Stakeholder Engagement

The Bank strives to maintain high-quality and sustainable relationships with key stakeholders, taking their interests into account when making critical decisions and conducting operational activities.

The principles and procedures of stakeholder engagement are formulated by the Corporate Governance Code and the Sustainability Policy.

The Bank has approved a Stakeholder Map that outlines the list of key stakeholders and the level of their influence. This map helps systematize and visualize the Bank’s environment in order to build an effective strategy for engagement with each stakeholder. Identifying and working with stakeholders is one of the tools used to enhance the Bank’s business reputation, increase its market value, and establish efficient and balanced relationships with all stakeholders.

Key stakeholder groups were identified based on the level of their influence on the Bank and the level of the Bank’s influence on them.

Interests/Motives	Tools of Influence	Engagement Strategy
Sole Shareholder
Observance of interests of the Bank’s sole shareholder, Baiterek NMH JSC	Laws of the Republic of Kazakhstan, Articles of Association, internal documents of the Bank	Ensuring the exercise of the Sole Shareholder’s rights within the framework of corporate governance principles aimed at effective adoption of key decisions in accordance with the laws of the Republic of Kazakhstan
Governing Body
General management of the Bank’s activities, except for issues referred to the exclusive competence of the Sole Shareholder	Laws of the Republic of Kazakhstan, Articles of Association, internal documents of the Bank	Determination of the Bank’s priority areas of activity and development strategy.
Management
Decision-making on any issues of the Bank’s activities not referred by the laws of the Republic of Kazakhstan and the Articles of the Bank to the competence of the Sole Shareholder and the Board of Directors	Laws of the Republic of Kazakhstan, Articles of Association, internal documents of the Bank	Execution of resolutions of the Sole Shareholder, the Board of Directors of the Bank. Preparation and implementation of development plans and other issues related to the Bank’s activities.
Personnel
Labor relations with the employer, direct performance of obligations under the employment contract	Labor Code, employment contract, internal documents of the Bank	Execution of official powers aimed at implementation of the Bank’s tasks and functions.
Government Authorities
Implementation of legislative functions stipulated in the laws of the Republic of Kazakhstan	Laws of the Republic of Kazakhstan	Control over compliance with the laws of the Republic of Kazakhstan.
Investors
Profit generation	Contractual relations under investment, cooperation/partnership agreements	Priority of payment of principal and interest on invested funds, exclusion of dependence on financing
Financial Institutions
Profit generation	Contractual relations under investment, cooperation/partnership agreements	Priority of payment of principal and interest on invested funds, exclusion of dependence on financing
Suppliers
Profit generation, increasing the level of competitiveness	Contractual relations of the supply of goods, performance of works, provision of services	Compliance with the requirements for the organization of the procurement process
Partners
Commercial interests	Contractual relations	Conclusion of contracts and agreements on mutually beneficial cooperation and mutual understanding. Improvement of business processes and their automation. Control over the execution of contractual relations.
Clients and Consumers
Quality and accessibility of product lines and services in the housing savings market	Customer preferences and satisfaction	Improving the quality and availability of products and services in the housing savings market. In 2024, there were no ongoing legal proceedings related to marketing or the disclosure of information about financial products to new or existing customers.
Auditors
Provision of financial audit services	Contractual relations	Conclusion of contracts for audit services. Audit of financial statements, external audit. No investigations were conducted regarding the Bank’s accounting practices.
Consulting Companies
Provision of consulting services	Contractual relations	Conclusion of contracts for consulting services. Business process improvement. Control over the execution of contractual relations.
General Public
Quality and accessibility of product lines and services in the housing savings market	Public opinion. Appeals to higher and regulatory authorities, mass media.	Reputation audit, opinion polls, implementation of communication strategy. Publication of the Bank’s financial and non-financial statements. Demonstration of practical commitment to social responsibility, operational transparency and sustainable development. Adoption of additional social commitments, solution of urgent social problems. Charitable activities.
Public Organizations
Various issues related to the activities of public and non-governmental organizations	Articles of Association, contractual relations	Compliance with the laws of the Republic of Kazakhstan, support of local public activities, charity, provision, care for the environment. Employment, social responsibility. In the reporting year, the Bank made no cash contributions or expenditures to lobbyists or lobbying organizations, trade associations and other tax-exempt groups. The Bank does not finance political parties, public associations in order to gain or maintain an advantage in its activities.
Mass Media
Publications and information about the Bank’s activities	Publications and information about the Bank’s activities	Compliance with the laws of the Republic of Kazakhstan, development of bilateral and multilateral relations with the media.
Competitors
Increasing the market share of household deposits, mortgage lending for the construction and purchase of housing, mortgage lending	Application of modern technologies, growth of the quality level of services and products provided in the financial market, active advertising campaign, development and introduction of new lines of products and services in the market of household deposits	Strategy to reduce the level of competition: cooperation on terms that are unattractive to competitors; increasing the level of staff commitment to the Bank; expanding presence in the country; development and introduction of new product lines and services in the housing savings market; cooperation for mutually beneficial solutions to problems.

The process of organizing the Bank’s stakeholder engagement is based on the engagement principle, which implies taking into account the interests of stakeholders at all stages of the Bank’s business management process and involving stakeholders in discussing significant topics and important issues, potential risks and boundaries of responsibility.

The Bank’s strategy of engagement with each stakeholder, as well as tools for impact, are determined by the Bank’s structural units independently depending on the specifics of their activities.

The Bank’s mechanisms for receiving questions and/or complaints from stakeholders and how to respond to them in a timely manner, including grievance mechanisms and external communication mechanisms, are clearly presented on the Bank’s website in the Sustainable Development/Corporate Responsibility section.

The Bank’s employees responsible for stakeholder engagement are defined in the Bank’s relevant operational documents and their contacts are posted on the Bank’s website in the Sustainable Development/ESG Contacts section.