Committees Reporting to the Management Board

The main objective of the Strategy and Corporate Development Committee is to guide the development and implementation of the Bank’s development strategy.

The main tasks of the Strategy and Corporate Development Committee are:

• defining strategic principles, development goals and activities of the Bank;
• coordination and control over the implementation of the Bank’s strategic development plan;
• improving the efficiency of the Bank’s current management system.

In the reporting year, the Strategy and Corporate Development Committee reviewed issues related to the draft strategic and development plans, balanced scorecards, sustainability, branch network development, as well as the monitoring of the implementation of planning documents.

The main tasks of the Asset and Liability Management Committee are:

• determination of rules and procedures for investing and borrowing in the domestic and foreign markets, and for operations with financial instruments;
• determination of benchmarks for asset diversification, liquidity, profitability of the Bank, adequacy of the Bank’s own funds for lending purposes, within the limits of authority defined by the Regulations on the Committee and other internal documents of the Bank.

In 2024, the Committee considered issues related to the management of the Bank’s assets and liabilities, including issues related to raising and placing funds, issues related to setting limits on counterparties, reporting by the financial and credit risk division and units involved in the process of managing the Bank’s assets and liabilities, as well as other issues within the scope of the Committee’s authority in accordance with the Regulations on the Committee.

The main tasks of the Banking Products, Processes and Service Quality Committee are:

• review and approval of rates and tariffs for banking operations, limits of interest on deposits and loans, limits of amounts and terms of accepted deposits and granted loans, approval of terms and conditions of servicing tariff programs and lending that do not require approval of the Board of Directors in accordance with the laws of the Republic of Kazakhstan;
• consideration and approval of proposals of the Bank’s employees and divisions aimed at solving urgent problems on optimization of existing processes and procedures, as well as proposals aimed at improving the quality of services provided.
• approval of individual terms and conditions for products, tariffs for individuals, if necessary, preliminary approval of changes in business processes for such terms and conditions with subsequent amendments to the relevant internal documents of the Bank, except for individual cases for loan applications or personalized individuals;
• execution and approval of cooperation agreements/contracts/loan agreements and other transactions with legal entities within the framework of implementation of the Bank’s mortgage programs for individuals.

The Bank’s Loan Committee implements the Bank’s internal loan and deposit policies, within the scope of its powers (since the beginning of 2019). The Committee structure includes (since 31.10.2023):

Committee 1, consisting of 5 (five) members in the following composition:

• Chair of Committee 1, from among the members of the Management Board, whose job responsibilities include risk management and internal control;
• Deputy Chair of Committee 1, from among the members of the Management Board, whose job responsibilities include business development;
• 3 (three) members of Committee 1, from among the heads of the Bank’s structural divisions, such as: non-performing loans division, underwriting and collateral division, legal division, supervised by different members of the Management Board;

Committee 2, consisting of 3 (three) members in the following composition:

• Chair of Committee 2, from among the members of the Management Board, whose job responsibilities include business development. In the absence of the Chair of Committee 2, the duties of the Chair of Committee 2 are assigned to a substitute Chair of Committee 2, from among the members of the Management Board, whose job responsibilities include management of operational activities;
• 2 (two) members of Committee 2, from among the heads of the Bank’s structural divisions, such as underwriting and collateral division, legal division, supervised by different members of the Management Board. In the absence of a Committee 2 member who is the head of the underwriting and collateral division, the duties of Committee 2 member are assigned to the head of the Underwriting Department of the underwriting and collateral division. In the absence of a Committee member 2 who is the head of the legal division, the duties of Committee 2 member are assigned to the head of the non-performing loans division.

The main task of Committee 1 is to implement, within the scope of its powers, the provisions of the Rules on the Bank’s Internal Credit and Deposit Policies and the decisions of the Asset and Liability Management Committee, provided that borrowing risks are minimized to the maximum extent possible and maximum income is obtained from the following banking operations: housing loan operations, bridging housing loans, preliminary housing loans (hereinafter, the loan products), as well as to consider and make decisions on issues related to management and/or recovery of funds on non-performing/overdue loans aimed at minimizing potential losses from the Bank’s lending operations and reducing the share of non-performing loans in the Bank.

The main task of Committee 2 is to implement, the scope of its powers, the provisions of the Rules on the Bank’s Internal Credit and Deposit Policies and decisions of the Asset and Liability Management Committee, provided that borrowing risks are minimized to the maximum extent possible and maximum income from operations on housing loans, bridging housing loans, preliminary housing loans (hereinafter, the loan products) is obtained, as well as to consider and make decisions on the release/replacement of pledged property or part thereof, including preliminary decisions for persons who have special relations with the Bank, on the exclusion of the guarantor, when considering the release/replacement of collateral, in cases where the pledgor is also the guarantor.

The main objective of the Committee is to provide recommendations to the Bank’s Management Board on the implementation of the Bank’s IT development strategy and information infrastructure development plan.

The main tasks of the Committee are:

• development, control and coordination of the information infrastructure;
• implementation of new and improvement of existing projects for the purpose of business development;
• improvement of processes for managing IT projects, changes and incidents.

In the reporting year, the Committee reviewed issues related to the development of the Bank’s IT architecture, the creation and enhancement of the digital channels architecture, the implementation of CI/CD (Continuous Integration and Continuous Delivery), the analysis of the efficiency of payment terminal operations within the Bank, database pruning in Colvir, license optimization, the implementation of a unified Remote Learning System and the Corporate Portal, among others The Committee also considered several pilot projects, including: assessing the feasibility of transitioning to alternative database management solutions; implementing a QR function in the Otbasy Bank mobile application; deployment, configuration, and orchestration of BPM processes using Camunda 7; launching marketing campaigns; the use of artificial intelligence in recruitment; speech synthesis in Kazakh and Russian; and testing the remote learning system. In addition, Otbasy Bank JSC participated in a pilot project of the National Bank of the Republic of Kazakhstan within the framework of the Open Banking and Open API development concept.

The main objective of the Committee is to ensure timely and quality development of the Bank’s annual budget/Income and Expenditure Plan, Investment Plan, Procurement Plan/Long-Term Procurement Plan for the planned period, as well as proposals for their improvement, execution and control.

The main task of the Committee is to review financial and non-financial information to make an informed decision in accordance with the Bank’s Development Strategy and Development Plan when drafting the Bank’s annual budget/Income and Expenditure Plan, Investment Plan and Procurement Plan/Long-Term Procurement Plan.

In the reporting year, the Committee reviewed issues related to the Budget, Income and Expenditure Plan of the Central Office/Branches, needs of the Central Office/Branches, limits, reports thereon, report and analysis of the execution of the Procurement Plan for goods, works and services, etc.

The main objective of the Committee is to assist the Bank’s Management Board in performing controlling functions in terms of reviewing, planning and assessing key performance indicator maps of managers of structural units, managing directors and advisors to the Chair of the Bank’s Management Board.

The tasks of the Committee are:

• support the work planning process to achieve the set goals in accordance with the Bank’s Development Strategy.
• control over the implementation of planned activities by the heads of structural units of the Bank’s Central Office, managing directors and advisors to the Chair of the Bank’s Management Board.

In the reporting year, the Committee reviewed issues related to approval, adjustment and monitoring of KPIs of managing directors, advisors to the Chair of the Bank’s Management Board and heads of structural units of the Bank’s Head Office, as well as approval and adjustment of targets of the Bank’s Branches.

The main tasks of the Human Resources Committee are:

• implementation of the Bank’s internal HR policy;
• coordination of the work on employee performance review, including in resolving disputes;
• consideration of candidates to form the Bank’s talent pool;
• consideration of candidates for moral incentives;
• consideration of facts of violations by the Bank’s employees of the requirements of the legislation of the Republic of Kazakhstan, internal documents of the Bank.

In the reporting year, the Committee reviewed issues related to the Bank’s HR issues.

The main tasks of the Commission for Determining the Value and Write-Off of Fixed Assets, Intangible Assets, and Obsolete Inventories are to consider issues and make decisions on:

• determining the value, regulatory and useful life of the Bank’s fixed assets and intangible assets;
• writing off the Bank’s property in accordance with the Bank’s internal regulatory documents governing the disposal of the Bank’s property;
• revaluation of the Bank’s fixed assets (buildings, constructions) in accordance with the Accounting Policy of the Bank based on the opinion of an independent appraiser;
• impairment testing of property, plant and equipment and intangible assets.

In the reporting year, the Commission considered issues on sale and determination of starting and minimum prices of long-term assets, increase in the value of intangible assets, etc.

The main tasks of the Risk Committee are:

• preparation of recommendations and proposals on organization and maintenance of an effective risk management system (hereinafter, the RMS) and internal control system (hereinafter, the ICS) for the Management Board of the Bank;
• development of processes designed to identify, assess, monitor and control the Bank’s risks;
• coordination of the risk management and internal control process by the Bank’s structural units and branches;
• ensuring the continuous exchange of information on the Bank’s risks and internal controls among Committee members and communicating such information to risk owners and risk factors in order to improve risk culture, transparency and efficiency of the RMS and ICS;
• decision-making on issues aimed at improving the quality of services provided, as part of the report on customer appeals (complaints);
• coordination and control of the process of outsourcing the Bank’s business processes/functions/operations;
• assessment of the impact of the facts revealed as a result of internal investigations and internal inspections of the Security Department on the Bank’s risks and taking measures to address them.

In the reporting year, the Committee considered issues related to operational risks, information technology risks, information security and internal control, as well as other issues in accordance with the Regulations on the Risk Committee.