As described in Note 25, the Bank must comply with NBRK’s capital requirements. Further, the Bank cannot lend more than 10% of Bank’s total capital to the Company, which restricts the use of the Bank’s net assets.

The Group performed a test on the restricted net assets of its bank subsidiary and concluded that the restricted net assets exceed 25% of the consolidated net assets of the Group as at 31 December 2022 and 2023.

The following is condensed financial information for the Company.

Condensed Statements of Profit or Loss and Other Comprehensive Income

for the years ended 31 December 2021, 2022 and 2023


	2021			2022			2023

REVENUE		317,436			432,661			602,137
Dividend income from banking subsidiaries*		173,709			200,930			283,352
Dividend income from other subsidiaries*		139,475			213,819			296,700
Interest income		4,212			16,762			22,324
Other (losses) gains		40			1,150			(238	)

COSTS AND OPERATING EXPENSES		(20,476	)		(21,173	)		(24,544	)
General and administrative expenses		(20,466	)		(20,818	)		(24,528	)
Fee and commission expense		(10	)		(355	)		(16	)

NET INCOME BEFORE TAX		296,960			411,488			577,594

Income tax		(620	)		(3,357	)		(3,705	)

NET INCOME		296,340			408,131			573,889

OTHER COMPREHENSIVE INCOME		-			-			-

TOTAL COMPREHENSIVE INCOME		296,340			408,131			573,889

* Joint Stock Company Kaspi.kz directly holds 100% ownership interest in Kaspi Group JSC, the parent company of banking group and indirectly holds 98.95% ownership interest in Kaspi Bank JSC through Kaspi Group JSC. As allowed under IAS 27.10, the investment in banking subsidiaries and other subsidiaries were accounted for under the cost method.

Using the equity method, the income in undistributed earnings of banking subsidiaries were KZT 6,622 million, KZT 7,252 million and KZT 8,607 million for 2021, 2022 and 2023, respectively, and the income in undistributed earnings of other subsidiaries were KZT (354) million, KZT 19,122 million and KZT 78,196 million for 2021, 2022 and 2023, respectively.

Condensed Statements of Financial Position

as at 31 December 2022 and 2023


	2022			2023
ASSETS:
Cash and cash equivalents		226,232			200,484
Investments in banking subsidiaries*		171,107			171,107
Investments in other subsidiaries*		44,103			44,103
Other assets		1,153			894

TOTAL ASSETS		442,595			416,588

LIABILITIES:
Other liabilities		90			170

TOTAL LIABILITIES		90			170

EQUITY:
Issued capital		130,144			130,144
Treasury shares		(94,058	)		(152,001	)
Share-based compensation reserve		29,274			34,812
Retained earnings		377,145			403,463

TOTAL EQUITY		442,505			416,418

TOTAL LIABILITIES AND EQUITY		442,595			416,588

* Using the equity method, the investment in banking subsidiaries were KZT 199,331 million and KZT 208,824 million for 31 December 2022 and 2023, respectively, and the investment in other subsidiaries were KZT 88,881 million and KZT 77,624 million for 31 December 2022 and 2023, respectively.

In accordance with NBRK regulations, dividends paid by the Bank to the Company are subject to certain limitations. See Note 25 for more information.

Condensed Statements of Cash Flows

For the Years ended 31 December 2021, 2022 and 2023


	2021			2022			2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Interest income received		3,577			14,221			18,991
Fees and commissions paid		(10	)		(355	)		(16	)
Other income received		-			-			41
General and administrative expenses paid		(835	)		(835	)		(3,669	)

Cash flows from operating activities before changes in operating assets and liabilities		2,732			13,031			15,347

Changes in operating assets and liabilities
Other assets		(486	)		(378	)		426
Other liabilities		(1	)		46			80

Cash inflow from operating activities before income tax		2,245			12,699			15,853

Income tax paid		-			(594	)		(539	)

Net cash inflow from operating activities		2,245			12,105			15,314

CASH FLOWS FROM INVESTING ACTIVITIES:
Dividends received from subsidiaries		313,185			414,749			580,052
Purchase of investments in subsidiaries		-			(16,251	)		-

Net cash inflow from investing activities		313,185			398,498			580,052

CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid		(340,362	)		(210,102	)		(560,132	)
Purchase of treasury shares		-			(63,672	)		(60,703	)

Net cash outflow from financing activities		(340,362	)		(273,774	)		(620,835	)

Effect of changes in foreign exchange rate on cash and cash equivalents		40			1,150			(279	)

NET (DECREASE)/ INCREASE IN CASH AND CASH EQUIVALENTS		(24,892	)		137,979			(25,748	)

CASH AND CASH EQUIVALENTS, beginning of period		113,145			88,253			226,232

CASH AND CASH EQUIVALENTS, end of period		88,253			226,232			200,484