Development trends of the banking sector 

(as of August 31, 20241) 

As of August 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 21317.8 million year-to-date2. 

Aggregate assets of the banking sector increased by 20.1 percent year-to-date and totaled KGS 737.7 billion (at the end of 2023 – KGS 614.3 billion). 

Volume of the credit portfolio3 of clients of the banking sector increased by 14.4 percent year-to-date and amounted to KGS 295 billion (at the end of 2023 – KGS 257.8 billion), including the sectors as follows: 

- loans for industry amounted to KGS 12.8 billion (decreased by 4.7 percent); 

- loans for agriculture amounted to KGS 47 billion (increased by 11.5 percent); 

- loans for commerce amounted to KGS 77.6 billion (increased by 4.8 percent); 

- loans for construction amounted to KGS 13.4 billion (increased by 13.2 percent); 

- loans for mortgage amounted to KGS 34.4 billion (increased by 14.5 percent); 

- consumer loans amounted to KGS 77.2 billion (increased by 38.3 percent); 

- other loans amounted to KGS 32.5 billion (increased by 6.8 percent). 

The volume of financing under the Islamic principles increased by 11,2 percent year-to-date and amounted to KGS 6,7 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 100,0 percent); 

- financing of agriculture amounted to KGS 1,0 billion (increased by 61,5 percent); 

- financing of commerce amounted to KGS 0,8 billion (increased by 12,4 percent); 

- financing of construction amounted to KGS 0,5 billion (increased by 8,8 percent); 

- financing of mortgage amounted to KGS 1,9 billion (increased by 83,0 percent);  

- consumer financing amounted to KGS 1,3 billion (decreased by 47,8 percent);  

- other purposes financing amounted to KGS 0,8 billion (increased by 77,5 percent).  

The share of non-performing loans in the credit portfolio of the banking system made 12.1 percent or KGS 35.6 billion (at the end of 2023 – 9.2 percent, or KGS 23.8 billion). The volume of overdue loans increased by KGS 0.7 billion year-to-date, or 11.7 percent and amounted to KGS 7.2 billion or 2.4 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 1,7 percent of the total financing of the banking system, an increased to KGS of 0,2 billion, or 63,6 percent, since the beginning of the year. 

Total liabilities of the banking sector increased by 21.1 percent year-to-date and amounted to KGS 617.6 billion (at the end of 2023 – KGS 510 billion). 

Aggregate deposit base of clients of the banking sector4 increased by 22.5 percent year-to-date and amounted to KGS 528.6 billion (at the end of 2023 – KGS 431.3 billion), including: 

- deposits of the legal entities totaled KGS 201.2 billion (increased by 22.9 percent); 

- deposits of the individuals totaled KGS 188.8 billion (increased by 15.2 percent); 

- deposits of the authorities totaled KGS 64.2 billion (increased by 64.5 percent); 

- deposits of the non-residents totaled KGS 71.2 billion (increased by 14.5 percent); 

- deposits of other financial-credit organizations totaled KGS 3.2 billion (increased by 23.6 percent). 

The level of dollarization of the credit portfolio of the banking sector has decreased by 1.6 percent since the beginning of 2024 and made 20.4 percent. The level of dollarization of the deposit base of the banking sector decreased by 3.2 percentage points compared to the beginning of 2024 and made 42.4 percent. 

The net total capital of the banking sector being applied to calculate the prudential standards set by the NBKR increased by 14 percent year-to-date and amounted to KGS 121.1 billion (at the end of 2023 – KGS 106.3 billion). The share of foreign participation in capital of the banking sector made 21.3 percent or KGS 16.2 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 23.9 percent (at the end of 2023 – 24.8 percent) with the standard of 12 percent, the leverage ratio of the banking sector made 12.6 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 4.7 percent (at the end of 2023 – 4.4 percent) and return on equity (ROE) made 33.4 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 – 50.0 percent); 

- (loans3 / GDP) made 22.3 percent (at the end of 2023 – 21.0 percent); 

- (deposits4 / GDP) made 40.0 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 16330.9 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.