ACRA AFFIRMS BBB+ TO SUBSIDIARY JSC VTB BANK (KAZAKHSTAN) UNDER THE INTERNATIONAL SCALE, OUTLOOK STABLE

The credit rating of Subsidiary JSC VTB Bank (Kazakhstan) (hereinafter, VTB (Kazakhstan) or the Bank) under the international scale is based on the strong assessments of capital adequacy and the Funding and Liquidity factor, as well as the vulnerable risk profile and a bb score for the business profile. The latter, in turn, is determined by a satisfactory assessment of the operating environment, the Bank’s moderate market position and the limited diversification of its business. At the same time, ACRA takes into account the high likelihood of external support from the shareholder, one of Russia’s largest banks (hereinafter, the Supporting Entity or the SE).

In the structure of the standalone creditworthiness assessment (SCA) of VTB (Kazakhstan), ACRA took into account the fact that the Republic of Kazakhstan (hereinafter, the Republic of Kazakhstan, Kazakhstan or the Republic; ACRA rating: BBB+, outlook Stable) is the Bank’s primary region of presence and business.

VTB (Kazakhstan) is a universal bank that ranked 20^th out of 23 in terms of the size of assets in the banking sector of the Republic of Kazakhstan as of the end of 2025. It provides a wide range of services to corporations and individuals.

KEY ASSESSMENT FACTORS

The satisfactory assessment of the operating environment is primarily based on the credit rating that ACRA has assigned to the Republic of Kazakhstan.

The dynamics of lending to the economy of Kazakhstan are determined as moderate — the average rate of increase in the ratio of non-financial companies’ and the population’s debt to banks to the gross domestic product of the Republic of Kazakhstan over the past three years has amounted to slightly more than 4%. The shares of assets and liabilities of the banking system denominated in foreign currency do not exceed the threshold values according to ACRA’s methodology. Assessments of the regulatory environment and the volume of government lending by the banking sector currently have a neutral effect on the final value of the operating environment factor.

The medium business profile assessment is determined by the limited position of VTB (Kazakhstan) in the Republic’s banking market. The Bank’s share in the total volume of retail liabilities of Kazakhstan’s banking system has declined slightly again over the past 12 months to around 0.14% as of January 1, 2026. The share of loans provided was around 0.10%, and the Bank’s own funds amounted to around 1.13% of the total volume of these indicators. In 2022, the Bank significantly reduced the scope of its operations due to the impact of external factors. The Bank’s operations are mainly focused on transactional business and related operations. There is no increased geographic concentration of the Bank’s presence in Kazakhstan.

Taking into account the satisfactory assessment of the operational environment and the assessment of business model stability, the assessment of the Bank’s business profile has been determined at bb.

Strong assessment of capital adequacy. The values of mandatory capital adequacy ratios set by the National Bank of Kazakhstan (NBK) are at a very high level and significantly exceed the minimum values ​​of regulatory capital adequacy standards, taking into account additional buffers. The capital adequacy metrics, including the Tier 1 ratio, were 78.4% as of June 1, 2026, having decreased since the beginning of the year (103.1% as of January 1, 2026). In 2025 and 2026, the Bank made dividend payments in accordance with the approved dividend policy. The current level of capital adequacy allows the Bank to withstand a significant additional increase in the cost of risk, which is confirmed by the results of stress testing conducted by ACRA.

The averaged capital generation ratio (ACGR) has improved due to a positive financial result in the previous year and amounted to 13.5%.

Low risk profile assessment. VTB (Kazakhstan) is characterized by a moderate share of non-performing debt in assets and a satisfactory level of reserve coverage of this debt.

As of January 1, 2026, the total share of non-performing assets (Stage 3 and acquired or originated credit-impaired assets under IFRS) amounted to around 4% of total assets, having slightly declined over the past 12 months on the back part of non-performing debt being written off then Bank’s balance sheet (mainly debt of individuals).

The predominance of retail loans in the loan portfolio structure currently determines the high share of unsecured claims in the total debt (more than 80%). The losses incurred in 2022 from the revaluation of foreign currency, as well as the high share of revenues from foreign currency transactions, as per ACRA’s methodology, determined the Bank’s exposure to market risk, while the Agency takes into account the extraordinary nature of this one-off loss and the specifics of the Bank’s business model, determined by the external conditions of its activities.

The strong funding and liquidity assessment is determined by the high share of liquid assets combined with somewhat increased dependence on short-term and unstable funding sources. Risks related to the relatively high share of assets formed from sources that ACRA categorizes as unstable are offset by the high share of liquidity and highly liquid assets.

ACRA positively assesses the comfortable share of liquid assets (over 70% of the balance sheet total as of January 1, 2026), largely represented by funds held with parent bank and the NBK. As of January 1, 2026, the liquidity ratio exceeded 5, while the long-term funding ratio was more than 2.

The Agency notes the presence of a heightened concentration on the funds of the largest creditor (more than 10% of liabilities as of January 1, 2026) which is due to funds raised from the parent bank, which in the past have been provided by the shareholder when necessary.

Limitations and adjustments. ACRA has not applied any adjustments that specifically take into account the quality of corporate governance and risk management, noting that they are adequate in view of the strategy and nature of the Bank’s operating activities. The ownership structure is assessed as transparent.

High likelihood of the shareholder providing support. In ACRA’s opinion, if necessary the SE will be able to provide the Bank with sufficient long-term and short-term financing and perform capital injections. The level of support is determined as high. The Agency takes into account the relative scale of the parent organization and its creditworthiness. The SE exercises full shareholder control and significant operational control over the Bank. ACRA takes into account the fact that the Supporting Entity provided support to the Bank in the form of capital in 2022.

According to the Agency’s estimates, currently there are no obstacles to providing support. At the same time, ACRA notes that the Bank and the SE operate in different jurisdictions.

The level of dependence of the Bank and the SE on homogeneous risk factors is assessed as medium.

KEY ASSUMPTIONS

• The Bank maintaining its business model and importance to the shareholder;

• Maintaining the current structure of assets and liabilities.

POTENTIAL OUTLOOK OR RATING CHANGE FACTORS

The Stable outlook assumes that the rating will highly likely stay unchanged within the 12 to 18-month horizon.

A positive rating action may be prompted by:

• Upgrade of the sovereign credit rating of the Republic of Kazakhstan coupled with improvement of the assessment of support and/or the Bank’s SCA.

A negative rating action may be prompted by:

• Downgrade of the sovereign credit rating of the Republic of Kazakhstan;

• Lower assessment of the level of external support from the Bank’s shareholder;

• Consistently higher concentration of liabilities on the funds of the largest creditors and growth of dependence on unstable sources of funding;

• Considerable increase in the volume of non-performing assets;

• Deterioration of other factors of the Bank’s standalone creditworthiness.

RATING COMPONENTS

SCA: bbb-.

Support: ACRA’s opinion on the level of support is expressed in the determination of the credit rating of VTB (Kazakhstan) under the international scale at two notches higher than its SCA.

regulatory disclosure