Development trends of the banking sector
(as of August 31, 20251)
As of August 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 20290.5 million year-to-date2.
Aggregate assets of the banking sector increased by 29.7 percent year-to-date and totaled KGS 1058.1 billion (at the end of 2024 – KGS 815.6 billion).
Volume of the credit portfolio3 of clients of the banking sector increased by 31.3 percent year-to-date and amounted to KGS 447.3 billion (at the end of 2024 – KGS 340.7 billion), including the sectors as follows:
- loans for industry amounted to KGS 10.9 billion (decreased by 22.1 percent). (The change is due to a revision of reporting formats and the reallocation to other sectors. The total volume and trends of lending have not changed since the beginning of the year, demonstrating an increase in lending to the country’s economy);
- loans for agriculture amounted to KGS 53.4 billion (increased by 12.7 percent);
- loans for commerce amounted to KGS 106.0 billion (increased by 17.9 percent);
- loans for construction amounted to KGS 16.4 billion (increased by 21 percent);
- loans for mortgage amounted to KGS 49.3 billion (increased by 25.8 percent);
- consumer loans amounted to KGS 150.5 billion (increased by 51.7 percent);
- other loans amounted to KGS 60.7 billion (increased by 62.6 percent). (The change is due to a revision of the reporting formats and the aggregation structure of “other loans”).
The volume of financing under the Islamic principles increased by 70 percent year-to-date and amounted to KGS 15.4 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 8.4 percent);
- financing of agriculture amounted to KGS 2 billion (increased by 52 percent);
- financing of commerce amounted to KGS 1.3 billion (increased by 26.7 percent);
- financing of construction amounted to KGS 0.7 billion (increased by 44.2 percent);
- financing of mortgage amounted to KGS 5.7 billion increased by 77.2 percent);
- consumer financing amounted to KGS 3.8 billion (increased by 136.4 percent);
- other purposes financing amounted to KGS 1.4 billion (increased by 41.3 percent).
The share of non-performing loans in the credit portfolio of the banking system made 10.5 percent or KGS 47 billion (at the end of 2024 – 10.8 percent, or KGS 36.6 billion). The volume of overdue loans increased by KGS 1.6 billion year-to-date, or 24.4 percent and amounted to KGS 7.9 billion or 1.8 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 2.2 percent of the total financing of the banking system, an decreased by 9.2 percent, since the beginning of the year.
Total liabilities of the banking sector increased by 24.1 percent year-to-date and amounted to KGS 850.1 billion (at the end of 2024 – KGS 684.8 billion).
Aggregate deposit base of clients of the banking sector4 increased by 25.1 percent year-to-date and amounted to KGS 741 billion (at the end of 2024 – KGS 592.4 billion), including:
- deposits of the legal entities totaled KGS 314.1 billion (increased by 27.6 percent);
- deposits of the individuals totaled KGS 253.8 billion (increased by 22.2 percent);
- deposits of the authorities totaled KGS 68.7 billion (increased by 32.8 percent);
- deposits of the non-residents totaled KGS 92.5 billion (increased by 22.8 percent);
- deposits of other financial-credit organizations totaled KGS 11.8 billion (increased by 3.7 percent).
The level of dollarization of the credit portfolio of the banking sector has decreased by 2 percent since the beginning of 2025 and made 18 percent. The level of dollarization of the deposit base of the banking sector decreased by 4.2 percentage points compared to the beginning of 2025 and made 38.7 percent.
The net total capital of the banking sector being applied to calculate the prudential standards set by the NBKR increased by 55 percent year-to-date and amounted to KGS 205.5 billion (at the end of 2024 – KGS 132.6 billion). The share of foreign participation in capital of the banking sector made 16.6 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 28.4 percent (at the end of 2024 – 22 percent) with the standard of 12 percent, the leverage ratio of the banking sector made 16.6 percent (at the end of 2024 – 11.4 percent) with the standard of 6 percent.
The liquidity ratio of the banking system made 80.3 percent (at the end of 2024 – 73.1 percent) with the standard of 45 percent.
Return on assets of the banking sector (ROA) was 3.7 percent (at the end of 2024 – 4.3 percent) and return on equity (ROE) made 24.6 percent (at the end of 2024 – 32.5 percent).
The level of financial intermediation was as follows:
- (assets / GDP) made 61.9 percent (at the end of 2024 – 53.5 percent);
- (loans3 / GDP) made 26.1 percent (at the end of 2024 – 22.4 percent);
- (deposits4 / GDP) made 43.3 percent (at the end of 2024 – 38.9 percent).
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1 Preliminary data.
2 For reference: in the same period of 2024, the amount of profit totaled KGS 21317.8 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.