Halyk Bank AO : Consolidated Financial Statements and Independent Auditors’ Report For the Years Ended 31 December 2016, 2015 and 2014

Consolidated Financial Statements and Independent Auditors' Report For the Years Ended 31 December 2016, 2015 and 2014

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STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL

OF THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED 31 DECEMBER 2016, 2015 AND 2014 1

INDEPENDENT AUDITORS' REPORT 2-6

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED 31 DECEMBER 2016, 2015 AND 2014:

Consolidated statements of financial position 7

Consolidated statements of profit or loss 8

Consolidated statements of other comprehensive income 9

Consolidated statements of changes in equity 10-12

Consolidated statements of cash flows 13-14

Notes to the consolidated financial statements 15-113

Statement of Management's Responsibilities

For the Preparation and Approval of the Consolidated Financial Statements For the Years Ended 31 December 2016, 2015 and 2014

Management is responsible for the preparation of the consolidated financial statements that present fairly the financial position of JSC Halyk Bank ("the Bank") and its subsidiaries (collectively - "the Group") as at 31 December 2016, 2015 and 2014, and the results of its operations, cash flows and changes in equity for the years then ended, in compliance withInternational Financial Reporting Standards ("IFRS").

In preparing the consolidated financial statements, management is responsible for:

• properly selecting and applying accounting policies;

• presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

• providing additional disclosures when compliance with the specific requirements in IFRS are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Group's consolidated financial position and financial performance; and

• making an assessment of the Group's ability to continue as a going concern. Management is also responsible for:

• designing, implementing and maintaining an effective and sound system of internal controls, throughout the Group;

• maintaining adequate accounting records that are sufficient to show and explain the Group's transactions and disclose with reasonable accuracy at any time the consolidated financial position of the Group, and which enable them to ensure that the consolidated financial statements of the Group comply with IFRS;

• maintaining accounting records in compliance with the Republic of Kazakhstan legislation;

• taking such steps as are reasonably available to them to safeguard the assets of the Group; and

• preventing and detecting fraud and other irregularities.

The consolidated financial statements of the Group for the years ended 31 December 2016, 2015 and 2014 were approved by the Management Board on 3 March 2017.

Umut B. Shay Chairperson

3 March 2017

1

Deloitte, LLP

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Tel : +7 (727) 258 13 40

Fax: +7 (727) 258 13 41

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INDEPENDENT AUDITORS' REPORT

To the Shareholders of JSC Halyk Bank

Opinion

We have audited the consolidated financial statements of JSC Halyk Bank and its subsidiaries ("the Group"), which comprise the consolidated statements of financial position as at 31 December 2016, 2015 and 2014, and the consolidated statements of profit or loss, consolidated statements of other comprehensive income, consolidated statements of changes in equity and consolidated statements of cash flows for the years then ended,and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects the consolidated financial position of the Group as at 31 December 2016, 2015 and 2014 and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance withInternational Financial Reporting Standards ("IFRSs").

Basis for Opinion

We conducted our audit in accordance withInternational Standards on Auditing (" SAs"). Our responsibilities under those standards are further described in the Auditors ' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with theInternational Ethics Standards Board for Accountants ' Code of Ethics for Professional Accountants (the " ESBA Code") together with the ethical requirements that are relevant to our audit of the consolidated financial statements in the Republic of Kazakhstan, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment , were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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