

39,006

10,353

18,159

24,537

1,948 2,486

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2016 2017 2018 Q1 2018 Q1 2019

Cash operations

14,438

18,943

26,614

4,095 3,485

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2016 2017 2018 Q1 2018 Q1 2019

Bank transfers – settlements

(₸ m)

Comments

(1) (1)

Acquisition of KKB significantly boosted fee and commission income

Growth primarily driven by increase in payment card fees

Reduction in bank transfers income in Q1 2019 vs Q1 2018 as KKB

transfers becoming internal and free of charge post merger

(1)

Fee and commission income

80

38,55151,124

77,563 77,563

19,604 17,737

23,839

51,514

76,039

48,731

13,3099,730

6,169

9,692

10,929

10,929

2,784 2,669

30

20,030

40,030

60,030

80,030

100,030

120,030

140,030

160,030

2016 2017 2018 2018adjusted

Q1 2018 Q1 2019

Salaries and other employee benefits Other Depreciation and amortisation expenses

11.4

11.2

18.416.1 16.1

2016 30-Jun-17 2017 2018 31-Mar-18

509

504

699 688 688645

2016 30-Jun-17 2017 2018 31-Mar-1831-Mar-19

1.5% 1.7%2.1%

1.7%1.3%

2016 2017 2018 Q1 2018 Q1 2019

Number of branches and outlets FTEs (k)

244,166

381,236

519,810

116,392 125,124

68,559112,330

164,531

35,697 30,136

28.1%29.5%

31.7%30.7%

24.1%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2016 2017 2018 Q1 2018 Q1 2019

Operating income Operating expense Cost-to-income ratio

Operating expenses(1)

Cost-to-average assets (1)(3)(4)

Cost-to-income (1)(2)

(₸ m)

(1) Previously in consolidated reports loss from impairment of non-financial assets was shown on gross basis and income from revaluation of non-financial assets was reflected in other income. Due to change

in representation policy, starting from 4Q 2018 the loss from impairment of non-financial assets is netted by income from revaluation of non-financial assets. Therefore, operating income, operating

expenses, cost-to-income ratio and cost-to-average assets ratio for FY2018 and 1Q 2018 were recalculated taking into account such change in policy

(2) Including loss from impairment of non-financial assets.

(3) Operating expense (operating expenses, impairment of non-financial assets) / operating income (net interest income before credit loss expense, net fees and commissions, other non-interest income, less

insurance claims incurred, net of reinsurance, and expenses for insurance reserves), annualised, on consolidated IFRS basis.

(4) Operating expense / average monthly assets, annualised, on consolidated IFRS basis.

(5) Excluding impairment loss on non-financial assets for ₸27.3bn

Note: For comparison purposes, all financial ratios for 2017 & 2016 are shown in this presentation without Altyn Bank based on the latest annual IFRS financial statement

68,559

112,330

164,531

137,223

(₸ m)

35,69730,136

26.4%

(5)

9.2

Synergy

effect

20.4

Synergy

effect

(5)

223

Synergy effect

727

Operating costs

81

131

173

254

6275

2016 2017 2018 Q1 2018 Q1 2019

2.6% 2.6%3.0% 2.9%

3.3%

2016 2017 2018 Q1 2018 Q1 2019

Net income(1)

RoAE (1) RoAA(1)

22.3% 22.7%

27.9% 29.2%26.8%

2016 2017 2018 Q1 2018 Q1 2019

(₸ bn)

(1) Based on consolidated accounts

Note: For comparison purposes, all financial ratios for 2017 & 2016 are shown in this presentation without Altyn Bank based on the latest annual IFRS financial statement

53.8%

45.5%48.9%

53.3%59.5%

2016 2017 2018 Q1 2018 Q1 2019

Net income / Operating income(1)

Profitability

82

Eight

Wrap-up

83

Investment highlights

1

2

3

4

5

6

Operating in a large, fast growing economy with underpenetrated banking sector

Domestic market champion with leading market shares

across all key segments with regional leadership position

The largest client base in the country serviced by the broadest distribution

network and rapidly advancing digital offering

Solid asset quality with ample liquidity

Attractive mix of profitability underpinned by

efficient operations and track record of growth

Robust capital position supporting shareholder returns

Corporate governance modelled on international standards and

experienced and stable management team with proven track record7