Development trends of the banking sector 

(as of July 31, 20241) 

As of July 31, 2024 (hereinafter referred to as the reporting date), 21 commercial banks and 305 branches of the commercial banks operated in the Kyrgyz Republic. Five commercial banks provided services in accordance with the principles of Islamic banking and finance in the national and/or foreign currencies. 

The banking system received net profit in the amount of KGS 17979.2 million year-to-date2. 

Aggregate assets of the banking sector increased by 21.6 percent year-to-date and totaled KGS 746.7 billion (at the end of 2023 – KGS 614.3 billion). 

Volume of the credit portfolio3 of clients of the banking sector increased by 11.3 percent year-to-date and amounted to KGS 286.9 billion (at the end of 2023 – KGS 257.8 billion), including the sectors as follows: 

- loans for industry amounted to KGS 12.7 billion (decreased by 5.3 percent); 

- loans for agriculture amounted to KGS 46.7 billion (increased by 10.8 percent); 

- loans for commerce amounted to KGS 77.2 billion (increased by 4.3 percent); 

- loans for construction amounted to KGS 13.4 billion (increased by 12.6 percent); 

- loans for mortgage amounted to KGS 33.3 billion (increased by 11 percent); 

- consumer loans amounted to KGS 72.1 billion (increased by 29.1 percent); 

- other loans amounted to KGS 31.4 billion (increased by 3.2 percent). 

The volume of financing under the Islamic principles increased by 3,3 percent year-to-date and amounted to KGS 6,3 billion (at the end of 2023 – KGS 6,1 billion), including the sectors as follows: 

- financing of industry amounted to KGS 0,3 billion (increased by 98,4 percent); 

- financing of agriculture amounted to KGS 0,9 billion (increased by 45,2 percent); 

- financing of commerce amounted to KGS 0,8 billion (increased by 9,2 percent); 

- financing of construction amounted to KGS 0,5 billion (increased by 5,9 percent); 

- financing of mortgage amounted to KGS 1,6 billion (increased by 52,0 percent);  

- consumer financing amounted to KGS 1,4 billion (decreased by 46,0 percent);  

- other purposes financing amounted to KGS 0,7 billion (increased by 63,9 percent).  

The share of non-performing loans in the credit portfolio of the banking system made 11.9 percent or KGS 34.1 billion (at the end of 2023 – 9.2 percent, or KGS 23.8 billion). The volume of overdue loans increased by KGS 0.6 billion year-to-date, or 10 percent and amounted to KGS 7.1 billion or 2.5 percent of the credit portfolio of the banking system. 

The volume of overdue of financing under the Islamic principles amounted to KGS 0,4 billion, or 1,6 percent of the total financing of the banking system increased by KGS 0,1 billion, or 58,1 percent, since the beginning of the year. 

Total liabilities of the banking sector increased by 23.6 percent year-to-date and amounted to KGS 630.1 billion (at the end of 2023 – KGS 510 billion). 

Aggregate deposit base of clients of the banking sector4 increased by 23.9 percent year-to-date and amounted to KGS 534.5 billion (at the end of 2023 – KGS 431.3 billion), including: 

- deposits of the legal entities totaled KGS 211.8 billion (increased by 29.4 percent); 

- deposits of the individuals totaled KGS 186 billion (increased by 13.5 percent); 

- deposits of the authorities totaled KGS 64.1 billion (increased by 64.1 percent); 

- deposits of the non-residents totaled KGS 69.3 billion (increased by 11.4 percent); 

- deposits of other financial-credit organizations totaled KGS 3.4 billion (increased by 30.2 percent). 

The level of dollarization of the credit portfolio of the banking sector has decreased by 1.4 percent since the beginning of 2024 and made 20.7 percent. The level of dollarization of the deposit base of the banking sector decreased by 2.7 percentage points compared to the beginning of 2024 and made 42.9 percent. 

The net total capital of the banking sector being applied to calculate the prudential standards set by the NBKR increased by 10.5 percent year-to-date and amounted to KGS 117.5 billion (at the end of 2023 – KGS 106.3 billion). The share of foreign participation in capital of the banking sector made 16.9 percent or KGS 12.2 billion of the paid-up authorized capital of the banking sector (at the end of 2023 – 20.3 percent or KGS 12.2 billion). 

The total capital adequacy ratio of the banking sector made 23.1 percent (at the end of 2023 – 24.8 percent) with the standard of 12 percent, the leverage ratio of the banking sector made 12.5 percent (at the end of 2023 – 12.4 percent) with the standard of 6 percent. 

The liquidity ratio of the banking system made 78.3 percent (at the end of 2023 – 77.4 percent) with the standard of 45 percent. 

Return on assets of the banking sector (ROA) was 4.6 percent (at the end of 2023 – 4.4 percent) and return on equity (ROE) made 32.2 percent (at the end of 2023 – 32.4 percent). 

The level of financial intermediation was as follows:  

- (assets / GDP) made 56.7 percent (at the end of 2023 – 50.0 percent); 

- (loans3 / GDP) made 21.8 percent (at the end of 2023 – 21.0 percent); 

- (deposits4 / GDP) made 40.6 percent (at the end of 2023 – 35.1 percent). 

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1 Preliminary data. 

2 For reference: in the same period of 2023, the amount of profit totaled KGS 14079.5 million. 

3 Excluding loans extended to the banks and other financial-credit organizations. Taking into account financing under the Islamic principles. 

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