Development trends of the banking sector
(as of July 31, 20251)
As of July 31, 2025 (hereinafter referred to as the reporting date), 21 commercial banks and 303 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 17657.5 million year-to-date2.
Aggregate assets of the banking sector increased by 26.9 percent year-to-date and totaled KGS 1034.9 billion (at the end of 2024 – KGS 815.6 billion).
Volume of the credit portfolio3 of clients of the banking sector increased by 26.1 percent year-to-date and amounted to KGS 429.6 billion (at the end of 2024 – KGS 340.7 billion), including the sectors as follows:
- loans for industry amounted to KGS 15.2 billion (increased by 8.2 percent);
- loans for agriculture amounted to KGS 52.9 billion (increased by 11.6 percent);
- loans for commerce amounted to KGS 105.4 billion (increased by 17.2 percent);
- loans for construction amounted to KGS 15 billion (increased by 10.2 percent);
- loans for mortgage amounted to KGS 47.9 billion (increased by 22.2 percent);
- consumer loans amounted to KGS 144.2 billion (increased by 45.3 percent);
- other loans amounted to KGS 49 billion (increased by 31.2 percent).
The volume of financing under the Islamic principles increased by 61 percent year-to-date and amounted to KGS 14.5 billion (at the end of 2024 – KGS 9 billion), including the sectors as follows:
- financing of industry amounted to KGS 0.4 billion (increased by 10.4 percent);
- financing of agriculture amounted to KGS 2 billion (increased by 47.6 percent);
- financing of commerce amounted to KGS 1.3 billion (increased by 26.8 percent);
- financing of construction amounted to KGS 0.7 billion (increased by 33.7 percent);
- financing of mortgage amounted to KGS 5.3 billion increased by 64.5 percent);
- consumer financing amounted to KGS 2.9 billion (increased by 82 percent);
- other purposes financing amounted to KGS 2 billion (increased by 97.2 percent).
The share of non-performing loans in the credit portfolio of the banking system made 10.4 percent or KGS 44.8 billion (at the end of 2024 – 10.8 percent, or KGS 36.6 billion). The volume of overdue loans increased by KGS 0.9 billion year-to-date, or 13.5 percent and amounted to KGS 7.3 billion or 1.7 percent of the credit portfolio of the banking system.
The volume of overdue of financing under the Islamic principles amounted to KGS 0.3 billion, or 2.3 percent of the total financing of the banking system, an decreased to KGS of 0.03 billion, or 8.6 percent, since the beginning of the year.
Total liabilities of the banking sector increased by 21.3 percent year-to-date and amounted to KGS 830.8 billion (at the end of 2024 – KGS 684.8 billion).
Aggregate deposit base of clients of the banking sector4 increased by 21.1 percent year-to-date and amounted to KGS 717.6 billion (at the end of 2024 – KGS 592.4 billion), including:
- deposits of the legal entities totaled KGS 304.9 billion (increased by 23.8 percent);
- deposits of the individuals totaled KGS 247.6 billion (increased by 19.2 percent);
- deposits of the authorities totaled KGS 62.5 billion (increased by 20.8 percent);
- deposits of the non-residents totaled KGS 90.7 billion (increased by 20.3 percent);
- deposits of other financial-credit organizations totaled KGS 12 billion (increased by 5.4 percent).
The level of dollarization of the credit portfolio of the banking sector has decreased by 2.2 percent since the beginning of 2025 and made 17.8 percent. The level of dollarization of the deposit base of the banking sector decreased by 5.1 percentage points compared to the beginning of 2025 and made 37.8 percent.
The net total capital of the banking sector being applied to calculate the prudential standards set by the NBKR increased by 55.5 percent year-to-date and amounted to KGS 206.2 billion (at the end of 2024 – KGS 132.6 billion). The share of foreign participation in capital of the banking sector made 16.8 percent or KGS 26.7 billion of the paid-up authorized capital of the banking sector (at the end of 2024 – 28 percent or KGS 21.6 billion).
The total capital adequacy ratio of the banking sector made 29.2 percent (at the end of 2024 – 22 percent) with the standard of 12 percent, the leverage ratio of the banking sector made 17 percent (at the end of 2024 – 11.4 percent) with the standard of 6 percent.
The liquidity ratio of the banking system made 77.9 percent (at the end of 2024 – 73.1 percent) with the standard of 45 percent.
Return on assets of the banking sector (ROA) was 4 percent (at the end of 2024 – 4.3 percent) and return on equity (ROE) made 28.9 percent (at the end of 2024 – 32.5 percent).
The level of financial intermediation was as follows:
- (assets / GDP) made 61.8 percent (at the end of 2024 – 53.5 percent);
- (loans3 / GDP) made 25.7 percent (at the end of 2024 – 22.4 percent);
- (deposits4 / GDP) made 42.9 percent (at the end of 2024 – 38.9 percent).
_____________________________
1 Preliminary data.
2 For reference: in the same period of 2024, the amount of profit totaled KGS 17979.2 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 on the deposit and settlement accounts.