The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published a monthly update on the banking sector showing continued balance-sheet growth as of June 1. The sector comprised 23 second-tier banks, including 10 subsidiaries. Total assets rose 2.3% in May to KZT73.0 trillion, mainly driven by a 4.0% increase in liquid assets to KZT26.8 trillion, while highly liquid assets stood at KZT21.0 trillion or 28.8% of total assets. The loan portfolio to the economy increased 1.5% in May to KZT41.3 trillion, supported by business lending, and liabilities rose 2.6% to KZT62.0 trillion, helped by a 2.5% increase in household deposits. Credit growth was led by business loans, which increased 2.9% in May to KZT15.8 trillion, with large corporate lending up 6.6% to KZT5.0 trillion and small and medium-sized enterprise loans up 1.5% to KZT7.5 trillion. Household loans rose 0.7% to KZT25.5 trillion, including consumer loans up 0.5% to KZT17.1 trillion and mortgage loans up 1.5% to KZT7.3 trillion. Banks issued KZT3.1 trillion in new loans during May, unchanged from a year earlier, while new lending to businesses reached KZT1.7 trillion, 33.5% above May 2025. Deposits at resident deposit-taking institutions increased 1.6% to KZT47.9 trillion, with household deposits up 2.2% to KZT27.2 trillion and corporate deposits up 0.8% to KZT20.7 trillion. Foreign currency deposits fell 0.4% to KZT9.6 trillion, lowering deposit dollarization to 20.0% from 20.4% in April. Asset quality and capital indicators remained strong in the published data. Loans overdue by more than 90 days accounted for 4.2% of the total loan portfolio, including 4.9% for household loans and 3.3% for business loans, while provisioning coverage of nonperforming loans was 61.0%. Sector capital rose 0.7% in May to KZT11.1 trillion, with capital adequacy ratios at 19.8% for k1 and 20.5% for k2. Since the start of 2026, banks earned KZT1,036 billion in net profit, down 9.4% from the same period of 2025, while return on assets was 3.8% and return on equity was 25.2%.
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan2026-07-07
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan reports bank assets rose to KZT73 trillion and loan growth continued in May
The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan reported that bank assets rose 2.3% in May to KZT73.0 trillion and loans to the economy increased 1.5% to KZT41.3 trillion as of June 1. Business lending drove the increase, while resident deposits rose to KZT47.9 trillion and deposit dollarization fell to 20.0%. NPL90+ stood at 4.2% of loans, and capital adequacy remained high at 19.8% for k1 and 20.5% for k2.