Development trends of the banking sector 

(as of September 30, 20241) 

As of September 30, 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 24115.9 million year-to-date2. 

Aggregate assets of the banking sector increased by 25.5 percent year-to-date and totaled KGS 770.8 billion (at the end of 2023 – KGS 614.3 billion). 

Volume of the credit portfolio3 of clients of the banking sector increased by 16.7 percent year-to-date and amounted to KGS 300.8 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 5.1 percent); 

- loans for agriculture amounted to KGS 47.1 billion (increased by 11.6 percent); 

- loans for commerce amounted to KGS 77.9 billion (increased by 5.3 percent); 

- loans for construction amounted to KGS 13.2 billion (increased by 11.2 percent); 

- loans for mortgage amounted to KGS 35.5 billion (increased by 18.3 percent); 

- consumer loans amounted to KGS 81.1 billion (increased by 45.3 percent); 

- other loans amounted to KGS 33.2 billion (increased by 8.9 percent). 

The volume of financing under the Islamic principles increased by 18,8 percent year-to-date and amounted to KGS 7,2 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 94,2 percent); 

- financing of agriculture amounted to KGS 1,1 billion (increased by 77,9 percent); 

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

- financing of construction amounted to KGS 0,5 billion (increased by 8,3 percent); 

- financing of mortgage amounted to KGS 2,2 billion (increased by 116,2 percent);  

- consumer financing amounted to KGS 1,3 billion (decreased by 48,3 percent);  

- other purposes financing amounted to KGS 0,8 billion (increased by 86,2 percent).  

The share of non-performing loans in the credit portfolio of the banking system made 11.3 percent or KGS 33.9 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 12.7 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 1,9 percent of the total financing of the banking system, an increased to KGS of 0,1 billion, or 57,8 percent, since the beginning of the year. 

Total liabilities of the banking sector increased by 27 percent year-to-date and amounted to KGS 648 billion (at the end of 2023 – KGS 510 billion). 

Aggregate deposit base of clients of the banking sector4 increased by 28.8 percent year-to-date and amounted to KGS 555.4 billion (at the end of 2023 – KGS 431.3 billion), including: 

- deposits of the legal entities totaled KGS 230.2 billion (increased by 40.7 percent); 

- deposits of the individuals totaled KGS 188.4 billion (increased by 15 percent); 

- deposits of the authorities totaled KGS 63.9 billion (increased by 63.8 percent); 

- deposits of the non-residents totaled KGS 69.6 billion (increased by 11.8 percent); 

- deposits of other financial-credit organizations totaled KGS 3.4 billion (increased by 30.1 percent). 

The level of dollarization of the credit portfolio of the banking sector has decreased by 2.1 percent since the beginning of 2024 and made 19.9 percent. The level of dollarization of the deposit base of the banking sector decreased by 1.8 percentage points compared to the beginning of 2024 and made 43.9 percent. 

The net total capital of the banking sector being applied to calculate the prudential standards set by the NBKR increased by 16.7 percent year-to-date and amounted to KGS 124 billion (at the end of 2023 – KGS 106.3 billion). The share of foreign participation in capital of the banking sector made 21.2 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 percent (at the end of 2023 – 12.4 percent) with the standard of 6 percent. 

The liquidity ratio of the banking system made 78.7 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 34 percent (at the end of 2023 – 32.4 percent). 

The level of financial intermediation was as follows:  

- (assets / GDP) made 57.3 percent (at the end of 2023 – 50 percent); 

- (loans3 / GDP) made 22.4 percent (at the end of 2023 – 21 percent); 

- (deposits4 / GDP) made 41.3 percent (at the end of 2023 – 35.1 percent). 

_____________________________ 

1 Preliminary data. 

2 For reference: in the same period of 2023, the amount of profit totaled KGS 18571.3 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.