Development trends of the banking sector 

(as of August 31, 20231) 

As of August 31, 2023 (hereinafter referred to as the reporting date), 23 commercial banks and 320 branches of the commercial banks operated in the Kyrgyz Republic. 

The banking system received net profit in the amount of KGS 16330.9 million year-to-date2. 

Aggregate assets of the banking sector increased by 18.7 percent year-to-date and totaled KGS 572.5 billion (at the end of 2022 – KGS 482.2 billion). 

Volume of the credit portfolio3 of clients of the banking sector increased by 17.6 percent year-to-date and amounted to KGS 239.9 billion (at the end of 2022 – KGS 204 billion), including the sectors as follows: 

- loans for industry amounted to KGS 12.4 billion (decreased by 9 percent); 

- loans for agriculture amounted to KGS 41.9 billion (increased by 13 percent); 

- loans for commerce amounted to KGS 67.3 billion (increased by 19.7 percent); 

- loans for construction amounted to KGS 12.3 billion (decreased by 4.9 percent); 

- loans for mortgage amounted to KGS 27.7 billion (increased by 13.6 percent); 

- consumer loans amounted to KGS 48.4 billion (increased by 46.3 percent); 

- other loans amounted to KGS 30 billion (increased by 12 percent). 

The share of non-performing loans in the credit portfolio of the banking system made 10.1 percent or KGS 24.3 billion (at the end of 2022 – 12.8 percent, or KGS 26.1 billion). The volume of overdue loans increased by KGS 0.9 billion year-to-date, or 15.9 percent and amounted to KGS 6.4 billion or 2.7 percent of the credit portfolio of the banking system. 

Total liabilities of the banking sector increased by 19.7 percent year-to-date and amounted to KGS 481 billion (at the end of 2022 – KGS 402 billion). 

Aggregate deposit base of clients of the banking sector4 increased by 16.6 percent year-to-date and amounted to KGS 395.3 billion (at the end of 2022 – KGS 339 billion), including: 

- deposits of the legal entities totaled KGS 136.6 billion (increased by 1.5 percent); 

- deposits of the individuals totaled KGS 151.9 billion (increased by 17.3 percent); 

- deposits of the authorities totaled KGS 47.6 billion (increased by 104.8 percent); 

- deposits of the non-residents totaled KGS 55.5 billion (increased by 11.9 percent); 

- deposits of other financial-credit organizations totaled KGS 3.6 billion (increased by 78.7 percent). 

The level of dollarization of the credit portfolio of the banking sector has decreased by 2.2 percent since the beginning of 2023 and made 21.3 percent. The level of dollarization of the deposit base of the banking sector decreased by 0.6 percentage points compared to the beginning of 2023 and made 452 percent. 

The net total capital of the banking sector being applied to calculate the prudential standards set by the NBKR increased by 14.2 percent year-to-date and amounted to KGS 93.3 billion (at the end of 2022 – KGS 81.7 billion). The share of foreign participation in capital of the banking sector made 21.7 percent or KGS 11.1 billion of the paid-up authorized capital of the banking sector (at the end of 2022 – 24.5 percent or KGS 10.8 billion). 

The total capital adequacy ratio of the banking sector made 23.9 percent (at the end of 2022 – 25.6 percent) with the standard of 12 percent, the leverage ratio of the banking sector made 12.4 percent (at the end of 2022 – 17 percent) with the standard of 6 percent. 

The liquidity ratio of the banking system made 80.9 percent (at the end of 2022 – 82.8 percent) with the standard of 45 percent. 

Return on assets of the banking sector (ROA) was 4.6 percent (at the end of 2022 – 5.9 percent) and return on equity (ROE) made 33.2 percent (at the end of 2022 – 43.4 percent). 

The level of financial intermediation was as follows:  

- (assets / GDP) made 52.3 percent (at the end of 2022 – 49.7 percent); 

- (loans3 / GDP) made 21.9 percent (at the end of 2022 – 21 percent); 

- (deposits4 / GDP) made 36.1 percent (at the end of 2022 – 34.9 percent). 

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1 Preliminary data. 

2 For reference: in the same period of 2022, the amount of profit totaled KGS 13937.6 million. 

3 Excluding loans extended to the banks and other financial-credit organizations. 

4 Excluding monetary funds of the banks and other financial-credit organizations on the deposit and settlement accounts.