Development trends of the banking sector 

(as of December 31, 20241) 

As of December 31, 2024 (hereinafter referred to as the reporting date), 21 commercial banks and 304 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 31.1 billion year-to-date2. 

Aggregate assets of the banking sector increased by 32.8 percent year-to-date and totaled KGS 815.7 billion (at the end of 2023 – KGS 614.3 billion). 

Volume of the credit portfolio3 of clients of the banking sector increased by 32.2 percent year-to-date and amounted to KGS 340.7 billion (at the end of 2023 – KGS 257.8 billion), including the sectors as follows: 

- loans for industry amounted to KGS 14 billion (increased by 4.7 percent); 

- loans for agriculture amounted to KGS 47.4 billion (increased by 12.4 percent); 

- loans for commerce amounted to KGS 89.9 billion (increased by 21.5 percent); 

- loans for construction amounted to KGS 13.6 billion (increased by 14.4 percent); 

- loans for mortgage amounted to KGS 39.2 billion (increased by 30.5 percent); 

- consumer loans amounted to KGS 99.2 billion (increased by 77.8 percent); 

- other loans amounted to KGS 37.4 billion (increased by 22.7 percent). 

The volume of financing under the Islamic principles increased by 49,3 percent year-to-date and amounted to KGS 9,0 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 93,8 percent); 

- financing of agriculture amounted to KGS 1,3 billion (increased by 109,5 percent); 

- financing of commerce amounted to KGS 1,0 billion (increased by 40,2 percent); 

- financing of construction amounted to KGS 0,5 billion (increased by 1,0 percent); 

- financing of mortgage amounted to KGS 3,2 billion (increased by 213,9 percent);  

- consumer financing amounted to KGS 1,6 billion (decreased by 37,0 percent);  

- other purposes financing amounted to KGS 1,0 billion (increased by 128,2 percent). 

The share of non-performing loans in the credit portfolio of the banking system made 10.8 percent or KGS 36.6 billion (at the end of 2023 – 9.2 percent, or KGS 23.8 billion). The volume of overdue loans decreased by KGS 30.5 million year-to-date, or 0.5 percent and amounted to KGS 6.4 billion or 1.9 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 2,4 percent of the total financing of the banking system, an increased to KGS of 0,1 billion, or 49,8 percent, since the beginning of the year. 

Total liabilities of the banking sector increased by 34.3 percent year-to-date and amounted to KGS 684.9 billion (at the end of 2023 – KGS 510 billion). 

Aggregate deposit base of clients of the banking sector4 increased by 37.3 percent year-to-date and amounted to KGS 592.4 billion (at the end of 2023 – KGS 431.3 billion), including: 

- deposits of the legal entities totaled KGS 246.3 billion (increased by 50.5 percent); 

- deposits of the individuals totaled KGS 207.7 billion (increased by 26.7 percent); 

- deposits of the authorities totaled KGS 51.7 billion (increased by 32.5 percent); 

- deposits of the non-residents totaled KGS 75.4 billion (increased by 21.1 percent); 

- deposits of other financial-credit organizations totaled KGS 11.4 billion (increased by 341.7 percent). 

The level of dollarization of the credit portfolio of the banking sector has decreased by 2.0 percent since the beginning of 2024 and made 20.1 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 24.8 percent year-to-date and amounted to KGS 132.6 billion (at the end of 2023 – KGS 106.3 billion). The share of foreign participation in capital of the banking sector made 28.0 percent or KGS 21.6 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 22.0 percent (at the end of 2023 – 24.8 percent) with the standard of 12 percent, the leverage ratio of the banking sector made 11.4 percent (at the end of 2023 – 12.4 percent) with the standard of 6 percent. 

The liquidity ratio of the banking system made 73.1 percent (at the end of 2023 – 77.4 percent) with the standard of 45 percent. 

Return on assets of the banking sector (ROA) was 4.3 percent (at the end of 2023 – 4.4 percent) and return on equity (ROE) made 32.5 percent (at the end of 2023 – 32.4 percent). 

The level of financial intermediation was as follows:  

- (assets / GDP) made 53.6 percent (at the end of 2023 – 50.0 percent); 

- (loans3 / GDP) made 22.4 percent (at the end of 2023 – 21.0 percent); 

- (deposits4 / GDP) made 38.9 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 24.2 billion. 

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.