Financial statements

STATEMENT OF FINANCIAL POSITION As at 31 December 2018, in thousands of tenge

Note 31 December
2018
31 December
2017
Assets
Cash and cash equivalents 5 44.798.305 41.239.167
Amounts due from credit institutions 6 - 149.809
Loans to customers 7 43.004.358 45.066.761
Finance lease receivables 8 186.617.217 183.288.007
Property held for finance lease 9 10.740.178 5.131.712
Current corporate income tax assets 17 175.427 125.579
Property and equipment 10 995.816 1.040.490
Intangible assets 11 554.969 530.043
VAT and other taxes recoverable 12 3.891.038 3.106.338
Advances paid 13 7.190.060 2.558.452
Other assets 20 966.510 576.406
Liabilities
Amounts due to the Shareholder 14 67.232.037 75.539.402
Amounts due to credit institutions 15 41.807.710 40.429.623
Debt securities issued 16 64.596.068 46.969.316
Deferred corporate income tax liabilities 17 1.338.197 1.669.304
Advances received 18 4.263.925 3.555.199
Deferred VAT liabilities 5.070.632 3.979.227
Other liabilities 20 8.275.597 7.885.742
Equity
Share capital 21 82.837.204 82.837.204
Additional paid-in capital 21 25.730.293 24.912.791
Reserve funds 21 1.436.184 1.436.184
Provision for notional distribution 21 (9.605.611) (9.542.733)
Retained earnings 5.951.642 3.141.505
Total liabilities and equity 298.933.878 282.812.764

STATEMENT OF PROFIT OR LOSS for the year ended 31 December 2018, in thousands of tenge

Note 2018 2017*
Interest revenue calculated using effective interest rate
Cash and cash equivalents 1.486.056 1.953.413
Loans to customers 4.491.387 6.184.998
Investment securities 173.417 -
6.150.860 8.138.411
Other interest revenue
Finance lease receivables 19.995.116 18.966.880
19.995.116 18.966.880
Interest expenses
Due to the Shareholder (5.150.325) (5.990.768)
Debt securities issued (4.859.740) (4.551.325)
Due to credit institutions (3.757.399) 3.555.199
Credit loss expense 19 (2.818.840) (3.440.540)
Net losses from transactions with derivative financial assets - (786.945)
Net gains/(losses) from foreign currencies 469.670 (1.274.414)
Other income 23 970.887 1.024.387
Personnel expenses 24 (2.729.776) (2.620.500)
Other operating expenses 24 (913.138) (1.034.092)
Net loss from modification of loans to customers 7 (664.681) (599.402)
Other impairment and provision expenses 19 (189.906) (376.102)
Depreciation and amortisation 10, 11 (231.506) (192.108)
Corporate income tax benefit 17 296.855 66.137
Profit for the year 6.728.372 3.572.220

STATEMENT OF COMPREHENSIVE INCOME for the year ended 31 December 2018, in thousands of tenge

Note 2018 2017
Other comprehensive income for the year - -
Total comprehensive income for the year 6.728.372 3.572.220

STATEMENT OF CHANGES IN EQUITY for the year ended 31 December 2018, in thousands of tenge

Share capital Additional paid-in capital Reserve funds Provision for notional distribution Retained earnings Total
Total comprehensive income for the year - - - - 3.572.220 3.572.220
Gain on initial recognition of loans due to the Shareholder at fair value, net of tax (Note 21) - 1.629.938 - - - 1.629.938
Dividends declared (Note 21) - - - - (1.614.314) (1.614.314)
Provision for notional distribution for the year, net of tax (Note 21) - - - (170.718) - (170.718)
Restated opening balance under IFRS 9 82.837.204 24.912.791 1.436.184 (9.542.733) 2.795.490 102.438.936
Total comprehensive income for the year - - - - 6.728.372 6.728.372
Gain on initial recognition of loans due to the Shareholder at fair value, net of tax (Note 21) - 817.502 - - - 817.502
Dividends declared (Note 21) - - - - (3.572.220) (3.572.220)
Provision for notional distribution for the year, net of tax (Note 21) - - - (62.878) - (62.878)
As at 31 December 2018 82.837.204 25.730.293 1.436.184 (9.605.611) 5.951.642 106.349.712

STATEMENT OF CASH FLOWS for the year ended 31 December 2018, in thousands of tenge

Note 2018 2017
Cash flows from operating activities
Interest received 22.968.078 23.717.641
Interest paid (9.941.005) (10.307.315)
Realised gains less losses from transactions with derivative financial assets - 42.121
Realised losses less gains from dealing in foreign currencies (123.105) (107.662)
Personnel expenses paid (2.689.031) (2.788.270)
Other operating expenses paid (882.191) (995.693)
Other income received 453.882 318.740
Net (increase)/decrease in operating assets:
Amounts due from credit institutions - 532.728
Loans to customers 2.187.468 7.561.478
Finance lease receivables (7.826.399) 17.276.929
VAT and other taxes recoverable (784.700) (1.232.312)
Advances paid (4.644.534) (2.256.264)
Other assets (126.120) (794.817)
Net increase/(decrease) in operating liabilities:
Advances received 792.588 1.052.974
Other liabilities (905.603) 445.659
Corporate income tax paid (232.401) (293.319)
Cash flows from investing activities
Purchase of property and equipment and intangible assets 10, 11 (211.840) (537.062)
Proceeds from sale of property and equipment 795 4.526
Cash flows from financing activities
Proceeds from loans due to the Shareholder 11.232.415 6.653.248
Repayment of loans due to the Shareholder (22.971.379) (18.511.028)
Proceeds from loans due to credit institutions 19.000.000 11.220.884
Repayment of loans due to credit institutions (17.617.865) (10.953.506)
Proceeds from debt securities issued 17.250.959 -
Dividends paid to the Shareholder 21 (3.572.220) (1.614.314)
Effect of exchange rate changes on cash and cash equivalents 2.202.417 (186.090)
Effect of changes in expected credit losses on cash and cash equivalents 5 (1.071) -
Cash and cash equivalents, beginning of the year 5 41.239.167 22.989.891
Cash and cash equivalents, ending of the year 5 44.798.305 41.239.167
Non-cash transactions
Offsetting of current corporate income tax assets against other tax liabilities - 300.000