Kyrgyzstan's banking sector shows growth in assets and profits

As of 31 July, the Kyrgyz banking system reported record results. There are still 21 commercial banks operating in the country (author's note: four new banks are awaiting licences to enter the market) and more than 300 branches. Their total profit since the beginning of the year has exceeded 17.6 billion KGS.

The main indicator — assets — grew by almost a third and reached 1.03 trillion KGS. For comparison, at the end of last year, they amounted to 815.6 billion.

However, the growth in lending is particularly noticeable. The total portfolio of bank customers reached 429.6 billion KGS, increasing by 26.1% over seven months. While loans to industry and construction are growing at a moderate pace (+8.2% to 15.2 billion KGS and +10.2% to 15 billion, respectively), demand for loans among the population showed an immediate increase of 45.3%. Consumer loans accounted for 33.6% of the loan portfolio, or 144.2 billion KGS.

This means that more and more Kyrgyz citizens are living in debt, taking out loans for goods, services, repairs or travel. Mortgages also increased by more than 22.2% to 47.9 billion KGS, reflecting the revival of the housing market.

Traditionally high levels of trade lending remain — over 105.4 billion KGS (+17.2% for the year).

Overall, the banking sector looks confident. Profits are growing, assets are expanding, and lending is covering more and more areas.