Development trends of the banking sector 

(as of June 30, 20241) 

As of June 30, 2024 (hereinafter referred to as the reporting date), 21 commercial banks and 305 branches of the commercial banks operated in the Kyrgyz Republic. 

The banking system received net profit in the amount of KGS 14158.8 million year-to-date2. 

Aggregate assets of the banking sector increased by 18.4 percent year-to-date and totaled KGS 727.3 billion (at the end of 2023 – KGS 614.3 billion). 

Volume of the credit portfolio3 of clients of the banking sector increased by 9 percent year-to-date and amounted to KGS 281.1 billion (at the end of 2023 – KGS 257.8 billion), including the sectors as follows: 

- loans for industry amounted to KGS 12.4 billion (decreased by 7.2 percent); 

- loans for agriculture amounted to KGS 46.1 billion (increased by 9.1 percent); 

- loans for commerce amounted to KGS 77.5 billion (increased by 4.6 percent); 

- loans for construction amounted to KGS 13.5 billion (increased by 13.3 percent); 

- loans for mortgage amounted to KGS 32.6 billion (increased by 8.7 percent); 

- consumer loans amounted to KGS 67.5 billion (increased by 20.9 percent); 

- other loans amounted to KGS 31.5 billion (increased by 3.5 percent). 

The share of non-performing loans in the credit portfolio of the banking system made 12.1 percent or KGS 33.8 billion (at the end of 2023 – 9.2 percent, or KGS 23.8 billion). The volume of overdue loans increased by KGS 0.8 billion year-to-date, or 12.1 percent and amounted to KGS 7.2 billion or 2.6 percent of the credit portfolio of the banking system. 

Total liabilities of the banking sector increased by 21.3 percent year-to-date and amounted to KGS 618.3 billion (at the end of 2023 – KGS 510 billion). 

Aggregate deposit base of clients of the banking sector4 increased by 21 percent year-to-date and amounted to KGS 522.1 billion (at the end of 2023 – KGS 431.3 billion), including: 

- deposits of the legal entities totaled KGS 201.3 billion (increased by 23 percent); 

- deposits of the individuals totaled KGS 184.3 billion (increased by 12.5 percent); 

- deposits of the authorities totaled KGS 61.3 billion (increased by 57 percent); 

- deposits of the non-residents totaled KGS 72.1 billion (increased by 15.9 percent); 

- deposits of other financial-credit organizations totaled KGS 3.2 billion (increased by 24.2 percent). 

The level of dollarization of the credit portfolio of the banking sector has decreased by 0.9 percent since the beginning of 2024 and made 21.1 percent. The level of dollarization of the deposit base of the banking sector decreased by 2.4 percentage points compared to the beginning of 2024 and made 43.22 percent. 

The net total capital of the banking sector being applied to calculate the prudential standards set by the NBKR increased by 3.6 percent year-to-date and amounted to KGS 110 billion (at the end of 2023 – KGS 106.3 billion). The share of foreign participation in capital of the banking sector made 17.9 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 22.3 percent (at the end of 2023 – 24.8 percent) with the standard of 12 percent, the leverage ratio of the banking sector made 12.3 percent (at the end of 2023 – 12.4 percent) with the standard of 6 percent. 

The liquidity ratio of the banking system made 78.8 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 29.6 percent (at the end of 2023 – 32.4 percent). 

The level of financial intermediation was as follows:  

- (assets / GDP) made 55.8 percent (at the end of 2023 – 50 percent); 

- (loans3 / GDP) made 21.6 percent (at the end of 2023 – 21 percent); 

- (deposits4 / GDP) made 40 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 12033.6 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.