Q2 2025 Kaspi.kz AO Earnings Call

So, let's say that we had a good quarter in spite of an environment of high interest rates.

Uh, our payments continue to perform.

Well, and this is a very sizable business as you.

Uh, all know our tpv plus 21%, Revenue, 16 and net income plus 19%. So we're pleased with the performance Marketplace, continues, strong growth, uh, gmv plus 15%. Um,

Revenue plus 25 and net income, plus 13%, uh, gmv. Uh, especially on eCommerce side continuous. Strong growth. Except the smartphones plus 31%. I will cover this later in the presentation and then fetch continues. Generate strong volumes, plus 17% 20% revenue, and net income, plus 8%. In spite of the high interest rates, uh, this year, uh, consumers continue to be engaged, uh, strongly, probably 1 of the, We Believe being the leading, uh, uh, business in terms of transactions for Consumer of 75, transactions per month and revenue, plus 20%, and plus percent.

business, which we, you know, started.

Like see if I correctly around 3 years ago continues to be our probably fastest growing uh e-commerce business uh Plus 57% year-over-year. In terms of the gmv, we already have a over 1 million consumers, 1.1 million in the end of second year and generating 3.4 billion transactions in transactions were up 763% and in the gmv were up 57%. Uh, we can continue expanding the cost of the across country, uh, and entering the new cities.

Uh, so we are now in a 5 largest cities of Kazakhstan, which is almati where we started Astra and uh, we also opened the, uh, this year in October, and Shimon. And we're also expanding and, and karaganda. So we have uh, 5 cities now. Uh, and we are expanding further in NASA and

Elliot: Thank you, David. Let's move straight away into the updates. For the second Q2, we had a good, continuing environment of high interest rates. Our payments continue to perform well, and this is a very sizable business, as you all know. Our TPV plus 21%, revenue 16%, and net income plus 19%. We are pleased with the performance. Marketplace continues strong growth. GMV plus 15%, revenue plus 25%, and net income plus 13%. GMV, especially on e-commerce side, continues strong growth except the smartphones, plus 31%. I will cover this later in the presentation. Fintech continues to generate strong volumes, plus 17%, 20% revenue, and net income plus 8% in spite of the high interest rates this year. Consumers continue to be engaged strongly. Probably one of the, we believe, being the leading business in terms of transactions per consumer of 75 transactions per month.

this year, a

Deposit on the fixed-term deposit at a higher interest rate.

So, here, we're giving you a bit of a

Overview of its performance. We're very pleased. Uh, uh, this deposit has shown an extraordinary growth of uh, uh

207%, in terms of the amounts and 263% in terms of the number of customers almost 165,000, and you know, it's performing, uh, pretty much as we plan. So, as you can see, you know, this is a product where which is targeting consumers, which are saving for something, uh, and, uh, apart from, uh, uh, so and then basically apart from the, uh, from the consumers, which are shifting from our current deposit into this into savings deposit because they have savings needs. We also around the 3rd of the of the volumes is actually a new inflow. So, very successful product, and we truly believe that, uh, uh, even though interest rates are high, you know, today, they will come down.

In the future, and we just continue.

Elliot: Revenue plus 20% and net income plus 20%. Those are the business which we, you know, started, I think, if I recall correctly, around three years ago. It continues to be our always fastest growing e-commerce business, plus 57% year-over-year in terms of the GMV. We already have over 1 million consumers, 1.1 million. I think it's in the end of the second Q, and generated 3.4 billion transactions. In transactions, we are up to 63%, and in the GMV, we are up 57%. We continue expanding because of the growth in the country, and entering the new cities. We are now in the five largest cities of Kazakhstan, which is Almaty, where we started, Astana. We also opened this year in October in Shymkent. We are also expanding in Karaganda. We have five cities now, and we are expanding further in Astana.

Uh, acquiring consumers, and those are the consumers which eventually are transacting through our services. Uh, because we are, uh,

Uh, transactional business and we allow.

Sellers to sell, buyers to buy. So when there are consumers with the money and savings, eventually, they're spending those through our services. So, really encouraging trends of the deposit products, which we have launched.

we also have been, uh,

Giving an opportunity to others to leverage our payment network, Kaspi QR.

Which, uh, allows our merchant partners to accept the payments.

Not only from users of classification that uh, mobile application, but actually other of our colleagues on the market, uh, so have seen a very good results. Uh, the volumes are up 128%, uh, we have processed in the second queue, uh, 3.4 million transactions. Uh, at the moment we have, you know, 5 Banks, uh, working with us. And as you recall, we also have integrated, uh, with alip pay and, uh, and the through alipay basically, where allowing our consumer,

Elliot: This year, a deposit on the fixed term deposit at a higher interest rate. Here we are giving you a bit of an overview of its performance. We are very pleased. This deposit has shown extraordinary growth of 207% in terms of the amount and 263% in terms of the number of customers, almost 160,000. It is performing pretty much as we planned. As you can see, this is a product which is targeting consumers which are saving for something. Apart from the consumers which are shifting from our current deposit into the savings deposit because they have savings needs, around a third of the volumes is actually a new inflow. So, a very successful product, and we truly believe that, even though interest rates are high today, they will come down in the future, and we just continue acquiring consumers.

To transact on their vacations in China or other locations where alipay is functioning as well as our partner Merchants to acquire. And and to, to pay basically for uh, the good State, they might require in in China and then, uh, you know, bring to Kazakhstan and sell through our Marketplace. Uh, so that encouraged by those Trends and we will continue to partner with other financial institutions uh, going forward. But already it's a pretty good decent result.

We also are historically. As you know, you know, we are building up on our payment uh infrastructure, uh, and the payment use cases, you know. This is how we actually started our e-commerce business. This is how we've started our travel business, just taking advantage of building additional value, through specific vertical related to reservations and here is an example of, uh, our entry into the restaurant business. So we are scaling quite nicely. It's, uh, it's a very high growth, still not sizable. Uh, in terms of the size because we have just launched it, but quite good encouraging result that motor score is very high uh from our uh, customers and Merchants. Uh the functionality is pretty straightforward, you know, you are, you know, as as a as a restaurant.

Elliot: Those are the consumers which eventually are transacting through our services, because we are a transactional business and we allow sellers to sell, buyers to buy. So, when there are consumers with the money and savings, eventually they are spending those through our services. So, really encouraging trends of the deposit products which we have launched. We also have been giving an opportunity to others to leverage our payment network, Kaspi QR, which allows our merchant partners to accept the payments not only from users of Kaspi.kz, the mobile application, but actually other of our colleagues on the market. I have seen a very good result. The volumes are up 128%. We have processed in Q2, 3.4 million transactions. At the moment, we have five banks working with us. As you recall, we also have integrated with Alipay.

You have on the table and you pay Straight from our mobile application and 1. Nice feature, which is also part of the service is you can actually achieve the waiter. And the waiter is uh uh, you know, waiters are happy because everything goes seamlessly and so we're delivering the value for everyone involved in this service in the restaurant itself, in the consumers and for the waiters. So it's you know, everybody working faster more efficiently. And we enable our core competency through the technology, which is accepting payments fast and providing a very reliable service.

Elliot: Through Alipay, basically, we are allowing our consumers to transact on their vacations in China or other locations where Alipay is functioning, as well as our partner merchants to acquire and to pay basically for the goods that they might acquire in China and then bring to Kazakhstan and sell through our marketplace. So, very encouraged by those trends, and we will continue to partner with other financial institutions going forward. But already, it is a pretty good, decent result. We also are historically, as you know, building up on our payment infrastructure and the payment use cases. This is how we actually started our e-commerce business. This is how we have started our travel business. We have just taken advantage of building additional value through specific vertical-related innovations. Here is an example of our entry into the restaurant business. So, we are scaling quite nicely.

We also have been expanding the suite of our advertising tools for the merchants. This business is growing really fast. Um, we have launched a new service for our merchants, which basically enables the merchants to provide cash back, sort of bonuses directly to consumers. Uh, very simple service to operate. Uh, we have positive feedback from merchants; you can basically, uh, uh, uh, select the promotional terms, you know, select the products you would like to promote, and then you just push the button. You can basically track the sales, uh, with the views and other metrics related to advertising. So it has been really well received. Uh, as you know, our strategy is always to be...

Rolling out their services with the confidence that we deliver value. So we're still in the process of scaling, but already have very good results and engagement from the merchants.

So this service continues to uh fuel our advertising uh Services growth. Uh so as you can see our uh ad Revenue has increased to by 67% uh I think you and uh yeah, this is 1 of the services, which

Are you happy with the trends and engagements, and there is more to come.

We also.

Elliot: It is a very high growth, still not sizable in terms of the size because we have just launched it, but quite good, encouraging result. Net promoter score is very high from our customers and merchants. The functionality is pretty straightforward. You know, as a restaurant, you basically are reducing the time for your waiters to spend on bringing the receipt and so on. So, they are focused more really on the serving. As a result, restaurants get more sales. This is especially in the peak time. This is the biggest benefit for the restaurants. From the consumers, it is quite straightforward functionality. You just scan the QR code, which you have on the table, and you pay straight from our mobile application. One nice feature, which is also part of the service, is you can actually see the waiter. The waiter is happy because everything goes seamlessly.

I have been describing and explaining to you during the last call that we have.

Growth of the smartphones has been temporarily impacted by the requirement of really the registers smartphones uh which is you know in a simple words it's quite natural. You know. The the legislation has been introduced uh uh which require the consumers to register their smartphones. In this Smartphone would be registered then it's basically becomes an operational brick.

Elliot: We are delivering the value for everyone involved in this service, in the restaurant itself, in the consumers, and for the waiter. Everybody is working faster, more efficiently. We enable our core competency through the technology, which is accepting payments fast and providing a very reliable service. We also have been expanding the suite of our advertising tools for the merchants. This business is growing really fast. We have launched the new service for our merchants, which basically enables the merchants to provide the cashback sort of bonuses directly to consumers. It is a very simple service to operate. We have positive feedback from merchants. You can basically select the promotional terms, select the products you would like to promote, and then you just push the button and you can basically track the sales, the uplift, the views, and other metrics related to advertising. It has been really well received.

Uh, so from from our perspective, uh, you know this uh Supply and the consumer demand this disruption uh just have this temporarily really. Uh but we still would like to indicate that actually the growth of all other verticals in our e-commerce continues to be very strong and without the smartphones, the growth is 30 31% which just an indication how on the penetrated uh e-commerce is and how much growth we have ahead of us and things like Beauty, and personal care, and clothing are growing 63. And 54% respectively, just telling you, you know, that there is still more

Growth and Innovations, we can do around specific verticals, but the smartphones this temporarily temporary setback. But we also are not just sitting and, you know it observing. We of course, are introducing the services for both merchants and the consumers just to give them uh, peace of mind, uh, and understand that actually the the phone is registered uh, and and we have developed a service for both merchants and consumers, so overcome this obstacle. So actually Merchants before shipping the smartphone through our e-commerce. They should be

Elliot: Our strategy is always to be rolling out our services, with the confidence that we deliver the value. We are still in the process of scaling, but already have a very good result and engagement from the merchants. This service continues to fuel our advertising services growth. As you can see, our ad revenue has increased by 67% in the second Q. This is one of the services which we are extremely happy with the trends and engagement and more to come. We also have been describing and explaining to you during the last call, that the growth of the smartphones has been temporarily impacted by the requirement of really the registered smartphones, which is in a simple word, it is quite natural. The legislation has been introduced, which requires the consumers to register their smartphones. If this smartphone would not be registered, then it basically becomes an operational brick.

The demand is there, and we just believe this is a temporary setback due to the regulation, which just requires a bit more.

You know, communication and help from our side—and that's what we're doing.

Elliot: From our perspective, this supply and the consumer demand disruption just happens temporarily, really. We still would like to indicate that actually the growth of all other verticals in our e-commerce continues to be very strong. Without the smartphones, the growth is at 30-31%, which is just an indication of how underpenetrated e-commerce is and how much growth we have ahead of us. Things like beauty and personal care and clothing are growing 63% and 54% respectively, just telling you that there is still more growth and innovations we can do around specific verticals, but the smartphones is a temporary setback. We also are not just sitting and observing.

We have also our you know very excited to introduce the new service uh which is domestic Tools in Kazakhstan. Kazakhstan is a beautiful country um and there are so many destinations that you can visit uh and it can be over the weekend, it can be a quick trip into mountains. It can be a ski Resort or you want to spend a week with a beautiful nature with your family. So we have introduced the domestic tours. Uh, and basically, you know, as you recall the travel we have international vacation packages. So, that's, that's a specifically targeted to promote beauty of the country. And we have ch, we have developed the functionality, which you has been well received, you know, you can choose the region and the dates you can browse browse

Browse the list of offers; you can read the tour details and understand those better. Then you can seamlessly pay in our mobile application and receive confirmation for your vacation. It's a really nice tour. You know, obviously, we started from a low base, but it's 10x growth in June. It's the season now, so we've observed quite a strong adoption. But again, this...

This is the service which we will be purposely also, promoting and building up. We are really honored and excited to, to uh, promote the beauty of the country. And, and Kazakhstan is truly beautiful. Uh, has so many beautiful locations to visit, so we're very happy and excited about this new business. We have launched

David, back to you about the platform performances.

Elliot: We, of course, are introducing the services for both merchants and the consumers just to give them peace of mind, and understand that actually the phone is registered, and we have developed a service for both merchants and consumers to overcome this obstacle. Merchants, before shipping the smartphone through our e-commerce, they should be, they should be actually, they must check the smartphone, whether it is registered for bringing inside of the country on the one hand. On the other hand, merchants earn the badge, which on their product, which means verified by the merchant, the smartphone. On the other hand, customers themselves also can verify smartphones and make sure that the smartphone they have acquired is the smartphone which is registered. As a result, we are sort of tackling this from both sides. We are giving tools to the merchants. We are giving tools to the customers.

All right. Thank you, Muyl. So, just a run quickly through the, uh, financial performance of the respective parts of the business, starting with Payments.

Demand volumes remained robust and consistent throughout the first half of the year, with volumes up 14% year-on-year. In the second quarter, volumes were up 15% year-on-year for the first half.

Faster TPV growth faster; TPV growth versus volumes is a function of.

Higher ticket size in inflation, up 21% year-on-year in the second quarter, but 22% year-on-year for the first half. So again, strong and consistent trends with, as usual, sort of three key Platt products: Casper, Pay B2B, and bill payments are contributing to take rate. Move down a function of mix affecting.

Elliot: We just believe that this, the demand is there, and we just believe this is a temporary setback, due to the regulation, which just requires a bit more communication and help from our side, and that is what we are doing. We have also are very excited to introduce the new service, which is domestic tours in Kazakhstan. Kazakhstan is a beautiful country, and there are so many destinations that you can visit. It can be over the weekend. It can be a quick trip into mountains. It can be a ski resort, or you want to spend a week in the beautiful nature with your family. We have introduced the domestic tours. Basically, as you recall, the travel, we have international vacation packages. That is specifically targeted to promote the beauty of the country. We have chosen, we have developed the functionality, which has been well received.

Consistent with what you've seen, now over the last couple of years, basically, as QR grows in the mix, it has become dilutive, but this is consistent with the long-run trend.

Payment Revenue.

Or 16% in the second quarter. So even with take rate dilution ahead of volume growth, volume growth is 14% in the second quarter. This also reflects both strong volume growth and good growth in liquidity revenue. And then again, as we've consistently seen with the payment business, strong top-line growth drops through to the bottom line very quickly, resulting in high profitability and faster profitability growth of 19% in the second quarter of the year, and 20% for the first half of the year.

Elliot: You can choose the region and the dates. You can browse a list of offers. You can read the tour details and understand those better. Then you can seamlessly pay in our mobile application, and you get confirmation for your vacation. So really nice tour. Obviously, we started from the low base, but it's 10X growth in June. It's the season now. We observed quite a strong adoption. But again, this is the service which we will be purposely also promoting and building up. We are really honored and excited to promote the beauty of the country. Kazakhstan is truly beautiful, has so many beautiful locations to visit. So we are very happy and excited about this new business we have launched. David, back to you about the platform performances.

Moving on to Marketplace again. Marketplace demand overall remains very strong and consistent, up 35%.

Year-on-year, in the second quarter, we saw a 36% increase year-on-year for the first half.

GMV growth is lower than volume growth.

Level.

David Ferguson: All right. Thank you, Mikheil. So, just to run quickly through the financial performance of the respective parts of the business, starting with Payments. Demand volumes remained robust and consistent throughout the first half of the year. Volumes up 14% year-on-year in the Q2, up 15% year-on-year for the first half. Faster TPV growth versus volumes is a function of higher ticket size. Inflation up 21% year-on-year in the Q2, up 22% year-on-year for the first half. Again, strong and consistent trends with, as usual, three key products, Kaspi Pay, B2B Buy Inventory Now Pay Later, and bill payments all contributing. Take rate moved down, a function of mix effect, again, consistent with what you have seen now over the last couple of years. Basically, as QR grows in the mix, its take rate dilutive, but this is consistent with the long-run trend. Payment revenue up 16% in the Q2.

Despite that strong take rate Improvement being driven as usual by advertising Revenue delivery revenue and revenue from classified take rate. Moving up 70 basis points year on year in both the second quarter and in the second in the first half of the, the year that will feed through to faster Revenue growth

If you break it down by the respective marketplace segments, there was decent e-commerce GMB growth of 22% year on year in the second quarter and 23% year on year in the first half. If you exclude the smartphone category, e-commerce growth in the second quarter would have been up 31% year on year.

Take rate moving up, 120 basis points in the second quarter and 130 basis points improvement year-on-year for the first half. So, pretty decent take rate expansion.

MC Commerce.

Slower growth also, just like e-commerce impacted by smartphones, but also m-commerce is being impacted by the structural trend of offline merchants moving to online. The beauty of our business model is that we capture both e-commerce and m-commerce, actually that relationship with the offline.

David Ferguson: Even with take rate dilution ahead of volume growth, volume growth was 14% in the Q2. That also reflects both strong volume growth, but also good growth in liquidity revenue. As you have consistently seen with the payment business, strong top line drops through to the bottom line. Faster bottom line, high profitability, and faster profitability growth up 19% in the Q2, up 20% for the first half of the year. Moving on to Marketplace. Again, Marketplace demand overall remains very strong and consistent, up 35% year-on-year in the Q2, up 36% year-on-year for the first half. GMV growth is lower than volume growth. Although we did hold Juma in the Q2, and it was successful overall in the Q2, number one, we ran fewer promotional campaigns. Number two, as Mikheil talked about, declining smartphone sales down 17% year-on-year in the Q2. That impacts GMV.

Is a source of competitive advantage relative to online only?

Merchants saw solid growth and solid take rate trends around 9% in both the second quarter and the first half of the year.

Travel continues to deliver good results, with GMV growth of 16% in the second quarter and 19% year-on-year. In the first half of the year, we continue to see strong demand for international tours that we launched approximately 18 months to 2 years ago.

Faurot contributed to drive that take rate expansion here. Also saw 50 basis points of take rate expansion year on year in the second quarter and 60 basis points in the first half of the year. But we expect international tours to remain growth and take rate additive in the second half of the year. And we'd expect domestic tours, as Mall just talked about them, to increasingly kick in as well over the next 12 months. So a decent outlook for travel.

David Ferguson: It does not really impact volumes to the same extent, but smartphones are a higher ticket item, so it is more apparent at the GMV level. Despite that strong take rate improvement being driven, as usual, by advertising revenue, delivery revenue, and revenue from classifieds, take rate moving up 70 bps year-on-year in both the Q2 and in the first half of the year. That will feed through to faster revenue growth. If you break it down by the respective Marketplace segments, decent e-commerce GMV growth of 22% year-on-year in Q2, up 23% year-on-year in the first half. If you exclude the smartphone category, e-commerce growth in Q2 would have been up 31% year-on-year. Take rate moving up 120 bps in Q2 and 130 basis points improvement year-on-year for the first half. So pretty decent take rate expansion.

With um, take rate, moving up. Revenue growth is ahead of gmv growth. So Revenue growth for Marketplace was up 25% year on year. In the second quarter versus the gmv growth. I showed you of up, 15% and for the first half of 29% versus gmv growth of 17%. So overall pretty healthy, um, Revenue growth expansion for for, for Marketplace and also decent bottom line growth of 13 and 16% year-on-year in the second quarter and first half respectively, or be it that ongoing trend of it as e, grocery grows in the mix. That is a lower margin business, but overall, a good result for Marketplace.

And then finally, in Kazakhstan,

A fintech origination remains pretty healthy at 17% year on year in both the second quarter and the first half of the year. As you've consistently seen over the last couple of years, origination growth is being driven, first and foremost, by our merchants and micro business finance products, which grow at a faster rate and continue to grow at a faster rate than our consumer lending products.

David Ferguson: M-commerce slower growth, also just like e-commerce impacted by smartphones, but also M-commerce is being impacted by the structural trend of offline merchants moving to online. The beauty of our business model is we capture both. M-commerce, actually, that relationship with the offline merchants is a source of competitive advantage relative to online-only merchants. So solid growth and solid take rate trends around 9% in both Q2 and first half of the year. Travel continues to deliver good results. GMV growth up 16% in Q2, up 19% year-on-year in the first half of the year, helped still by international tours that we launched approximately 18 months to two years ago. International tours also contribute and drive that take rate expansion here also.

The average loan portfolio shows strong growth of 33% year on year in both periods. This is a lead indicator for future revenue growth.

Set, stable pricing trends; flat year-on-year in both the second quarter and the first half.

The deposit price is also now starting to see decent growth of 18% year-on-year in the second quarter and 19% year-on-year in the first half.

And what you see here is that we raised rates.

With the June, seeing the strongest month on month growth year to date June deposits, being at the highest level year to to, to, to date. So the trend is now moving in the direction that we wanted to to, to, to, to see. So it's good for the future that that is coming through the healthy.

Deposit growth.

David Ferguson: So 50 bps of take rate expansion year-on-year in Q2 and 60 bps in the first half of the year. We would expect international tours to remain growth and take rate additive in the second half of the year. We would expect domestic tours, Mikheil Lomtadze just talked about them, to increasingly kick in as well over the next 12 months. So a decent outlook for travel. With take rate moving up, revenue growth is ahead of GMV growth. So revenue growth for Marketplace was up 25% year-on-year in Q2 versus the GMV growth I showed you of up 15% and for the first half, up 29% versus GMV growth of 17%.

Risk Trends, remain stable, flat year-on-year, cost of risk, 0.6% is in the second quarter of the, the the the year and MPL friends have moved up, uh, slightly but not materially. And would expect them to remain at around these levels or somewhere between where they were at the end of of of last year and current levels for the remainder of the the year, the lower coverage reflects the growth in the car loan a product, which is a collateralized, um, product and therefore requires lower a coverage. And again, that has been a trend over the last 12 months as the the car loan product is scaled.

David Ferguson: So overall, pretty healthy revenue growth expansion for Marketplace and also decent bottom line growth of 13% and 16% year-on-year in Q2 and first half, respectively, albeit that ongoing trend of as e-Grocery grows in the mix, that is a lower margin of business. But overall, a good result for Marketplace. Finally, in Kazakhstan, Fintech Platform origination remains pretty healthy, up 17% year-on-year in both Q2 and the first half of the year. As you have consistently seen over the last couple of years, that origination growth is being driven first and foremost by our merchants and micro business finance products. They grow at a faster rate, continue to grow at a faster rate than our consumer lending products. The average loan portfolio saw strong growth, up 33% year-on-year in both periods.

So a decent um fintech origination and stable pricing trends that has translated into healthy revenue. Growth of 21% year on year in the second quarter, up 19% year on year in the first half of the year.

Hi are interest rates have impacted bottom line growth, as we indicated, they would at the time of our first quarter results. You see that um up 8% in the second quarter and for the first half of the year but the the deposits are delivering, what they're expected to to to do. They will help us capture more transactions or fund more transactions in the the the future.

When interest rates move down, fintech will be a dramatic benefit for you. Profitability will be a dramatic beneficiary.

Of that.

David Ferguson: This is a lead indicator for future revenue growth and safe, stable pricing trends, flat year-on-year in both the Q2 and the first half. The deposit boost is also now starting to see decent growth, up 18% year-on-year in the Q2 and 19% year-on-year in the first half. What you see here is that we raised rates in April. We started to promote the new deposit products more widely. Month-on-month trends in the deposit base have started to improve with June being the strongest month-on-month growth year to date, June deposits being at the highest level year to date. The trend is now moving in the direction that we wanted to see. It is good for the future that that is coming through that healthy deposit growth. Risk trends remain stable, flat year-on-year. Cost of risk 0.6% in the Q2 of the year.

That wraps up the Kazakhstan side of the business moving to Pepsi Barda in Turkey. Just to remind people, Pepsi Barda published its financial results on Thursday of last week, so its detailed financials are available on the Pepsi Barda investor relations website. But what is clear is that in the second quarter, there was a much better performance versus the first quarter of the year. Here, you see that volumes moved back into positive territory, up 7% year-on-year in the second quarter versus down 2% year-on-year for the first half.

The combination of growing volumes and mid-single-digit ticket expansion translated into decent GMV growth, up 16% in the second quarter versus down 1% for the first half of the year. This GMV growth, in real terms, is inflation adjusted.

David Ferguson: NPL trends have moved up slightly, but not materially, and would expect them to remain at around these levels or somewhere between where they were at the end of last year and current levels for the remainder of the year. The lower coverage reflects the growth in the car loan product, which is a collateralized product and therefore requires lower coverage. Again, that has been a trend over the last 12 months as the car loan product has scaled. A decent Fintech origination and stable pricing trends that have translated into healthy revenue growth, up 21% year-on-year in the Q2, up 19% year-on-year in the first half of the year. Higher interest rates have impacted bottom line growth. As we indicated, they would at the time of our Q1 results. You see that up 8% in the Q2 and for the first half of the year.

And overall, it is a reflection of recovery in the retail environment. Post-March, number one, company-specific initiatives. Number two, particularly in the first quarter, the business grew faster than third-party during the quarter. Also, there were favorable base effects; the second quarter of last year and the first quarter and second quarter of last year were impacted by the timing of the election. The first quarter of last year was strong—tough, tough, tough days.

With good and improving revenue growth.

Of 23% helped by growth in 1, p and helped by delivery initiatives, uh, helped by the growth of the delivery uh platform that translated into faster. Bottom line or faster, EV Dar growth up 42% in the second quarter, which is illustrative of the actual strong. Sort of operational gear in that exists in this business and can be seen as the revenue growth.

Comes through and improves.

Net income was negative.

David Ferguson: The deposits are delivering what they are expected to do. They will help us capture more transactions or fund more transactions in the future. When EV rates move down, Fintech will be a dramatic beneficiary. Profitability will be a dramatic beneficiary of that. That wraps up the Kazakhstan side of the business. Moving to Hepsiburada in Turkey, just to remind people, Hepsiburada published its financial results on Thursday of last week. Its detailed financials are available on the Hepsiburada investor relations website. What is clear in Q2, a much better performance versus Q1 of the year. Here you see that volumes moved back into positive territory, up 7% year-on-year in Q2 versus down 2% year-on-year for the first half. The combination of growing volumes and mid-single-digit ticket expansion translated into decent GMV growth, up 16% in Q2 versus down 1% for the first half of the year.

Related both to credit provisioning, this is related to Pepsi's existing credit products. So they shouldn't be confused with our planned acquisition of a banking license in Turkey and the products we will launch in the future following that acquisition.

Is still on track to complete in the second half. So it reflects existing products that

So us primarily related to Pepsi BDA International but overall good underlying Trends in all aspects of Pepsi's business in the second quarter of the the the year.

So, for caspy KZ.

The second quarter. Exactly as we expected it to be.

Friends in line with our full year and guidance. And it also actually um with Pepsi berrada heepsy berrada

Moving as we expected it to be and its losses. Ultimately,

Small in the context of Casper's KZ, number 1, and small in the context of the opportunity that exists in Turkey.

David Ferguson: This GMV growth is in real terms, is inflation adjusted, and overall is a reflection of recovery in the retail environment post-March, number one. Company-specific initiatives, number two, particularly in the 1P side of their business, which grew faster than 3P during the quarter, and also favorable base effects. Q2 of last year, or Q1 and Q2 of last year were impacted by the timing of the election. Q1 of last year was strong, tough, tough, tough base. With good and improving revenue growth, up 23%, held by growth in 1P and held up by delivery initiatives, held by the growth of the delivery platform, that translated into faster bottom line or faster EBITDA growth, up 42% in Q2, which is illustrative of the actual strong sort of operational gearing that exists in this business and can be seen as the revenue growth comes through and improves.

finally guidance ink Kazakhstan reiterated, the third quarter as started well and we are on track exactly where we we expect to to to be

And just to clarify on capital returns.

As, you know, we have always had and we continue to have an extremely cash generative business in our core Market.

We told you that this year was about making investments in international Turkey.

To ensure strong future growth for many years to come. We've made good progress, completing the final, uh, the acquisition of Pepsi bada the final payment was made in June. We're on track to close the banking license, acquisition in the second half of this year. So as we move into 2026 we expect to be able to. Once again, have Capital returns to our shareholders in much the same way as the case between 2020 and prior to the the the Pepsi aquisition Capital returns can include both dividends and BuyBacks with the decision being made at the appropriate time.

David Ferguson: Net income was negative. Underlying sort of losses declined was small and declined materially year-on-year, 243 million lira in Q2, an improvement versus a loss of 434 million in Q2 of last year. There were something around $6 million, but there are also some one-offs related both to credit provisioning. This is related to Hepsiburada's existing credit products. This should not be confused with our planned acquisition of a banking license in Turkey and the products that we will launch in the future. That acquisition is still on track to complete in the second half. So it reflects existing product set. That's primarily related to Hepsiburada International. Overall, good underlying trends in all aspects of Hepsiburada's business in Q2 of the year. For Kaspi.kz, the second quarter was exactly as we expected it to be, with trends in line with our full year guidance.

So that's it on Kazakhstan and turkey. I think with that, we can open the call up to Q&A.

Thank you for all Q&A. If you would like to ask a question, please press the raise hand icon found on your screen. If you've joined a call Via Zoom

If you've joined us on a phone, please, press star 1 on your telephone keypad.

When preparing to ask a question, please, ensure your line is unmuted locally.

We'll pause for a moment to allow questions to register.

Our first question comes from Wayne Trin with Citi, group, your line is open, please go ahead.

Hey guys, this is Wayne on free. All I just want to ask about what you're working on. In terms of product improvements that have to be. Um, could you highlight to us which ones are the most important? And what we should expect, as we progress through 2025 and 2026?

the you want to provide a bit of color and some of the the projects that are ongoing at Pepsi

Please.

Sure.

well, I mean, in in general, I would say that uh, you know, our uh,

our strategy is, uh,

To.

uh, you know, introduce

David Ferguson: Hepsiburada is also moving as we expected it to be. Its loss is ultimately small in the context of Kaspi.kz, number one, and small in the context of the opportunity that exists in Turkey. Finally, guidance in Kazakhstan was reiterated. The third quarter has started well, and we are on track exactly where we expect to be. Just to clarify on capital returns, as you know, we have always had and we continue to have an extremely cash-generative business in our core market. We told you that this year was about making investments in international Turkey to ensure strong future growth for many years to come. We have made good progress completing the acquisition of Hepsiburada. The final payment was made in June. We are on track to close the banking license acquisition in the second half of this year.

quite a lot of products, which we have, uh,

in our core Market, uh,

Initial, uh, initial focus or the priority is,

Still to make sure that existing customers and Merchants are extremely happy with the current Services just to remind everyone. Our business model is

in our execution skills are really based on ability to innovate at unprecedented rates. If you look at the history of custody and the things we have innovated around in in the marketplace or fintech or the payments area.

But in order for that strategy to be successful, it's super important that your current customers and merchants are extremely, extremely happy. And I'm not saying just happy, like for any ordinary business, but...

David Ferguson: As we move into 2026, we expect to be able to once again have capital returns to our shareholders in much the same way as was the case between 2020 and prior to the Hepsi acquisition. Capital returns can include both dividends and buybacks with a decision being made at the appropriate time. That is it on Kazakhstan and Turkey. I think with that, we can open the call up to Q&A.

Home. And the main focus is really to uh to make sure that the existing uh uh Services provided uh specifically through uh e-commerce business uh are and the pay and the payments and fintech as a certain extent, even though it's really small, the those are brought to the level of classification, you know, standards and uh and there are multiple projects which

Teams are running, and everything is starting from the delivery.

Elliot: Thank you. For our Q&A, if you would like to ask a question, please press the raise hand icon found on your screen if you are joining the call via Zoom. If you are joining us on the phone, please press star one on your telephone keypad. When preparing to ask a question, please ensure your line is unmuted locally. We will pause for a moment to allow questions to register. Our first question comes from Wayne Trin with Citi. Your line is open. Please go ahead.

To, uh, you know, user experience, uh, and the fintech products. So, the year this year, as I've mentioned on the previous call, is really the quality. Uh, and just bring, bring, bring those services to the level which is.

Which is required. Uh,

By, by, by you know, by the desire to innovate.

And all next Services, being a very high adoption.

So the current performance is very encouraging, and the results from some of the projects have already been impressive.

Wayne Trin: Hey, guys. This is Wayne on FreeGold. I just wanted to ask about what you are working on in terms of product improvements at Hepsiburada. Could you highlight to us which ones are the most important and what we should expect as we progress through 2025 and 2026?

Implemented or are in the process of being implemented and giving very successful results. And you can see that in the growth.

David Ferguson: Mikheil, do you want to provide a bit of color on some of the projects that are ongoing at Hepsiburada? Please.

Acceleration the second queue but uh you know we're really are focused on the quality rather than the quantity still this year. So main priority again is Core Business which is e-commerce and all the services around the around the e-commerce. Uh

Mikheil Lomtadze: Sure. I mean, in general, I would say that our strategy is to introduce quite a lot of products which we have in our core market. The initial focus or the priority is still to make sure that existing customers and merchants are extremely happy with the current services. Just to remind everyone, our business model and our execution skills are really based on the ability to innovate at unprecedented rates. If you look at the history of Kaspi and the things we have innovated around in the Marketplace Platform or Fintech Platform or the Payments Platform area. But in order for that strategy to be successful, it is super important that your current customers and merchants are extremely, extremely happy. I am not saying just like happy, like for any ordinary business, but really happy. That is the foundation of the future success.

And then, uh, yeah. And the rest, uh, feedback side of things. Uh, is the, you know, the major Innovations are will be coming when we uh, complete acquiring the banking lessons.

Got it. Thank you. And then maybe a second one for me is, um, how do you think about your initiative in Kazakhstan? Remain there? And how should we think about the progression of the restaurant business and maybe any other verticals we should consider?

Well, the growth, the growth in Kazakhstan is the market is still under penetrated. And uh, you can see, you know, example of the specific verticals. We really have showed like, uh, you know, you know, closing and and fashion, uh uh, you know, growing at the very high rates. Uh,

Mikheil Lomtadze: Therefore, at the moment, the main focus is really to make sure that the existing services provided specifically through e-commerce business and the payments and fintech to a certain extent, even though it is really small, those are brought to the level of Kaspi.kz's standards. There are multiple projects which teams are running, and there is everything starting from the delivery to user experience and the fintech products. This year, as I mentioned on the previous call, is really the quality and just bring those services to the level which is required by the desire to innovate and all next services being a very high adoption. The current performance is very encouraging. It results from some of the projects which have been already implemented or are in the process of being implemented and giving very successful results. You can see that in the growth acceleration in Q2.

I, uh, I think it's what is it around 60% or something? We've showed, so, that there is, there is a growth and, uh, what we are executing really the strategy which is, uh, going after specific verticals. Again, this is something which we already have done before. And also articulated, uh, eross is a strategy around specific vertical, buying groceries different from buying electronics and

You know, travel it's a it's a strategy uh around specific verticals. Uh uh the same. Uh now we're doing pretty much in all major verticals and restaurants is 1 of those. Uh uh it's it's a it's a major vertical in the household spending uh we've just launched a very simple sort of functionality which brings uh

immediate value, uh,

we now in our estimate, you know, in general, every sort of vertical we're entering, uh,

It has to be in the range of a billion dollars' size sort of market potential, you know, like that the same was with travel, the same with grocery. So it really applies pretty much to all major verticals. If we take a vertical-specific strategy, scale matters, frequency of transactions matters, and this is how we are picking those verticals to.

Mikheil Lomtadze: We really are focused on the quality rather than the quantity still this year. The main priority, again, is core business, which is e-commerce, and all the services around the e-commerce. The rest of the fintech side of things is the major innovations will be coming when we complete acquiring the banking license.

To deliver the value. And again we're working on the both sides. Always our business is to connect Merchants uh uh and the buyers Sellers and the buyers, you know, restaurants and the and their customers, and our consumers on the mobile applications, and our technology, uh, enables just to connect them, deliver the value. And then on top of it, we we can start, uh, bringing up some additional value added services in e-commerce valuated. Services are around that. But I think, for example, and, uh, the same opportunities exist in, uh,

Uh in restaurants so we've just really started. We're rolling out at scale, this infrastructure of, you know, scan and pay and leave the team. Uh and then of course, in the future some other

Uh, added value services will.

Wayne Trin: Got it. Thank you. Then maybe a second one for me is how do you think about your initiatives in Kazakhstan or your main area, and how should we think about the progression of the restaurant business and maybe any other verticals we should consider?

Mikheil Lomtadze: The growth in Kazakhstan is the market is still underpenetrated. You can see examples of the specific verticals that we really have showed, like clothing and fashion growing at very high rates. I think it is, what is it, around 60% or something we have showed. So there is a growth. What we are executing really is the strategy, which is going after specific verticals. Again, this is something which we already have done before and also articulated. e-Grocery is a strategy around a specific vertical. Buying e-grocery is different from buying electronics. Travel, it is a strategy around specific verticals. The same now we are doing pretty much in all major verticals, and restaurants is one of those. It is a major vertical in the household spending. We have just launched a very simple functionality which brings immediate value.

The restaurants. I mean, I I would I wouldn't be really saying to you anything new but the things which are related around the, you know, in the in in other businesses in the world exists around restaurants, right? Those are the reviews, those are the marketing campaigns, you know, the loyalty programs the cashbacks and so on and so forth. So there is a really range of the services which we believe we can develop. But our priority is always we start simple. We deliver immediate value. We get sort of the scale and then we start, innovating by value added Services, when both merchants and consumers are extremely happy with our base value proposition, and it's exactly the same strategy with the restaurants. It was exactly the same strategy with the marketplace. Exactly the same fridge with the grocery exactly. The same strategy and had to, we are really taking our time to make sure that our current offering delivers value.

You know, delivers the excitement to Consumers and Merchants, and then we build, uh, with our strategy then becomes. Let's build on this and let's start this wave of Innovations. Uh, and that's what we have done, historically successfully and this is the Playbook which we employ always in every single time.

All right. Great. Thank you, man. David thank you. Thanks.

We now turn to gabo Kimani, please State your company name and proceed with your question.

And this is Gaber from Autonomous, and I have a few questions. Firstly, on the fintech.

Mikheil Lomtadze: In our estimate, in general, every vertical we are entering, it has to be in the range of a billion-dollar size market potential. The same was with travel, the same was with grocery. So it really applies pretty much to all major verticals. If we take a vertical-specific strategy, that scale matters. Frequency of transactions matters. This is how we are picking those verticals to deliver the value. Again, we are working on both sides always. Our business is to connect merchants and the buyers, sellers and the buyers, restaurants and their customers and our consumers from the mobile applications. Our technology enables just to connect them, deliver the value. Then on top of it, we can start bringing up some additional value-added services. In e-commerce, value-added services are around advertising, for example. The same opportunities exist in restaurants.

So um, I believe your funding costs increased as you expected relatively significantly in Q2 maybe our 13 14%, the Blended average. Can you help us? Um, um,

Think about the, the outlook here. So how do you expect? Your funding costs to develop if rates take that up.

My other question would be on the method quality. I noticed the, the uptick in the MP ratio and that your, um, your quarterly, the provisions seem to imply a 2 and a half percent provisioning rate. I believe you formally guided for 2%. Um, just just some color on how you think about um asset quality going forward um and finally on your on your comment on on a balanced um Capital deployment from next year between cash and uh or like um yeah distribution and the Investments. Uh can you help us scale the investments in Turkey Beyond uh the banking business, the 300 million new indicators? And in relation to that? Um I mean

Mikheil Lomtadze: We have just really started. We are rolling out at scale this infrastructure of, scan and pay and leave the tip. Then, of course, in the future, some other added value services will come together with the restaurants. I mean, I would not be really saying to you anything new, but the things which are related around, in other businesses in the world exist around restaurants, right? Those are the reviews. Those are the marketing campaigns, the loyalty programs, the cashbacks, and so on and so forth. So there is really a range of the services which we believe we can develop. Our priority is always we start simple. We deliver immediate value. We get sort of the scale. Then we start innovating by value-added services when both merchants and consumers are extremely happy with our base value proposition.

You know, given the Stock's valuation, uh, at what valuation levels. Would you say that you um rather allocate a substantial part or most of your free cash regeneration to share BuyBacks. Thank you.

All right. Yeah. All right. I can make a few comments on that so cost of deposit funding.

Increase 70, I think 70 bits year on year.

In the second quarter and the second quarter, pretty much reflects the full impact.

Question.

Mikheil Lomtadze: It is exactly the same strategy with the restaurants, exactly the same strategy with the Marketplace Platform, exactly the same strategy with the e-Grocery, exactly the same strategy in Hepsiburada. We are really taking our time to make sure that our current offering delivers value, delivers the excitement to consumers and merchants. Then we build with our strategy, then becomes, let us build on this and let us start this wave of innovations. That is what we have done historically successfully. This is the playbook which we employ always and every single time.

On that note, consistent with our first quarter results, regarding the second question on cost of risk, what you should remember is that in the first quarter, we did put through additional macro provisioning related to higher interest rates. That is somewhat separate from the underlying risk trends. So, what we actually see are stable year-on-year trends. Let's see if that macro provisioning continues to impact our outlook.

Is is, is, is needed. Um, so that's on that.

Wayne Trin: All right. Great. Thank you, Mikheil and David.

On the third question, from my side, I would just say I mean the bank acquisition is happening.

Mikheil Lomtadze: Thank you.

David Ferguson: Great. Thanks, Wayne.

Elliot: We now turn to Gabor Kemeny. Please state your company name and proceed with your question.

Gabor Kemeny: This is Gabor from Autonomous Research. I had a few questions on, firstly, on the Fintech Platform. I believe your funding costs have increased as you expected, relatively significantly in Q2, maybe around 13% to 14% the blended average. Can you help us think about the outlook here? How do you expect your funding costs to develop if rates stay flat? My other question would be on the asset quality. I noticed the uptick in the NPR ratio and that your quarterly provisions seem to imply a 2.5% provisioning rate. I believe you formally guided for 2%. Just some color on how you think about asset quality going forward. Finally, on your comment on a balanced capital deployment from next year between cash and, or like, yeah, distribution and investments, can you help us scale the investments in Turkey beyond the banking business, the 300 million you indicated?

So that needs to come can complete in the second amount of call on on, on Capital that decision is, is has been made in its fundamentally important, and I mean, it's actually a, a major competitive advantage to secure a banking license, within such, a short period of time.

Generative.

Business in our home market and nothing has changed in that regard. Now, I said a decision around sort of mix between if there is a mix between dividends and BuyBacks, we make that at the appropriate time and that's true. But I think it would be fair to say today. If we were making that decision today, there's an incredibly strong case for, for, for share BuyBacks. And I doubt we would see any push back from anyone on this call, uh, around that, but we'll make that call at the end of next year. Next year, at the beginning, end of this year, beginning of next year.

Okay, thank you.

We now turn to Darren Powell with wolf research. Your line is open. Please go ahead.

Gabor Kemeny: In relation to that, I mean, given the stock's valuation, at what valuation levels would you say that you rather allocate a substantial part or most of your free cash generation to share buybacks? Thank you.

Guys, thanks. Um, just real quickly. I mean the, the smartphone impact I know you called out the actual quantitative impact in the quarter. But number 1. I mean, do you feel like the progress you're making on certain Partners is going to help stabilize that? And should we just expect that to be something that anniversaries and a couple of more quarters? Or is it a gradual impact that progresses uh, in any way?

David Ferguson: All right, Gabor Kemeny. I can make a few comments on that. Cost of deposit funding increased 70 bps year-on-year in Q2. Q2 pretty much reflects the full impact. We raised rates not on April 1, but very, very early in the quarter, and the new products are out there. So at or between that and around a 100 bps level is probably a reasonable expectation in terms of how the cost of funding increases over the course of the year. That is on your first question. That is actually consistently said that at the Q1 results. On the second question on cost of risk, what you should remember is in Q1, we did put through additional macro provisioning related to higher interest rates. That is separate from underlying risk. Underlying risk trends, what we actually see, are stable year-on-year. Let us see if that macro provisioning is needed.

Um, and then when thinking about the marketplace segment, I know you talked about less promotions around Juma, just curious. What the dynamic, where the thought process was there.

And putting it all together. I mean, sustainable growth. You have some puts and takes this quarter. So sustainable growth, I mean you have a lot of drivers that are being innovated right now that you talked about before. But help us understand your updated and latest thoughts on the recent growth trends. How you think about that segment over the next year or two? Just giving what's really in front of you going forward. Thank you.

David Ferguson: That is on that. On the third question from my side, I would just say, the bank acquisition is happening. That needs to come complete in Q2. That is a call on capital. That decision is being made, and it is fundamentally important. It is actually a major competitive advantage to secure a banking license within such a short period of time. I think going into 2026, again, the point is that we are very, very fortunate that we have this massively cash-generative business in our home market, and nothing has changed in that regard. I said a decision around mix between if there is a mix between dividends and buybacks, we make that at the appropriate time, and that is true. But I think it would be fair to say today, if we were making that decision today, there is an incredibly strong case for share buybacks.

Do you want to take that ML on as the, the the smartphones and promotional? Yeah, sure. I mean, there are in general. Thank you for your question in general. I would say we did we, we, we are trying to sort of explain, you know, just showing, uh, the growth in other verticals, right? So, you know you as as we've uh, explained the growth in e-commerce. Yeah. Uh, without smartphones is 31%. So, you know, it's really healthy sort of growth rates and for example, you know, clothing and uh, and the beauty are growing around 60% year-over-year. So, uh, that's I think it's a good indication of the, of the potential really of the marketplace business. Uh, uh, and this and the smartphones, the the projections for what's going to the smartphones. I mean,

We haven't been really in this in a similar situations before. Uh, so the only thing, what we, uh, uh, are doing is are doing what, what, you know, can bring the results. And, and what we can uh,

David Ferguson: I doubt we would see any pushback from anyone on this call around that. But we will make that call at the end of next year, at the beginning, end of this year, beginning of next year.

Our self-control, right? And what we are developing is a service, which developed the service which gives, uh, comfort and peace of mind to both merchants and consumers. So demand for the smartphones. For example, is there, uh, it will have to be satisfied at some point. I think we are doing the services, which will enable to sort of, you know, cross this obstacle or or doubt that consumers and Merchants currently have around these devices. Uh, and, you know, we, we just believe on our side that this demand will have to be satisfied eventually. So, uh, that's, you know, basically, where we are in terms of the smartphones and we are doing our part of the job. Uh, you know, and and uh,

Elliot: Okay. Thank you. We now turn to Darrin Peller with Wolfe Research. Your line is open. Please go ahead.

Darrin Peller: Guys, thanks. Just real quickly, the smartphone impact, I know you called out the actual quantitative impact in the quarter, but number one, do you feel like the progress you are making on certain partners is going to help stabilize that? Should we just expect that to be something that anniversaries in a couple of more quarters, or is it a gradual impact that progresses in any way? When thinking about the Marketplace segment, I know you talked about less promotions around Juma. Just curious what the dynamic or the thought process was there. Putting it all together, sustainable growth, you have some puts and takes this quarter. Sustainable growth, you have a lot of drivers that are being innovated right now that you talked about before.

Yeah, we're not, we're not over, we're not over promising anything. What we're saying is we look at the concerns. This is our job is to understand the merchants and consumers because this is where our expertise is. And and they they do see the obstacle in their purchase decision. And we have developed the service, which you would enable to enables them to overcome this, hesitation to acquire smartphones. Uh,

And hopefully the market uh you know the trends will recover because again there is a demand. Uh so nothing happened, really with the demand. This is uh sort of the obstacle which was created with the with the introduction of requirement to register the smartphones.

But again, if you take the smartphones separately, you know, you can see that uh, the growth even in electronics, excluding the smartphones growth on our platform is 26%.

Darrin Peller: Help us understand your updated and latest thoughts on the regrowth trends, how you think about that segment over the next year or two, just given what is really in front of you going forward. Thank you.

Uh, home and garden and furniture 35%.

David Ferguson: Do you want to take that, Mikheil Lomtadze, on the smartphones and promotional?

Mikheil Lomtadze: Yeah, sure. I mean, Darrin, in general, thank you for your question. In general, I would say we did, we are trying to sort of explain, you know, just showing the growth in other verticals, right? As we've explained, the growth in e-commerce without smartphones is 31%. It is really healthy sort of growth rates. For example, clothing and the beauty are growing around 60% year over year. That is, I think, a good indication of the potential, really, of the Marketplace Platform business. The smartphones, the projections for what is going to the smartphones, I mean, we have not been really in a similar situation before. The only thing what we are doing is doing what can bring the results and what we can ourselves control, right?

So, we enabled transactions between sellers and our partner merchants, as well as between customers and consumers, and we enable these transactions through the technology that we know how to develop.

And, uh, and the tools of data, which we know how to, uh, how to use, uh, to help both parties. So that's what we're doing.

I understand, I mean, I was touching on Gmail, also your decision there and then just the sustainable

Growth rate there and just real quickly, profitability on fintech also and how we should think about that platform now, with rates where they are, where they're likely, and just giving your success on deposit rates and deposits in general.

I, I'll leave it there. Thanks guys.

Mikheil Lomtadze: What we are developing is a service which develops a service which gives comfort and peace of mind to both merchants and consumers. Demand for the smartphones, for example, is there. It will have to be satisfied at some point. I think we are doing the services which will enable to sort of, you know, cross this obstacle or doubt that consumers and merchants currently have around these devices. We just believe on our side that this demand will have to be satisfied eventually. That is, you know, basically where we are in terms of the smartphones. We are doing our part of the job. Yeah, we are not overpromising anything. What we are saying is we look at the consumers. This is our job is to understand the merchants and consumers because this is where our expertise is. They do see the obstacle in their purchase decision.

Well, I said, yeah I think I think the the basic uh uh sort of observation that is is is is is is is quite simple if we're in a high interest rate environment uh you know we have to take uh this is an opportunity to to acquire more customers with the with the, with the savings and build up these capacities because customers with the savings are the most valuable customers really, for any of our products. Uh,

And yeah, we are in the highest environment. You know, I am not micro micro person, so this is not, you know, my specialty to explain. But you know, our job is when we see this environment, we take most of it and interest rates, eventually will go down and the way we sort of look at this in our business, that there are high interest rates, which evaluate our interest expenses, but this is almost like, uh, the the cushion, you know, on the expenses side and eventually it will go down and as we're focused on a very healthy user base as we're focused on a on a healthy, uh, risk metrics on the fintech side. You know, eventually Pro profitability will follow because the top line is there and the risk is uh, is is the world class and the interest rate rate eventually will go down and therefore this will, this will flow to our bottom line.

Mikheil Lomtadze: We have developed this service which enables them to overcome this hesitation to acquire smartphones. Hopefully, the market, you know, the trends will recover because, again, there is a demand. Nothing happened really with the demand. This is sort of the obstacle which was created with the introduction of the requirement to register the smartphones. But again, if you take the smartphones separately, you know, you can see that the growth, even in electronics, including the smartphones, growth on our platform is 26%. Home and garden and furniture, 35%. Clothing, 54%. Those verticals are growing really at a very healthy rate. Therefore, yeah, we just, you know, on our hand, we just believe that demand is there. It will recover. We just need to do our job.

We now turn to Reggie Smith with JP Morgan. Your line is open, please go ahead.

Question. Um, I guess I just wanted to clarify the comments, uh, around the dividend and and share every purchase potential. Uh, it sounds like you guys, obviously, have some Capital commitments on the the bank license inside this year, but as we think about 26,

Um, we assume a similar.

I guess, uh,

Return of capital ratio. I think it was like 60% and 24. So we assume that uh going forward. I know you said

You suggested that, I guess you would resume a similar type cadence. And I'm just curious about the, um, the ratio, recognizing there may be some investment in Turkey. So, should we think about it being in the same range as 24? We had cross dividends and share purchases, or something less than that?

Mikheil Lomtadze: Our job is to enable transaction between sellers and our partner merchants and the customers, consumers, and enable this transaction through the technology, which we know how to develop, and the tools of data, which we know how to use to help both parties. That is what we are doing.

For your, for your, for your question. I, I think that, you know, basically what the, uh, what, you know, from our from our perspective. Uh, you know, we again, we we, we mentioned always that, we'll be, you know, prioritizing the investment for the further growth and and that's very exciting opportunity because we're building business.

Darrin Peller: Just on, I mean, I was touching on Juma, also your decision there, then just the sustainable growth rates there. Just real quickly, profitability on Fintech also, and how we should think about that platform now with rates where they are, where they are likely, and just given your success on deposit rates and deposits in general. I will leave it there. Thanks, guys.

Mikheil Lomtadze: I think the basic sort of observation there is quite simple. If we are in a high-interest rate environment, we have to take this as an opportunity to acquire more customers with the savings and build up these capacities because customers with the savings are the most valuable customers, really, for any of our products. We are in the high-interest environment. I am not a micro-macro person, so this is not my specialty to explain. Our job is when we see this environment, we take most of it, and interest rates eventually will go down. The way we sort of look at this in our business is that there are high-interest rates which evaluate our interest expenses. This is almost like the cushion on the expensive side. Eventually, it will go down.

For many years in front of us. And and we, we we have this internal ambition is we mentioned that, you know, we would like to be a company of 100 million users and that's what is on on, on our minds and that's very important. So always, we have to keep that in mind at the same time. Uh, what we're also saying is this year has been an extensive year for Investments. I mean, the size of Investments that we have done are quite substantial. Uh, and when we go into the next year, you know, there will be a balance between, you know, our

Ability to distribute Capital to our shareholders either through the dividends and the BuyBacks or, uh, and, and and Investments, uh, again investments will be important. But we're lucky to have a very, you know, profitable and cash generative Core Business. And, and that's what allows us to, you know, to uh,

Think in those terms for the next year, I mean whether specific payout ratio or anything like this. Uh, at this stage, it's quite uh early to have, you know, those specific discussions. So we will make those decisions, you know, as we go forward.

Not just sort of that makes sense. And then, and then thinking about,

Mikheil Lomtadze: As we are focused on a very healthy user base, as we are focused on a healthy risk metrics on the Fintech Platform side, eventually profitability will follow because the top line is there and the risk is world-class. The interest rate eventually will go down. Therefore, this will flow to our bottom line.

3 has been a massive investment, the largest poster map Network in the country, in Kazakhstan has been a massive investment. So again, the business has the potential to achieve a balanced make investments and and return return capital

Elliot: We now turn to Reggie Smith with JPMorgan. Your line is open. Please go ahead.

And then just thinking about the banking license.

Does this?

Reggie Smith: Thanks for taking the question. I guess I just wanted to clarify the comments around the dividend and share repurchase potential. It sounds like you guys may have some capital commitments on the bank licensing side this year. But as we think about 2026, should we assume a similar, I guess, return of capital ratio? I think it was like 60% in 2024. Should we assume that going forward? I know you said you suggested that, I guess, you would resume a similar type cadence. But I am just curious about the ratio recognizing that there may be some investment in Turkey. So should we think about it being in the same range as 2024 across dividends and share repurchases or something less than that?

does this, uh,

Put you on par with competitors there or does it kind of extend uh or create a gap, where you, you'll have capabilities that some of your competitors in Turkey won't have and then, and then finally, as I think about the Investments, obviously Capital, um, for the banking piece would be 1. But like how what, what do Investments look like? Is it, is it rewards to Consumers? Is it?

Like maybe talk a little bit about the nature of of what investment looks like. Um,

In Turkey. Thank you.

well, I mean, in in, in general, I, I, I would say that, uh, you know, the license uh,

Mikheil Lomtadze: I think I can answer your question. I think that, from our perspective, again, we mentioned always that we will be prioritizing the investment for the further growth. That is a very exciting opportunity because we are building business for many years in front of us. We have this internal ambition, as we mentioned, that we would like to be a company of 100 million users. That is what is on our minds, and that is very important. So always we have to keep that in mind. At the same time, what we are also saying is this year has been an extensive year for investments. The size of investments that we have done are quite substantial. When we go into the next year, there will be a balance between our ability to distribute capital to our shareholders either through the dividends and the buybacks or investments.

uh, obtaining the license is is a, is a very important uh, step uh, for the very simple reason that the license really gives you an A, A an operation that can offer products to Consumers, and the merchants both on the savings side or on the lending side uh, and that's basically what life

License really allows you to do at the same time. I would say that, you know, if you think about the Caspian, the way we really operate, we're focused on the quality of the services we provide, and we are focused to the lesser extent on

You know, competition. Uh,

and from our perspective, I think the products which and the services and the expertise we have on the fintech side is is is is a world class and the products that we have which can be

Introduced in in a turkey is also, uh, worldwide. So from that perspective,

Mikheil Lomtadze: Investments will be important, but we are lucky to have a very profitable and cash-generative core business. That is what allows us to think in those terms for the next year. Whether a specific payout ratio or anything like this, at this stage, it is quite early to have those specific discussions. So we will make those decisions as we go forward.

David Ferguson: Not just so.

Reggie Smith: That makes sense. Thinking about, just to add to that, Reggie, one point. There will be investments, and there always has been investments. You should keep that in mind. E-grocery has been a massive investment. The largest Kaspi Postomats network in the country in Kazakhstan has been a massive investment. Again, the business has the potential to achieve a balance, make investments, and return capital. I understood. Thinking about the banking license, does this put you on par with competitors there, or does it extend or create a gap? You will have capabilities that some of your competitors in Turkey will not have. Finally, as I think about the investments, obviously, capital for the banking piece would be one. What do investments look like? Is it rewards to consumers? Maybe talk a little bit about the nature of what investment looks like in Turkey. Thank you.

Once we get the license, I wouldn't. Uh, again, I wouldn't expect like a quick wins. You know, you never saw from us, uh, that would be. We always like to discuss the results and actual trends when we do something rather than just tell you about some ideas, which we have been working for 3 or 6, you know, months in the pipeline. So, we always do something and then we tell you, you know, the the initial encouraging results and how it's going to evolve. So step number 1, get the banking license step number 2, just put the framework to launch the Innovative financial services for for consumers and Merchants. And then, you know,

We just believe that, you know, we can make a difference in the consumers and Merchants lives, just because the services we have are, you know, technology and uh, and, and machine learning AI driven and they're really, really improving every day. Uh, life of our customers and Merchants and their needs.

but that's basically so that the and taking and building up the bank uh of of course is also requires our

diligence with the with the compliance, you know, risk management and all other requirements which we have a lot of experience and but that obviously also requires from us to be very detail oriented and execution driven but

you know, once we get the license again, we'll be, you know, introducing and and and launching the services, which are

Which Services, which you already guys know, on the cusp beside for a long time.

We aui Han sarahlu with HSBC. Your line is open, please go ahead.

Mikheil Lomtadze: Well, I mean, in general, I would say that the license, obtaining the license, is a very important step for a very simple reason that the license really gives you an operation that can offer products to consumers and the merchants, both on the savings side or on the lending side. That's basically what the license really allows you to do. At the same time, I would say that if you think about Kaspi.kz and the way we really operate, we're focused on the quality of the services we provide. We're focused to a lesser extent on competition. From our perspective, I think the products and the services and the expertise we have on the Fintech Platform side is world-class. The products that we have, which can be introduced in Turkey, are also world-class.

hello, thank you very much for, uh, for, for this call and the presentation

Um, I have 2 quick questions. 1 is, uh, in the past we you used to distribute dividends or do the uh, announced buybacks on a quarterly quarterly basis. So, uh, based on your

Uh, comments about, uh, resumption of dividends in 2026, shall we? Expect, uh, dividends to start in the first quarter of 26.

Or is that just a broad guidance? That's 1.

Second question is about fintech bottom line which on a Q on Q basis seems to have grown.

Despite the increase in funding costs. So,

You could.

Explain what mitigated the increase in funding costs Beyond, uh, Beyond volume growth there.

Thank you.

okay, so on the, thank you for your question on the

Mikheil Lomtadze: So from that perspective, once we get the license, I wouldn't, again, I wouldn't expect quick wins. You never saw from us that we'll be, we always like to discuss the results and actual trends when we do something rather than just tell you about some ideas which we have been working for three or six months in the pipeline. We always do something, and then we tell you the initial encouraging results and how it's going to evolve. So step number one, get the banking license. Step number two, just put the framework to launch the innovative financial services for consumers and merchants. Then we just believe that we can make a difference in the consumers' and merchants' lives just because the services we have are technology and machine learning, AI-driven, and they're really, really improving everyday life of our customers and merchants and their needs.

On the dividends, uh, or BuyBacks, basically returning the capital. I I, I think, uh, as we said there is not much really to add, you know, we can't really commit to you at this stage on quarterly or semi-annually or whatever. So, we're just saying that, uh, you know, we have a very good Soviet cash generated business and there is a, you know, the next year we will have the will be uh uh finding the balance between the Investments and the Distributing Capital to our shareholders. I mean, everybody should also keep in mind that I'm shareholder in the company and I'm, you know, making decisions based on what is going to bring the the most value to the company in the shareholders long term.

Uh, so I am, you know, investing alongside with with, with other shareholders in terms of the uh in terms of the uh,

Mikheil Lomtadze: That's basically so that the big bank and taking and building up the bank, of course, also requires our diligence with the compliance, risk management, and a lot of requirements which we have a lot of experience in. That obviously also requires from us to be very detail-oriented and execution-driven. Once we get the license, again, we'll be introducing and launching the services which are services which you already guys know on the Kaspi.kz site for a long time.

The question about the fintech business. I think we did mention this before. Exactly what happened. The volumes increase with the volume increase Revenue, increase with Revenue, increase profits increase. So the revenues just picked up in the second half uh in the second quarter of this year and uh and I think we did have a discussion in the first queue about it and the volumes are nice and therefore the profitability is following on the fintech side, but profitability would be growing much faster. If interest environment would be

Uh, your interest rates will be will be smaller. So, therefore, we're focused on the top line and the bottom line we follow in the future.

Has been our strategy always.

Thank you.

That's all the time we have for Q&A today and I'll hand back to David Ferguson for any final remarks.

Elliot: We now turn to Jihang Sariklu with HSBC. Your line is open. Please go ahead.

Jihang Sariklu: Hello. Thank you very much for this call and the presentation. I have two quick questions. One is, in the past, you used to distribute dividends or do the announced buybacks on a quarterly basis. Based on your comments about resumption of dividends in 2026, shall we expect dividends to start in the first quarter of 2026, or is that just a broad guidance? That is one. The second question is about Fintech Platform bottom line, which on a quarter-on-quarter basis seems to have grown despite the increase in funding costs. You could explain what mitigated the increase in funding costs beyond volume growth there. Thank you.

Okay, so thanks Elliot. We've got a wrap things up. Now we have a another meeting starting shortly. So uh thanks a lot for everyone's time today. Please feel free to get in touch if you have any questions uh but thank you. Have a great summer and we'll speak to you at our Q3 results. Thanks everyone.

Thank you, everyone. Have a good week.

Thank you, everyone. This concludes today's webinar. You may now disconnect from the call.

Mikheil Lomtadze: Okay. So, on the thank you for your question. On the dividends or buybacks, basically returning the capital, I think, as we said, there is not much really to add. We can't really commit to you at this stage on quarterly or semi-annually or whatever. We're just saying that we have a very good, solid cash-generated business. There is a, you know, next year, we'll have the we'll be finding the balance between the investments and distributing capital to our shareholders. Everybody should also keep in mind that I'm a shareholder in the company, and I'm making decisions based on what is going to bring the most value to the company and the shareholders long term. So I am investing alongside with other shareholders. In terms of the question about the Fintech Platform, I think we did mention this before, exactly what happened. The volumes increased.

Mikheil Lomtadze: With the volume increased, revenue increased. With the revenue increased, profits increased. So the revenues just picked up in Q2 of this year. I think we did have a discussion in Q1 about it. The volumes are nice, and therefore, the profitability is falling on the fintech side. But profitability would be growing much faster if the interest environment would be, you know, interest rates will be smaller. Therefore, we're focused on the top line, and the bottom line, we're following the fifth. It has been our strategy always.

Jihang Sariklu: Thank you.

Elliot: That's all the time we have for Q&A today. I'll hand back to David Ferguson for any final remarks.

David Ferguson: Okay. Thanks, Elliot. We have to wrap things up now. We have another meeting starting shortly. Thanks a lot for everyone's time today. Please feel free to get in touch if you have any questions. Thank you. Have a great summer, and we will speak to you at our Q3 results. Thanks, everyone.

Mikheil Lomtadze: Thank you, everyone. Have a good week.

Elliot: Thank you, everyone. This concludes today's webinar. You may now disconnect from the call.