KazAgroFinance
Annual Report 2019

FINANCIAL
STATEMENTS

Statement of Financial Position

as at 31 December 2019

thousands of tenge Notes 31 December
2019
31 December
2018*
       
Assets      
Cash and cash equivalents 5 20,580,665 44,798,305
Amounts due from credit institutions 6 8,451,527
Investment securities 7 11,179,190
Loans to customers 8 36,929,798 43,004,358
Finance lease receivables 9 226,615,145 186,617,217
Assets held for sale 10 511,083
Property held for finance lease 11 7,704,941 10,740,178
Current corporate income tax assets 20 134,137 175,427
Property and equipment 12 463,556 995,816
Intangible assets 13 581,104 554,969
VAT and other taxes recoverable 14 6,137,493 3,891,038
Advances paid 15 5,597,916 7,190,060
Other assets 23 849,024 966,510
Total assets   325,735,579 298,933,878
       
Liabilities      
Amounts due to the Shareholder 16 54,136,402 67,232,037
Amounts due to credit institutions 17 75,934,329 41,807,710
Debt securities issued 18 65,384,934 64,596,068
Payables to suppliers 19 5,861,586 4,802,218
Deferred corporate income tax liabilities 20 754,648 1,338,197
Advances received 21 4,795,803 4,263,925
Deferred VAT liabilities   7,642,894 5,070,632
Other liabilities 23 1,965,997 3,473,379
Total liabilities   216,476,593 192,584,166
       
Equity      
Share capital 24 82,837,204 82,837,204
Additional paid-in capital 24 26,156,975 25,730,293
Reserve capital 24 1,436,184 1,436,184
Provision for notional distribution 24 (9,605,611) (9,605,611)
Retained earnings   8,434,234 5,951,642
Total equity   109,258,986 106,349,712
Total liabilities and equity   325,735,579 298,933,878
       
Book value per common share (in tenge) 24 1,311,95 1,277,14


Statement of Profit or Loss

for the year ended 31 December 2019

thousands of tenge Notes 2019 2018
       
Interest revenue calculated using effective interest rate      
Cash and cash equivalents   1,438,785 1,486,056
Loans to customers   4,050,708 4,491,387
Investment securities   483,446 173,417
    5,972,939 6,150,860
       
Other interest income      
Finance lease receivables   26,492,528 19,995,116
    26,492,528 19,995,116
Total interest income   32,465,467 26,145,976
       
Interest expense      
Amounts due to the Shareholder   (4,488,460) (5,150,325)
Amounts due to credit institutions   (5,332,674) (3,597,104)
Debt securities issued   (6,865,312) (4,859,740)
Total interest expense   (16,686,446) (13,607,169)
Net interest income   15,779,021 12,538,807
       
Credit loss expense 22 (1,208,591) (2,818,840)
Net interest income after credit loss expense   14,570,430 9,719,967
       
Net (losses)/gains from foreign currencies   (390,004) 469,670
Other income 26 831,792 970,887
Personnel expenses 27 (2,785,088) (2,729,776)
Other operating expenses 27 (1,068,777) (913,138)
Depreciation and amortisation 12,13 (289,283) (231,506)
Net loss from modification of loans to customers and finance lease receivables that does not result in derecognition 8,9 (1,472,203) (664,681)
Other impairment and provision expenses 22 (660,306) (189,906)
Non-interest expense   (5,833,869) (3,288,450)
Profit before corporate income tax benefit   8,736,561 6,431,517
       
Corporate income tax benefit 20 474,403 296,855
Profit for the year   9,210,964 6,728,372
       
Basic and diluted earnings per common share (in tenge) 24 111,19 81,22


Statement of Comprehensive Income

for the year ended 31 December 2019

thousands of tenge Notes 2019 2018
       
Profit for the year   9,210,964 6,728,372
Other comprehensive income for the year  
Total comprehensive income for the year   9,210,964 6,728,372


Statement of Changes in Equity

for the year ended 31 December 2019

thousands of tenge Share capital Additional paid-in capital Reserve capital Provision for notional distribution Retained earnings Total
             
At 31 December 2017 82,837,204 24,912,791 1,436,184 (9,542,733) 3,141,505 102,784,951
Impact of adopting IFRS 9 (346,015) (346,015)
Restated balance in accordance with 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 below market rates (Note 24) 817,502 817,502
Dividends declared (Note 24) (3,572,220) (3,572,220)
Provision for notional distribution for the year (Note 24) (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
             
Total comprehensive income for the year 9,210,964 9,210,964
Gain on initial recognition of loans due to the Shareholder at below market rates (Note 24) 426,682 426,682
Dividends declared (Note 24) (6,728,372) (6,728,372)
Provision for notional distribution for the year (Note 24)
As at 31 December 2019 82,837,204 26,156,975 1,436,184 (9,605,611) 8,434,234 109,258,986


Statement of Cash Flows

for the year ended 31 December 2019

thousands of tenge Notes 2019 2018
       
Cash flows from operating activities      
Interest received   28,579,278 22,968,078
Interest paid   (13,687,902) (9,941,005)
Realised losses less gains from dealing in foreign currencies   (71,523) (123,105)
Personnel expenses paid   (2,798,188) (2,689,031)
Other operating expenses paid   (998,588) (882,191)
Other income received   695,311 453,882
Cash flows from operating activities before changes in operating assets and liabilities   11,718,388 9,786,628
       
Net (increase)/decrease in operating assets      
Amounts due from credit institutions   (8,397,531)
Loans to customers   4,211,586 2,187,468
Finance lease receivables   (28,733,868) (7,826,399)
VAT and other taxes recoverable   (2,246,455) (784,700)
Advances paid   (135,629) (4,644,534)
Other assets   (279,798) (126,120)
       
Net increase/(decrease) in operating liabilities      
Advances received   778,715 792,588
Other liabilities   (2,111,137) (905,603)
Net cash used in operating activities before corporate income tax   (25,195,729) (1,520,672)
       
Corporate income tax paid   (215,818) (232,401)
Net cash flows used in operating activities   (25,411,547) (1,753,073)
       
Cash flows from investing activities      
Purchase of investment securities   (11,152,666)
Purchase of property and equipment and intangible assets 12,13 (403,297) (211,840)
Proceeds from sale of property and equipment   795
Net cash used in investing activities   (11,555,963) (211,045)
       
Cash flows from financing activities      
Proceeds from loans due to the Shareholder 32 11,232,415
Repayment of loans due to the Shareholder 32 (15,531,974) (22,971,379)
Receipt of loans due to credit institutions 32 40,225,000 19,000,000
Repayment of loans due to credit institutions 32 (6,109,535) (17,617,865)
Proceeds from debt securities issued 32 10,233,955 17,250,959
Repayment on debt securities issued 32 (9,389,000)
Dividends paid to the Shareholder 24 (6,728,372) (3,572,220)
Net cash from financing activities   12,700,074 3,321,910
       
Effect of exchange rates changes on cash and cash equivalents   49,320 2,202,417
Effect of changes in expected credit losses on cash and cash equivalents 5 476 (1,071)
Net (decrease)/increase in cash and cash equivalents   (24,217,640) 3,559,138
       
Cash and cash equivalents at the beginning of the year 5 44,798,305 41,239,167
Cash and cash equivalents at the end of the year 5 20,580,665 44,798,305
       
Non-cash transactions      
Offsetting of current corporate income tax assets against other tax liabilities   41,290