The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published an update on banking sector indicators as of 1 June 2025, showing balance sheet expansion in May alongside stable asset quality. The sector comprised 21 second-tier banks, including 13 banks with foreign participation (nine subsidiaries), while total assets increased 1.2% in May to KZT 63.4 trillion, mainly driven by a 1.7% rise in the loan portfolio to KZT 37.9 trillion. Loans to the economy grew 1.3% in May to KZT 35.5 trillion, with KZT-denominated lending up 1.4% to KZT 32.8 trillion and foreign-currency lending up 0.3% to KZT 2.7 trillion. Business lending rose 0.6% to KZT 13.4 trillion, as SME loans increased 0.7% to KZT 5.8 trillion and lending to individual entrepreneurs rose 3.0% to KZT 2.6 trillion, while large-business lending fell 0.9% to KZT 5.0 trillion following early repayments in trade; new business lending totalled KZT 1.5 trillion in May and the weighted average rate on KZT business loans held at 21.3%. Household lending increased 1.8% to KZT 22.1 trillion on higher consumer loans (up 1.9% to KZT 14.9 trillion) and mortgages (up 1.7% to KZT 6.3 trillion), with the weighted average rate on KZT household loans at 19.9%; NPL90+ remained at 3.4% of the loan portfolio (KZT 1.3 trillion), including 4.3% for retail and 2.2% for corporate exposures, with 66.8% provisioning coverage. Liabilities rose 1.3% in May to KZT 54.3 trillion, supported by a 0.8% increase in client deposits and a 24% rise in repo operations, with client deposits accounting for 80% of liabilities at KZT 43.4 trillion. Resident deposits increased 0.3% to KZT 41.4 trillion and deposit dollarisation edged up to 22.9%; weighted average KZT term deposit rates were 15.4% for non-bank corporates and 14.3% for individuals. Equity increased 0.5% to KZT 9.1 trillion, while capital adequacy ratios stood at 19.3% (k1) and 20.8% (k2), remaining above statutory prudential norms; banks reported KZT 1.1 trillion in net profit for January to May, with ROA at 4.6% and ROE at 31.6%.
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan 2025-07-01
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan reports May 2025 rise in bank assets to KZT 63.4 trillion and economy lending to KZT 35.5 trillion
The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan reported a 1.2% increase in total banking sector assets in May 2025, reaching KZT 63.4 trillion, driven by a 1.7% rise in the loan portfolio. Liabilities grew 1.3% to KZT 54.3 trillion, with client deposits making up 80% of liabilities, while capital adequacy ratios remained above statutory norms.