Bank CenterCredit released its results for the third quarter of 2025. Quarterly interest income reached a new record, but the stronger growth of interest expenses led to a decline in net interest income. Nevertheless, net profit increased due to higher non-interest income. In our valuation model, we updated the core financial metrics, raised the loan portfolio volume, which grew solidly in the third quarter and lowered the cost of equity. As a result, our target price for BCC shares is KZT 4,800, implying a 6% upside from the current level. We assign a “Hold” recommendation.
(=) Net interest income declined. In Q3, interest income set a new record at KZT 243 billion, rising 24% y/y and 7.5% q/q. The main contribution came from growth in loan interest income: +6.6% q/q and +23% y/y. Other categories also posted positive annual growth. At the same time, interest expenses grew at a much faster pace (+50% y/y and +18% q/q). As a result, net interest income decreased 1.4% y/y. Over the quarter, the net loan portfolio increased sharply by 9.3%, and by 23% over the year.
(+) Net profit continues to grow. Quarterly net fee and commission income increased 23% q/q and 80% y/y, reaching a record KZT 15 billion. Net non-interest income totaled KZT 45 billion (+36% q/q and +74% y/y). The increase was primarily driven by FX operations income (+29% y/y) and a multiple increase in other income categories. Operating expenses rose 2.2% y/y and declined 12% q/q. As a result, BCC reported quarterly net profit of KZT 71 billion (+22% y/y and +9.8% q/q), or KZT 404.4 per share (+29% y/y). Meanwhile, cash collection of interest income decreased from 95% to 94%, and the ratio of liquid assets to liabilities slightly declined during the quarter—from 44% to 41.5%.
Our opinion and valuation model changes. BCC’s financial report can be considered neutral, given the outpacing growth of interest expenses. Furthermore, most of the net profit growth was driven by non-interest income. However, the bank delivered solid loan portfolio expansion in Q3. In our valuation model, we updated the key financial indicators and lowered the cost of equity. We note higher forecasted loan portfolio figures, alongside revised revenue and expense projections reflecting the higher base rate environment. Ultimately, our new target price for BCC shares is KZT 4,800, offering a 6% upside. Recommendation: “Hold.”